Michael McCarthy, General Manager, Canada, Dealertrack Technologies
Canadian auto dealer met with Michael McCarthy, General Manager, Canada for Dealertrack Technologies, for a candid conversation about emerging trends in automotive retail and what the future might hold for dealerships. We present excerpts of that interview here, and invite you to attend an exclusive online video interview event in December.
TODD PHILLIPS: Consumers do more of their vehicle research online, but how much closer are we to seeing them purchase vehicles online?
MICHAEL MCCARTHY: A lot of the elements we’ve traditionally associated with visiting a dealership have now moved to the online environment. I think the way that we see this is really multi-channel versus online. While there might be a segment of the population that is interested in a full purchase process online, I think it’s much better to characterize the fact that for any individual, there are dimensions of it that are online, and there are dimensions of it that are in the store.
TP: With more transactional activities happening online, and with OEMs having more tools to interact directly with customers, are there things dealers should be concerned about?
MM: I think that while there may be some different interests between an OEM and a dealer, when it comes to the customer and the sale of the automobile, those are dimensions they both hold in common. I think that from a dealer’s perspective you want to make sure that you’re connecting to and engaging with that customer base as directly and efficiently as possible.
TP: There’s often a tug-of-war going on over who owns the customer relationship, and in particular, the customer data. How will that evolve?
MM: I think that we have been very protective of data in Canada. We talked about consumer data, and I would suggest in the future that a lot of the data is going to travel with the consumer and a lot of it is going to be accessible by multiple parties. I think the idea that a particular dealer or an OEM owns the consumer is a bit of a misnomer. I would suggest that the consumer is ultimately going to have access to that data and it will be shared based on their discretion.
TP: Consumers share so much information online about their preferences and interests, yet are often treated like strangers when they arrive at a dealership. How will that disconnect change in the future?
MM: I think that we have to be very careful to make sure that when we do have online solutions, they are robust and complete. If there’s a gap in that process, you’re immediately impacting consumer trust for that dealership.
TP: Dealerships seem to be better equipped to respond in a personalized way to customers on the service side. How do dealerships match that on the sales side?
MM: One of the things I think we forget is that consumers carry powerful technologies in their pockets. Our smartphones are capable of providing that same sort of identity and what I might call that “concierge service.” That technology exists today. The challenge is connecting it all so the moment I walk into a dealership, for whatever purpose, I’m identified and greeted appropriately.
TP: With the growth of vehicle technology and the complexity of the products, how will this affect sales people and training?
MM: If you think about the way technology is evolving inside the vehicle, it speaks to the qualifications required for the average sales professional. Now, I’ve got a professional that can sell everything from cellular phones to navigation systems, plus all of the other features and factors that are relevant when purchasing a vehicle. We’re probably going to see the sales process and training evolve much in the same we have with computer technology. There was a time when you could just go to companies like IBM for all of your IT needs but now we tend to be a lot more specialized in that industry because of the complexity that’s associated with it. I think we’re probably past that point when it comes to the automotive sector but we’ve been holding on. I think that’s one of the areas we’ll be seeing in the next short while that may be opening up to some degree.
