What do you need to do to become a “digital retailer”?

So far, our blog series on digital retailing has focused on what buyers think of buying a car online, how it benefits them and how selling online can benefit retailers.

As we’ve revealed in earlier blogs (which you can read by clicking the links above) there are huge benefits to both buyers and retailers in digital retailing. So how can you take advantage of the benefits and become a digital retailer?

That’s what we’ll be covering in this, our final blog of the digital retailing blog series by looking at what tools are needed and how you can give buyers the confidence to buy online.

As always, it’s important to clearly define digital retailing as being anything from having digital tools on your site to assist with the car buying journey, right up to a fully online transaction.

Making sure you are digital retail ready

The first step to becoming a digital retailer is deciding what elements of the car buying journey you want to bring online for your buyers and how you can execute this, whether it be adding booking software to allow for test drives and appointments to be made digitally, right up to enabling online payments and a delivery service.

Regardless of what elements you decide to bring online, it is key to ensure your digital forecourt stands out with highly detailed descriptions, high quality images andvideos.

It may sound simple, but your online retail offering won’t succeed if your customers don’t know that you are digital retailer. So, if you offer Click & Collect, Home Delivery or the ability to book a test drive online and complete paperwork online – make sure its unmissable to buyers on your adverts and website.

Speaking of adverts…

We now have several features available to help you promote your digital offerings to the UK’s largest car buying audience.

These include dedicated areas on adverts to display your digital retailing options. So, make sure you’ve updated your profile on Auto Trader with details about any Home Delivery or Click & Collect services you provide. This will ensure the process for an off-site transaction is clearly displayed.

As well as showcasing your digital retailing options, make sure your adverts themselves are high quality, guarantees and assurances are clear, leads are responded to quickly and your contact details are clear so buyers can get answers to any questions they may have. Keep this up and you’re set for digital retailing success.

We’re also beta testing an all-new feature to help with one of the trickiest elements of digital retailing – the part-exchange. Research shows that 54% of retailers believe part-exchanges are the biggest challenge when it comes to digital retailing. We also know that 1 in 3 sales break down due to disagreements over part-exchange valuations.

That’s why we have built Guaranteed Part-Exchange (GPX).

This new tool enables you to confidently offer a guaranteed price to your buyers for their part-exchanges, helping you reduce these lost sales. If a buyer chooses to go ahead with a purchase, along with their guaranteed part-exchange, then you can either accept the part-exchange vehicle at the guaranteed price, or pass the vehicle over to our partners at Manheim, who will pay you the guaranteed value and take away the vehicle – meaning there is limited risk to you.

You can find out more about GPX and sign up to the beta version of the new tool by clicking here.

Giving buyers the confidence to buy online

Trust, trust, trust. Yes, trust is the absolute key to giving buyers the confidence to buy a car online and we’ve identified four pillars that will do just that:

Develop trust in the vehicle

Ensure your online showroom provides detailed views, acknowledges any imperfections and includes reference points to help consumers experience the vehicle online. Highlight guarantees/ warranties provided with the vehicle and ensure all vehicles are prepped to the highest standards

Develop trust in the retailer

Promote the human support you can provide in digital car buying and ensure it is easy and quick for consumers to receive answers to their questions about the process or the vehicle.  Cultivate, highlight and reply to customer reviews, and ensure your online showroom is consistent across different websites you may be using

Develop trust in the price

Adopt and promote a no haggle approach to pricing to help consumers feel confident they are receiving a fair price when buying off-site. Make sure prices are consistent across online and offline channels and are fairly priced for the market,  clearly highlight any additional features and warranties which may impact the price

Develop trust in the process

Provide guarantees and warranties for all off-site sales and highlight these to consumers. Focus on ensuring consumers know someone will be accountable should anything go wrong in the process and how they can contact you post sale

By embracing these four pillars, you can take advantage of the opportunities presented by digital retailing.

This blog is based on the findings of our latest Market Report with this iteration focussed on digital car buying. You can view the full report by clicking here.