An Auto Dealer's Guide to Increasing EV Sales & Revenue

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Connect as only a local can

Back in 2004, getting tech support wasn’t the easiest thing to do. The Geek Squad sought to change that. And to position themselves as a reliable and friendly tech service provider.

The team took an omnichannel approach using social media, in-store promotions, ads, and even “Geekmobile,” a branded car travelling around the US and providing tech support. On top of that, Geek Squad customers could benefit from 24/7 phone support and on-site repair services.

But the real differentiator lay in their positioning as the empathetic, approachable expert you could trust to help with any tech-related issues, no matter how big or small.

This emphasis on being local, trustworthy, and customer-centric allowed the Geek Squad to drive tech adoption and grow a loyal customer base, winning numerous awards for their customer service.

When it comes to EV purchase, it’s all about feeling comfortable with the long-term investment and lifestyle changes it requires — first and foremost, overcoming the initial concerns and obstacles to finding and setting up the necessary infrastructure.

If you’ve been looking at this as an opportunity to gain competitive advantage over online dealers, we’re right there with you.

Being local can become your biggest strength and differentiator if you focus on what you’re already good at — building trust through a uniquely customer-centric approach. For example, you can show your ability to:

Understand buyer’s needs

Understand and empathise with your buyer’s needs, concerns, and the opportunities as well as limitations of the area they live in

Tailored consulting

Provide tailored consulting and information based on those needs

A smoother buying journey

Deliver a smoother buying journey and customer experience with easy access to a test drive, maintenance, and other services 

That’s something online dealers won’t be able to emulate.

Engage by mastering the art of consulting

According to a PwC 2022 survey, there is a striking mismatch between what most auto dealers believe to be the primary reasons for EV purchase and what actually motivates their customers.

When asked this question, auto dealers listed improved vehicle performance and reduced maintenance needs. Consumers, on the other hand, cited sustainability and environmentalism as their primary motivators.

The conclusion is simple — building relationships and getting to know your customers, their needs, and buying journeys has become more important than ever.

Our recommendation? Become a trusted consultant. Welcome the buyer already prepped with answers to their biggest concerns around EVs:

  • Educate them on the technical aspects of an EV and its maintenance to alleviate battery range and charging anxiety, as well as confusion over industry jargon

  • Improve their understanding of the long-term value of an EV vs ICE to strengthen sustainability-led motivations and counter status quo bias

  • Consult them on home EV charging process and installation options to answer their concerns around EV charging setup, running, and maintenance costs

  • Inform about smart energy management solutions and the positive environmental and financial impact of installing additional energy sources like solar to help overcome fears around rising electricity prices

  • Advise on the best options for their home and budget. This can be particularly beneficial as, unlike the typical buying journey, the search for an EV starts by defining the available budget (rather than browsing models online).

Picking the right EV will be the final and easiest step in the process. 

To facilitate this transition for your team — and gain competitive advantage along the way — it may be best to partner with an experienced EV charging provider. With seasoned industry experts on the team, it could equip you with:

  • Useful information, informative materials, and explanatory videos
  • Tested and tried EV chargers
  • Options to add home charging installation to your offering
  • In-store visualisation of home electrification options

Win with standout buying experiences

By this point, you may be wondering, “If being local is so powerful, how come online car sales are on the rise?”

There’s no denying it. McKinsey reports that 42% of buyers would switch brands if their current dealer didn’t offer a good e-commerce solution.

The online buying journey is essential, but so is the in-person experience. 23% of customers would prefer a hybrid solution — ordering a car online but meeting the dealer in person for a test drive, consultation, and negotiations. In fact, for 90% of buyers, especially first-time EV buyers, a test drive is a critical precondition for the purchase.

This is another great opportunity for you to differentiate with customer-centric experiences.

A good example of this approach is Barclays’ Digital Eagles program. Launched in 2013, it aimed to solve a core client pain point — the lack of basic digital skills that left them behind in an increasingly digital world.

Just like the Geek Squad, Digital Eagles chose a multi-channel strategy, offering online resources, tutorials, and workshops on top of events in local communities and one-to-one support on site.

The initiative has since reached over 12 million people across the UK, significantly improving their digital skills and access to technology, as well as winning the company numerous awards and accolades.

