It’s a strange time in the car business. You walk into some dealerships and it’s like nothing’s changed since fax machines were cool. Meanwhile, the customers are out there buying cars the way they order Thai food—online, impatient, and very confused when asked to come in and “talk numbers.”
Adaptation in today’s dealership looks a lot like panic disguised as innovation. Everyone’s updating their digital strategy the same way people clean before company arrives—just enough to seem presentable, but please don’t open any drawers. Margins are shrinking, inventory’s playing hide-and-seek, and the market’s about as stable as a folding chair at a family reunion.
The real problem? Some of us are dragging decades-old habits into a world that’s moved on without us. We keep clinging to processes that feel familiar, like a well-worn pair of khakis, even though they haven’t fit since 2015.
One of the most useful things you can do right now (aside from figuring out how to stop bleeding money on Google or Facebook ads) is take a hard look at the digital side of your dealership. Not just “do we have a website,” but “do our digital habits still make sense in 2025?” Spoiler: They probably don’t.
Old habits, new customers
Having spent most of my career running big, successful stores, I’ve learned some truths that predate all of this and may outlast us all:
- Truth #1: Customers don’t trust car dealers.
- Truth #2: Many dealers still act like predators in a David Attenborough documentary.
- Truth #3: Until dealers reconcile #1 and #2, they will continue to repel the very people they need in order to stay in business.
The old model is buckling under the weight of modern expectations. The customer isn’t walking in asking to see “the manager”—they’re asking why your website says one price, your ad another, and your salesperson a third.
Trying to modernize without losing your mind (or your staff)
Transitioning to a hybrid e-commerce model isn’t for the faint of heart. It’s like remodeling your house while still living in it. It’s messy, confusing, and full of moments where you ask yourself, “Why did I agree to this?” But change is being driven by customers, not consultants. And the longer you wait, the fewer options you’ll have.
Yes, it’s hard. Yes, it’s uncomfortable. But unless your goal is to become the Blockbuster Video of automotive retail, it’s time to evolve. Here are 8 areas in an average dealership that would benefit from your attention.
Boosting Dealership Performance: 8 Essential Digital Priorities
1. The Lead Handling Process: A Cautionary Tale
I bet you get calls daily from vendors who say they can get you more leads. Am I right? And sure, more leads sound great until you realize your team can’t handle the ones you already have.
Because here’s the thing: adding more leads to a broken process is like pouring gasoline on a five-alarm fire and then yelling “Let’s scale this!”
Uncomfortable truth: It doesn’t matter if you have 100, 1,000, or 10,000 leads if you’re fumbling them like a greased football.
Bad lead process = bad closing ratio = bad everything. It’s not math, it’s common sense.
Before you throw another dollar at lead generation, ask yourself these five 5 lead process questions:
- Where do our best leads actually come from?
(Hint: “everywhere” is not an answer.) - Which lead sources are delivering actual ROI not just noise?
Because “lots of traffic” doesn’t matter when it’s mostly tire-kickers and prank form submissions. - Who fields the lead first – and are they good at it, or just the person who happened to be near the phone when it rang?
- Are our lead responders converting, or committing accidental sabotage?
You know, the ones that are homes to bad copy, comically placed emojis and several different fonts? - What tools am I using to evaluate whether my managers are improving or just improvising?
And no, “gut feeling” doesn’t count. Not even if the gut is big and confident.
So before you go chasing more leads like it’s 2013, maybe fix the net first. Otherwise, all you’re catching is chaos.
2. Pay Plans: Rethinking Compensation for a Changing Sales Landscape
Sales is changing—not just in the “we added a new CRM feature” way, but in the fundamental way customers shop and how cars are delivered. Some dealers have adopted the “One Price” model to streamline the process. Others are offering Minis as standard pay, which may keep payroll steady but can leave salespeople stretched thin.
Meanwhile, customers are buying cars in their pajamas and having them delivered like pizza. And yet, we’re still trying to shoehorn those transactions into a comp plan that assumes someone’s doing battle in the showroom for three hours and emerging victorious with a signed four-square and a $500 spiff.
Now more than ever, pay plans need to align with both your digital sales strategy and your overall profitability goals.
In recent years, salesperson compensation has declined leaving some with just enough money to pay for gas (if they don’t live too far from the dealership). With that decline came the willingness to sacrifice work-life balance for higher pay. Many salespeople now prioritize time off over long hours and bigger commissions. When given the choice between long hours and higher pay or a weekend off and emotional stability, many are choosing the latter. (Wild, right?)
