Digital Transformation – A Wake-Up Call for Traditional Dealerships

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.
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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
AutoFacets, a European major transforming automotive business experience globally. A preferred digital
automotive partner for engineering smart automotive solutions powered by analytical intelligence platforms
using ROI driven service models. Talk to us today and set your digital transformation on the right path.
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