Recession Readiness Insights

5 Keys to Up Your Digital Auto Retailing

5 Keys to Up Your Digital Auto Retailing

March 20, 2023 | Joseph Watson

Over the last few years, the automotive industry has faced many challenges. The pandemic along with ongoing inventory shortages have increased need and the speed to implement digital retailing solutions. Dealers, OEMs, and technology companies have all tried to crack the code to enabling a seamless and personalized car shopping experience for consumers. Based on our insights into the industry, here are five facts about digital retailing that will help you put your efforts into the fast lane. 

1. Consumers want a frictionless experience.

It’s no surprise that today’s on-demand consumer expects a tailored digital experience. This means it is your responsibility to facilitate a journey where potential customers receive the information they need while you gain the necessary insights to secure a sale. Most consumers aren’t completing the entire purchase online. On the other hand, consumers also are not showing up to a dealership without having completed substantial research with many completing some of the negotiation and approvals online. Creating a meaningful digital process can improve the experience for both the dealer and the consumer. Consumers want to understand early what vehicles and deals they qualify for.

Even the most conscientious buyers are not aware of all that is available when it comes to special pricing and offers. Provide tools and information early and often to help consumers identify deals and incentives they qualify for to help establish good will and trust -- and help seal the deal. This will provide crucial information from the beginning to help establish a relationship and ensure a smooth transaction.

2. Data solutions are a necessity.

Personalizing your customer experience by leveraging consumer data is an effective way to streamline the sales process. The sales process which traditionally takes many face-to-face encounters, can now be completed  digitally. Using data, beyond just credit score, can help salespeople know more about their customer throughout the process before meeting them. This makes the car buying process seamless for both the customer and the dealer--a true win-win.

3. Fraud protection is a must.

Fraudsters are a growing threat in the auto industry. Installing simple processes, like MFA and frictionless mobile identification, allows dealers to calculate a pre-qualified offer with minimum friction points for the customer. Taking these steps ensures a better consumer experience. It also provides dealers with  indicators of a potential fraud threat 

4. More data can make a digital retailing deal more likely.

Empower your customers to make the buy by customizing offers based upon data collected throughout your journey together. Here at Equifax, we recently studied the impact of delivering a pre-qualified experience to car shoppers based on a “soft pull” of the consumer's credit file. We found those who use a soft-pull solution while shopping online are 31% more likely to purchase a vehicle in 30 days or less. Data points like this one are just one example of why Equifax is the right partner for your digital retailing needs. 

5. Equifax is helping our partners navigate the digital journey.

At Equifax, we are helping our customers find innovative ways to improve their customer experience throughout the digital journey. Our advanced identification and authentication solutions can help dealers reduce risk by verifying consumer identity while providing consumer insights to help target personalized offers and incentives for customers in the digital ecosystem.

Dealers can use our marketing insights to mine their own CRM database to find potential buyers — or even to find customers who are likely to come in for service — which is more important now than ever. Dealers who are able to identify qualified buyers and  match them with customized vehicle options, while quickly moving them through the buyer journey, are positioning themselves to win in this current environment and beyond. Only Equifax can bring consumer insights into the buying process to ensure a customized buying experience from start to finish. 

Learn more about how to leverage marketing insights and enhance your digital retailing with Equifax automotive solutions. And, for the original blog from 2022, click here. 

Joseph Watson

Joseph Watson

Automotive Sales Leader

Joseph is a sales leader who has years of experience in building strategic partnerships, supporting partners and customers strategic initiatives in the automotive industry. A graduate of Virginia Tech’s college of business, Joseph has driven high-performing sales and marketing initiatives for clients for 15 years. He's[...]