Almost 50% of the time
 spent at a car dealer is frustrating for customers.

Entertain your customers!
Spend more time on what customers enjoy. What are these activities and how much extra time is needed? See below…

The human factor?
Yes, this parameter affects customer satisfaction by up to 30%.

Buying a car can be a time-consuming, boring process, so say customers and, unfortunately, research confirms that view. Today, the vehicle sales process satisfaction rate has dropped to approximately 74% among consumers. While that may seem acceptable at first glance, the truth is that satisfaction levels have been falling for the last decade, and 71% is an all-time low.

Almost 50% of the time spent purchasing a vehicle is unpleasant or even frustrating for the Customer.

According to a Cox Automotive study, buyers are least satisfied with the long purchase process. On average, customers spend 3 hours at the dealership when they purchase a vehicle. Almost half of that time is spent negotiating or doing paperwork.

It is important to note that “Financing/Paperwork” and “Negotiations” are cited frequently as the most frustrating parts of the process, and they take an average of one hour and thirty-one minutes to complete, which is about 49% of the time a customer spends at the dealership during the sales journey (Cox Automotive, 2017). This means they are spending essentially half their time doing their least favourite activities, not including the other three major points of frustration.

Do you know which activities your customers enjoy the most? Do you devote enough time to them?

Not only are dealerships forcing customers to go through frustrating experiences, they are also reducing the amount of time on activities that the customer enjoys. According to Cox Automotive’s Car Buyer Journey Study (2017), those activities are

  • Test driving
  • Setting up the vehicle upon purchase (interior, Bluetooth, etc.)
  • Getting educated about the vehicle (make, model, safety, etc.)

For all three of those activities, salespeople are spending, on average, at least eight to nine minutes less with the customer than customers would expect. So not only are we forcing customers to participate in activities they hate, but we are taking time away from activities they enjoy.

How much the human factor influence customer satisfaction? More than you would expect! Up to 30%.

Another variable affecting customer satisfaction with dealerships is the number of interactions a customer has with different individuals. Whether it is a sales or service journey, customer satisfaction is at roughly 80% when interacting with only one employee.

But that figure can drop to nearly 50% when interacting with three or four employees (Car Buyers Journey, 2017). The reason for the sharp decline is that, during each interaction, customers have to explain their situations from scratch or work with individuals who have different personalities, which can be stressful.

How to solve this situation? 

A complex shift may be required in how dealerships do business with more focus on customers and more effort directed toward making customers’ experiences as seamless as possible.
Technology will play a crucial role in addressing these issues because there are tools that can optimize a dealership’s operations on a grand scale. With a combination of digitalization, automation, and improvement in business processes, the dealership experience can change to decrease manual processes and interactions and allow employees to spend more time with the customer instead of completing traditional sales tasks.

AXIOM PROVIS Int. will make it easy for you!

Over more than 25 years of experience, the designs of ERP and DMS systems, which are tailored to your business and optimise your everyday processes, have become an integral part of our company’s specialisation. As one of the top technology companies focusing on information systems and special automotive solutions, we are able to analyse and advise on bottlenecks, but also to develop and implement reliable solutions which will save your time and your customers will enjoy them.

How can we prove to you that we know what we are talking about?

The best way is to show satisfied customers:

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