The report suggest the five functions dealers need to address in the foreseeable future to survive: starting with the brick and click dealerships store itself…they suggest using digital technology (screens, tablets, holography, simulators and power walls instead of cars on display). It needs to have interactive pop ups with augmented or virtual reality experiences.
Secondly, your staff. Frost and Sullivan says staff will always play a crucial role in your sales environment. They suggest your staff needs to focus on using digital retail tools…and they say sales commission needs to be abolished immediately.
Thirdly, Frost and Sullivan say online sales needs to include booking or selling a new car, ownership models (online finance or leasing) to selling parts and service booking online.
Number four: going beyond the car sale and into mobility services…. thinking of cars as a service model. Frost and Sullivan suggest looking at all other services your dealership can package around mobility and sell to clients.
And five: KPIs drive behavior, so Frost and Sullivan say the key to changing the model lies there. They say OEMS and dealers need to shift away from KPIs which drive unintended consequences or gaming behavior and embrace true estimations of customer satisfaction, customer footfall; including ratings and reviews from those who have not bought a car, not just those who have.