Kelley Blue Book
High Percentage of Consumers Interested in Self-Driven Cars
In a recent KBB.com Quick Poll, we asked consumers if they would ever consider purchasing a self-driving vehicle. While 53 percent replied “no, never,” the remaining 47 percent were either ready today or were waiting for the technology to mature.
Chalk me into the “no, never” category because as long as I can avoid serious congestion, I enjoy driving. However, a large percentage of consumers are interested in a potentially hands-off driving experience. A more interesting question is: Will they ever get one?
The handful of self-driving cars on the road today all have human operators at the wheel and pedals, ready to take over in the event that human correction becomes necessary, but in the first 300,000 miles of Google's small self-driving car feelt, not a single accident occurred. Still, as self-driving cars become more prevalent, accidents are bound to happen, which raises an important question: Who is liable – the human “driver” or the manufacturer? It seems unlikely manufacturers would put cars on the road they could be held liable for anything beyond today’s standards of safety, so I expect the brunt of liability will still fall on the human driver. This means that the human driver may not be able to completely tune out from driving to focus on other tasks while he or she is supposed to be paying attention to what their vehicle is doing.
Here are some other questions that surround this technology:
- How will this technology impact retail sales at the dealer level in the short and long term?
- How will insurance agencies handle these vehicles? Will premiums eventually be lower for them than human-driven vehicles?
- How does the car keep the human driver engaged enough to take over in an emergency situation since it’s human nature to tune out from processes that we are not wholly invested in?
- If we gradually move to only having self-driving cars on the road, will human drivers eventually lose so much of their driving abilities and instincts taught through months or years of practice today that it would actually be worse for the human driver to take over in an emergency?
- Will regular human-driven vehicles eventually be legislated out of existence?
What Questions Do You Want to Ask Consumers?
We frequently run Quick Polls on KBB.com. Is there a question you want consumers to answer? Ask it below in the comments and we will evaluate it for a future Quick Poll.
Kelley Blue Book
High Percentage of Consumers Interested in Self-Driven Cars
In a recent KBB.com Quick Poll, we asked consumers if they would ever consider purchasing a self-driving vehicle. While 53 percent replied “no, never,” the remaining 47 percent were either ready today or were waiting for the technology to mature.
Chalk me into the “no, never” category because as long as I can avoid serious congestion, I enjoy driving. However, a large percentage of consumers are interested in a potentially hands-off driving experience. A more interesting question is: Will they ever get one?
The handful of self-driving cars on the road today all have human operators at the wheel and pedals, ready to take over in the event that human correction becomes necessary, but in the first 300,000 miles of Google's small self-driving car feelt, not a single accident occurred. Still, as self-driving cars become more prevalent, accidents are bound to happen, which raises an important question: Who is liable – the human “driver” or the manufacturer? It seems unlikely manufacturers would put cars on the road they could be held liable for anything beyond today’s standards of safety, so I expect the brunt of liability will still fall on the human driver. This means that the human driver may not be able to completely tune out from driving to focus on other tasks while he or she is supposed to be paying attention to what their vehicle is doing.
Here are some other questions that surround this technology:
- How will this technology impact retail sales at the dealer level in the short and long term?
- How will insurance agencies handle these vehicles? Will premiums eventually be lower for them than human-driven vehicles?
- How does the car keep the human driver engaged enough to take over in an emergency situation since it’s human nature to tune out from processes that we are not wholly invested in?
- If we gradually move to only having self-driving cars on the road, will human drivers eventually lose so much of their driving abilities and instincts taught through months or years of practice today that it would actually be worse for the human driver to take over in an emergency?
- Will regular human-driven vehicles eventually be legislated out of existence?
What Questions Do You Want to Ask Consumers?
We frequently run Quick Polls on KBB.com. Is there a question you want consumers to answer? Ask it below in the comments and we will evaluate it for a future Quick Poll.
7 Comments
BOB BELL AUTOMOTIVE
How famous would a 13 year old hacker be who could claim he just caused the world biggest traffic accident !!
