Has it ever been more important for automotive retail to be at their sharpest in terms of maximising value of each and every customer?
With the trade press regularly sharing the latest financials of major groups the patterns are clear: revenue is rising but generating profit is getting tougher.
There won’t be many franchise dealer groups assessing the various ways they can improve all revenue streams as vehicle margins and finance commission come under pressure. A recent Halfords advertising campaign has taken a clear swipe at the automotive retail servicing customers, claiming they are paying “over the odds”.
AM Online has since published a response from the dealer network, which is no doubt valid, however it shines another bright light on a couple of key moments in the buying journey that retailers need to get right.
The first is ensuring a first-class customer experience exists throughout the buying journey. The vast majority will believe that they have this covered, or at the very least be confident there are no clear vulnerabilities that will, in effect, push the customer elsewhere for aftersales work once the car is delivered.
But, the one area of the buying journey where customer satisfaction levels are at most risk is that point when both retailer and OEM turn the other way. Order to delivery can be a phase of the buying journey that lasts a few days, but it can also be a few months.
Who takes responsibility for the customer in this time? The sales team are focussed on new enquiries and financially incentivised to follow up on those leads. It creates the perfect ‘gap’ in the journey where the customer is exposed to a lack of the personalised approach he or she has been used to up until that point.
Secondly, one of the key add-ons to any new or used car order is a service plan. The service plan neatly connects the customer to the retail environment often for the lifetime of ownership and that connection can only breed loyalty and commitment.
AutoBuzz, the automated communications platform dedicated to the order to delivery space in the buying journey, has proven that more than 70% of customers engage with communication while they wait for their new or used order to arrive. In the opening stages, post-order, more than 90% engage.
These significantly high percentages show just how much appetite there is for information and communication. Without it, the customer experience will drop.
Furthermore, all is not lost if a sales exec fails to upsell the service plan at point of order. In fact, AutoBuzz data shows that service plans, when promoted to customers between order and delivery, rank among the most engaged product.
There is a moment in the buying journey when customer experience is at risk of failing. Those retailers who simply opt to automate communication and mirror the experience customers have experienced to date, will not only be able to enjoy more committed and loyal customers post-delivery, they will also spot the compelling instances when products like service plans can up sold.
There’s no doubt the likes of Halfords will poach customers in the world of aftersales, but it’s far less likely to happen where customers have remained engaged with throughout the car-buying process and are equipped with products like service plans when they eventually drive away from your retailer.
Want to learn more about your customers in the Order to Delivery part of the car-buying journey? It’s full of possibility but until you begin to shine a light on it you’ll never truly understand what it can deliver.
Get in touch today to arrange a quick demo or set up a small, light-touch pilot so you can see exactly how AutoBuzz delivers during Order to Delivery.
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