The used car dealer reported quarterly earnings Wednesday (June 17) that showed net revenues of $8 billion, a 6.2% increase. To continue this trajectory, Barr said during an earnings call that CarMax’s online presence needs to change. “Our digital experience is too complex and not seamlessly connected to the in-person experience,” he said. “When a customer arrives at one of our stores, we do not make it as easy for them as it should be, given all the steps they have taken online.” The process has added friction to the customer experience, which has affected conversion and kept CarMax from using its scale and store network, he said. “We know exactly what needs to change, and we’re moving forward with urgency,” added Barr, who became CarMax’s CEO in March. Management said during the earnings call that consumer behavior in the automotive sector has pivoted toward a demand for a hybrid experience, combining digital convenience and physical verification. The company said industry research and its own in-house findings bear this out. Advertisement: Scroll to Continue “Buying a car is one of the biggest financial decisions someone makes, and they have a strong desire to see, touch and test drive a vehicle that will be part of their daily lives for years to come,” Barr said. To address this, management said CarMax is working to remove friction from the buying journey with upgrades like integrating AI assistants into the digital experience. “We basically improved the entry point for our customers arriving from online ads,” Barr said. “We’ve made it easier to navigate our website to get toward prequalification and reserving a car. We’ve effectively shifted away from sticker prices to monthly payments.” The company has also streamlined its web navigation to accelerate prequalification and vehicle reservations, making sure that the work a
CarMax Revenues Climb as CEO Calls for Digital Tune-Up | PYMNTS.com
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