Maryann Keller & Associates
Hi Alex, Below are some resources that may answer some of your questions (thanks to Cliff Banks for sharing them). I'm certain today's consumer doesn't fully understand the implications of the self-driving car, but keep in mind some stats: "Google’s claims for the car, as described by Sebastian Thrun, its lead developer, are: 1.We can reduce traffic accidents by 90%. 2.We can reduce wasted commute time and energy by 90%. 3.We can reduce the number of cars by 90%." Now run that poll again with the above stats, and you may get a different result. Links: Fasten Your Seatbelts: Google's Driverless Car Is Worth Trillions (Part 1) http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/ *This is a 7-part series by a Forbes contributor. Google Poses Serious Competitive Threat to Auto Industry http://wardsauto.com/blog/google-poses-serious-competitive-threat-auto-industry *This is an article which reviews some of the research by analysts over the potential impact. Doom & Gloom? Self-Driving Cars and Dealership Valuations… http://www.drivingsales.com/blogs/jeremy/2013/03/05/doom--gloom-selfdriving-cars-dealership-valuations *This is my opinion piece on dealership valuations.
Kelley Blue Book
Hi Jeremy - interesting stuff! Running the poll again with Google's stats included in the question would definitely sway opinion. I'll see if we have the space in the Quick Poll question section to feature them as part of the question. The only point Thrun made that I contest is the reduction of cars by 90%. I can see potential for reduction, especially in major cities, but I think it will be a long time before we see anything approaching 90%, if ever. There are a lot of errands, especially when you're talking about family vehicles, that occur on the way to and from work, and I see that and the added commute time factoring into many people avoiding ride sharing during peak vehicle usage hours. We may see a societal shift away from the 8 to 5 office job that many of us have, but until that occurs wholesale, typical working hours will have a heavy influence over where people are going to go and when. While peak travel times have opportunities for optimization, I do wonder how open people will be to that optimization if it inconveniences them.
Maryann Keller & Associates
Hi Alex, The article states those are Google's stats - not my own. I can't predict the future. However, I believe it's safe to assume that car count will decrease once this technology fully matures. But when will this all happen? I recently e-mailed Glenn Mercer(NADA Facilities Consultant) about this issue and he summed it up quite well - autonomous cars will make tremendous progress by 2020, but we won't see a 100% autonomous car for quite some time. There are too many cultural/legal issues, and too many cars currently in service, for a paradigm shift to occur within the next ten years. However, in another 20 years, it may be a different story. Jeremy
Kelley Blue Book
Hey Jeremy - I definitely agree that all of this will take a long time. By then, we may be printing our own cars out of 3D printers in our garage. ;-)
Dealer eTraining
In my opinion it is like driving automatic over manual. A person that drives manual is a real driver while the person that drives automatic is just an operator. While there are some neat benefits to being driven by technology I still cannot trust it to get me where I need to go safely. Technology is created by man and no man is too perfect enough to create a device that will never break.
Kelley Blue Book
Old School Sales Tactics That Still Work
Today I received an email from Kourtney, my group and suite salesperson for the Dallas Stars, which is an NHL team for those of you who aren’t hockey-inclined. Reading that first sentence, you’re probably thinking I spend a lot of money going to Stars games, but I don’t. I can’t. I live out of state. I spent under $300 with the Stars last season and even less the season before, both times to take friends and family to a game when I was in town for the holidays. As far as group and suite purchases, this probably falls in the bottom five percent of her sales.
The email informed me that she was moving on to another company and someone else from the team would be in touch soon about next season. She provided a number to call with any needs in the meantime and thanked me for my business. While reading her email, I reflected on my limited experiences with Kourtney and compared it to all the other sales experiences I could remember with cars, high-end electronics, furniture, bicycles, and anything else costing more than $100. Some memories were good, some bad, but most were ‘so-so’ transactions typically performed by a friendly salesperson that went for the close, got it, and immediately moved on to the next one without thinking about me ever again.
