Placing the after-sales service at the heart of the dealership business model

From state agencies to the insurance industry, the Internet has made a disruptive — and sometimes disastrous — way into many business sectors. What were once staunchly brick-and-mortar industries have come up against a host of online-only competitors that offer a faster and often more cost-effective service to today's poorer consumers.

The world of automotive dealerships may initially seem immune to this. After all, if a customer is going to go out on a big-ticket purchase like a car, whether it's brand new or used, surely they want to see it in person and enjoy a personal sales experience?

do not think so. As the BBC reported last year, Hyundai, Smart and Peugeot all launched new sales websites, 'fearing the success of car broking websites'. Meanwhile, the likes of Rockar have enabled car manufacturers to display one or two flagship vehicles in places like shopping centers and hotels, while most purchases are made through online showrooms and digital dealerships.

These new models allow buyers to engage with vehicle sales in a whole new way and are based on the recognition that a significant element of the sales process now takes place online. They can explore a showcase vehicle or two in a convenient, customer-centric setting, with experts they can talk through a variety of options. It's a model more common to the likes of Apple Stores than traditional franchised car dealerships. These businesses are ultimately losing control and influence over vehicle sales - so where does that leave their bottom line?

Importance of after sales

One area where franchised dealerships can still have an edge over their digital competitors is after the vehicle is purchased. After all, buying a car from an expert with a tablet and a model car in the middle of a shopping center is all very well, but once that car needs servicing, it can hardly be taken back to the same site.

By building a strong after-sales service, traditional dealerships can not only increase their revenue in the short term, but also develop a complete customer service offering that can still drive direct sales away from these digital showrooms.

How do these dealerships create an outstanding aftersales offer? There are many lessons to be learned from the new dealership models, which focus on convenience and transparency above all for the customer. They choose locations and times that suit buyers' lives, and they focus on providing an expert 'translator' between technical details and buyers' actual need lists. These are features that can easily be built into a traditional dealership, especially in the after-sales arena.