Making Sales When You Have Nothing to Sell

Be prepared to be flexible. 

That’s a sentiment that automotive dealerships have become all too familiar with. Dealerships, and the auto industry as a whole, have seen nothing but a rapidly steady rate of change, that does not seem to be slowing anytime soon. Compounding variables such as digitalization, a global pandemic, and inventory shortages (to name a few) have thrown dealerships into overdrive to keep up with the constantly evolving market and changing consumer behaviors. And just as dealerships adjust to one massive change, such as an almost entirely digital sales process, they’re hit with another variable, forcing them to rethink strategies again. So, when change is the only certainty, how do dealerships survive? They remain prepared to be flexible.  

In this series of insights about dealership flexibility, we discuss three challenges forcing dealerships to be flexible and strategies to help them navigate this new reality. First up – How quality data and the flexibility to implement new strategies will help overcome inventory shortages. 

At this point, everyone is aware of the vehicle inventory shortages, caused in most part by a global chip shortage. But what remains uncertain is when (or if) we will ever get back to the same level of inventory availability, especially regarding new vehicles. Some estimates predict that new vehicle inventory levels won’t be back to where they were pre-pandemic until 2025 due to the  global microchip shortage, among other factors. So how are dealers going to adjust their marketing and sales process knowing they have limited availability in the pipeline?  

Leverage existing services 

With the ongoing chip shortage, people that were ready to trade in their old vehicles for newer models are opting to hold on to their aging gas guzzlers. And as the odometer keeps adding up miles, the vehicle’s performance is going down, resulting in the likelihood of major repairs. With research indicating that 40% of auto service shoppers need reactive versus routine maintenance, dealerships have the opportunity to capitalize by proactively engaging their existing audiences on their service capabilities, for when those inevitable repairs come calling. 

As we discussed in our previous insight, Transforming Customer Experience at the Dealership, prioritizing the customer service lifecycle is at an all-time high given the inventory shortages for both the dealership and the customer. And to leverage their existing customer base, dealerships need the right people, tools, and processes in place—and the flexibility to shift strategies to engage their service customers consistently. Utilizing robust digital tools to automate this process will only bolster dealerships' opportunities to entice existing customers for their service needs.  

Maximize quality data 

Beyond the dealerships’ physical inventory, new lead generation and quality data acquisition will be essential for combating current supply constraints. Many dealers are looking beyond their typical target market, whether that’s regions or demographics, to expand their reach and bring in new potential customers. Expanding their target market can bring new, valuable first-party data about customers and changing consumer behaviors.  

But maximizing the power of quality data can only be achieved by putting the right digital tools in place, allowing dealers to identify high-quality leads and capitalize on them. As consumer habits and preferences are constantly changing, the accuracy and quality of a potential buyer’s profile data are vital, underscoring the importance of sourcing information from the right places and prioritizing data accuracy and quality customer experience. Dealerships must have the flexibility to adjust and readjust their sales process strategies to capitalize on the high-quality leads they’re generating.  

Utilize a solid digital partner 

Both tactics—leveraging existing services and maximizing quality data—can be managed with the help of a robust digital partner. At Shift Digital, we are always finding new and innovative ways to help our dealership clients remain flexible as market and consumer behaviors are constantly changing. With our suite of solutions, we provide the tools that dealerships need and train the staff on how to utilize those tools to maximize their effectiveness. Our demand-driven solutions were created to give dealerships the tools they want to have the flexibility they need, especially when change is the only thing that’s constant. Contact us today to learn more about how we can help your dealership remain flexible.  

To learn more about how Shift Digital can help your dealership stay a step ahead of your customers and your competition and for support implementing your customized plan, contact your dedicated Shift Digital representative today.