A standout hybrid buying experience is built on four pillars:

  • E-commerce platform that facilitates initial research and discovery with features like advanced filtering and sorting, detailed product descriptions, clearly outlined financing options, payment calculators, and the possibility to easily book a test drive (all primary customer expectations).
  • Explanatory and consultative content and videos that answer the immediate buyer questions. This will not only notably improve the research process but also reinforce your brand image as a trusted advisor.
  • Enhanced buying experience that enables the consumer to choose how, when, and where to discover, try, and acquire their EV. This includes online as well as on-site transactions, home delivery, and an in-person expert consultation with a fast and easy way to book it.
  • Upleveled in-store experience. Adopting a consultative sales approach will accomplish a lot. But when it comes to understanding new concepts (and turning anxiety into inspiration and motivation), nothing beats a personal experience. A great way to achieve that is using virtual and augmented reality solutions to showcase your products and solutions.

Attract and retain by becoming a destination

Given the reduction in customer lifetime value associated with an EV compared to ICE (primarily due to lower servicing requirements and maintenance costs), you’re likely wondering how to create additional income streams to keep the business growing. Our research shows that there are several ways to do that:

Capitalise on EV charging. EV charging is a great add-on to the services offered in-house, but why stop there? Make the most of the time customers are on site to charge their EVs by providing catering and retail services to improve the customer experience as well as dwell time on site. Serve really good food and drinks and they’ll come back even when the EV doesn’t need charging.

Become a destination for leisure activities. This may seem counterintuitive, but it’s the strategy shopping centres have been employing for years to survive the era of online retailers. Several auto dealerships have already started experimenting with it. Some are partnering with luxury and heritage brands to organise events through their car owner clubs. LSH Auto’s Stockport branch has set up a Golf Simulator where customers can get lessons from a resident golf professional. Other dealerships are opening small cinemas, green rooftop areas, museums, and even club houses.

Rent out the space for events. Your showroom can become the ideal option for concerts and conferences looking for more unique venues. LSH Auto, for example, regularly rents its spaces to different events, with some even requesting to display EVs to fit the occasion.

Become a hub for EV knowledge. What the Apple Genius strategy has shown us is that knowledge matters, just like feeling part of a community does. With much of EV buyer anxiety being due to lack of personal experience and technical understanding, your subject-matter expertise could become your superpower. Partnering with an experienced EV charging and energy management solutions provider like Powerverse can be an effective way to make this a reality. With a platform of learning, sales, and marketing collateral under their belt, your staff could quickly become the go-to experts on EV and home energy solutions.

Offer rental services. There’s an opportunity to generate additional revenue through selling and short- and long-term rental of EVs, electric scooters, and e-bikes. Some dealers are even adding camper vans, lawnmowers, and boat engines to the list.

We believe business owners and directors, faced with ever-rising transport costs, will welcome long and short-term vehicle solutions from a family business with an established reputation for being trusted, transparent, and customer-focused.”

Derek Longmuir, Operations Director at Peter Vardy Group

Grow with a long-term approach

As an auto dealer, you know your job doesn’t end when the customer drives off the lot. In fact, that moment marks an opportunity to begin a long-term relationship that can benefit both parties and significantly increase the lifetime value of each EV sale.

How? By going beyond purchase and maintenance and becoming the one-stop-shop for all EV and home electrification needs.

You can combine, for example:

  • EV charging and quarterly maintenance check for a low-tier offer
  • EV purchase, quarterly maintenance check, and EV charger setup as a mid-tier package
  • EV purchase, quarterly maintenance check, EV charger setup, and home energy management system for a top-tier offer

38%
of customers are likely to consider a bundled and subscription based offer

With 38% of customers already “extremely” or “somewhat” likely to consider a bundled and subscription based offer, this would allow you to secure recurring revenue streams.

The most resource-efficient way to do that is by leveraging an ecosystem of smart, connected products and services.

Imagine if you could:

  • Remove the biggest barrier to EV purchase — battery range and charging anxiety — by not only consulting but also assisting your buyers with home EV charging setup.
  • Provide your customers with a platform they will use and trust to find the products and services they need, take control of their energy bills, and make greener choices.
  • Show you understand your customers’ needs by providing solutions tailored to their unique situation — with the help of a platform that allows you to
    • nurture client relations;
    • provide ongoing services and warranty;
    • analyse customer data and preferences;
    • identify the optimal offering or upsell for each account.

The value-add would be unbeatable.

The challenges you’re facing as a local auto dealer are significant, but so are the opportunities for further growth and success.

Numerous examples show that the key to growth in this situation is refocusing on the unique advantages of being a local dealer.

Create a seamless, transparent buying experience that allows people to easily switch between digital and in-person. Answer buyers’ questions. Help them make the necessary adjustments at home. Offer ongoing support and maintenance. Stay in touch.

You’ll not only meet the government’s Zero-Emission Vehicles sales requirements. You’ll drive recurring revenue and increase the EV customer lifetime value.