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Customizing your car used to be reserved for true car enthusiasts. Today, Vehicle Personalization is a multi-billion dollar industry, consistently adding hundreds of thousands (if not millions) of dollars to dealerships’ annual gross profit. It’s not just gearheads from the tuner scene in SoCal that want accessories. It’s Charles from the suburbs. It’s Molly from accounting. It’s the next person to walk into your store.

Although trends change rapidly, the desire to personalize does not. It’s not a matter of if consumers will personalize their vehicles; it’s a matter of when and where they’ll spend the money to do it. 

“Consumers don’t just want personalization, they demand it.” -McKinsey & Company

Vehicle Personalization isn’t a difficult concept that will lay waste to the car sale. 

It’s statistics. The consumer’s need to personalize has been analyzed in depth. When dealerships understand the driving force behind the custom car accessories market, selling accessories will finally feel like the light work that it’s always been. 

A recent McKinsey report states that not only do consumers expect personalization, almost 80% get frustrated when they don’t get it. 

Younger generations are dominating the market of car buyers. Millennials and Gen-Z grew up with technology, making them more comfortable shopping online, utilizing tech accessories, and embracing the new age of electric vehicles.

The mainstream belief is that Gen Z and Millenials do everything online. Yet 87% of Gen Z and 82% of millennials still prefer an in-person car shopping experience.

And the younger generation is accustomed to things happening fast. Like, Hey Siri fast. Ok Google fast. 

Between sales pitches, test drives, financing, waiting (so much waiting), and paperwork, it can be tough to make buying a car a quick stop. We know that all of this is part of the car buying process, so what can be done to improve the experience before we all resort to vending machines for our next new car purchase?

Make no mistake: customer retention is a full-time job. The process of cultivating and maintaining loyal customers should be emphasized as highly as the sales process itself. There are many opportunities, between introduction and post-sale, to build a lasting relationship with a customer. So many of those opportunities involve Vehicle Personalization. From building rapport as you start at the trade, or inviting customers to relax between F&I, as well as offering a tune-up service six months later—accessories are integrated in all of it. This makes personalization the key to customer retention. 

The year was 1997. Blockbuster looked down from its throne to scorn the new court jester. The jester danced with enthusiasm and grit, smiling warmly at the King of Video Rental. Blockbuster rolled its eyes and signed off on a late fee for Good Will Hunting. There are a few details to spare, but the King later died a tragic death. The jester took the throne, and quadrupled the kingdom. The jester is Netflix, and his legend is clear: don’t get too comfortable or the joke is on you.

The short answer is yes—in due time.

The need for more commonplace electric vehicles is growing. In some areas of the world, cutting down on carbon dioxide emissions is reaching critical importance. China and India are already visiting the need for electric buses, because air quality stays consistently in a dangerous range. Collectively, we're all concerned about global warming and increasingly so. Today, revamping the way the world drives isn't priority number one, and that’s not to say it isn’t in the back of everyone's mind. 

The pandemic rocketed the automotive industry forward one to three years in accepting digital retailing. Years before COVID, we knew Carvana and Vroom were changing the way consumers bought cars. The option to buy online affected dealerships some, however, we weren’t comparing apples to apples.

Consumers did, and still do like to sit in a car before they buy it. With the majority of customers buying cars traditionally, online retailing was a secondary focus. Just one year ago, merely having a web inventory and an active social media presence made your store competitive in the digital space.

Well, now, everything’s changed.

Why Does Automotive Digital Retailing Matter? 

Google published some astonishing statistics about online buyers. Their data showed that 84% of Americans are shopping for something in any 48-hour period. Additionally, 63% of all shopping began online. The research went further, examining trends when people buy specific products. Those in the market for a car took to Google to gather information. Said consumers ranged from 20 to 68 years old. Over time, these shoppers researched the best dealership, brand, and trade-in online. We can infer the end result. The consumer likely bought a car they chose from their research. The vehicle was likely purchased from a highly-rated dealership, also found online. 

No dealership has escaped the evolution of the automotive industry due to COVID-19. Since the onset of the pandemic, businesses around the globe have had to respond accordingly. As the world slowly re-opened in a new way, consumers were quick on the draw to review businesses' safety precautions, interactions, conveniences and more.

Those who rose to the occasion attracted clients. Those who made mistakes, no matter how small, suffered at the hands of the Internet. How you continue in your COVID-19 response will set you apart as the pandemic and coming months unfold.

Margin Compression? Missing gross profit? Want to pocket more cash?

Can you do it without selling any additional cars?

Regardless of the year-to-year ebb and flow of vehicle sales, Vehicle Personalization is a great way to increase revenue and deepen your profits...or pockets!

The magic of Christmas is in the air, glimmering off your perfectly waxed showroom vehicles. Everyone knows that the holiday season is a beautiful time to be in the car business. The potential to boost your bottom line this month is something even Walter Hobbs can smile about, and smiling is our favorite. Tell your sales staff to buckle up and make work their favorite, because Santa’s got a brand new bag this December (and it’s full of extra commission).