How to provide an omnichannel car buying experience

The internet has revolutionized the way consumers shop for cars. Platforms like Carvana, Vroom and traditional dealerships with robust online presences have made it easier to browse inventory from the comfort of home. In 2023, nearly 80 percent of shoppers reported visiting a third-party website during the purchasing process. For many consumers, the option to vehicle shop online has increased overall satisfaction with the car buying experience.  

However, we’re far from the day when car buying goes entirely digital. In 2023, only seven percent of buyers completed the entire process online, indicating the widely shared preference for retaining aspects, such as test-driving cars, of traditional in-person car shopping. When asked about how their next purchase, 71 percent of consumers suggested it would be an omnichannel experience. 

With consumers increasingly shifting toward a digital-first mindset, understanding how to leverage omnichannel strategies is crucial for modernize workflows for customer satisfaction and continued growth. But how can more dealerships extend their offers to digital channels and effectively blend online and in-person interactions to enhance the customer experience? 

The Transition from Online to In-Person  

 The challenge lies in ensuring that both digital and in-person interactions meet the expectations of today’s car buyers. In addition to meeting high customer demands and delivering a competitive omnichannel experience, dealerships must comply with regulations, such as the Federal Trade Commission’s recent requirements for data security safeguards. 

Growth depends on investing now to serve customers in an increasingly omnichannel future. With advanced identity verification technology, dealerships can deliver quick digital experiences that seamlessly integrate into the in-person buying process. With advance fraud intelligence, dealerships can protect themselves against trending threats. Combining AI, expert analysts and cross-industry network data businesses can create a layered defense against fraud. 

The challenge then becomes striking a balance between fraud prevention and a fast and convenient customer experience. When dealerships rely on intelligent onboarding, they can keep fraudulent transactions out without inadvertently turning away good customers. 

 Car buyers typically spend an average of 3.6 hours in the dealership. Technology can reduce the time spent capturing and extracting needed information from consumers, decreasing the time to sale and accelerating the buyer experience. Dealerships can offer buyers the option to provide necessary information online before they arrive at the dealership. Advanced identity verification technology will handle the data extraction, allowing sales teams to focus on giving the customers the car buying experience they expect. After gathering a consumer’s data, it can be referenced again by other departments, such as the financing team, eliminating the need to verify a consumer multiple times.  

An advanced identity verification solution will allow dealerships to quickly and accurately collect authenticated ID data to meet compliance requirements, speed up customer workflows and get faster approvals. Instant ID authentication and data capture take seconds and are done in one step via online or mobile devices, through a self-service kiosk or on a desktop scanner.  

Implementing the Right Technology 

Eighty-six percent of executives believe having one vendor for identity verification is essential to optimize the customer experience. By consolidating services, dealerships can ensure a complete end-to-end consumer journey.  

A single identity verification platform simplifies the buying process by:  

• Accelerating buyer conversions: automated, risk-based workflows fast-track decision-making for trusted identities and apply additional verification measures only as needed.
• Utilizing scalable, automated document authentication: capture virtually any government-issued identity documents, online or in-person, to automatically extract data and apply 50+ forensic tests that authenticate IDs in seconds to catch expired, stolen, forged and tampered with IDs.
• Making re-verification frictionless: minimize the risk for common transactions such as account changes or wire transfers by providing a higher level of identity assurance. Quickly reverify identities and prevent fraudsters from accessing accounts with stolen identity data in a way that doesn’t needlessly inconvenience customers.

Future growth lies in the balance of digital and physical, catering to a consumer base that values convenience and personal interaction. By adopting an omnichannel strategy and leveraging the right technology, dealerships can meet and exceed customer expectations, driving growth and success in a competitive market. Download the Global Fraud Report: 9th Edition for more insights into fraud and identity trends.