Executive View: car dealers must 'bake in' agility and resilience

Technology plays a key part in the business resilience of dealers. It connects customers with the sales team and supply chain. It is vital that technology continues to evolve at the pace of a rapidly changing market, writes David Boyce, CEO of Mad Devs.

The UK’s dealers have tackled recent years’ challenges with admirable resilience. A focus on the customer has kept used and new sales rolling despite pandemics, economic shocks, supply shortages and the rest.

Resilience can be defined as the ability to bounce back and adapt in the face of adversity.  It is the capacity to withstand and effectively navigate difficult or stressful situations. Agility is a critical factor in dealers' ability to tackle setbacks while also learning from them and becoming stronger in the process.

Providing exceptional customer experience is a crucial focus for automotive retailers in 2023. Investing in well-trained sales staff, offering transparent pricing, and providing post-purchase services and maintenance support will be essential for building customer loyalty and satisfaction.

It’s clear that technology has an important role to play in helping dealers tackle the rising cost of business. It can help to mitigate costs by driving greater efficiency and supporting sales. 

Physical showrooms will still play an essential role in automotive retail, but their purpose is evolving. They provide a memorable and engaging experience for the buyer, where personalised experiences are central to the modern sales process.

The integration of digital technologies extends the experience beyond the visit to the dealership and makes it essential to provide a seamless journey for the buyer. 

While the travails of Cazoo are well-publicised, the overall trend of online car buying will continue to grow. Consumers expect the ability to choose where and when they buy their vehicle rather than being constrained by regular hours or location.

It’s important that enquiry management software can handle leads from all sources and integrate with a DMS and document management system to ensure that the customer journey is unbroken and professional throughout. 

Providing exceptional customer service and creating a positive buying experience can set car retailers apart from their competitors. Building strong relationships with customers and addressing their needs and concerns can help build loyalty and generate positive word-of-mouth referrals.

Agility is key in managing a tough economic environment, and cloud software provide businesses the ability to scale quickly up or down without incurring large expenditures.  This scalability enables businesses to respond promptly to changing demands, such as seasonal spikes or unexpected growth opportunities.

The ability to work collaboratively from any location is also increasingly important. Businesses can access applications and data from anywhere, at any time, as long as there is an internet connection with cloud software. It allows businesses to leverage talent, respond to customer inquiries promptly, and collaborate with partners or suppliers seamlessly.

In today’s modern digitally powered dealership, interoperability is key. Application programming interfaces (APIs) allow businesses to connect different systems and applications to work more effectively.

This interoperability enables data sharing, process automation, and seamless integration with existing software infrastructure. By integrating cloud software with existing systems, businesses can streamline workflows, eliminate data silos, and enhance overall operational efficiency. 

According to economists at PWC, the UK economy will escape recession and increase by 0.1% in 2023. However, falling real wages and rising prices will squeeze households' incomes and create a challenging retail environment.

By leveraging technology, businesses can benefit from increased flexibility, agility, and cost-efficiency. It allows dealers to bake in agility and resilience, giving them the tools to tackle whatever the economy throws at the next.

Author: David Boyce, chief executive, Mad Devs