If You Think You Know Your Customers, You May Be Wrong - AutoSuccessOnline

If You Think You Know Your Customers, You May Be Wrong

Consumers want to love the car buying experience just as much as the vehicle they’re purchasing. There is no sacrificing one for the other. Transparency is crucial in making the experience worthy of their trust, their confidence and, ultimately, their business.
However, newly released data tells us that there is an alarming disconnect between dealer perception and consumer reality. A resounding 81 percent of dealers think consumers enjoy the car buying process. What you may find alarming is a mere 19 percent of consumers who purchased a vehicle in the last 12 months say they actually enjoyed the process.


Read our entire issue – Click here

This information shines light on the processes and technologies that are most impactful to car buyers and, in turn, dealer business. Consumers cite lack of trust in salespeople as the No. 1 reason they don’t enjoy the car buying process (at 29 percent). The amount of time the car buying process takes is also a concern for consumers (19 percent) but is rated as dealers’ No. 1 area for improvement (32 percent). Solutions exist to address both consumers’ apprehension of salespeople and a dealer’s desire to speed things up.

Transparency Builds Trust

According to J.D. Power, the use of technology — specifically the use of tablets during the payment presentation process — dramatically improves customer satisfaction ratings. Tablet devices rate more than a whole point higher in positive satisfaction rating over verbal quotes and handwritten figures. Bottom line: Mobile technology promotes transparency and increases consumer trust.

Using a mobile device during the negotiation allows the salesperson to work a deal with the desk manager and present payment options to the customer. Confidence isn’t sacrificed in favor of customer-isolating desking conversations behind closed doors. Furthermore, apps such as mobile driver’s license scanner and mobile CRM allow salespeople to quickly add customer details and update sales status on the fly. Everybody wins.

Dealers have not fully embraced mobile technology, deferring to desktop solutions. A recent three-month sample showed 466,000 of sales opportunities were created on mobile apps versus 5.1 million created on desktop. Taken in harmony with customer preference, a great opportunity awaits the tech-savvy dealership using mobile technology to differentiate itself from its competition.

What’s Trending

Last year, we forecasted an impending industry slowdown. Even though automotive continues to prosper, the numbers bear out the trends we predicted. J.D. Power has corroborated our findings in its latest industry metrics:

  • “Days to turn” is increasing; thus, cars are taking longer to move off the lot.
  • Front-end gross is decreasing while back-end gross is increasing.
  • Return on investment is down.
  • Loan terms are getting longer.

It is in dealers’ best interest to heed to the data and move ahead of the curve before trends turn into a not-so-rosy reality.

Read our entire issue – Click here

You May Also Like

Google Analytics for Dummies

GA4 can help you understand which marketing sources drove traffic to your website, allowing you to compare one to another.

Google Analytics for Dummies A Simple GA4 Guide for Non-Analytics People

A Simple GA4 Guide for Non-Analytics People

G4? GA4? Google Analytics? Are they all the same, and how do they relate to the metrics my website vendor sends me? 

First off, I don't sell any products related to analytics or analytics consulting. Our company does help our dealer partners with this area, but this article is purely intended to inform, and I don't have a dog in this fight. My product is in the digital marketing realm, so we interface a ton with analytics. Moreover, I get dozens of analytics questions every day, and there’s understandably a lot of confusion about this topic.

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals

The ability to customize appraisal tools according to specific dealership needs and market dynamics ensures that appraisals are closely aligned with strategic goals, giving dealerships a competitive edge.

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals
Selecting the Ideal Car Lift for EV Servicing

When choosing the right car lift for servicing electric vehicles there are several key factors to consider.

Key Factors in Selecting the Ideal Car Lift for Electric Vehicle Servicing- Coats
Exploring Educational Opportunities with NADA and ATD

The comprehensive NADA and ATD programs, complemented by an extensive array of resources, foster excellence and innovation within the automotive retail landscape.

Exploring Educational Opportunities with NADA and ATD
F&I 2024 Dealer Outlook: How Online Options Will Help Dealers Better Serve Customers

Dealers must find ways to maximize F&I sales opportunities, because in this highly competitive landscape, dealerships rely on the sale of these products to enhance their bottom line and remain competitive.

F&I Outlook from Protective Asset Protection

Other Posts

Critical Thinking with the Genius Club

A lack of critical thinking is responsible for the success of every con that reaches epic proportions. We must think critically to protect ourselves from evil geniuses.

Critical Thinking with the Genius Club - Remora
Hybrid Intelligence: The Seamless Fusion of Human and Artificial Minds

Learn how Hybrid Intelligence hasn’t just turned this dealership around, but has set it on a path to unprecedented growth and success in a challenging market.

TECOBI, artificial intelligence, Hybrid Intelligence,
Unlocking the Value of Your Data. Don’t Let it Go to Waste.

Explore expert Bobby Gaudreau’s insights on overcoming data challenges in auto dealerships, focusing on CRM and DMS optimization for marketing success.

Unlocking the Value of Your Data. Don't Let it Go to Waste.
Ashlee Church: #NotLikeTheOtherGuys

This dealer is following her arrow and bringing change to the auto dealer industry.

Vehicle Care RockStar Ashlee Church