Today’s consumers are less tolerant of businesses that can’t fix problems quickly enough — even if their expectations are unrealistic.
With today’s consumers, it’s a game of inches — or seconds.
Remember when the big debate about responding to prospects and customers via email set the acceptable bar at four hours? That was only a few years ago, and for many businesses that seemed harsh given that just a year or so earlier, twenty-four hours was a benchmark. Now, those benchmark times seem preposterous. Things have changed, big time.
I read an interesting article by Brian Solis, a world-renowned digital analyst, anthropologist and futurist. The article was posted on Forbes almost two years ago, but is highly relevant to what businesses are facing now. At the time, Solis wrote:
“Impatience is a virtue. This just might be the mantra for today’s connected consumer. They live in an on-demand economy where, with a few taps and swipes of their mobile device, they can have what they want, when they want it. As more devices and apps deliver instant gratification, the more it sets a new standard for customer expectations. Now, businesses in every industry will have to cater to “right now” consumers in mobile-first micro-moments or risk missing these critical engagement opportunities.” (Brian Solis, Forbes Magazine)
With more and ever-evolving technology, consumers expect fewer mistakes, and are less tolerant of businesses that can’t offer immediate solutions to their needs.
Another fascinating (and rather scary) perspective about the importance of time can be found in the book Flash Boys, by Michael Lewis.
The book tells the story of a young RBC trader (Brad Katsuyama) working on Wall Street with high frequency traders. He essentially found a way to beat competitor orders by microseconds, by optimizing the fibre optic channels carrying the orders — in many cases, by eliminating as many kinks as possible.
We’re probably not talking microseconds when it comes to the retail world or the dealership, but it’s an example of how technology has put a spotlight on speed of response. Consumers expect it, and it can provide a competitive edge to any business.
The “on-demand economy” is making mobile consumers both impatient and demanding
With more and ever-evolving technology, consumers expect fewer mistakes, and are less tolerant of businesses that can’t offer immediate solutions to their needs. Solis calls it the “on demand economy” and it’s causing problems for many businesses.
While dealerships don’t necessarily provide products or services that deliver immediate gratification in the simple sense, your customers and prospects bring the same mindset when they enter the dealership. For many, there’s a gap between performance and expectations, but it’s a very different gap than it was when we were looking at traditional measures of the customer experience. It’s no longer just about the in-dealership experience, the facility or the staff, but about how quickly and accurately the dealership can deliver what they promise. Consumers are expecting more targeted, responsive, and efficient services from retailers across the board. They believe (or expect) that better technology should lead to a better retail or service experience.
Another example of how consumers have changed can be found in Google data. According to Solis, Google data reveals that search interest for “open now” has tripled in the past two years, while searches for “store hours” have dropped. Saying “open now” is a much more compelling message to today’s consumers than simply listing store hours.
A recent study conducted in the U.S. by Blis (a global company that is a pioneer in the area of real-world digital consumer intelligence) found that consumers were “more forgiving of errors or mistakes if they liked the brand.” No doubt you see this almost every day in your dealership. But the more interesting finding in the study was that most consumers “gave brands only one opportunity to fail before switching loyalty” and that “millennials were the least forgiving.”
There’s a gap – businesses are deploying technologies, but their operations are not keeping pace
This gap was brought home to me recently in dealings with a local telecom company (the red one). It exposed the difficulty organizations can have meeting the new benchmarks of the demand economy, even if they are deploying the latest technology.
I was having technical issues with Internet and TV service and their promised response time (for a supervisor to call back) was 24-48 hours. Not what I wanted to hear! When I finally did schedule a service visit, I experienced their new technology that was supposed to provide real-time updates to let you know when the tech is close-by. It’s a great idea, except it was not “smart” and could not update as things unfold.
The message system, which tells you that the “tech is on the way and will be there in 20 minutes,” can’t accommodate the real situation and give you a revised, accurate time. It was frustrating to watch the app go down to zero (tech should be here) and not even refresh. No text or call —nothing. This is a very clear example of good intention, but poor execution.
I am aware of a number of dealerships where real-time progress reports on service are available to customers. Are the reports accurate? Are they smart enough to update automatically if needed? As soon as you deploy a customer-facing technology, the game is on and you’ll be measured in terms of how well you do what you say you’ll do, and how quickly you do it.
What can dealerships do?
For dealerships, there are a number of things to look at when it comes to meeting these new consumer expectations.
Get it right
There is a growing number of examples of new technologies being deployed in auto retailing that could expose businesses to this challenge. Cadillac’s recent launch of the Cadillac Live technology is a case in point. I tried the technology soon after it was first introduced and there were a number of shortcomings, both in the overall experience with the Live Agent and with the appointment scheduling. Both of these issues have since been addressed, but it underlines the importance of getting it right or the customer will likely move on.
Check all aspects of your website and communication technologies that relate to aspects such as response time, times of business (open now vs. store hours), and freshness of information.
Fix problems immediately
It’s likely that all consumers, not just millennials and their followers, will become more intolerant of businesses that cannot fix problems quickly — especially when technology is involved. Can’t these things be fixed with a quick keystroke or a simple command? That might be unrealistic, but that’s where consumers’ minds are now.
Cultivate the on-demand culture in the dealership and make sure you can support it
Everything breaks down if the culture in the business does not recognize the needs of an on-demand customer. This will take better training, prioritization of actions, and constant learning and adaptation. Current staff training approaches and metrics may not provide the solution.
Prove to the customer that you are aware of an on-demand mindset
Check all aspects of your website and communication technologies that relate to aspects such as response time, times of business (open now vs. store hours), and freshness of information. Can you deliver what you promise? This will be the acid test going forward.
Brian Solis’ summary of today’s consumer mindset is “Everything you want. Right now!” Are you on board? You’ll be measured in inches and seconds!