Dealers who recognize this shift and adjust accordingly will have an advantage in both recruiting and performance.
So here’s the question:
What steps are you taking to modernize your pay plans so they align with what truly motivates your team – and help deliver stronger results for your store(s)?
And more importantly: Do these pay plans reward the behavior you actually want?
It’s time to understand what truly motivates your team—before they decide to work somewhere that doesn’t demand they sacrifice their personal life just to earn a paycheck that barely covers it.
3. Digital Reputation: Or, What the Internet Says About You While You’re Not Looking
Because here’s the awkward truth: People talk. And they talk online. Loudly. About your store. About your employees.
While you’re obsessing over inventory turns and floorplan interest, your customers are online doing a different kind of research. They’re reading reviews. They’re scanning names. They’re hunting for someone – anyone – who doesn’t sound like a walking red flag.
And with 90% of people saying that online reviews influence their buying decisions, what’s floating around out there about your dealership and your staff matters. A lot.
Here’s the kicker: shoppers who choose a salesperson before walking onto the lot are nearly twice as likely to buy. Why? Because trust – like fashion, dinner reservations, and vintage Bronco prices – is built online now.
Start simple. Ask your team to Google themselves. No judgment—just curiosity. What comes up? Is it accurate? Is it flattering? Is it something that would make a cautious, modern shopper say, “Yep, that’s my guy”?
This isn’t about ego at all. It’s about making sure your store doesn’t get silently scratched off the list before you even knew you were being considered.
Because they’re watching. And reading. And choosing…often before you even say hello.
4. Customer Experience: Updated for This Century
Let’s revisit the greatest hits from earlier:
- Fact #1: Customers don’t trust car dealers.
- Fact #2: Some dealers are still acting like it’s 1983.
- Fact #3: As long as these two things coexist, the reputation problem sticks around like a check engine light you pretend isn’t there.
Now, I’ve spent a good chunk of my life in dealerships, and I know (as you do) that most vehicle customers are perfectly happy, some are even ecstatic about their cars. They buy a car. They get it serviced. They tell their friends. Many even come back to buy another. But all of that goodwill gets drowned out by one persistent image: the slick, shadowy salesperson who somehow turns a simple transaction into a high-stakes negotiation with a magician’s flair.
It’s frustrating. But it’s not entirely unfair.
Some of that old-school behavior? It’s still happening. Not everywhere. But enough to keep the stereotype alive.
And if you’re serious about changing that, the solution doesn’t come in the form of a motivational poster in the break room or a fresh coat of paint on the building. It starts with being honest about what needs to change – and then actually changing it.
That means tracking real customer experience metrics. It means tying them to performance in a meaningful way. It means rewarding behavior that builds trust instead of just closing deals.
Speaking of trust…let’s talk about your customers.
The pandemic didn’t just nudge consumer habits forward; it launched them into another galaxy. People expect flexibility now. Some want to complete the whole purchase online, down to the final signature. Others just want to avoid losing their Saturday to fluorescent lighting and a room that smells like exhaust and artificial hazelnut.
Here’s the upside: Customers want less time in your store. And your sales team? They’re on board. They’d like their some of their late nights back too.
So maybe it’s time to rethink the process.
- Can you meet customers where they are—on their phones, at their kitchen tables, maybe still in their loungewear?
- Can you simplify the path to “yes” without requiring an in-person blessing from a manager who still thinks his power lies in how long he makes people wait?
Because customers are changing faster than most dealerships realize. The question isn’t whether it’s happening. It’s whether you’re willing to change with them.
5. Digital Spend: Stop Trusting the Pitch. Start Trusting the Data.
One of the most common things I hear from dealers – usually in a tone somewhere between frustration and surrender is : “I know half my marketing is working. I just don’t know which half.”
And who can blame them?
You’re being asked to invest in platforms, training, and campaigns with acronyms that sound more like kitchen appliances than strategies. Meanwhile, clear guidance from the factory is often missing, and vendors (as charming as they may be) are naturally inclined to tell you what benefits them first.
What’s missing isn’t effort. It’s clarity.
The solution? Reliable, intentional financial reporting and analysis—built to answer real questions, not just to fill a month-end report.
You can’t manage what you don’t measure. We say that a lot, but when it comes to digital spend, it’s more like you can’t survive what you don’t measure. Not for long, anyway.
This is where key performance indicators (KPIs) and digital metrics come into play. Not in theory, in practice. They need to be tracked consistently and analyzed with purpose. Otherwise, you’re just looking at colorful dashboards and hoping they mean something.