Not so with Kourtney. When I placed my ticket orders, she took the time to listen to my needs and handled them in a friendly, personable way, in addition to having an infectious smile I could hear through the phone. This alone put her above most of the salespeople I’ve interacted with. Where she truly went above and beyond were the personal touches she added after the sale was closed. I received a handwritten thank you card with my tickets in the mail in November, and another handwritten card at the end of the season thanking me for my business. When was the last time you received a handwritten thank you card from anyone, let alone two for the same transaction? I get thank you cards for giving wedding gifts to friends and family, but I almost never get them from salespeople. I can only remember one other.
Kourtney could have sat back after getting my phone order and let the organization’s marketing department do the work to pull in the next round of leads. She could have relaxed and only included a receipt in the envelope with my tickets. She could have taken it easy and skipped all those written thank you notes at the end of the season that probably gave her hand cramps… but she didn’t cut any corners, and it made a big difference.
I grew up with computers and email, but a personalized, handwritten thank you note still has a very strong impact on me and so does being remembered and appreciated after the sale is made. I recognize that Kourtney has a better opportunity for repeat business from me because the buying cycle for sports tickets is much shorter than that of a car, but that doesn’t make sending written thank you cards any less valuable in making your customers feel appreciated. In fact, it may make them more likely to come to your dealership for service instead of an independent shop or give you a positive recommendation on Google, Yelp or your CSI survey. If you maintain that relationship, the customer is more likely to buy their next car from you instead of someone else.
In my reflection while reading her email, I realized I was losing something special with Kourtney leaving the Stars, so I let her know how impressed I was with the way that she treated me, and that I was a few weeks away from getting a firm head count on another order for next season. Her response? She thanked me for the kind words, emphasized that she treated people the way she would like to be treated in their position, and offered to connect on LinkedIn in case my new rep didn’t take care of me. She still cares about my satisfaction as a customer - even after she leaves the company. I was blown away again, and apparently so were others because her LinkedIn profile is a good collection of recommendations from happy customers. I added one more.
Sending written thank you notes is viewed by some as “old school” in this day of emails, instant messages and texts, but it carries significantly more weight because it’s far more personal. What do you do to make your customers feel special and appreciated after delivery?
4 Comments
Kelley Blue Book
I agree, Mike. With sales and marketing technology changing at a breakneck pace, at least there are some things that take a lot longer to go out of style. I don't see thank you notes losing their value until mail service stops.
Maryann Keller & Associates
There are always going to be exceptions to every trend. I'm still amazed when I receive a sale from a free car buyer's magazine offered at a supermarket.
Dealer eTraining
When you provide a great experience you build a loyal following. When you leave to take another position the loyalty might just stay with you and you can continue to earn your client's business. This is also the difference between veteran sales professionals that sell 40 units per month over the average 10-12 unit sales person.
Kelley Blue Book
Old School Sales Tactics That Still Work
Today I received an email from Kourtney, my group and suite salesperson for the Dallas Stars, which is an NHL team for those of you who aren’t hockey-inclined. Reading that first sentence, you’re probably thinking I spend a lot of money going to Stars games, but I don’t. I can’t. I live out of state. I spent under $300 with the Stars last season and even less the season before, both times to take friends and family to a game when I was in town for the holidays. As far as group and suite purchases, this probably falls in the bottom five percent of her sales.
The email informed me that she was moving on to another company and someone else from the team would be in touch soon about next season. She provided a number to call with any needs in the meantime and thanked me for my business. While reading her email, I reflected on my limited experiences with Kourtney and compared it to all the other sales experiences I could remember with cars, high-end electronics, furniture, bicycles, and anything else costing more than $100. Some memories were good, some bad, but most were ‘so-so’ transactions typically performed by a friendly salesperson that went for the close, got it, and immediately moved on to the next one without thinking about me ever again.
