Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
DrivingSales

DrivingSales Company

Exclusive Blog Posts

10 Things Should Be Consider During The Inspection Of The Car

10 Things Should Be Consider During The Inspection Of The Car

Keeping track of a car is a difficult task. It is impossible to inspect a car on your own. You need to consult and discuss the entire process with one who …

WEBINAR RECORDING - How To Amplify Your Sales Productivity by 50-100% and Drive Greater ROI

WEBINAR RECORDING - How To Amplify Your Sales Productivity by 50-100% and Drive Greater ROI

In today's Webinar, we had a great discussion with Matt Weinberg, SVP of Consumer Experience at Modal. He shared some innovative strate…

Fostering Quick Decisions between Fixed and Variable

Fostering Quick Decisions between Fixed and Variable

By Keith Brice The time value of money states that a dollar today is more valuable than a dollar tomorrow. Fixed Ops managers live in the present. Their…

Car Sales Data Worth Celebrating

Car Sales Data Worth Celebrating

It should come as no surprise that new car sales are up significantly from March 2020 to March 2021, but that doesn’t stop me from celebrating. …

[Podcast] Create a Dealership that Your Employees Won’t Want to Leave - with Guest Clint Pulver

[Podcast] Create a Dealership that Your Employees Won’t Want to Leave - with Guest Clint Pulver

In this episode of the Dealership HCM podcast, Bart and Jason sit down with employee retention expert Clint Pulver to discuss tactics that dealers can use …

Customer Experience Study Identifies Expectation Gap Between Dealers and Consumers

We at DrivingSales recently concluded a very thorough customer experience research study revealing clear indicators that trust and transparency are paramount for sales growth and future success in automotive retail. The DrivingSales Consumer Experience Study is based on a 16 month-long ethnographic and quantitative research initiative with over 1,300 shopper and buyers. 

This unique type of research study looks at the rational and emotional factors that cause modern automotive shoppers to connect, or disconnect, with automotive dealers in the buying process. The ethnographic element of this research provides substatial validity to the study as it has not been done in the automotive retail research space while studying customer experience. 

Driven by experiences customers have become acustomed to in other retail sectors, the study uncovers large consumer expectations changes that are eye-opening for automotive retailers. It's clear from the research findings that a fundamental change in the consumer experience is required if dealerships expect to remain competitive over the next 5-10 years. 

Here's a few key findings from the hundreds of insights collected include:

  • 99 of 100 automotive shoppers begin their purchase journey expecting it to be a “hassle” driven in large part by their experience, and that of friends/family, with retailers seeking to control the buying process to the retailer’s objectives
  • Shoppers are exposed to dozens of conflicting influences making them wary and distrustful, driving them to seek what they perceive as objective information from trusted sources – primarily trusted friends and family and independent third party sites
  • Shoppers are keeping dealers and sales people at a proverbial arms length until late in the purchase process. When they’re ready to interact, 61% initiate contact by walking into the dealership without prior contact
  • This distrust puts the consumer on a hair trigger as they engage with the dealer, 50% will walk out of a dealership if the dealer requires a test drive before providing a price, 43% if personal information is required
  • 56% of shoppers said they would buy more often if the dealership process was not so difficult - the impact of this retail aversion was quantified at a potential increase in sales volume of 24%

“Yesterday’s formula for automotive retail success is deterring consumers and suppressing sales volume. Our research shows the key to sales success today is building trust through an open and transparent customer experience at every stage of their buying process,” said Jared Hamilton, Founder & CEO of DrivingSales. “Our findings are a clarion call for change in how cars are retailed and provide practical guidance to retailers and manufacturers on how to bridge this customer expectation gap and advance the industry.”

We will be releasing more of the DrivingSales Consumer Experience Study in the coming months. 

Mark Gasser
I watched pieces of the Adobe Summit and Brad Rencher said "More than ever, experience is the brand." I think this just validates that experience in the auto industry. We focus so much on getting what we need that we forget about the real experience the customer is having and drive them further and further away. We need to refocus and really drive experience in a consistent and continuous manner.
David Ruggles
RE: "We at DrivingSales recently concluded a very thorough customer experience research study revealing clear indicators that trust and transparency are paramount for sales growth and future success in automotive retail." Trust was the key element when I started selling cars in 1970. It still is. This isn't new. In fact, there was a LOT more transparency then then now. So why talk like transparency was just invented? The reason there is less trust is because there isn't enough gross profit in deals these days to support talented sales people, and the only way you have real trust is with repeat customers. Why spend a bunch of money to learn what has been known for decades?
David Ruggles
And by all means, if you want to be transparent, divulge the fact that YOUR car doesn't have as good of resale value as the top vehicle in its class. Make sure you tell them about all the recalls your OEM has out there. Make sure you tell them that your 4wd vehicles turn over more often then your 2WD vehicles. The list goes on. But we want transparency, right? When you disclose invoice, be sure you tell them about the trunk money too. You wouldn't want to be less than transparent, right? You wouldn't want them to think invoice is your actual cost, now would you?

 Unlock all of the community & features  Join Now