Online Transactions Are Inevitable -- Agree or Disagree?
As consumer confidence in online transactions for electroniics and other consumer goods grow -- supported by developing technologies that include security measures for online credit and disclosure of personal information enhanced by efficiencies in processes to accomodate an online purchase -- auto dealer's assumptions based on old school wisdoms that major purchases -- like automtobiles -- are suspect.
Combine that with the empowerment of consumers using social media to support their online shopping and purchase decisions and the consolidation in the retail auto industry which has already blurred the line of state franchise regulations and I believe that online transactions are inevitable. I already represent several cutting edge applications that range from two way video customer interaction platforms tied to a dealer's DMS to accomodate a complete push/pull transfer of information through the glass wall and online shopping carrts that provide the consumer -- and the dealer -- with everything that they need to complete a negotiation, a purchase agreement and even a delivery and once again I see online transactions as being inevitable.
In light of growing consumer control of the WWW, reduced profit margins on vehicle sales and the ability of new technology to provide a granular comparison of vehicles across brands, models and yes -- even dealers -- I believe that the role of the brick and mortar dealership will change to accomodate the new efficiencies realized by an online transaction with a virtual dealer.
Similarly, the sales person will still have a role to facilitate the sale and delivery but the control that they currently enjoy will also be changed by customers who can now source the same information from their Facebook friends who are more than willing to share their online shopping, buying and serviice experience to help them buy a vehicle with or without the saleperson or any particular dealer.
Of course I could be wrong, but I don't think so; if not today, then tomorow.
What do you think?
Replies to This Discussion
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Permalink Reply by aaron kominsky on
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Phil great article I wrote one in my group about online negotiations as well it is the future to negotiate online for sure
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Permalink Reply by Philip Zelinger on
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Thanks Aaron, I guess that great minds think alike. Can you share any applications or online activities that suggest that it is happening sooner vs. later? I can but I am concerned that it would appear self serving since I represent several vendors that are maturing platforms in that space as I write, and most of our dealer clients are already empowering their BDC and Internet Departments to take their online contacts past the single minded focus of simply making an appointment by going right for the sale and delivery!
aaron kominsky said:Phil great article I wrote one in my group about online negotiations as well it is the future to negotiate online for sure
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Phil I posted a video about onlinre negotiations
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Permalink Reply by Todd Mathews on
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Phil,
Great article, as you know I was and still am on the for front of the online negotiation message. That being said, I am working on the next generation online i-delivery system, like to speak with you about it sometime.
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Permalink Reply by Philip Zelinger on
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Hi Todd, Sure, ready when you are! Just call me at 561-962-2738 or email me some updated info at pzads@bellsouth.net. After all, what are friends for!
Todd Mathews said:Phil,
Great article, as you know I was and still am on the for front of the online negotiation message. That being said, I am working on the next generation online i-delivery system, like to speak with you about it sometime.
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Permalink Reply by Matt Watson on
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I just purchased a car from a dealership that was 800 miles away. I worked out all the details via email and they shipped me the car. So yes it is inevitable!
The question is does it require special software, or is email and your CRM good enough?
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Permalink Reply by Philip Zelinger on
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Hi Matt, No, it does not require special software to conduct an online transaction. However, technically a CRM doesn't need technology either -- a pad and paer worked fine for many years. The point is that people are the first step to any process and technology fiollows human nature which always seeks the path of least resistence with maximun efficiency. The real barrier to online transactions has been to overcome the customer's hesitance to share personal and financial information online. As your experience confirms, now that that barrier has been breached the next step is for technology to provide an even more transparent way to do business online for the customer as well as the dealership.
Matt Watson said:I just purchased a car from a dealership that was 800 miles away. I worked out all the details via email and they shipped me the car. So yes it is inevitable!
The question is does it require special software, or is email and your CRM good enough?
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I think an online credit app should help bridge that gap. Just email the customer and have it fill out online. I think that is easier than handwriting one in the store!
Philip Zelinger said:Hi Matt, No, it does not require special software to conduct an online transaction. However, technically a CRM doesn't need technology either -- a pad and paer worked fine for many years. The point is that people are the first step to any process and technology fiollows human nature which always seeks the path of least resistence with maximun efficiency. The real barrier to online transactions has been to overcome the customer's hesitance to share personal and financial information online. As your experience confirms, now that that barrier has been breached the next step is for technology to provide an even more transparent way to do business online for the customer as well as the dealership.
