The way people buy cars is changing fast, leaving old sales tactics in the dust, so dealerships around the world are being pushed to totally rethink how they handle customer experience (CX).
Technology is in the driving seat here, as more people are shopping for and
buying cars online than ever before. Ernst & Young found that 25% of buyers are now finalizing the sale over the internet, up from only 18% in 2021.
Plus, nearly a third of shoppers are doing all their research online before they even set foot in a dealership.
Because of this, carmakers are experimenting with direct-to-consumer sales online.
Brands like Tesla and Rivian are leading the pack with their digital-first approach, but even the traditional OEMs are starting to catch on. And this is putting the old dealership model in a bit of a crisis.
That said, it’s not all doom and gloom. Most buyers still want to interact with a real person at some point in the process, whether it’s to test drive the car or talk about financing options. Even Tesla has physical locations for test drives and repairs, so in-person experiences are likely to stick around.
So, what’s the way forward? Let’s take a closer look at the car-buying journey and how combining online and in-person interactions to create “phygital” experiences is the solution to keep your dealership in pole position.
The Automotive CX Journey
Most people kick things off by researching vehicles online. They’ll visit brand websites, read reviews, compare prices, and check out different features. A lot of them turn to social media for advice from friends or car experts. Once they’ve narrowed down their options, it’s off to the dealership to see the car up close – maybe they’ll book a test drive or chat with a salesperson to get more details at this point.
When they’re ready to buy, some brands now let customers finalize the deal online. They can pick their car, customize it, and even sort out financing right from their computer or phone. But most people still prefer visiting the dealership to wrap things up. At that point, they’ll take care of paperwork, discuss financing, and probably give the car one last test drive before signing on the dotted line.
After the sale, customers will usually get some digital follow-ups, like reminders about services, warranty info, and maybe even a quick survey to see how they’re feeling about their new ride. A lot of brands also offer apps where owners can keep track of maintenance and book service appointments. And, of course, they often head back to the dealership for repairs or regular maintenance.
Every single step is a chance to build up trust and boost your dealership’s reputation. That’s why it’s so important to strike a good balance between physical and digital experiences. But what’s stopping the industry from nailing this down?
Unique Industry Challenges
OEMs and car dealerships are both trying to win over the same customers. Still, with the direct-to-consumer model gaining traction, they often end up working separately, which can make the whole car-buying experience feel pretty disconnected for customers. And when that happens, nobody wins.
For OEMs, the big hurdle is trying to build a direct relationship with customers, even though most of the sales still happen at the dealership level. People are starting to expect a direct-to-consumer setup, similar to how they buy other products – order online, get it delivered, done.
OEMs want to jump on this trend, but they can’t just cut dealerships out of the loop. If a customer has a smooth, personalized online buying process but walks into a dealership that feels completely out of sync, trust is broken. Regardless of who owns the sale, the experience should always flow from the website to the showroom without any hiccups.
Dealerships, on the other hand, have their own set of challenges. By the time customers come in, they’ve often done most of their research online. This can leave the salesperson just handling paperwork, which makes it harder to stand out and offer real value. To deal with this, dealerships need to step it up beyond just selling the car – they should offer things customers can’t get online, like real in-person expertise, personalized test drives, maybe some snacks and drinks, and flexible financing options.
A CX strategy that ties your in-store and digital experiences together makes the whole customer journey feel connected, no matter how or where they choose to interact.
Customers want recommendations based on what they’ve been looking at, real-time info on what’s available, and financing that fits their situation. That’s why it’s essential to have a system that tracks customer data across all touchpoints – from their time online to when they walk into the dealership. For example, if a customer has been checking out a specific model online, the dealership should already know this and have info about that exact car ready when they come in.
Another big challenge is balancing tech with good old-fashioned human interaction. Customers love the convenience of shopping online, comparing prices, and maybe even starting their financing without leaving their house. But when it’s time to sign, most still want to talk to a real person or take the car for a spin. Dealerships need to find a sweet spot – a hybrid approach where online tools make things easier, but human support is always available when needed.
Finally, after-sales service and customer retention are major issues – how do we keep customers engaged after they’ve driven off the lot? Whether it’s maintenance reminders, warranty support, or offering upgrades, you’ve got to stay in touch. If a customer feels forgotten after the sale, they’re less likely to come back for their next car or recommend the dealership to someone else.
Let’s look more closely at how dealerships can start moving these industry blockades aside.
By partnering with BPOs, dealerships looking to go phygital can stay focused on what they do best—selling cars and taking care of in-person needs—while ensuring that all customer interactions are handled professionally.
Roadmap to Phygital CX Success
Full Speed Ahead: BPO Partnership Perks
BPO partnerships can really speed things up for dealerships looking to go phygital. By outsourcing certain tasks, dealerships can stay focused on what they do best—selling cars and taking care of in-person needs—while ensuring that all customer interactions, whether online, over the phone, or through social media, are handled professionally.
One of the big perks of working with a BPO is scalability. Whether there’s a sudden spike in customer questions or a quieter period where communication still needs to stay steady, a BPO can adjust quickly to meet those demands. For instance, if there’s a new model launch and the number of inquiries or test-drive requests skyrockets, the BPO can handle that extra workload smoothly without overwhelming your internal team.
Another big advantage is inbound and outbound support. BPOs can take care of all the incoming customer inquiries, whether it’s someone asking about a car’s features or checking on the status of their order. On the outbound side, they can also handle things like welcome calls to new car owners. These post-sale calls go a long way in reinforcing the customer’s decision, giving them a chance to ask questions and get info on things like booking their first maintenance or learning more about their car’s features.
Lead generation and nurturing is another area where BPOs can really help. They’ll reach out to potential customers who’ve shown interest in a vehicle or promotion, and even follow up on incomplete online forms to encourage those customers to schedule a test drive or visit the dealership.
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