On today’s show, we continue the conversation on digital retailing best practices and how the auto industry can elevate online transaction services. We’re pleased to welcome back Aaron Bickart, Executive Vice President and General Manager of OfferLogix.
Most car dealers believe that digital retailing is the future of the auto retail industry and Bickart agrees with that sentiment. He says that companies like Amazon, which started growing in popularity around 10 years ago, have now set the standard for online shopping. It’s difficult to imagine life without Amazon today because so many consumers rely on it. Car dealers are now in their infancy stages of digital retailing, and the tools and processes will only grow as time goes on. Digital retailing, however, is not only for sales. Bickart points out that it is also crucial to the service drive.
Bickart works with hundreds of car dealers, vendors, and OEM representatives and he says that, collectively, these groups are missing out on digital retailing opportunities because of the following elements:
- Payments: OfferLogix specializes in online transactions and there are only a handful of companies that can actually perform a transactional payment. Typically, companies build their own payment calculations, but they can only provide estimates and quotes which creates a disconnect between the consumer.
- Customer experience: Dealer calculation systems often don’t take into account different tier levels, multiple trade-in values, or incentives. The auto industry is complex and car dealers need to provide consumers with the greatest customer experience possible. Eliminate friction and confusion with transparent and accurate information.
- Speed and Convenience: Another Amazon feature that car dealers should take note of is the ‘1-click’ ordering function. It’s important to move the consumer through a quick, dynamic, and convenient car-buying journey.
Imagine for a moment if Amazon did not provide accurate prices down to the cent. You might be hard-pressed to find a consumer willing to make a purchase on an estimate alone. In fact, Bickart often visits SRP or VDP pages in the industry and finds that the advertised payment for a vehicle does not match the actual payment that is calculated further on in the buying process. This is a critical misstep that consumers don’t often understand. Their confidence and trust decrease when presented with conflicting information from retailers.
Making these changes to the digital retailing process will allow car dealers to compete with disruptors like Carvana and Vroom, at higher levels. While OfferLogix does not work directly with car dealers, they assist vendors with their unique, patented API that uses data from lenders, OEMs, trade-ins, FICO scores, and compliance regulations to come up with the most accurate payment plans for any given vehicle. While it might take 25 to 30 calls to bring all of this information together, with OfferLogix, it takes only one.
To learn more about OfferLogix, visit offerlogix.com.
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