Sales of EVs and other alternatively powered vehicles grew by more than a fifth in 2018, according to latest figures from the Society of Motor Manufacturers and Traders (SMMT).
UK dealers figure highly in the top European listings for non-manufacturer owned groups, according to automotive research and consultancy the ICDP.
Whilst car drivers are committed to fixing their cars to ensure they are in the best condition for the road, dealers need to up their game to deliver higher levels of customer care and boost aftersales business.
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.
With literally hundreds of franchise car dealerships in the UK only, it is difficult for dealers to differentiate themselves from one another. This also means that differentiation is key to stand out, especially with the changing definitions of loyalty. I’ve mentioned this stat before but it’s recent and it well worth considering- AutoLoop carried out a study called “Life After Loyalty – Learning to Embrace Customer Engagement” and found that 60% of millennial customers said they were loyal to a brand, even though they shop elsewhere. This says a lot to dealerships about their retention and means that there is a need to differentiate that is stronger than ever.
I recently read an article that talked about a recent study by Marketing Delivery. It found that 57% of UK motorists said they would be less likely to purchase a new vehicle from a dealership that made an error such as their name or details of their current vehicle.
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.”
I recently wrote about how the UK sales of new cars has declined. But, it’s not all doom and gloom as Close Brothers has reported that 92% of car dealers are feeling confident about 2018. So, what’s the deal? Well, let’s consider the table below:
Feel like a king
Your dealership management system is the heart and soul of your dealership, this is something that every member of staff will be using every day. This is the communication and transparency you rely on. Your DMS should make you and your dealership feel like a King. It should give you power, control and ensure you are fully informed on the goings-on of your roost.