Digital retailing for dealerships still demands connecting with customers

The success of digital retailing for many auto dealerships has become very evident. A 2025 Cox Automotive Study showed 78% of dealerships with an omnichannel approach to digital retailing saw a positive effect on their close rates and 67% reported positive results on gross income.¹

An omnichannel strategy is a comprehensive and cohesive integration of online and in-store processes. At its most effective, digital retailing doesn’t have to be an end-to-end online experience for customers, but one that complements traditional sales practices. Your messaging to target customers should be consistent and personalized, whether they are looking at your social media posts, receiving an email from your business, visiting your website or stepping into your showroom.

In store or online, it’s all about reaching the customer and offering convenience, flexibility and control. It’s very common that customers who do most, if not all, of their vehicle research online still come into the dealership for a test drive and follow-up questions. Ultimately, most consumers still feel better about a major purchase when they can talk directly to a human being about it. But the ease of use and speed of digital retailing capabilities can make them more confident about their choices and about your dealership’s transparency in terms of options and pricing.

Prioritize F&I in digital retailing to create more sales opportunities

Despite the impressive results noted above, many dealerships still neglect F&I products in this area, focusing mostly on vehicle selection, trade-in value and financing. Of course, those are the top-of-mind items when customers first start considering a new vehicle purchase, but dealerships need to shine a bright light on F&I options.

Customers should be able to easily view F&I products eligible for their vehicle, research each of those products and see real-time pricing. Zurich can help facilitate this through seamless incorporation of F&I product education resources into your online selection and pricing tool.

Zurich F&I products integrate with most major digital retailing providers, including:

• Dealer.com
• Darwin Automotive
• Roadster
• Teklon
• Upstart
• And more

Other key considerations in digital retailing for auto dealerships

Different car buyers follow different paths to their purchases and your digital retailing solution should accommodate as many different choices as possible, integrating tools that gradually engage and encourage customers to move forward. This means providing customers with the core tools necessary to structure their purchase, including:

Inventory

If customers can’t find the vehicles they’re interested in, they will move on to your competition very quickly. Ensure your digital retailing tools allow users to search both in-stock and in-transit inventory, also offering filter functionality to find vehicles with desired features and options.

Trade-in tools

For most car buyers, getting good trade-in value on their current vehicle is critical. Car buyers expect to receive an accurate valuation or even an offer to purchase their vehicle. Most digital retailing applications will allow for the integration of a variety of trade-in platforms. Make sure to select a tool that provides valuations in line with what you might offer to a customer physically in your showroom to avoid giving your digital shoppers an incorrect value.

Financing

Car buyers that engage with digital tools expect rapid responses to their inquiries and this includes applying for financing. This step may create anxiety for a customer and providing instant approval (dependent on credit, of course) is essential to keep the deal progressing. The financing portion of your digital retailing application should include easy applications, instant approvals and lender submission.

Payment calculation

For customers financing their vehicle purchase, the monthly payment may be the decisive factor in the selection of a vehicle, acceptance of trade-in offers and addition of F&I products. Providing payment transparency throughout the structuring of the deal allows customers to see which vehicles fit into their budget, see how financing terms impact their payment and determine which F&I products may enhance their ownership experience within their payment thresholds. This pricing transparency has added value in helping dealerships stay compliant with FTC rules that have recently been more strictly enforced.

Contracting

You need to determine what options the customer will be presented in finalizing their deal. Consider whether you want to offer vehicle delivery, limit delivery to in-showroom (with all paperwork completed remotely), or only allow the customer to finalize the deal in-store. Factors such as staffing, flexibility of technology and regulatory limitations are key in deciding what options you make available to your customers. When selecting a digital retailing provider (or changing process with an existing provider), make sure to catalog what options are available through the technology and whether they align with your desired process.

Communication is king

Whether contacting your business at home or talking to you face-to-face in your dealership, customers want to be heard. A strong digital retailing strategy needs to integrate communication throughout every step of the journey. Customers may need assistance in navigating the technology, clarification of an aspect of the deal, or may want to negotiate. This means they need the ability to contact your team through the channel that they feel most comfortable with (live chat, text messaging, email, phone, video conference, or in-person) at any point in the process.

A strong digital retailing strategy will also prioritize transparent and frequent communication with the customer to avoid any ambiguity around how a digital deal is structured at your store. Provide upfront marketing content around your digital retailing process — brochures, fact sheets or videos that explain the process step by step.

Dealerships that offer better integration of online and in-store processes, along with F&I protection products, provide a fully rounded experience that presents more opportunities to sell. Zurich can help you evaluate your options and capabilities to develop a winning digital retailing strategy.

Digital retailing is one of the Zurich Advantage programs.

1. Cox Automotive. “New Study: Dealers Lean into Digital Retailing, External Partnerships and AI to Drive Efficiency and Profitability.” 25 June 2025.