How can the digital transformation in car dealerships succeed?
05.06.2025
The digital transformation in the automotive trade is in full swing – Alternative drives and technologies, new sales channels and changing customer behavior require new approaches in established car dealership structures. In this transformation, digitalization is no longer a trend, but a decisive success factor. For car dealerships, this means that now is the right time to position themselves for the future.
Why digitalization is important for car dealerships
Digitalization is of great importance for car dealerships because it is directly linked to current changes in the automotive industry. One key factor is the switch to electromobility. This change not only affects vehicle sales, but is also changing the service business, as many electric vehicles require less maintenance than combustion engines. This has an impact on workshops and the way in which car dealerships interact with their customers.
At the same time, we are observing another trend: more and more vehicle manufacturers are trying to establish direct sales in order to sell vehicles without intermediaries. This development is putting pressure on the traditional sales structures of car dealerships, as they are faced with new competition and have to reposition themselves.
In addition, customer behavior has changed fundamentally: The number of physical visits to the dealership is continuously decreasing. Customers are increasingly researching online before they even visit a dealership. The first point of contact is often the dealership’s website, where they find out about offers, prices and services. This means that car dealerships need to significantly expand and improve their online presence in order to remain visible.
In addition, price pressure due to the ability to directly compare prices and services online means that car dealerships are forced to prove their competitiveness not only in the local dealership, but also in the digital space. Customers expect transparency and a seamless, convenient experience – both online and offline.
The advantages of digitalization in the dealership
Digitalization offers car dealerships a wide range of benefits that not only increase efficiency, but also open up new business potential.
Reach new customers - locally and nationally
With a professional website that is both mobile-optimized and search engine-friendly and targeted online marketing, you can create a uniform, consistent online presence. This ensures a high recognition value and makes your brand visible both locally and nationally. A strong and recognizable online presence on relevant platforms allows you to reach potential buyers who are not in your dealership’s immediate catchment area – increasing your reach and attracting new customers.
Strengthen customer loyalty across multiple channels
Digitalization enables you to address your customers across different channels. Email marketing, Social Media and other digital touchpoints ensure continuous communication – even after the vehicle has been sold. Service reminders, offers and relevant information reach the customer at the right time and strengthen long-term loyalty.
Making processes more efficient
By using modern tools and technologies, you can automate recurring tasks such as confirming appointments, sending offers or service emails. CRM systems, chatbots and marketing automation tools take the pressure off your employees and increase service quality at the same time. The automation of processes not only ensures efficiency, but also a consistent and high-quality customer experience.
Expanding sales potential
E-commerce functionalities offer you new possibilities: Vehicles can be pre-reserved online or purchased directly. Financing inquiries and trade-ins can also be prepared digitally, making the purchasing process more convenient for the customer and at the same time creating new sales opportunities for your dealership. This expansion of your offering ensures greater flexibility and increases competitiveness.
Using data sensibly
Digital transformation enables data-based management of your company. By analyzing customer data in real time, you can make informed decisions: Which vehicles are most in demand? Which marketing channels deliver the best results? This information helps you to optimize your offers in a targeted manner and to set up your dealership to be resilient and future-proof in the long term.
However, despite the many benefits of digitalization, there are also a number of challenges that need to be overcome in order to exploit its full potential.
The biggest challenges
- Data protection and IT security
Customer data is a valuable asset – and at the same time a sensitive topic. Anyone who works digitally must be aware of their responsibility to protect personal data in accordance with the GDPR. This applies in particular to the use of CRM systems, online forms and cloud-based tools. IT security, regular software updates and clear data protection processes are mandatory. It is worth working with professional IT service providers to identify and rectify vulnerabilities at an early stage.
- Technical complexity of the systems
The introduction of new digital tools often entails a certain degree of complexity – especially when systems such as CRM, DMS (Dealer Management System) and communication platforms are to be integrated. Without a clear strategy and well-planned interfaces, processes can become inefficient or data can be lost. A systematic IT architecture and external consulting are often crucial for success here.
- System diversity & training requirements
Technology alone is not enough – you also need the people who use it. Many employees have been used to analog processes for years and first need to be introduced to new digital ways of working. Training, clear responsibilities and a sensitive approach to change processes are crucial. Invest in targeted training to fully exploit the potential.
Car dealerships increase their competitiveness with these measures
The digital transformation offers numerous opportunities, but also challenges. This makes it all the more important to take the right steps and make targeted use of digitalization to make your dealership fit for the future.
- Targeted use of lead management
Buying behavior has changed dramatically in recent years – potential buyers now spend more time online gathering information before making a purchase decision. It is therefore becoming increasingly important not to lose any leads and to maintain contact with interested parties in a targeted manner. A modern CRM system helps you to consistently record, assign and automatically manage customer contacts. Not only can you ensure that every lead is systematically followed up, but you can also target the decisive points in the purchasing process, for example by using automated reminders for test drives, inspections or special promotions.
As customers engage more intensively with their purchase, you can strengthen customer loyalty through personalized communication and regular communication and actively accompany the sales process – from the first digital contact to the conclusion of the purchase.
- Expanding digital presence
Your website is your digital business card – mobile-optimized, search engine-friendly and with a clear structure. Integrate functions such as contact forms, a chatbot, vehicle configurators and digital inquiry options. In addition, targeted online marketing with campaigns, such as on social networks or through search engine optimization, increases your visibility.
Digital price tags also offer a modern way of displaying price and vehicle information directly on the vehicle in real time – synchronized with your online database. This ensures that your pricing is always up-to-date and consistent with your online offers. At the same time, you create a transparent and professional shopping experience for your customers – digitally and on site.
- Using after-sales as a sales driver
The future lies not only in vehicle sales, but also in recurring revenue – e.g. through maintenance, accessories or digital services. Digital solutions for car dealerships also offer new opportunities in the after-sales area, for example through automated maintenance and service reminders that strengthen customer loyalty.
Conclusion: Act now - digital advantage is no coincidence
Digitalization in the automotive trade is an investment in the future viability of your company. Investing in digital processes, systems and communication today creates the basis for stable customer relationships, efficient processes and sustainable growth.
With a clear digital strategy, the right tools and a well-trained team, your dealership can master the challenges of tomorrow today – and successfully assert itself in the market.