CDK Global

Since the turn of the century, the marketing world has shifted its focus from print to digital, reaching people primarily through email, text messaging and social media rather than print ads and mailers. While these online strategies have proven to be impactful in the past, people have become wary of digital offers, often using a nonprimary email address to sign up for retail correspondence or leaving such messages unread. 

Every franchised dealership’s Service department is a busy, high-volume and profitable part of the business. The dealership competes hard for this business against independent shops, service chains and mobile mechanics. But while you’re busy booking, servicing and maintaining customers’ vehicles, who’s maintaining your Service department’s call center?

There’s a widespread belief that every car shopper wants to avoid visiting a dealership and just purchase a new vehicle from the comfort of their homes. And while some online retailers are successful, most data doesn’t support this fully digital experience. Over more than two years of the CDK Ease of Purchase monthly scorecard, the number of people who buy a car online hovers close to zero, rarely broaching 3%.

Today, many auto dealerships across the U.S. are debating whether some or all of the new vehicle sales process should be moved online. Data suggest a hybrid sales approach, may be best. Let’s break down which tasks are better suited for online versus those that should remain part of the in-person shopping experience.

It’s essential to make a good first impression with a car shopper, as those initial minutes set the tone for your entire interaction. CDK regularly conducts research across the industry, and in a study of over 1,000 car shoppers last year, we asked how much those crucial first moments matter to the overall experience.

The results showed that shoppers were almost equally likely to be greeted when they arrived on the lot (44%) or upon entering the store (40%). But 16% of those CDK surveyed said they weren’t greeted at all and had to seek someone out.

A winter storm may have shut down flights around the country during the last week in January but it didn’t shut down NADA 2025. True to form and the ever-resilient nature of the automotive retail industry, dealers, vendors and industry partners showed up and hit the trade show floor in New Orleans.

Unfortunately, many weren’t able to attend and that’s why CDK is offering both on-demand content and virtual webinars to make sure everything that was delivered at NADA finds its way to our customers.

There are two ways to catch up on everything that happened at NADA:

Inflation is hurting everyone. According to a recent Gallup poll, more than 40% of Americans named inflation as the top financial concern for their family. This is up considerably from the 2010s, when only 15% of consumers had inflation on their minds.

Tire sales represent an opportunity to drive additional Service revenue and highlight the convenience and quality of work performed at your Service center. All vehicle owners will need tires at some point. In fact, according to CDK’s latest Service Shopper Study, tire needs are the second most common reason for service, coming in behind oil changes. Over 50% of respondents specified tire rotation, repair or replacement as the vehicle service they received most recently.

The rise of point-and-click car buying pioneered by Tesla has traditional brands working hard to deliver a similar online experience to sell cars. Yet, even after pandemic shutdowns that fueled online shopping, the majority of buyers don’t want to make this very large purchase remotely. 

If you have it, they’ll come — the right car that is. Car dealerships run on inventory and without it, shoppers aren’t likely to visit. Car buyers say the number one reason they visit a specific dealership is because it has the specific car they're looking for on the lot.