Our columnist experiences two next generation retail experiences and reports on his findings.
We’ve been living in the true digital age for at least ten years now. Almost everyone has a mobile phone that has more capabilities than computers, laptops and tablets that were at the cutting edge of technology at the beginning of the decade.
We know that consumers, especially car buyers and owners, make extensive use of digital tools to help find a vehicle and also to arrange service visits at the dealership. But there is still a wide gap between the customer’s online experience and their
in-store experience at the dealership.
Dealerships in Canada and around the world have been shouting about how much has changed and how they are handling the new customer — the “digital native”.
But how much has really changed? Walking into a dealership today is, for the most part, a much better experience than it was a decade ago. Facilities have been upgraded, with more open space, more transparency and more use of digital media and tools in both the sales and service areas.
Tablets are quite commonly used in both, but those tools are still largely in the hands of salespeople or service advisors. Customers have their mobile phones, but they are not connected in any way to the dealership so that they can see and share information seamlessly.
Unless they have elected to begin a dialogue with a dealership, customers are also not communicating directly with the dealership’s system and information.
The technology being deployed is literally at arm’s length from the customer. The divide between the customer’s online or digital experience and the in-store experience is still there.
As well, long-standing, traditional sales and service write-up processes are followed, even though many claim that processes have changed. The two solitudes still exist.
Only very recently has there been stronger evidence of meaningful change. There are two examples that bring the digital and in-dealership world closer together.
It’s interesting that the two examples I’ll discuss here take different and seemingly opposite approaches, although both have the same end goal — to create a more seamless journey for the customer through the digital world.
One is based on bringing the digital experience into the showroom; the other takes the showroom to the customer in a much more direct way than via a manufacturer or dealer website can.
Bringing the digital experience into the showroom
Nissan Canada is one manufacturer that has launched an initiative that does connect the digital experience with the experience in the showroom.
Called the Nissan Retail Concept, it combines significant design elements in the dealership with a look and new tools for customers.
NCAR platform gives customers more control over the delivery process.
When the customer does research online, configures a vehicle and chooses to contact a dealer, Nissan’s CRM system captures all the customer’s data and the information about the vehicle that the customer is interested in.
The dealership then establishes a dialogue with the customer to set up appointments and arrange a test drive if necessary. When the customer does visit the dealership, the information already captured by Nissan Canada can be accessed within Nissan’s NCAR platform.
Many dealerships are using tablets in both the sales and service areas. A key difference with NCAR however, is the ability to let the customer control the vehicle delivery process via the platform’s delivery module.
Once the sale is finalized the salesperson and customer can communicate within the NCAR app.
The customer has access to a comprehensive menu of the most important aspects of the new vehicle and can choose which they wish to focus on at delivery.
If the customer chooses not to do this at the time of purchase in the dealership, they can download the NCAR app and do the customization from home or anywhere else on their own device.
Information sharing is seamless between the customer and salesperson. The menu is VIN-specific, so that all information is entirely relevant to the customer’s vehicle. Nissan will also integrate a service tablet tool called the Service Workflow Suite.
Nissan Ncar App
A bridge for the customer
Two other elements of the Nissan Retail Concept worth mentioning are related to the physical design of the dealership:
The Design Bar, where customers can use consoles to look at all models and variations to help them configure, compare and build a vehicle in much the same way as online configurators allow. In the dealership however, there are far more information sources, salespeople to consult and vehicles to view to provide the real world perspective
The Personalization Studio, where customers can play with different vehicles and configurations to personalize their new (or existing vehicle) with accessories. This can be done independently with or without salespeople present.
Both of these in-dealership features, together with the NCAR tool with its delivery module can create a customer experience that brings the digital world and the physical dealership environment into much closer harmony.
Whether the customer is going through the purchase process or simply waiting for their vehicle to be serviced, the bridge to the digital world is there.
Nissan is making every effort to get dealers to enhance the sales process using the NCAR app to engage customers.
The company’s customer research shows a strong correlation between use of NCAR and customer satisfaction — and the more components of NCAR that are used, the higher the level of satisfaction.
The goal is not just to get dealers to use the tool, but to get them to use it consistently.
Second, what about the prospects or customers who do not engage in any dialogue before coming to the dealership, or those visiting for service? That’s where the Design Bar and Personalisation Studio can play an important role in allowing customers to experience the brand much as they would at home using digital tools.
Cadillac Live
Cadillac Live – bringing the showroom to the customer
Cadillac Canada is piloting an initiative that brings the showroom to the customer in a much more direct way than ever before.
By arranging an on-line appointment with a “Cadillac Ambassador”, a potential buyer can view the vehicle they’re interested in and ask questions of the Ambassador.
The Ambassador is outfitted with a camera and can take the customer on a detailed walkaround, sit inside the vehicle and demonstrate the features and equipment.
I recently tried out the system and found that the ability to view the vehicle and have someone explain things and point them out was not only helpful, but also highly enjoyable.
It did indeed, bring the showroom to me in a much more engaging way than a website can. The conversation can also be carried on via text rather than audio.
Because the Ambassador’s role is to familiarize the customer with the vehicle they’re interested in, and not to sell the vehicle, there is no pressure on the customer to buy. The Ambassador can refer the customer to a dealership and all the customer’s information is transferred to the dealership.
Cadillac Live seeks to bring a personal touch to digital shopping. The company feels that the new cohort of consumers like the convenience and control of digital shopping, but that luxury buyers also want a level of personalization. This approach certainly has the potential to deliver that.
Process and people must change to make these initiatives work.
Both Cadillac’s and Nissan’s initiatives directly address the issue of the gap between digital and in-dealership experiences. The biggest question however, is whether or not things change in the dealership.
Nissan’s new dealerships will look different and all the tools are there, but will customers truly feel different? What will the customer experience in the dealership?
The Nissan Retail Concept includes a concierge for walk-in customers. Who will the concierge be? Will they be knowledgeable and trained to get the visit off to the right start?
We know now that customers visit fewer dealerships and that, when they walk into the showroom, the opportunity to close is much greater.
Also, changes take time to implement across any dealer body: sixteen percent of Nissan Canada dealerships have completed the facilities upgrade and seven percent are engaged in various stages of construction, seventy-five percent are committed to facility upgrades. So there is still a way to go before every Nissan customer experiences the new approach.
The Cadillac Live concept will be very interesting to watch. It certainly holds promise, but what happens when the customer sets foot in the dealership (or meets with the salesperson outside of the dealership)? Will the same traditional sales process be in place? Will the customer go through the F&I process just as before, or will there be a more seamless process?
Will the Ambassadors be knowledgeable and be able to answer questions quickly and accurately to build trust in the brand? The price of failure to do that is high in the digital world — consumers expect instantaneous and accurate information and will likely be unforgiving if that does not happen.
These are two different but very good steps forward in the process of closing the gap between the digital and the in-dealership experience. Proof of concept will be in what happens in the dealership — both process and people will be critical elements in their success.
So too, will the dealership’s ability to have seamless connectivity between different systems and data sources — the silos must go!
