SHOPSMART AUTOS – CUSTOMER INFORMATION – OCTOBER 9, 2020 (PT.1)
Automakers and dealerships need to shift from product- to customer-centricity to strengthen loyalty.
One aspect of the car buying customer journey has remained consistent for many years: purchase through a dealership. Whether you had a good experience or bad, a visit to the dealer or multiple dealers was an essential part of the decision-making process in the customer journey leading to a vehicle purchase.
However, this era of unprecedented change now disrupts auto retailing as well. Consumers today have limitless online resources to guide their purchasing decisions, enabling them to research everything about a vehicle, and competitors’ products, before choosing whether to buy – or not. In addition, growing segments of consumers are willing to trade the convenience and status symbol of owning a car for the flexibility and economy of on-demand mobility solutions to satisfy their transportation needs. In this shifting and evolving marketplace, what can vehicle manufacturers do to stay connected with consumers and relevant in the marketplace?
Moving from product-centricity to customer-centricity
According to research, in some geographies, automotive brands have found that the number of visits to dealerships before purchase has dropped from five to one, and almost a quarter of customers expressed dissatisfaction with their visits. Yet 72% of consumers felt that an improved buying process would motivate them to visit more often.¹ Some 84% of car manufacturers believe that an engaging customer experience across multiple touch points strengthens their value proposition; but only 8% are well prepared.² Given the significant changes occurring within the auto retail ecosystem, automakers and dealerships need to change their current product-oriented model to a customer-centric model to strengthen customer loyalty and remain competitive. Upshifting the customer experience
For automakers and dealers, the key is to focus on building a differentiated customer experience that delights and exceeds expectations. To build a differentiated brand experience requires a broad transformation of the customer purchase journey, rethinking digital and physical retail standards and finding new ways to interact with customers to provide an omni-channel, leading-in-class experience. To build this customer-centric experience there are several key areas to focus on:
Seamless online experience: The typical first touchpoint between a customer and automaker is online. According to an exercise conducted by EY teams around online vehicle sales, the leading-class features that enhance the customer experience exhibited by online vehicle sales portals include digital tools to help select a product based on select requirements, while providing product and omni-channel sales process information including financing options and product insights and reviews utilizing videos, chats and texts. The availability and experience of financing options also need to be integral parts of the online part of the journey.
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