Not so with Kourtney. When I placed my ticket orders, she took the time to listen to my needs and handled them in a friendly, personable way, in addition to having an infectious smile I could hear through the phone. This alone put her above most of the salespeople I’ve interacted with. Where she truly went above and beyond were the personal touches she added after the sale was closed. I received a handwritten thank you card with my tickets in the mail in November, and another handwritten card at the end of the season thanking me for my business. When was the last time you received a handwritten thank you card from anyone, let alone two for the same transaction? I get thank you cards for giving wedding gifts to friends and family, but I almost never get them from salespeople. I can only remember one other.
Kourtney could have sat back after getting my phone order and let the organization’s marketing department do the work to pull in the next round of leads. She could have relaxed and only included a receipt in the envelope with my tickets. She could have taken it easy and skipped all those written thank you notes at the end of the season that probably gave her hand cramps… but she didn’t cut any corners, and it made a big difference.
I grew up with computers and email, but a personalized, handwritten thank you note still has a very strong impact on me and so does being remembered and appreciated after the sale is made. I recognize that Kourtney has a better opportunity for repeat business from me because the buying cycle for sports tickets is much shorter than that of a car, but that doesn’t make sending written thank you cards any less valuable in making your customers feel appreciated. In fact, it may make them more likely to come to your dealership for service instead of an independent shop or give you a positive recommendation on Google, Yelp or your CSI survey. If you maintain that relationship, the customer is more likely to buy their next car from you instead of someone else.
In my reflection while reading her email, I realized I was losing something special with Kourtney leaving the Stars, so I let her know how impressed I was with the way that she treated me, and that I was a few weeks away from getting a firm head count on another order for next season. Her response? She thanked me for the kind words, emphasized that she treated people the way she would like to be treated in their position, and offered to connect on LinkedIn in case my new rep didn’t take care of me. She still cares about my satisfaction as a customer - even after she leaves the company. I was blown away again, and apparently so were others because her LinkedIn profile is a good collection of recommendations from happy customers. I added one more.
Sending written thank you notes is viewed by some as “old school” in this day of emails, instant messages and texts, but it carries significantly more weight because it’s far more personal. What do you do to make your customers feel special and appreciated after delivery?
4 Comments
Kelley Blue Book
I agree, Mike. With sales and marketing technology changing at a breakneck pace, at least there are some things that take a lot longer to go out of style. I don't see thank you notes losing their value until mail service stops.
Maryann Keller & Associates
There are always going to be exceptions to every trend. I'm still amazed when I receive a sale from a free car buyer's magazine offered at a supermarket.
Dealer eTraining
When you provide a great experience you build a loyal following. When you leave to take another position the loyalty might just stay with you and you can continue to earn your client's business. This is also the difference between veteran sales professionals that sell 40 units per month over the average 10-12 unit sales person.
Kelley Blue Book
Webinar Hosted by Jared Rowe, President of Kelley Blue Book: Introducing the All-New Kbb.com Classifieds
Kelley Blue Book President Jared Rowe will be hosting a free webinar to introduce the industry to the new kbb.com Classifieds on Tuesday, June 5, at 2PM EST/11AM PST. You can register for it here.
This month, Kelley Blue Book’s kbb.com is launching an all-new Classifieds experience in partnership with AutoTrader.com that will allow dealers to reach millions of in-market car buyers that largely cannot be found on other automotive websites.1 The “cars for sale” section of kbb.com has been completely rebuilt, featuring a new design and functionality created for the unique audience of consumers who use kbb.com to research new- and used-vehicle information and reviews, obtain values and pricing information, and find the right car for sale in their area.