Matt Watson said:I just purchased a car from a dealership that was 800 miles away. I worked out all the details via email and they shipped me the car. So yes it is inevitable!
The question is does it require special software, or is email and your CRM good enough?
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Permalink Reply by Philip Zelinger on
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Sure, an online credit application with an electronic signature clicks off one more step in the process of an online transaction but why stop there? How about facilitating the vehicle selection with an online customer profile that will organize all of the features in a weighted benefit presentation customized to fit the customer with market analytics that automatically compare all other vehicles in a geo-targeted comparable to the one offered by the dealer as well as a market based trade-in value and payment computations based on competitive lenders bidding for the deal -- all handled by an online process powered by an applicatio that can handle multiple transactions at a time by a customer concierge vs. a commissioned sales person? The consolidation in the auto industry has created the need to do more with less and consumers empowered by technology that can provide them the information that they need in the formative stages of their shopping process are more likely to continue on to purchase the vehicle online vs. having to visit an auto dealership with limited inventory and room for negotiations based on their individual cost structures. Add in other new technologies like multi-variant online auctions that allow all buyers to compare all sellers --- and all sellers to simultaneously compete with all sellers -- and tthe value of using technology to enhance the online transaction becomes more apparant. It may not be necessary but it sure can be nice!
Matt Watson said:I think an online credit app should help bridge that gap. Just email the customer and have it fill out online. I think that is easier than handwriting one in the store!
Philip Zelinger said:Hi Matt, No, it does not require special software to conduct an online transaction. However, technically a CRM doesn't need technology either -- a pad and paer worked fine for many years. The point is that people are the first step to any process and technology fiollows human nature which always seeks the path of least resistence with maximun efficiency. The real barrier to online transactions has been to overcome the customer's hesitance to share personal and financial information online. As your experience confirms, now that that barrier has been breached the next step is for technology to provide an even more transparent way to do business online for the customer as well as the dealership.
Matt Watson said:I just purchased a car from a dealership that was 800 miles away. I worked out all the details via email and they shipped me the car. So yes it is inevitable!
The question is does it require special software, or is email and your CRM good enough?
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Permalink Reply by Curtis D Snyder on
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Online transactions are certainly sooner than later. In addition they're already in full force happening for some very smart dealers. A good friend of mine in the Phoenix area has a small 40 car lot. A majority of his transactions are in which he never meets his clients. He works with a shipper and his deals are all over the country via the internet and wire transfers. He has been practicing business like this for at least 4 years now.
Us larger groups need to step up to the plate and be a head of the consumer. Formulating our selling strategies now. That way we can work these online transactions by our terms not the consumers.
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Permalink Reply by Philip Zelinger on
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Thanks for the support Curtis. It is obvious that the lovely lady next to you in your ADM picture was attracted by your brains! Staying one step ahead of today's empowered and educated consumer and two steps ahead of the competition is the key to surviving our consolidating auto industry and technology is a great tool that levels the playing field for large and small dealers alike.
Curtis D Snyder said:Online transactions are certainly sooner than later. In addition they're already in full force happening for some very smart dealers. A good friend of mine in the Phoenix area has a small 40 car lot. A majority of his transactions are in which he never meets his clients. He works with a shipper and his deals are all over the country via the internet and wire transfers. He has been practicing business like this for at least 4 years now.
Us larger groups need to step up to the plate and be a head of the consumer. Formulating our selling strategies now. That way we can work these online transactions by our terms not the consumers.
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Permalink Reply by Todd Mathews on
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Curtis,
I am developing a new online i-negotiate/ i-delivery platform for automotive dealers and will be beta testing the system in December. If you would like to know more, please let me know.
Curtis D Snyder said:Online transactions are certainly sooner than later. In addition they're already in full force happening for some very smart dealers. A good friend of mine in the Phoenix area has a small 40 car lot. A majority of his transactions are in which he never meets his clients. He works with a shipper and his deals are all over the country via the internet and wire transfers. He has been practicing business like this for at least 4 years now.
Us larger groups need to step up to the plate and be a head of the consumer. Formulating our selling strategies now. That way we can work these online transactions by our terms not the consumers.
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