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Study Details Digital Retailing Trends

By Staff Writer February 09, 2021

Based on a survey fielded by eLEND Solutions among auto dealers in the fourth quarter of 2020, a study called “The Pandemic Drove a Great Leap Forward in Digital Retailing Adoption” explores the shift in dealer acceptance and application of digital retailing, while also investigating whether this forced innovation has been a blessing – or curse – for dealers.

“What this study reveals…is that while dealers were forced into change by the pandemic, they quickly saw the value and have embraced it as a blessing in disguise,” said Pete MacInnis, CEO of eLEND Solutions. “Old habits die hard in the auto industry, so this shift in perception is pretty extraordinary. It’s inspiring to see dealers evolve to, and embrace, technology that will expand the power and value of their business model. Getting to over 50 percent of auto dealerships viewing digital retailing as ‘deal’ versus ‘lead’ generation is huge.”

Over 30 percent of dealers surveyed said their digital retail-initiated transactions resulted in a higher profit-per-vehicle retailed (PVR). In total, 87 percent said that the PVR (front and back) of digital retail-initiated transactions has been the same or higher compared to pre-COVID averages.

Ninety percent of dealers surveyed said their websites are now more transactional – meaning that shoppers can get closer to a transactable deal online. Just 23 percent of dealers surveyed said that CSI scores had improved – with 66 percent seeing no change at the time of the survey.

  • 80 percent of auto dealers said the pandemic has accelerated their adoption of digital path-to-purchase experiences.
  • 90 percent say they expect to continue, or accelerate, digital retailing at their dealership.
  • 53 percent see digital retailing as deal generation – “the start of the deal.”
  • 90 percent of say their websites are more transactional today than they were pre-pandemic.
  • 87 percent report that digital retail-initiated transactions have resulted in unchanged, or higher, PVR (profit-per-vehicle retailed).
  • 64 percent said they reduced total transaction times compared to the pre-COVID average.
  • 38 percent reported a reduction of at least 30 minutes off the transaction time.
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Last modified on Wednesday, 10 February 2021 14:33

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