The automotive industry is undergoing significant transformation, with digital retail playing a central role in this evolution. In 2023, 65% of U.S. vehicle buyers reported that they shop for vehicles partially or entirely online, according to S&P Global Mobility. This shift underscores the necessity for dealers and OEMs to adopt and optimize digital retail strategies to meet the changing expectations of consumers.
However, a significant gap exists between recognizing this need and implementing effective digital strategies. Research by PWC reveals that while 91% of dealers understand the importance of a strong digital presence to their sales strategies, over 80% have yet to develop a dedicated digital strategy. This presents a substantial opportunity for those in the automotive industry to stand out by embracing comprehensive digital solutions.
When constructing an e-commerce program, manufacturers need to decide what can be sold online and what remains offline. Most manufacturers will likely adopt a hybrid model, combining direct online sales and research-online-purchase-offline (RoPo) strategies. This approach requires creating an online platform rich in product data, offers easy purchasing functions, and provides full customer support through call centers or automated bots. This mimics the industry-leading e-commerce experiences found in other sectors, such as consumer products and financial services.
After assessing what can be sold online, companies need to build a digital experience that meets customer expectations. B2B customers now expect fast, personalized, and 24/7 digital experiences. This goes beyond simple online catalogs and pricing to include configuration choices, customer-specific pricing, inventory availability, targeted promotions, order history, product tracking, and robust online support.
Transitioning to more online sales and higher e-commerce-generated revenue allows businesses to leverage new customer relationships and gather valuable data. This data can be used to improve targeted marketing, gain comprehensive views of customers and distributors, and anticipate customer needs using proper software. For instance, Oxlo's DataXtractor™ automates the acquisition and extraction of crucial Customer Satisfaction Index (CSI) and Net Promoter Score (NPS) data from multiple sources, allowing dealerships to make data-driven decisions that enhance customer service and operational efficiency.
Shifting to digital sales and marketing is a complex process that can deeply impact business models and relationships. Businesses should adopt a cautious, incremental approach to building their e-commerce capabilities. This method allows for capturing value at each step and adapting to new challenges as they arise.
Despite the initial challenges, the long-term benefits of developing digital B2B and B2C channels are substantial. These include lower costs, increased customer value, competitive advantages, expanded customer bases, and improved customer loyalty.
Data integration is crucial for a seamless omnichannel experience. Oxlo's Data Integration System, Oxlo IntegrateOnce™, revolutionizes automotive retail operations by connecting disparate data sources. This system validates third-party tools quickly, manages data efficiently, and reduces integration development time by up to 70%. By transforming proprietary messages into diverse data formats and ensuring compliance with industry standards, Oxlo IntegrateOnce™ enhances the quality of automotive Dealer Management System (DMS) integration.
Moreover, Oxlo IntegrateOnce™ automates business rules enforcement, provides real-time monitoring, and eliminates the need for help desk support. It simplifies legacy-style data integrations, lowers costs, and supports the entire integration lifecycle, meeting project timelines and improving service quality.
At Oxlo, we understand the challenges and opportunities automotive dealers and OEMs face today. With decades of expertise and a track record of innovation, we are committed to creating cutting-edge solutions that empower dealerships to succeed in the global automotive marketplace. Our distinguished clientele comprises renowned automotive giants, prominent dealer groups, and leading dealer software providers worldwide.
Embrace the future of automotive retail with Oxlo and drive your success in the digital age. Contact us today.