A year after launching in response to the pandemic, consumer demand continues to accelerate
As the country begins a return to normalcy, Digital Motors, the best-in-class provider of automotive digital retailing software, continues to experience increased engagement across dealerships using its software as a service (SaaS) platform. Despite the ability to again purchase a vehicle in the traditional manner, consumers are visiting dealers’ online stores in record numbers and completing all or part of the purchase process remotely. Based on dealer surveys, sales related to the Digital Motors online store resulted in an average close rate increase of 47 percent and a 50 percent reduction in close time.
“From inception, our focus has been on listening to our dealers and responding to their needs. We launched our offering early amidst the pandemic because dealers told us ‘We need this now,’” said Andreas Hinrichs, Founder and CEO of Digital Motors. “The success of the platform is a direct result of working with the dealers to provide a solution that’s configurable to their strategy.”
Digital Motors operates a digital retailing platform that features an intelligent FinTech configuration engine and seamlessly integrates into a dealership’s website. The software adapts to the dealer’s processes and allows for a tailored and transactable online experience. Consumers can complete the entire transaction online or transition to the dealership at any step in the process.
“Online sales in combination with the showroom experience are a game changer,” said Hinrichs. “Rather than forcing customers down a prescribed path, we enable a choice of whether and when to transition from the online store to the in-store experience – or vice versa.”
Even with their doors open again, dealers have found that customers continue to be drawn to the ease and transparency that the platform provides.
“It’s been fantastic,” Brad Mugg, Managing Partner, Honda of Downtown Los Angeles, said about customer reaction to its online store powered by Digital Motors. “Customers have taken to it 100 percent!”
According to Mugg consumers have used the online store to both complete deals and simplify the in-store process.
“Some have bought their cars from start to finish online,” he said. “Every other one of them does stop somewhere in the process, but we’re able to capture the customer information and work the deal, and then they come and finish it at the dealership.”
Dealerships on the platform have reported conversion rates of well over 55 percent. One of the factors fueling this success rate is the seamless customer journey from online to in-store.
Providing an online store for Digital Motors’ dealer customers has been a means of meeting the expectations of today’s digital shopper, one who expects to be able to conduct all his or her shopping with a digital device.
Maintaining a competitive edge was one reason Carolina Chrysler Dodge Jeep Ram went to Digital Motors for its online store. “When COVID came into play, a lot of people wanted to do things from home,” said Dave Davis, General Manager of the dealership. “Our online-only competitors, like Carvana and Vroom, are all doing business from the luxury of somebody’s home and so, you’ve got to do that to keep up with the trends.”
Allowing the customer to work through the online store at their own pace often results in higher margins for the dealer, as well. Customers are more inclined to purchase accessories and protection plans that they can review within the online store. More than 60 percent of shoppers on the platform add accessories to their selected vehicle, at an average price of around $1,500.
“While our technology lies at the forefront of the market, it’s our dealers that are integral to the success of the platform,” said Carlos Herrera, Marketing Director at Digital Motors. “Listening to them and learning from them is what guides our evolution. We’re not replacing dealerships, we’re empowering them.”
About Digital Motors
Digital Motors Corporation is an automotive retail and financial technology (FinTech) platform providing complete online sales solutions to the automotive industry. Based in Irvine, Calif., the company’s revolutionary technology serves the growing needs of dealerships, dealer groups, auto lenders, and vehicle manufacturers to provide a secure end-to-end online purchasing and financing journey to their customers. For more information or to request a demo, visit digitalmotors.com.