Uncovering Opportunities

I encourage businesspeople taking my E-sessions to interview profitable customers annually in order to uncover opportunities.  The results of recent AutoTrader interviews for a Car Buyer of the Future study are an excellent example of how that information is helpful.  Based on interviews with 4,002 consumers, here are some notable findings:

• Only 17 out of 4002 prefer the current car buying process.  3985 or 99.57% would like the car buying process to change. 
• These consumers spent more time researching their vehicle purchases online than in the past, 16.7 hours, and used multiple devices to do so.
• Conversely, online purchasing seems too impersonal to them, and 84% want to buy their car in person.  Women especially prefer this option.
• Buyers, especially Millennials, go to the dealership to learn as well as to buy.
• The majority, 56%, do want to negotiate.  Consumers don’t trust flat rate pricing but think it’s a good place to start negotiating.  They’d like to begin negotiations before stepping into the dealership. 
• Consumers will pay more for a better experience, even if it costs more.  They are not interested in the lowest price.  In fact, they prefer a good salesperson over a low price.
• 88% would not purchase a vehicle without first test driving it.  They like the idea of a test drive center that is convenient and low pressure.
• Most would like to fill out paperwork online rather than at the dealership in order to save time and have less pressure.
• After ninety minutes at the dealership, satisfaction declines. Interestingly, the extra time is usually spent on paperwork.
• If consumers’ experiences were improved with dealerships, they would not only visit more often, but they would also buy a different vehicle more often.

After reading and reviewing these findings, what are your conclusions?  E-mail them to me.

Here are mine:

This is good news for car dealers.  Consumers want to buy from a dealership.

However, dealers will make more money if they change the buying process.  They need to

• train good salespeople because they matter more than a low price,
• recognize the importance of a test drive, how it draws consumers to the dealership, and what consumers want in one, 
• be aware of consumers’ use of the Internet in research,
• assign prices with negotiation in mind,
• shorten the time consumers spend on paperwork,
• and be sensitive to consumers’ time, convenience, and pressure. 

A great deal of opportunity exists for dealers if they truly improve customers’ experiences.  When a customer says he would not only visit but also buy more often with an improved experience, dealers would be wise to make the changes.

By doing so they will improve revenue and profits.

This week's marketing trivia challenge is  After reading and reviewing these findings, what are your conclusions?  E-mail me your answer.