Let’s face it – getting a new car isn’t something people do on a whim. It’s a big decision made on a high-ticket item and customers are understandably concerned about getting it right. That, combined with the expansion of digital resources, has led to customer journeys that are serpentine, packed with a litany of review sites and personal research that leave buyers far better informed than ever before.
In fact, Google research has shown that automotive purchasing decisions can be influenced by as many as an astonishing 900 touchpoints.
This is part of a broader pattern of shifting automotive industry trends. And millennials – who will represent more than 45 percent of the potential car-buying cohort in 2025 – are the driving force. As the soon-to-be biggest purchasing demographic, adapting to their needs and behavior is of utmost importance – survival depends on providing them with the best customer experience possible.
Customers expect omnichannel buying experiences
Although research has become much easier thanks to the internet, customers now expect omnichannel experiences across multiple touchpoints – seamlessly integrating digital and in-store experiences – all the way through to purchase.
The Rockar platform in the UK, for example, sells cars online and in small stores within shopping centers. Product experts do not work on commission, and shoppers are assisted in buying from the online Rockar platform. Although many consumers begin their journey in a showroom, 60% of customers purchase online at home. Automotive Management Online reported in March 2019 that Rockar claims to have generated 1.6 million store visits, 12,500 test drives and 1.7 million digital journeys in five years.
Digital content has become essential
According to a J.D. Power study, automotive shoppers spend an average of 14 hours researching cars online before making a purchase decision. In total, 61 percent of their vehicle shopping time is spent online. So ensuring it’s easy for customers to conduct in-depth research makes total sense.
Honda understands this well. Its ‘test view drives’ video series gives customers an up-close and personal experience of driving their cars by filming from the driver’s perspective. Viewers feel like they are there. A split-screen also gives the option to continue driving or find out more information about the vehicle’s specific features. This immersive content, paired with key product information, is very effective at creating engagement.
But it’s not just the car itself customers are researching, it’s help and advice for loans and insurance as well. In the UK, AutoTrader launched an online finance calculator in 2018, designed to help consumers work out a realistic budget based on their personal circumstances. To promote it, AutoTrader even ran a campaign called #KnowYourNumbers, enlisting a UK TV personality to front it.
Cars are getting more connected
From 2014 to 2015, the number of customers who said they would switch brands for better connectivity features almost doubled, to 37%. In fact, more than a quarter say connectivity is more important than features like engine power and fuel efficiency, and 13% won’t even consider a new vehicle that doesn’t have internet access.
Companies have been keen to capitalize on this trend. For example, in 2018, Ford announced the launch of the FordPass Connect system, an upgrade to its previous FordPass app. The upgrade means users can connect remotely to their vehicle through their smartphone, allowing them to lock or unlock their car, find it and start it, or even monitor diagnostics in real time.
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