Here’s a simple example: Do you know your advertising cost per vehicle, broken down by model?
You could. With the right data models and tools, that level of insight becomes not only possible, it becomes a compass. Instead of throwing dollars at the digital wall and hoping something sticks, you start making decisions based on what actually drives traffic, moves metal, and builds long-term value.
Because gut feelings are fine for picking socks. But when it comes to marketing spend? You need something firmer than hope.
6. Forecasting: Or, How to See the Future Without a Crystal Ball
Once you’re tracking your results with something more sophisticated than crossed fingers, the next logical step is forecasting, which is basically predicting how your strategies will perform before they actually do.
It’s less magic and more math, but the insights you gain can feel downright clairvoyant. Forecasting won’t turn your store into a fortune-telling booth, but it will help you make sharper decisions—and avoid those lovely “surprise” losses that always show up the same week the A/C breaks down.
Here’s how to start:
-
Look back before you look ahead.
Review last year’s numbers for the same month you’re planning. Yes, the world has changed since then, but knowing what you did is still the best place to begin. -
Build your forecast—line by line.
Estimate what you expect to achieve next month: sales, gross profit, expenses, and net profit. Break it down by department—New, Used, Service, and Parts—then roll it all into one document. Not scary. Just structured. -
Compare your forecast with reality.
When the month wraps up, sit down with your actual numbers and see how close you came. Spoiler: The first few times might feel humbling. That’s okay. This is a skill, not a parlor trick.
Over time, your forecasts will get tighter, your confidence will grow, and your team will start seeing it as a helpful tool instead of something cooked up by the last controller.
Most importantly, forecasting keeps surprises to a minimum.
- If the month goes south, you’ll understand why and maybe even fix it before it gets worse.
- If things go well, you’ll know who made it happen and be able to recognize team members that had a hand in the success.
7. Social Selling: Or, How Facebook Became the New Showroom Floor
Social media has quietly become one of the most effective tools in a car salesperson’s kit. I know several salespeople who sell 8 to 12 cars a month using nothing but Facebook and a little personality.
Social selling is the art of using social platforms to build real relationships, generate leads, and create referral opportunities. And it works: 79% of salespeople who use social media outperform those who don’t.
Most dealerships already have at least one salesperson doing this. They post delivery photos, answer DMs, and even get appointments. Instead of dismissing their efforts, it’s smarter to recognize social selling as a legitimate part of your digital strategy, and help the rest of your team follow suit.
In over a decade of training dealerships on this, the biggest obstacle I’ve seen isn’t the salespeople. It’s the managers. Salespeople are usually game. Managers are more hesitant. Some still think Facebook is just for birthdays and cat videos.
The answer isn’t to shut it down or turn them loose with zero direction. It’s structure: training, guardrails, and clear expectations. Social media isn’t a free-for-all. It’s a tool. And tools only work when people know how to use them.
Let your team build their brand – just give them a map first.
8. Internal Communication: Because Telepathy Still Isn’t Reliable
They say the art of communication is the language of leadership.
And yet, in some dealerships, it still feels more like a game of telephone – only with more dropped balls and fewer apologies.
Your customers are hyper-connected. They expect speed, clarity, and consistency. And frankly, so should your internal operations. If your team can text their dentist and order lunch in under two minutes, they shouldn’t have to track down a manager just to ask if a deal’s been approved.
Technology can help—chat tools, CRMs, digital handoffs. But here’s the thing: a tool without a process is just another way to confuse people faster.
Whatever you implement – Slack, Teams, smoke signals – make sure it comes with structure. Define who communicates what, when, and how. Otherwise, you’ll have ten people talking at once and no one actually listening. (Which, come to think of it, is also how some sales meetings go.)
And don’t forget the customer. Internal communication isn’t just about keeping the team on the same page. It’s about making sure the customer doesn’t get five different stories from five different people.
Clarity inside leads to confidence outside. So communicate like it matters—because it does.
Wrapping It All Up
Running a dealership today means operating in a world where everything – customers, technology, expectations – is moving faster than ever, and yet many internal practices are still crawling along like it’s 2005.
From lead handling to forecasting, digital reputation to pay plans and social selling, it’s no longer enough to say, “We’ve always done it this way.” The dealers that thrive will be the ones willing to take a hard look at what’s outdated, uncomfortable, or just plain ineffective, and do something about it.
The good news? Progress doesn’t require perfection. It just requires movement. Start with one area. Measure it. Improve it. Then move to the next. Your customers, your staff, and your bottom line will thank you. Or at the very least, they’ll stop quietly Googling other options.
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