More than 75% of visitors to kbb.com are undecided on which make and model they want to purchase,2 and with supply and demand pushing used-vehicle pricing close to new-vehicle pricing, many are also uncertain about whether they will purchase new, used or certified. Therefore, kbb.com’s new Classifieds experience is uniquely designed to allow consumers to search cars for sale based on their needs, while also keeping the option to run a traditional make/model search. This new approach allows consumers who are undecided on make/model to see vehicles that both meet their needs and possibly be exposed to some that they might not have otherwise considered. Consumers also have the option to return new, used and certified inventory within the same search. As a time-saver, changing or refining search parameters is possible within the same search, without starting over from scratch and filling out all the parameters again. The redesigned Classifieds also allows them to continue researching vehicles via trusted Kelley Blue Book information such as reviews and ratings without leaving the Classifieds experience.
The initial SRP (search results page) is prioritized based on “Best Match,” a formula that ranks vehicles based on what is determined to be most relevant and engaging to the consumer performing the search. This formula is in part based on the quantity and quality of vehicle information dealers provide, including the number of photos, video, detailed vehicle descriptions as well as certain characteristics of the vehicle such as distance from the user, mileage vs. the average for that model year, and the length of time the listing has been on the site. This means that participating dealers have the opportunity to directly influence their placement on the SRP through better merchandising of their listings.
To make things as easy as possible, the new kbb.com Classifieds is a turnkey experience for dealers: your contact for kbb.com Classifieds is your AutoTrader.com Advertising Consultant, your inventory is automatically pulled from dealer data already on AutoTrader.com, and listings and reporting for both sites are managed within one system. This means no additional data feed setup and management is required, you have a single point of contact for both sites, and there’s no extra backend to log into to manage everything.
To find out more, Kelley Blue Book President Jared Rowe will be hosting a free webinar on Tuesday, June 5, at 2PM EST/11AM PST. You can register for it here.
1Comscore Media Metrix: Cross Visiting Report: March 2012
2 AutoTrader.com Shopper Frame of Mind Research Study: March 2011
No Comments
Kelley Blue Book
Webinar Hosted by Jared Rowe, President of Kelley Blue Book: Introducing the All-New Kbb.com Classifieds
Kelley Blue Book President Jared Rowe will be hosting a free webinar to introduce the industry to the new kbb.com Classifieds on Tuesday, June 5, at 2PM EST/11AM PST. You can register for it here.
This month, Kelley Blue Book’s kbb.com is launching an all-new Classifieds experience in partnership with AutoTrader.com that will allow dealers to reach millions of in-market car buyers that largely cannot be found on other automotive websites.1 The “cars for sale” section of kbb.com has been completely rebuilt, featuring a new design and functionality created for the unique audience of consumers who use kbb.com to research new- and used-vehicle information and reviews, obtain values and pricing information, and find the right car for sale in their area.
More than 75% of visitors to kbb.com are undecided on which make and model they want to purchase,2 and with supply and demand pushing used-vehicle pricing close to new-vehicle pricing, many are also uncertain about whether they will purchase new, used or certified. Therefore, kbb.com’s new Classifieds experience is uniquely designed to allow consumers to search cars for sale based on their needs, while also keeping the option to run a traditional make/model search. This new approach allows consumers who are undecided on make/model to see vehicles that both meet their needs and possibly be exposed to some that they might not have otherwise considered. Consumers also have the option to return new, used and certified inventory within the same search. As a time-saver, changing or refining search parameters is possible within the same search, without starting over from scratch and filling out all the parameters again. The redesigned Classifieds also allows them to continue researching vehicles via trusted Kelley Blue Book information such as reviews and ratings without leaving the Classifieds experience.
The initial SRP (search results page) is prioritized based on “Best Match,” a formula that ranks vehicles based on what is determined to be most relevant and engaging to the consumer performing the search. This formula is in part based on the quantity and quality of vehicle information dealers provide, including the number of photos, video, detailed vehicle descriptions as well as certain characteristics of the vehicle such as distance from the user, mileage vs. the average for that model year, and the length of time the listing has been on the site. This means that participating dealers have the opportunity to directly influence their placement on the SRP through better merchandising of their listings.
