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.
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.
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