The Rise of Virtual Dealerships: Why They May Be Right For You

Saturday, May 23, 2020

In a traditional dealership store, a customer walks in, engages with a salesperson, fills in the required paperwork, and drives their car home. This has been the norm for years until the pandemic hit. Dealerships were forced to close their shops, and as a result, lost thousands of customers.

What Are Virtual Dealerships?

Virtual dealerships carry out the car buying and selling process online instead of through a physical store. Virtual dealerships use a variety of ways to engage customers throughout the buying process, such as through extensive use of picture galleries, video tours, online financing forms, and home delivery options.

Today, most automobile companies are adopting virtual dealership models where they take care of the entire customer journey virtually.

Why Virtual Dealerships May Be Right For Your Business

For years, the car dealership industry has been highly focused on the brick-and-mortar model. Due to a lack of technological implementations in their models, the pandemic affected the industry heavily. However, times have changed and companies are quickly adopting the virtual dealership approach in their businesses.

According to a Harris Poll September 2020, where 2000 recent car buyers were sampled, the participants revealed what part of the car-buying process they preferred to conduct online over in-person.

80% of the participants said that they preferred to conduct a car search online. 78% wanted to determine the final price online. For appointment schedules and value-trade ins, around 76% were in favor of carrying out the process online. As the stats are continually showing a high percentage of people favoring virtual car-buying options, here are some of the reasons why virtual dealerships may be the right decision for you.

Key Benefits:

  • Lower Overhead Costs
  • Quick and Easy Process
  • Increased Customer Retention
  • Smooth Interactions
Lower Overhead Costs

Taking your business online will reduce many overhead expenses such as electricity and labor. You can operate your business virtually and reduce a ton of expenses that go into managing a physical store.

Quick and Easy Process

There are some aspects of the in-person buying process that customers do not particularly enjoy. For example, communicating with a salesperson and their managers, financing issues, dealing with a lot of paperwork, etc. Online tools alleviate these tensions and make the process quick and easy.

Increased Customer Retention

Customers who are satisfied with the buying process have a higher chance of returning to your store. Virtual dealerships offer convenience and speed - two key aspects customers look for.

How NewCloud AI-Powered Dealership Model Can Help?

NewCloud AI optimizes dealerships through AI-powered self-service models across multiple engagement channels. Our Pre-Sales Solution offers everything from video tours to finalizing the whole process online. Here is a list of options we offer:

  • Digital Showrooms
  • Dealer Vision – Video Walk Around
  • Sales Appointments & Reminders
  • 360 Degree Video Tours
  • Multi Party Conference (Financial Assistance)
  • Online Financial Processing
  • Multi Language & Multi Devices
  • Accessories/Spare Parts Purchase & Payments

In our Post-Sales Solution, we provide your customer the convenience of scheduling all of their service appointments online. We also offer self-service roadside assistance. In addition, your customers can also purchase OEM Parts and Accessories online.

To learn more about us, visit: https://www.purplegrids.com/automotive.html


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