The gurus call it the Internet of Things. You may be asking why your toaster needs to be connected to the Internet, but we can all see the benefits of a car that can talk to other cars on the road, or receive updates from the factory remotely.
(We can also see the dangers of a car so online it’s constantly trackable: See Hip Socket’s series on cyberpunk.)
This excellent article from Greg Ross of the rockstar consultancy motormindz spells out how the connected car might alter the retail landscape. With the technology investments needed, he anticipates more consolidation of dealerships under fewer owners. Tesla and Cadillac are examples of what is possible.
I’ve called on many smaller dealerships over the years. The families that own them are so actively involved in their communities that I can’t help but hate to see some of the consolidation happening.
So here is where I see hope that the family owned, local store can survive:
Ross points out that the business model–or at least where the expenses fall–will change. Cars that can be remotely unlocked and started for test drives, cars that can remotely alert service departments of algorithm-generated predictions for maintenance or repair needs, are shifts in the paradigm.
Anticipating and preparing for that shift could keep an individual store in the black:
Less real estate for carrying new-car inventory?
More training for sales staff to become “remote workers” who know how to give outstanding off-site demonstrations, how to order and how to represent the store’s culture?
More call center employees dedicated to proactively reaching service customers whose cars have notified the store that they need service?
A new role, that of analyst, to ensure the dealership takes advantage of all of the data generated by their DMS (enterprise software), CRM, customer surveys, online reviews, car-generated usage records, etc.?
Changes to parts departments so they can ensure they have correct inventory just-in-time for these “predicted” service appointments?
Better recruiting of employees who can both learn the technology and represent the store’s culture?
Creation of mobile service teams?
Those are my ideas. What would you add?
Now is a great time to think about steps you want to take in 2022.