Auto dealers planning to launch own online sales platform
Automakers have announced a major shift to digital dealerships, attracting customers to flee sales last month, but a group of dealers is launching their own online sales platform to fight the data.
Dealerships that opened last week are on foot. Hyundai, Tata Motors, Honda, and Mahindra have announced their digital platform. However, large dealers, especially those associated with multiple brands, offer their own direct dealer digital models.
“Dealers with affiliate businesses and multiple brands want to control the lifecycle of the customer relationship,” said Som Kapoor, partner at EY. “They try to move from the pre-sales tool CRM to the ‘customer lifetime value’ model. To do this, they prefer to create, try and make a single view of the customer model over the life of the customer relationship,” adds Kapoor.
Multi-brand dealerships want to create specific data, cross-sell, and ultimately integrate the process of selling a car, thereby reducing the reliance on auto majors. “OEM wants to acquire social media, website, recruitment, promotional plans, increment and customer data,” said Kunal Gambhir, DD Motors Delhi’s multi-brand dealer.
Kia Motors has launched its online program. “We have connected our online platform with our dealers, both of which need to be connected,” said Manohar Bhatt, Head of Sales and Marketing at Kia Motors, managing customer data.
Given the current mobility and social distance constraints, dealers say manufacturers are launching online digital models to control consumer mind-sharing.
“All of the dealers believe in and act on their own. Oi’mulkkulm is the proponent of establishing their own digital platforms. Digital models on the dealership. “Says Finka Dealer Body Vice President Winkes Gulati.
“Like Kerala Popular Motors, like Maruti dealers, powerful dealer brands are also making good use of their digital ventures,” Gulati said.
Industry experts say some Metro and Tier-1 dealers have been very active in their digital play even in the days before COVID. However, no manufacturer can switch to a fully digital model as customers contact dealers for test drives, including the touch and feel of the vehicle.
Manufacturers ume believe that consumer data is owned by dealers and OEMs use that data.
“OEM digital platforms are dealer platforms and they are not mutually exclusive,” said Shashank Srivastava, marketing & sales id at Maruti Suzuki. “OEMs typically operate on the buying funnel, which includes awareness and brand exposure, while dealers work on the bottom of the funnel, looking for inquiries and conversions,” said Srivastava.
OEMs, despite their brave face, are sure to bring more conflict between the already fragile auto majors-dealer relationship.