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DIGITIZATION OFEND-TO-END RETAILJanuary 2021Research & Market Intelligence
Key Takeaways: Digitization of End-to-End Retailing1.2.3.4.5.Digital Reaches New Heights In Automotive ShoppingSaving Time Is The Universal Draw To DigitalShort-term Challenges Do Not Limit Long-term Adoption CommitmentsHigher Commitment Drives Greater RewardsThe Future Of Automotive Sales Has Reached A Point Of No ReturnEdit Master text styles2
As Dealers Adapted How They Do Business 69%of franchise dealers addedat least one digital step dueto COVID-19TOP STEPS ADDED DUE TO COVID-19 Test drive home deliveryPurchased vehicle home deliveryOnline credit application74%of franchise dealers saytheir customers haveused digital retailing toolsmore since COVID-19Source: 2020 Digitization of End-to-End Retail StudyEdit Master text styles3
Buyers’ Experiences Rose to New Heights.% OF BUYERS HIGHLY SATISFIED WITHOVERALL SHOPPING s indicate significant differences from 2019 or previous timeframe at the 95% confidence interval.Source: Car Buyer JourneyEdit Master text styles4
Consumers Believe Digital RetailingWill “Save Them Time” #1 SHOPPER BENEFIT:86%Saving time in personat the dealershipSource: 2020 Digitization of End-to-End Retail StudyEdit Master text styles5
And The Same Expectations Hold True for Dealers.BENEFITS OF USING DIGITAL RETAILINGAMONG FRANCHISE DEALERS61%Reduced time spent on saleImproved customer experience53%Expanded customer reach/market47%Increased total vehicle sales46%More qualified leads46%Source: 2020 Digitization of End-to-End Retail StudyEdit Master text styles6
While Shoppers Are Open to the Idea of Buying a Car Completely Online,the Industry is Not Ready.of shoppers areopen to the ideaof buyingcompletely online1 in 3Franchise dealers offerALL the purchaseprocess steps onlinec76%Only MOST POPULAR STEPS TOOFFER ONLINE ARE AT THEBEGINNING OF THESHOPPER’S JOURNEYSource: 2020 Digitization of End-to-End Retail Study#1#2#3#4#5Apply for credit/financingFind info on incentives/rebatesSchedule a test drive onlinePayment calculatorReceive a trade-in offerEdit Master text styles7
Most Dealers are Ready to Make Changes Though 78%of franchise dealers are willing tochange dealership processes to meetconsumer expectations61%of franchise dealers have or willlikely adjust sales incentives toencourage staff to adopt DR52%of franchise dealers will placegreater emphasis on hiringdigital skill sets in the futureSource: 2020 Cox Automotive COVID-19 Dealer Impact Study (Oct 12-16)Source: 2020 Digitization of End-to-End Retail Study8
and Are Committed to Deliveringin This New Normal.80%of franchise dealers plan to offermore parts of the purchase processonline in the next 1-2 yearsMOST POPULAR STEPS TO ADOPT NEXT Payment calculatorSelect add-onsReview & sign paperworkSource: 2020 Digitization of End-to-End Retail Study9
Dealers Have Seen The Future:Investing In Digital Retailing Is a Non-Negotiable.3-in-4Franchise dealers agree thatthey won’t be able to survivein the long run if they don’tadopt digital retailingSource: 2020 Digitization of End-to-End Retail StudyEdit Master text styles10
Sign up to see Isabelle Helms, Vice President of Research &Market Intelligence present the full Digitization of End-to-EndRetail study on February 1, 2021.REGISTER TO ATTENDFor more information, or to obtain a copyof the full study, contact:Dara HailesManager, Public RelationsCox Automotivedara.hailes@coxautoinc.comMark SchirmerDirector, Public RelationsCox Automotivemark.schirmer@coxautoinc.comEdit Master text styles11
About the Digitization of End-to-End Retail Study Measure shifts in consumer preference towards a more online purchase experienceOBJECTIVES: Understand consumer and dealer barriers to adoption Quantify the impact of digital retailing on the consumer and dealer Identify digital retailing best practices for dealershipsMETHOD:We interviewed:1,859462Next 12 MonthVehicle IntendersFranchise DealersWith Digital RetailingQUALIFICATIONS We interviewed:Age 16-64Primary/shared decision makerMust be considering purchasing from adealership (not just private seller)QUALIFICATIONS 5 vehicle sales per monthDecision maker/influencer over DRJob title in management, marketing, sales,or business manager/assistant managerEdit Master text styles12
Source: 2020 Cox Automotive COVID-19 Dealer Impact Study (Oct 12-16) Source: 2020 Digitization of End-to-End Retail Study of franchise dealers are willing to change dealership processes to meet consumer expectations 78% 52% of franchise dealers will place greater emphasis on hiring digital skill sets in the future 61% of franchise dealers have .
