Divide between digital and physical customers is “artificial”

Dealer strategies that divide customers into digital and physical customers are artificial and misunderstand the way that people behave in the real world, says iVendi.

The dealer online technology specialist points out that nearly all digital customers will end up visiting a dealership at least a few times while customers classed as physical will also interact with the dealership online.

James Tew, director, said: “We talk to many dealers who tend to view customers as either older people who use their dealership in a traditional way or younger ones who are glued to online activity. They do so because they are effectively bolting-on a digital capability to their existing business model.

“However, this approach strikes us as much too extreme. The truth is that almost anyone who visits a customer in 2014 will also interact with the dealership online, even if it is only looking up the address on Google Maps or sending an e-mail.

“Similarly, someone who is happy to entirely buy a car online is still very likely to visit the showroom to see a car in the metal or, post-purchase, will make a phone call to book service and maintenance.”

The danger in seeing customers as either one or the other of two types, James explained, was that it artificially forced them down one of two routes.

“Dealerships pursuing this strategy are actually limiting customer choice by expecting them to fit into just a couple of very specific modes of behaviour.

“In the real world, almost every customer will choose elements of the physical and online customer journey to suit themselves and their preferences. This is the flexibility that the technology provides.

“What dealers should be doing is essentially saying to the customer, ‘However you want to do business with us – whether by phone, e-mail, social media, in person or by carrier pigeon – we will meet your needs.’

“To do this, they have to fully integrate their digital activity into their business, which can involve change at a fundamental level but will result in a more sustainable, successful model.”