Skip to main content
All Resources / Blog

May 5, 2025 / by Solera Holdings

The Evolution of Customer Experience: Why It Matters for Auto Dealers in the Digital Age

The automotive landscape has shifted dramatically. Customer experience (CX) has become the magic differentiator that converts browsers into buyers and first-time customers into lifelong advocates. In a sea of similar inventory and competitive prices, dealerships that master exceptional CX sell more vehicles – and establish a sustainable competitive advantage that will drive profitability for years to come.  

What Customer Experience Really Means for Your Dealership

For you as a dealer, customer experience includes every single touchpoint with potential buyers—from their first click on your website to follow-up calls years after a purchase. These touchpoints have dramatically multiplied in recent years, and your customers now expect seamless experiences across your website, social platforms, showroom floor, and service department.

“These days,” says Jenna Smith, Solera’s VP of Professional Services, “the digital customer experience is the new showroom. Dealers who seamlessly blend online convenience with personalized service are the ones who will drive success in the future. It’s not just about selling cars anymore; it’s about building lasting relationships through exceptional digital-first experiences.”

How Digital Has Transformed Auto Sales CX

The shift to digital has fundamentally altered how your customers shop for vehicles:

  • Always-On Expectations: Your customers are researching vehicles at midnight and expecting responses to inquiries within hours, not days.
  • Personalization as Standard: They’re accustomed to Amazon-level personalization and expect you to know their preferences and history.
  • Omnichannel Journey: Customers might start on your website, continue on social media, and finish in your showroom, and they expect you to keep up with them at every stage.
  • Speed and Convenience: The days of all-day dealership visits are long gone; customers now expect streamlined, efficient processes.
  • Self-Service Options: Many prefer to do their own research and vehicle configuration before involving your sales team.

Why This Matters to Your Dealership Right Now

The numbers tell a compelling story: 74% of buyers conduct substantial online research before making a purchase. Dealerships that excel in customer experience consistently surpass their competitors in both sales and retention metrics. In an industry where a single negative review can dissuade numerous potential customers, your reputation for outstanding customer experience has never been more crucial.

The Challenges You’re Facing

The digital transformation comes with its own set of challenges:

  • Balancing Data Use and Privacy: You need customer data to personalize experiences but must navigate increasingly strict privacy regulations.
  • Keeping Up with Tech: The technology landscape is changing rapidly, making it hard to foresee which investments will yield returns.
  • Creating Consistency: Ensuring your team delivers the same quality experience, whether online, over the phone, or in person.
  • Maintaining the Human Touch: Injecting personality and empathy into digital transactions.

Your Opportunities for CX Excellence

Despite these challenges, exciting opportunities await dealerships ready to innovate:

  • AI and Predictive Analytics: Anticipate customer needs before they even express them.
  • Virtual Reality Experiences: Offer immersive test drives and customization options from anywhere.
  • Online Financing Tools: Simplify one of the most stressful parts of car buying.
  • Conversational AI: Create more natural interactions with automated systems.

Moving Forward

The dealerships that will thrive in the coming years aren’t necessarily those with the flashiest showrooms or the most extensive inventory – they’re the ones that consistently deliver exceptional customer experience, from personalization techniques to omnichannel integration strategies.

“Data indicates that customers who interact with dealers through various digital touchpoints are more inclined to make a purchase and become repeat buyers,” Smith states. “For auto dealers, investing in a strong CX strategy is essential for survival and growth in this highly competitive market.”

Your customers’ journey matters just as much as the vehicle they ultimately drive home. Is your dealership ready to deliver an experience that keeps them coming back?

Stay tuned for the remainder of this series as we explore specific strategies and technologies that can help you enhance your customer experience, including personalization, omnichannel interactions, AI-powered customer service, and more.

Ready to Shift Your CX into High Gear?
Take the first step toward transforming your dealership’s digital customer experience with Solera’s comprehensive solutions to enhance sales, loyalty, and growth. Speak with one of our experts today!