Top 3 Takeaways from Digital Dealer 2019
We had a great time at Digital Dealer 2019 this past week and I wanted to share a couple of thoughts I had after speaking with many dealers at the conference. I noticed 3 common trends in speaking with these dealers at the conference, they are:
1. New car dealerships are putting more of an emphasis on their used car business
2. Dealers who are embracing disruption and change are creating a gap between those who aren't 3. Data is becoming increasingly more important for dealers to win
New Car Dealers Transitioning More Effort into Used
I'm seeing a big shift in concentration from new car dealerships. Where the focus was historically around 90/10 for new/used I've seen a 60/40 shift to focus more on used car operations. As the opportunities to profit from used car operations increase new car dealers are seeing ways to implement used car strategies to co-exist with their traditional new car sales models.
Innovative Dealers Will Win
The biggest advantage the best performing dealers have is their ability to accept and embrace new technologies entering the automotive space. These are the dealers that that have their ears to the ground and are looking for new ways to stay competitive and relevant in the auto space. Traditional dealers will be left by the wayside because the innovative dealer will beat them on price, car selection, and every aspect of the sale.
Gut Won't Cut it
Data is becoming increasingly important in dealerships. Whether that be reconditioning data, insurance data, market data, or most importantly your own historical data; it's all essential to maximize dealers' potential. Basing decisions on gut in 2019 is going to cost you a lot more than it would to access the data that will enable you to make informed data driven decisions.
I left the conference yesterday feeling great about the future of automotive. It's so great to see an industry that has historically been so set in its ways make so many innovative strides. While I may be biased, I find it fascinating that every trend I've noticed has a direct application to what we're building at Drivably. For the month of August we're extending our regular 1 week trial to be a full month so people can get the full benefit of using our Bulk Inventory Diagnosis tool. You can access the free trial here: https://www.drivably.com/bidfreetrial.