The traditional car buying process is a thing of the past, in today’s world customers clearly do business on their own terms and they come well reinforced with information, which means they know exactly what they want. But, one thing that hasn’t changed is the emotion attached to buying a car.
According to the SMMT 2.5 million cars were registered in 2017. This is a 5.7% drop from 2016. This may come as a surprise to many as the market has been growing year on year since 2012.
The modern customer is savvy, informed and in control. Their expectations are high and their patience is low. This is true in every industry and is particularly the case in the automotive industry and, more specifically, the car-buying and after sales processes.
Are you up to speed?
The aftersales industry is worth £99 billion* in the UK so it makes sense to invest the time to get your aftersales approach on point. But are you up to speed with the how the market is changing?
There are a lot of stages to the modern car-buyer journey. The majority of the process is now online, with customers coming into dealerships only when they have a clear idea of what they’re buying, at the end of their buying journey.
We now live in a fast-paced world where technology is forever transforming our daily lives. Within the automotive sector I feel we have embraced technology and used it to our advantage in creating new car designs and models that not only look and perform better but also take into consideration the environment.
Nothing stands still and neither does the customer landscape. Millennials are classed as people born between 1980 and 2004, and they are entering the car buying market at high speed. It’s been reported* that by 2020 Millennials are expected to capture 40% of the new car sales market.
I’ve got some questions…
Your DMS is there to measure, report, input jobs and provide clarity and transparency when it comes to your internal processes and communications, right? But, what about the customer?
Face-to-face interactions are far less frequent in our digital world. But face-to-face interaction cannot be beaten in terms of delivering customer service, we’re all humans and have a basic need for connection and relationships. This will always be the case.
When it comes to your dealership I know you’re looking to drive engagement, revenue and ultimately retention, and service is where it all happens- that’s where the margin is. Take the diagram below for example, service allows you to make the margin profit, which drives customer loyalty and loyalty drives repeat sales. But for all this to happen customer experience is key.