We take a closer look at how new car sales are performing across Europe and the picture is not looking rosy.
UK dealers figure highly in the top European listings for non-manufacturer owned groups, according to automotive research and consultancy the ICDP.
The buyer’s journey and experience has changed thanks to the digital revolution. Customers are spoilt for choice and let’s be honest, they can have the majority of things with a click of a button. It’s all about convenience. So, to keep the customer happy you need to make the searching and purchasing as simple and straightforward as possible. Amazon have nailed this.
Millennials. If you google the term you will get a number of different descriptions but Millennials are people who are born from 2001 onwards. As I’m classed as a generation Y it’s safe to say I feel old! But jokes aside, there is common misconception of Millennials- they are tight! Well Ally Bank reported that millennials are not buying cars less often than baby boomers or members of Generation X. They are saving money for longer periods before purchasing.
Customer retention is the end game- it’s what all dealerships are looking to nail and this is becoming increasingly hard. Doug Van Sach, AutoLoop’s Vice President, put it perfectly when he said, “the hard truth for dealers is most consumers have redefined what it means to be loyal in the digital age.”
The digitalisation of the buying process has particularly effected the automotive industry. Customers are carrying out most of the buying journey online and, in most cases, only come into the dealership when they have almost made their purchase decision. Everything is quick, easy and optimised and this is what has become the norm. Anything that doesn’t hit the mark with those points sticks out like an underperforming sore thumb.