To make things as easy as possible, the new kbb.com Classifieds is a turnkey experience for dealers: your contact for kbb.com Classifieds is your AutoTrader.com Advertising Consultant, your inventory is automatically pulled from dealer data already on AutoTrader.com, and listings and reporting for both sites are managed within one system. This means no additional data feed setup and management is required, you have a single point of contact for both sites, and there’s no extra backend to log into to manage everything.
To find out more, Kelley Blue Book President Jared Rowe will be hosting a free webinar on Tuesday, June 5, at 2PM EST/11AM PST. You can register for it here.
1Comscore Media Metrix: Cross Visiting Report: March 2012
2 AutoTrader.com Shopper Frame of Mind Research Study: March 2011
No Comments
7 Comments
BRUCE HARTZ
BOB BELL AUTOMOTIVE
How famous would a 13 year old hacker be who could claim he just caused the world biggest traffic accident !!
Alex Schoeneberger
Kelley Blue Book
Pretty famous, Bruce. That's a scary thought!
Jeremy Alicandri
Maryann Keller & Associates
Hi Alex, Below are some resources that may answer some of your questions (thanks to Cliff Banks for sharing them). I'm certain today's consumer doesn't fully understand the implications of the self-driving car, but keep in mind some stats: "Google’s claims for the car, as described by Sebastian Thrun, its lead developer, are: 1.We can reduce traffic accidents by 90%. 2.We can reduce wasted commute time and energy by 90%. 3.We can reduce the number of cars by 90%." Now run that poll again with the above stats, and you may get a different result. Links: Fasten Your Seatbelts: Google's Driverless Car Is Worth Trillions (Part 1) http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/ *This is a 7-part series by a Forbes contributor. Google Poses Serious Competitive Threat to Auto Industry http://wardsauto.com/blog/google-poses-serious-competitive-threat-auto-industry *This is an article which reviews some of the research by analysts over the potential impact. Doom & Gloom? Self-Driving Cars and Dealership Valuations… http://www.drivingsales.com/blogs/jeremy/2013/03/05/doom--gloom-selfdriving-cars-dealership-valuations *This is my opinion piece on dealership valuations.
Alex Schoeneberger
Kelley Blue Book
Hi Jeremy - interesting stuff! Running the poll again with Google's stats included in the question would definitely sway opinion. I'll see if we have the space in the Quick Poll question section to feature them as part of the question. The only point Thrun made that I contest is the reduction of cars by 90%. I can see potential for reduction, especially in major cities, but I think it will be a long time before we see anything approaching 90%, if ever. There are a lot of errands, especially when you're talking about family vehicles, that occur on the way to and from work, and I see that and the added commute time factoring into many people avoiding ride sharing during peak vehicle usage hours. We may see a societal shift away from the 8 to 5 office job that many of us have, but until that occurs wholesale, typical working hours will have a heavy influence over where people are going to go and when. While peak travel times have opportunities for optimization, I do wonder how open people will be to that optimization if it inconveniences them.
Jeremy Alicandri
Maryann Keller & Associates
Hi Alex, The article states those are Google's stats - not my own. I can't predict the future. However, I believe it's safe to assume that car count will decrease once this technology fully matures. But when will this all happen? I recently e-mailed Glenn Mercer(NADA Facilities Consultant) about this issue and he summed it up quite well - autonomous cars will make tremendous progress by 2020, but we won't see a 100% autonomous car for quite some time. There are too many cultural/legal issues, and too many cars currently in service, for a paradigm shift to occur within the next ten years. However, in another 20 years, it may be a different story. Jeremy
Alex Schoeneberger
Kelley Blue Book
Hey Jeremy - I definitely agree that all of this will take a long time. By then, we may be printing our own cars out of 3D printers in our garage. ;-)
Stan Sher
Dealer eTraining
In my opinion it is like driving automatic over manual. A person that drives manual is a real driver while the person that drives automatic is just an operator. While there are some neat benefits to being driven by technology I still cannot trust it to get me where I need to go safely. Technology is created by man and no man is too perfect enough to create a device that will never break.