Digital retailing is about more than technology

I meet often with auto dealers of all stripes and sizes across the U.S., and what I've seen and heard about this year is a relatively healthy vehicle market. Our economists are forecasting the year will end in the 17-million stratosphere, another strong year, and stronger than initially forecast. At the same time, a lot of people I talk to believe this party is not going to last forever. They never do.

We also know we're not selling all these new vehicles because Americans love the process of buying a car. Americans buy cars despite the process, and when our next downturn comes, it's only going to get harder.

I hear it all the time: dealers calling for a solution to make car buying a great experience, speed the sales and F&I process, and reduce expenses. Likewise, consumers are asking for a better experience, as they have not felt the trust when it comes to purchasing a vehicle from a dealer. With all the disruption at play in the industry right now, everyone is hunting for a new solution.

I don't agree with all the "death of the dealership" stories. I do believe the current dealership sales model will change in the coming decade, but that doesn't mean it's time to mourn. Rather, it's time to embrace the opportunity and follow the consumer into a reality where the majority of the car-buying journey takes place in the digital world. The opportunity is to seamlessly connect these increasingly important online storefronts to the in-store experience.

In January, the annual NADA convention likely will be dominated by new iterations of technology to make that connection — to make car buying easier and "hassle free." It's important, though, to put these technologies into perspective. Don't get me wrong. Technology can and will play a significant role in improving the car-buying experience. It can give you, the dealer, the ability to fight, not against but alongside the innovation and disruption. But these new technologies are only tools to help address the bigger issue of giving the consumer a fast, convenient and transparent shopping experience.

That's why this opportunity is not only about technology. The new model for auto retail isn't simply about taking another step forward in online sales or inputting consumer information online. This new model is about entirely transforming the way you approach the business. It's about rethinking how you sell a car; how you attract and retain the best talent; how you structure your business to better fit the future of auto retail. If you have simply checked the box by having an "online lead handling department," you likely have missed the point.

The coming wave of digital retailing is about changing the process, the people, the roles and the compensation. This is about disrupting yourself and taking the leap to fully commit to the disruption.

To win in the new retail environment is to embrace the online channel while simultaneously changing the traditional in-stores process. Underscoring this commitment is how you communicate messages and brand promises to make your store more attractive to buyers and potential employees.

Encouraging shoppers to fully structure a deal online is not the same as appointment setting. Readiness to close and deliver quickly is not the same as upselling. This digital retailing movement is as much about dealers adopting a consistent pricing and sales strategy as it is about implementing the right tools. It's about making the sales process transparent, both online and in-store, and providing a responsive, personalized shopping experience.

The technology available to dealers is rapidly evolving to better connect digital showrooms to physical ones. Saving time and enabling automation is good for the car buyer and the dealer. Just as important, though, the dealer mindset has to change. The key to success involves embracing new technology and business practices.