How Consumers Purchase Vehicles Based on Data

Car shoppers are now spending less time making decisions about which car to purchase. This means that marketers have an even smaller window during which to make an impact. Therefore, in order to influence consumers throughout their buying journey, it has become crucial for marketers to rely on experiential marketing, inbound marketing and consumer education. However, creating a marketing plan that drives sales also requires extensive knowledge about the desires, thoughts and priorities of your target market.

Research Time Increases as Total Time in-Market Decreases

The 2018 Car Buyer Journey Study offers important insights into consumer behavior as it relates to purchasing a vehicle. The study, conducted each year by Cox Automotive, aims to understand consumer behavior during the car-shopping process, as well as consumer perceptions about their overall experience at auto dealerships.

The study shows that car buyers spend more time researching online, but less total time in-market. Car buyers spend 61 percent of their total research time online, although only 21 percent of research takes place at the dealership or vehicle seller where they’ll eventually purchase the car.

Researchers also found that consumers are using just 4.7 websites, down from 5.5 in last year’s study. However, their perception of how helpful websites are during their research remains the same.

This shift in consumer behavior presents an opportunity for marketers to increase the effectiveness of their efforts by developing a fully-integrated marketing strategy that includes an up-to-date online inventory available across all devices.

New car buyers start their research journey online at third-party websites, then wrap up their information gathering at the dealer website. This pattern of behavior suggests that brands, from OEMs to the dealership level, should concentrate on creating a message that is consistent and accurate across all interfaces used to communicate with potential buyers.

Perhaps because consumers are spending less total time in-market, they tend to purchase or lease from a dealership where they acquired a vehicle in the past. In 2016, for instance, 31 percent of new car shoppers purchased or leased a car where they had previously purchased a vehicle. By 2018, that number was up to 40 percent.

Marketers Can Capture Valuable Data at Auto Shows and Test Drives

One of the most important sources of information about potential buyers is the face-to-face interaction happening during test drives and at auto shows. Capitalizing on this engagement is a powerful way to understand and respond to your customer’s questions and concerns.

Pre-Invitations for current customers and brand enthusiasts, high-value contests that recruit hand-raisers and personalized content are just a few ways that marketers can get the most traction at an auto show.

Ride and drive programs should have an advanced booking option through an easy-to-use and reliable online platform. Automated confirmations and data validity are just two of the many advantages presented by this marketing tactic.

This type of information capture streamlines the entire process for the customer as well. Timely communications and a sophisticated interface helps to build trust between a consumer who may be dissatisfied with previous interactions. It also reinforces the brand’s reputation for cutting-edge technological advancements.

The drive is only one part of the customer’s experience though. When several new-car dealerships offer the same vehicle at a similar price, it’s crucial to differentiate by providing an outstanding experience across all platforms.

Customer Trust and Satisfaction With Purchase Price Declines

After interactions with F&I departments in dealerships were added to the equation, researchers found that overall customer satisfaction with the test-drive process dropped from 77 percent to 59 percent.

On average, car buyers spend three hours at the dealership. Half of that time is spent doing paperwork or negotiating the price of their vehicle. For these reasons, consumers indicated only a 46 percent satisfaction rating regarding how long the entire car-buying process takes.

One way that marketers can help alleviate this frustration is by offering specific information on the dealership’s website about F&I products. They can also take it a step further by anticipating their purchasing habits and preferences and send them personalized content before, during and after events. These tactics can also help drive sales, as consumers who are aware of their options are more likely to purchase F&I products.

The percentage of customers willing to visit multiple dealerships in person has steadily declined over the years. In 2016, for instance, 66 percent of all vehicle buyers visited two or more dealerships. By 2018, that number had dropped to 59 percent. One reason for this may be that buyers feel dissatisfied with the amount of idle time at the dealership. Those who were dissatisfied with how long the process took said they spent an average of 40 minutes waiting to move to the next step of the buying process.

In 2018, 61 percent of car buyers trusted that the dealership gave them the best deal. However, that number was 63 percent just two years ago. Similarly, in 2016, 70 percent of people who purchased a new or used car felt satisfied with the price they paid for the vehicle, but by 2018, that number had dropped to 62 percent.

Winning back the trust and approval of customers involves providing an omnichannel experience that is consistent, accurate and respectful of privacy. The customer’s experience before, during and after the test drive will determine not only whether they’ll purchase from that dealership, but whether the dealership will gain a loyal customer who will purchase many vehicles from them over the course of their lifetime.