Neuro CarSales Blog

Challenges for the automotive industry in the digital age

Written by Reike Treder | Nov 27, 2024 5:31:27 PM

Wheels are no longer the only thing moving in the industry. Like so many things in today's society, the automotive industry is experiencing drastic changes at ever shorter intervals. In the last few years alone, there has been plenty of turbulence: mergers and takeovers have characterised the market.

It was just in 2021 that the merger of PSA Peugeot Citroën and Fiat Chrysler Automobiles to form Stellantis gave birth to one of the largest automotive groups in the world. Just two years later, the US company Lithia Motors took over Pendragon, one of the leading British car dealerships, for the equivalent of around 335 million euros. At virtually the same time, the rise of car dealership supergroups such as the US dealer AutoNation or Emil Frey, which is active in Europe, significantly increased the competitive pressure on smaller and medium-sized car dealerships. 

Translated with DeepL.com (free version)

 

CAR DEALERSHIPS TODAY VS. 20 YEARS AGO

While the car world is changing, the processes in car dealerships are also changing. If you look back 20 years, you will notice that digitalisation has created opportunities, but at the same time has made analogue processes in day-to-day business much more complex. 

HOW OUTDATED STRUCTURES BECOME A STUMBLING STONE

Change has come, but not everyone is keeping up: Many car dealerships are still working with processes that do not do justice to the digitalising industry. Paper-based working methods and manual input continue to dominate everyday life, even though more efficient and less error-prone systems are available. These outdated systems are precisely the reason why many dealerships are struggling to keep up with the rapid pace of change.

Traditional inventory management struggles to keep up

In the 2000s, manual inventory management with lists and tables was still common, if not without alternative. Today, managing vehicle fleets requires the integration of real-time data from multiple sources to efficiently manage vehicles across multiple locations. Traditional vehicle lists are created and updated manually, which not only takes time but also increases the likelihood of errors. In the worst case scenario, a vehicle is shown as available even though it was actually sold long ago - an error that not only disrupts internal processes, but also the customer.

How dynamic can analogue pricing really be?

Pricing has become a permanent task thanks to the World Wide Web. In the past, prices were set once and then rarely changed - today, they have to be dynamically adapted to current market conditions. What may still be feasible for small stocks quickly becomes unmanageable for larger stocks.

MANUAL PROCESSES AT THE EXPENSE OF CUSTOMERS

Analoge Preisblätter müssen gedruckt werden. Manuelle Listen müssen gepflegt werden. Informationen am Point of Sale müssen auf Aktualität überprüft werden. Jede Minute, die Verkäufer mit diesen Aufgaben beschäftigt sind, können sie nicht mit ungeteilter Aufmerksamkeit mit dem Kunden verbringen.

Digitalisation as the key

In today's rapidly changing automotive world, customers are also looking for the fast and personalised service they are used to from e-commerce at local dealerships.

Digitalisation offers car dealerships the necessary means to overcome these obstacles. Processes that have remained unchanged for decades can not only be optimised through the use of modern technologies, but completely rethought.

Task automation

Recurring tasks such as updating prices or status changes do not have to be done manually, but can be controlled centrally.

reliable real time data

Digital solutions can take on the battle with real-time information in e-commerce and provide both customers and sales staff at the POS with up-to-date information on vehicle availability, prices and sales status.

Focus on the customer

If all information is correctly bundled at the POS, sales staff can concentrate fully on the customer. Better customer care strengthens the customer's good feeling towards the dealership - and that is essential, because purchasing decisions are also made emotionally.

HOW DIGITAL PRICE LABELLING IS REVOLUTIONISING CAR DEALERSHIPS

In response to the end of the analogue era, we at VISI ONE have developed the world's first Digital Auto Display (D.A.D.). It replaces the classic price sheet at the POS and uses innovative mobile and cloud technology to bring real-time information directly to the car.

1) No access points: D.A.D works independently of location, without additional infrastructure such as cables or servers.
2) Remote control: Changes can be made from anywhere in the world.
3) Automatic updates: Data is transferred directly from your DMS
4) Synchronisation of prices: Standardised pricing online and offline prevents misunderstandings.
5) Robustness: UV-resistant materials guarantee longevity, even under extreme temperatures.

 

An exemplary application: With D.A.D., it is possible to adjust the sales status of a vehicle in real time. Or to visually emphasise special prices and thus attract the attention of potential customers.

3 DIRECT BENEFITS OF SWITCHING TO DIGITAL

The use of digital price displays has clear advantages over the analogue alternative.

Reduced downtimes

Sales staff are no longer busy exchanging paper - and can concentrate on customer contact. In combination with constantly updated data at the POS, car dealerships can reduce standing times in the long term.

Reliable data

Customers always receive up-to-date information straight away. Of course, the correct data will always find its way to customers sooner or later - but what kind of impression does it make if the salesperson is not up to date on a vehicle? Customer service and building trust are the key words here.

Competitive advantage

Many car dealerships are still a long way from jumping on the unstoppable digitalisation bandwagon. For you, this means that you can be one step ahead of other car dealerships with better service and dynamic pricing strategies. Digital solutions give you a clear competitive advantage.

A GLANCE INTO THE GLASS BALL: WHAT IF YOU MISS THE DIGITALISATION?

The industry is changing rapidly and customers expect modern and flexible solutions that can compete with the shopping experience in an online shop. Car dealerships that continue to rely on analogue processes therefore risk losing not only customers but also sales.

For us, the conclusion is clear: digital price displays may still look like a luxury - but they are already becoming a necessity for any car dealership that wants to remain fit for the future.

Are you ready to take the first step into the digital future? Contact us and find out how the Digital Auto Display can transform your processes!