Digital Transformation – A Wake-Up Call for Traditional Dealerships

Conventional automotive dealers must recognize the use of digitization; the alarming dealer return decrease is a concern. The digital disruption in the automotive world is supported by innovations like dealer management software and car dealer management solutions to get a healthy return for the dealer. There has been a paradigm shift to digitization when it comes to offering improved experience for end-users. Enhancements Needed in Car Buying Journey There is a surprising fact here. In the year 2017, there was 1.2% increase in the used car sales compared to new cars in the Netherlands region. The statistics at the individual dealership has made a huge difference of 5% to 8% in their respective used car sales. Yet, adding the new car sales statistics will reduce it to 1,916 Euros sales figure. Outflow of Experienced Technicians a Concern With the constant decline in external sales for 3 years, there is a quick jump of 16.2% in the year 2018. In this development, there is an increase in 11.1% of the total technicians compare to previous year. This has resulted into a decrease in the department’s overall result from 24.6% to 22.9% respectively in the year 2017 to 2018. The significant increase in the new technicians clearly indicates that experienced resources are going out, though replaced with young engineers, but efficiency and productivity got affected. Digitization Required for Process Optimization Bert de Kroon, the chairman of BOVAG Car Dealers shared his concern by saying “The figures show that process optimization is crucial and it becomes a major challenge with an amateur staff. The general costs cannot be kept under control and in combination with the disappointing sales figures from the beginning of 2019.” It creates a space for legacy transformation to digital platform. And dealer management system should be instrumental here. In a Nutshell… Digitization and Digital Transformation are now essential for conventional automotive dealers when it comes to having significant increase in dealer return. Following are the key factors to improve dealership business.

• Digitize the backbone of the business
• Recognize, Personalize, and Empower customers
• Build a data-driven culture where sharing data is seen as beneficial, not a risk
• Reimagine the Car dealership business towards Mobility

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