Digital retailing continues to gain popularity with new car dealers and shoppers alike, according to a study published by Cox Automotive in November. 

Nearly 4 in 10 dealers allow new car shoppers to complete vehicle transactions entirely online, Tracy Noonan Fred, senior vice president of dealer solutions at Cox Automotive, said in a statement. That’s up from 3 in 10 last year, Noonan Fred said.

“Despite the recent economic ups and downs, dealers continue to remain highly satisfied with these digital investments because of their positive impact on both customer and staff experience,” Noonan Fred said.

The study found that digital retailing made the biggest impact on customer relationships, deal-making, staffing, and finance and insurance.

“Now that buyers have a growing willingness to share their data with dealers online, knowing that it is driving a more personalized online experience, digital retailing is not just a tool for efficiency — it is a mainstream best practice that consumers expect from their shopping experience,” Jessica Stafford, senior vice president of consumer solutions at Cox Automotive, said in a statement.

Most dealers (76%) told Cox Automotive that digital retailing tools improve customer relations and help them close deals, while 61% reported improvements in the finance and insurance process, which has been “a major pain point” for consumers, the study says.

But new car shoppers often need to repeat steps in-store after they do them online, which can undermine customer trust and increase how long it takes to complete a deal, Cox Automotive says. According to the study, 97% of dealers said customers have repeated steps at the dealership. A paltry 8% of dealers said they “completely trust the information shoppers share with them online.” 

Allowing customers to use digital tools in-store could streamline the sales process for everyone, the study says. Just 1 in 4 dealers said “their digital solutions offer a congruent experience online and in-store,” Cox Automotive said.

“This lack of consistency instills a sense of doubt that can disrupt an otherwise satisfying purchase process,” Cox Automotive said. “Tools that offer accuracy and continuity of vehicle information and the customer’s personal data whether in-store or online can help avoid this risk.”

The survey found that 91% of shoppers want to interact digitally at the dealer.

“This study sheds light on the positive impact digital retailing is having on dealers’ business,” Lori Wittman, president of retail solutions at Cox Automotive, said in a statement. “It’s no longer enough to put widgets on a website. Dealers who continue to invest in digital and AI-powered tools that provide a user-friendly, secure environment where shoppers can share personal data and complete deals with tools that work both online and in-store, will continue to reap financial benefits that come with higher shopper and staff satisfaction.”

In July, Cox Automotive surveyed 1,650 shoppers, nearly 3,000 buyers and 393 franchise dealers for the study.