You have to admit that being a car dealer wasn’t the easiest thing. Global car sales fell from 74.9 million units to 63.8 million from 2019 to 2020. Customers make decisions faster. This is because speed is important and people want things faster.
Customers are looking for online channels. 7 out of 10 buyers are more likely to buy from a retailer if they are able to start the process online. So the question now is, does your dealership have that capacity? At a minimum, a dealership should have social media channels – at least Facebook (and probably an Instagram account) – and an official website. Customers are increasingly mobile. 63% of consumers now use their mobile phones to compare car prices online.
What are the challenges facing car dealers now and how can using automobile dealer software solve this problem? Listed below are some of the most common problems faced by car dealers.
1. Bottlenecks in the supply of new cars
Due to the COVID-19 pandemic, there has been a major slowdown in the delivery of new car orders. Some travel restrictions and reduced manpower in factories due to health protocols are some of the main issues that have affected this bottleneck. Accordingly, the entire supply chain has been affected and sellers are not exempt. There has been a vast change in car sales since COVID. As clients have to wait longer for their orders, sales have slowed down. Moreover, customers today are not as happy as they used to be.
2. Increased demand for used cars
More and more car buyers these days are turning to used cars for two main reasons, either because of a tight budget or a shortage of new car stock due to a lack of chips. A lot depends on your customer base, your location, and what kind of vehicles the dealer normally sells.
3. After-sales service remains critical
As people travel less in the hybrid work environment that many professionals have now adopted, car servicing is not much of a priority. But there are other ways car dealers can add value to existing customers. First, sanitation and deep cleaning of vehicles seem to be an added premium in the context of the pandemic. In addition, people are looking for ways to perform preventive maintenance on problems caused by lower usage, such as moisture accumulation, faded paint, gas tank failure, and so on.
4. Harassing potential customers with irrelevant messages
Customers are getting smarter about the text messages and emails they receive from companies. Selling cars in the digital age is nothing like it used to be. More people are aware of promotional emails and spam messages than at the beginning of the 21st century. So now car dealers need to personalize messages with automobile dealer software. The more relevant the upsell, the more likely it is that prospects will convert into hot leads.
One of the priorities of the car sales team in 2022 and beyond should be using one of the best car sales CRMs to avoid lazy texts. Create niches and personas that your car dealership can best serve. Then tailor your message to address their pain points. If you’re targeting new families, what challenges do they face with a new car? What are their top priorities – safety, style, or fuel economy? What is their budget? Using a CRM tool to personalize these campaigns will help you increase your conversion rate.