4 ways to calculate ROI on Digital Retailing

Have you ever sold a vehicle over the phone to a customer who just wants to pick up the vehicle? (or have delivered) Most dealerships have executed the “remote phone sale” process and have been able to know the exact gross of the deal.

That’s what dealers want when it comes to digital retailing. They want to know the deal is profitable, and they want to do it with a LOT less effort than a remote phone sale requires.

When you are looking at digital retailing and the ROI it can deliver for your store, consider these four key elements.

  1. Sales – does your digital retailing solution deliver sales or just leads that you have to waste time and effort to resell in the traditional showroom process when the customer arrives? 
  2. Time – A easy and intuitive platform will speed up the sales process for both customers and your team, providing an increased ratio of deals per employee.
  3. Staff – Changing your sales process and having to retrain your staff will kill your ROI, so make sure your digital retailing workflow conforms to your current in-store sales process.
  4. Increased F&I profit – Your Digital Retailing platform must include your ancillary products and move customers smoothly through the sales process to achieve your PVR goals.

If your digital retailing platform requires you to resell the customer in the showroom, you end up doing twice as much work to sell one vehicle. That is not efficient or profitable for dealers and makes the old school remote phone sale seem efficient. It’s a waste of expensive staff-hours when employees are redoing or correcting work to resell a vehicle that was already sold “online’.

The easier and faster your customers and staff can get through the online sale (with Pencil Perfect Contract Ready payments), the more deals they can deliver each day. Adding digital retailing to your current sales process is the fastest way to increase your teams’ sales efficiency and increase revenue per employee.

Pencil Perfect Contract Ready digital deals make customers happy, and happy customers frequently pay more. Customers more often accept the full spread offers without negotiating or even questioning the interest rate. Dealerships are also seeing increased purchasing of F&I products like gap insurance and prepaid maintenance plans. The easy (and pressure-free) online buying process lets them review product details without having to put up a protective mental wall like they do at the showroom. There is a 28% increase in inside finance penetration for digital retail deals vs. the traditional showroom process, proving that relaxed customers are much more likely to spend more.

If you are interested in having CreditIQ get you set up for Pencil Perfect Contract Ready Digital Leasing/Retailing, please reach out to us at – sales@creditiq.com or click below to learn more.

Kent Mihlbauer
Author: Kent Mihlbauer

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