How Electronic Signatures Power up the Automotive Sector
The automotive sector has prided itself on delivery. When customers needed petrol cars, the automobile sector delivered. When they required audio systems, the industry delivered. When customers asked for more speed, the sector delivered as well. So why is it that when customers need their buying journey to be just as smooth, the industry is hesitant?
The automotive industry has leveled up continuously to deliver high customer satisfaction. When greener options arrived to disrupt the industry, major automotive manufacturers welcomed the move and developed electric cars in anticipation of the future. The customer buying journey is the last leg and possibly the most important one for the sector.
More than 50% of this journey is ridden with paperwork, contract signing, document checking, etc. Unfortunately, the customer journey tends to be a long, stretched-out, paper-laden workflow that has become a deterrent for most buyers. The digitalization of processes at an unprecedented scale makes you wonder why automakers are still holding onto legacy solutions. However, it's not all their fault. For decades, customers have preferred to buy new or second-hand cars by checking everything physically and doing manual paperwork.
To counter this, many industry leaders have gone digital with their paperwork. However, printing, scanning, and shredding are still a large part of the workflow in this sector. Electronic signature solutions help automotive dealers and manufacturers completely digitize their paper workflows. The traditional paper process has various administrative hurdles when onboarding new customers. But digitization helps simplify all processes by allowing users to sign, send, and store documents digitally. Additionally, it offers customers a unique user experience in their buying journey.
Gone are the days when you would have customers wander into a dealership, check out each vehicle, speak to the salesman for hours, take a couple of test drives, and finally make a decision. Today, car salespeople must make an extra effort and provide top-quality services such as home visits, online documentation, and in some cases, even online vehicle selection, also known as special orders. Special orders could prove pivotal in driving sales in the region.
The Current State of the Philippines Automotive Industry
The Philippine automotive industry consists of three major markets: motor vehicles, parts, and component manufacturing. Filipinos prefer SUVs, given large family sizes, frequent flooding, and challenging road conditions. Sedans are also best-sellers, offered price, and parking space conditions. Pick-up trucks are also popular and are exempted from excise taxes. The Philippines will likely record new sales numbers in its automotive sector due to supportive government policies and low-interest rates on loans. According to a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association, sales improved by 16.7% in 2022.
The Philippines' automotive sector is revving up for sales. Customers spend one and a half to two hours on the road, forcing them to opt for personal vehicles to beat the incoming traffic. Following the COVID-19 pandemic, though, sales had come to a standstill. However, dealers soon discovered a new way to sell cars - through online showrooms. This trend will likely continue, with many opting to purchase cars online.
Other developments that can shape the industry are the surge in used vehicles and the establishment of new production facilities. According to a report by Mordor Intelligence, the used car market is set to register a 7.4% CAGR from 2022 to 2027. In addition, many used car companies are entering the market to help customers make transparent choices. This is supported by banks and used car companies collaborating to target users.
An automotive transformation that digitizes processes and manual steps can uplift the industry – the changing behaviors of customers and encouraging government policies can support this phenomenon.
Government Support for Paperless Transactions
Whenever there is talk of new technology that has the potential to positively impact the world or a country, governments must step up and provide the population with the right tools. In short, government support for new technologies is instrumental in their implementation. Likewise, customers are powerless without government support.
The Philippines government has also made changes to laws to support paperless transactions. For example, the Land Transportation Office (LTO), an agency responsible for issuing customers' driving licenses, has ceased issuing official paper receipts. This means customers can register and renew licenses through the agency's website.
Electronic signatures are legally recognized in the Philippines. They are provided for in Republic Act No. 8792 and the Electronic Commerce Act of 2000 (the “E-Commerce Act”).
How Electronic Signatures Shape the Future of Mobility
Electronic signatures, or eSignatures, help automobile dealers and manufacturers transition to paperless environments. It is a convenient tool to improve customer experience. Electronic signatures enable storing and archiving documents digitally, with a real-time trail helping track any document changes. These are some of the use cases that will benefit dealerships and manufacturers:
- Close Deals Faster :
Electronic signatures help dealerships close deals much faster. It makes signing documents quicker and empowers salespersons to receive signatures quickly.
- Automate Agreements :
Electronic signatures assist automakers in using templates to send documents in bulk and immediately. These include purchase orders, vehicle quotations, and contracts.
- Quality Check Documents :
Paper documents have been notorious for costing departments heavily. Its errors have cost companies contracts and deals. Electronic signature solutions help dealerships cut errors by more than 90%.
- Improve Visibility :
eSignatures help dealerships and customers gain transparency in the process. A deal will be considered closed only after the consent of all parties involved. One cannot tamper with an electronic document once it is e-signed.
- Collaboration with Partners :
Automobile dealers can easily collaborate, share and sign documents online with car distributors and manufacturers.
- Digitize Workflows :
Digitization of workflows will help strengthen collaboration and improve efficiency across all channels. Departments within dealerships can exit silos and get an approval immediately. Any roadblocks can be identified and resolved thanks to a completely digital process.
The Role of DrySign
DrySign, a trustworthy and reliable electronic signature solution provider, will help the automotive sector change gears quickly in today's dynamic digital world. Here's how DrySign provides an advantage:
- Minimizes Errors
The automobile industry deals with large volumes of paperwork. The sheer volume can lead to missing pages and signatures, misfiling, etc. A missing signature can delay processes and cause customer frustration. DrySign ensures that all signature fields are visible and customers miss no spaces.
- Highly Convenient
Customers can utilize electronic signatures on the go. This means customers can sign papers anytime, anywhere, from any device. DrySign provides ease and convenience to customers while helping create a simple sales process for dealerships.
- Blazing Speed
Speed is of tantamount importance, and DrySign displays its value by assisting salespersons in engaging with customers in real time. It provides a seamless signing experience and ensures a timely purchase that does not waste the customer's time.
- Advanced Security
DrySign protects sensitive documents by offering security methods such as two-factor authentication (2FA), one-time password (OTP), and others to prevent unauthorized access. It allows real-time document monitoring through mail trails and lowers the chances of fraud.
- Legally Compliant
DrySign is compliant with the Republic Act No. 8792. This allows automotive dealers and customers to trust the eSignature solution for real-time transactions.
- Paperless and Sustainable Solution
DrySign helps automotive dealerships eliminate paperwork and curb spending on unnecessary expenses.
Electronic signatures will help the automotive industry navigate hurdles caused by manual paper workflows. Switching to eSignatures reduces errors, saves on costs, and enhances speed and security.
Reimagine Customer Experience with DrySign.
Source: azom.com | statista.com | auto.yugatech.com | marklines.com | bworldonline.com | business.inquirer.net | mordorintelligence.com
DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.