My experience as a CFO at various dealerships has taught me the importance of staying ahead in a competitive landscape by embracing my instincts. In today’s automotive retail industry, a balanced “bricks and clicks” strategy is gaining popularity among consumers. While the push towards online transactions during the pandemic was necessary, a hybrid model that combines physical dealerships with online platforms appears to be the stronger and more adaptable approach for car retailers.
Contrary to popular belief, the pace of change in automotive retail is slower than many think. The franchise dealership model remains robust and critical to the automotive sales ecosystem. Dealerships have a unique advantage in providing personalized retail experiences, which customers have shown a preference for over fully digital transactions.
Research and customer feedback reveal that buyers value the dealership experience, leading to increased satisfaction ratings. Through technological integrations, dealerships have achieved an enhanced customer experience without sacrificing the personal touch of in-person interactions. In comparison, the direct-to-consumer (DTC) sales model, while innovative, lacks personalized transactional flexibility that dealerships excel at.
The viability and resilience of the dealership franchise model highlight an important industry insight: foundational strengths endure. Dealerships have continuously evolved to meet challenges, maintaining their vital role in the automotive ecosystem.
In summary, the combination of innovative product development by manufacturers and unparalleled customer service provided by dealerships forms a timeless formula for success in the car industry. Join me on my journey as I share more reflections and insights through my Kruse Control Newsletter, where we explore the evolving landscape of automotive retail.
Original Article: https://www.krusecontrolinc.com/heres-why-the-dealership-franchise-model-is-here-to-stay/
