Message to Dealers: Know Thy Customer
Shoppers want to work with dealers but question their expertise in some key areas.
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Some dealers may think online shopping is reducing their relevance, but a recent Harris Poll conducted for Urban Science suggests an overwhelming majority of consumers still want to visit a dealership for some aspects of the buying process.
But dealers need to make sure they offer the right resources and technology both in the store and online.
“Dealers need to be offering proper omnichannel services to customers,” Simon Bradley, Global Practice Director, Network Planning at Urban Science says.
Omnichannel refers to an integration of various shopping methods including mobile, online and physical. The holy grail of retail automotive is a seamless omnichannel shopping experience.
Consumers are not as obsessed with shopping online as dealers may imagine.
“Consumers wish to re-engage now that some of these pandemic disruptions are behind us,” says Bradley. “Ninety percent (of consumers) will consider visiting a traditional dealership in their car buying journey.”
The percentage open to buying a car fully online fell six percentage points compared to last year to 30% in the latest poll, says Bradley.
Shoppers who go to dealerships want to meet with automotive sales experts, but some report disappointment. And dealership management seems unaware of this trend. Although 70% of dealers think their salespeople have the needed expertise, only 30% of shoppers agree.
Expertise is especially relevant during test drives. An overwhelming 93% of survey respondents want in-person test drives.
Those drives are a great way for dealers to show off accessorizing and discuss upgrade possibilities, says Bradley. “Putting them in the most loaded car you can make sense,” he says.
The best way for dealers is to satisfy their target audiences is to develop innovative omnichannel experiences. Consumers expect them: 61% expect at-home delivery, up four percentage points compared to last year, the poll found. And 49% expect mobile payment options, up 11 percentage points.
Meeting those expectations is vital because consumers only plan to visit 1.9 dealerships on average during their shopping journey. So, dealerships that fail likely won’t get a second chance.
The percentage of consumers who agree that dealers play an essential role in the new car buying experience dropped to 39% in the latest poll, down nine percentage points from last year. Only 34% think dealers provide the resources, tools and technology to make buying a vehicle easy and convenient.
Meanwhile, 64% of dealers think they played an essential role and 63% think they provide the right resources, tools, and technology.
Dealers need to get more in-tune with what customers want, Bradley says.
For example, while the poll found 91% of dealers are considering alternative retail formats such as a test drive center, event displays and mobility points, only 25% of consumers want alternative retail formats.
“Consumer confidence (in dealerships) is waning,” says Bradley.
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