Automotive industry experts were eager to predict the future of car-buying after the pandemic. Would it become fully digital, a new process, or return to normal?
Today’s reality is a chaotic mix, with customers split between online, in-store, and a foot in each realm. Dealerships are struggling to keep pace. Consistency is a common problem, and there’s plenty of margin for error when a customer abruptly transitions from your website halfway through the process.
While dealers have always catered to their environment and unique customer base, the need for individualized processes is greater than ever. Digital retailing is still shaking itself out, and customers are split as far as what they expect in a car-buying experience.
Industry expert David Stringer offers his insights on how dealers can navigate this environment and keep a competitive advantage in the accessories game.
Manage Your Market
In many ways, the industry is still trying to figure out how to sell cars in 2025. The big challenge that most stores have is determining the importance of automotive retailing for their individual dealership and market for today.
“A soup of uncertainty has been created,” David says. “Automotive retailing has it’s challenges. It’s not a complete end-to-end process. When it becomes that, there will be more emphasis on that channel. Today, it’s not clear.”
David says dealerships have to rely on their understanding of their own market to put together the best possible process in a time where many things are patchwork.
“A rural dealer and a dealership in the middle of the city have different customer needs. If you’re in the city, you’ve got people hammering on your website every Saturday morning. If you’re rural, people are still walking in the store more often than not.”
Move Accessories Upstream
Prior to the pandemic, so much of the car-buying process was with a salesperson, so accessories were a natural extension of that relationship. Accessory awareness, selection, and decision now starts much earlier.
“Back in the day, accessories were the perfect filler before F&I and much to our delight (and that of the salesperson), it worked. People bought accessories this way by the millions.”
David says the landscape has changed because of the popularity of online research and digital retailing.
“Now, the customer comes in, and they know exactly what they want. They’ve already narrowed it down to three VINs or so. Once they’ve narrowed it down that way, a lot of the process has already happened. So much of wait time is essentially gone, and people are ready to sign papers and get out of there. The direction the industry is moving is that accessory awareness has to happen immediately.”
Utilize API Integration
The DMS system is the hub of the dealership. Leveraging new softwares and systems that are continuously coming out to support DMS is a matter of trial and error. Unfortunately, plugging holes is likely to continue until digital retailing becomes the norm. Still, the right support can help dealerships keep moving the needle in regard to getting accessories in front of their customers early and often.
“Insignia Group developed an API and integrated into a number of well-used digital retailing platforms, which has been great. The data is there, sometimes the visualization is there. CarNow, for example, has our visualization built in, so we're super pleased about that,” David says.
“Instead of focusing on training that next salesperson to present accessories like we’ve been doing for the last 15 years, we’re going back to our roots as a software company. We now get to play a role in the omnichannel experience by providing our API and content, helping support that upstream decision to add accessories early in the process.”
“Accessories, like everything else, are flipped on their head. We used to say we don't present them until wait time for F&I, and now we’re promoting getting them front and center as soon as possible.”
Insignia Group Can Help
Today, accessory sales are better positioned for success as customers research their options. The ability to add an accessory to the car digitally and view it from multiple angles is more attractive than ever. Customers can toy with accessory packages without pressure from a salesperson. Presented correctly, accessory sales will skyrocket along with online car purchases.
Our integration with major digital retailers covers all your bases and allows for a seamless transition when customers decide to come into the store. Schedule a discovery call with us today to see how Insignia Group can support your accessory content today.