Nissan ready to take digital-retailing plunge

In a bet that digital retailing will continue to accelerate in a post-pandemic world, Nissan will roll out a nationwide online shopping platform by spring.

The service, [email protected], will enable consumers to shop for a vehicle, schedule test drives, complete the paperwork for a purchase — including credit approval and finance and insurance options — and take delivery without having to step inside a dealership.

Post-delivery, customers will be able to schedule service appointments digitally.

"[email protected] gives customers the ability to purchase a vehicle on their terms," said Dan Mohnke, Nissan U.S. vice president of eCommerce. "It's putting the control in the hands of the customer for the experience they want."

For Nissan's 1,074 U.S. dealers, the program has the potential to drive vehicle sales, reduce dependence on third-party vendors and boost customer satisfaction. Nissan expects the majority of its retailers to sign up for the program, which will cost dealers $1,980 a month. Early adopters will receive an introductory monthly price of $990 for six months.

The auto industry had begun gravitating toward online sales long before the coronavirus shut down the economy in the spring. It was a response to a generation of shoppers who buy everything from shoes to smartphones with the click of a button. Auto retail startups, such as Carvana, were quick to cater to that demand and have handsomely profited.

Dealer software provider Cox Automotive has seen growth this year in dealership use of its digital tools. Fifty-three percent more car shoppers submitted offers online in October than in January, according to Cox data.

Automakers are responding with factory-blessed, one-stop-shop digital platforms for their retailers.

This year, General Motors beefed up its 7-year-old Shop-Click-Drive online shopping tool to offer test drive scheduling, trade-ins at home or work and real-time credit applications. In October, Fiat Chrysler Automobiles said it will upgrade its digital retail platform with new features, including the ability to schedule test drive appointments, make reservations and search new- and used-vehicle inventory.

Nissan began working on its digital platform before the pandemic.

"COVID did accelerate it, for sure, and probably helped this program," Mohnke said, "because everybody saw the real need out there for it."

The momentum will continue beyond the pandemic. Eighty-two percent of respondents in the National Automobile Dealers Association's Summer 2020 Dealer Attitude Survey said the digital sales process is here to stay, while 73 percent said home test drives and home delivery will continue.

Consumers and dealers see the value and time savings from digital retailing, said Jessica Stafford, senior vice president of consumer solutions at Cox Automotive.

"This is a necessity for dealers if it isn't a part of their future strategy for selling vehicles," Stafford said.

"Consumer and dealer adoption of digital retailing is only going to increase — even without COVID."

Nissan's digital sales platform will help retailers compete for more Internet-savvy buyers drawn to the no-pressure model of Carvana and Tesla, said Dan Banister, owner of Banister Automotive, which operates two Nissan stores in Virginia.

"We have to be where the customers are," said Banister, one of seven Nissan dealers piloting the digital retailing concept since summer.

Banister said he has sold more than 50 vehicles via the digital platform. The sales-close rate nearly doubled with customers who used the online shopping solution, he said, noting the program has delivered "better-quality" customers who were more motivated to buy a vehicle.

"When people use this tool, it pushes them further down the sales funnel because they can get accurate numbers on their trade, monthly payment and interest rate," Banister said.

"You're going to know right away what vehicles you qualify for."

Product pricing on the platform will be set by dealers and be transparent, Nissan's Mohnke said.

It's not "smoke-and-mirrors pricing," Mohnke said. "If you see a price in this platform, you can transact on that price."

The digital solution integrates with Nissan's incentive programs and F&I products.

"The customer can go in and start to construct their deal — they see what incentives apply, see real-time pricing and they can evaluate their trade-in," Mohnke said.

While [email protected] is designed for a 100 percent digital car-shopping experience, Mohnke said the tool also benefits consumers who seek a hybrid shopping model. The consumer can start a transaction online, research product and pricing and then go into the dealership to test drive and complete the transaction.

"The customer never feels like they have to walk into the showroom and start all over again," Mohnke said. "We have to blend the online and offline worlds for the customer. They have to be kind of connected."

Mass-market brand customers are likely to prefer the in-store buying experience, said Tyler Slade, operating partner at Tim Dahle Nissan Southtowne in suburban Salt Lake City.

"The vast majority of my customers want to sit in the car, they want to drive the car, they want to feel the car, and then they want to sign for the car and leave with the car," Slade said. "Consumers who don't have perfect credit, they want to be able to talk to the banker and the finance manager and see what they can work out."

But for those customers who would prefer to skip the haggling at the dealership, Slade says he now has a way to sell them a 2021 Rogue from the comfort of their couch.

"It'll definitely help with customer satisfaction scores," he said, "which would build loyalty and drive future sales."