Consumer confidence in their dealership declines dramatically when the difference between showroom offers is only $50 from what the consumer was quoted online, according to a recent survey by Market Scan Information Systems.
The survey focused on consumer behaviour in regards to digital retailing, highlighting their frustrations and expectations while also providing insights into how dealers can lose sales opportunities when online payments differ from in-person.
“Prompted by COVID-19, digital retailing proficiency has become a must and an integral part of automotive retailing,” said Rusty West, President and CEO of Market Scan. “Dealers now must have an omni-channel presence and it is imperative that they provide consumers payment transparency and consistency throughout the entire journey.”
The survey found that price and payment negotiation remain among the top most important aspects of the car shopping experience for consumers, according to the company’s news release. Forty-five per cent of respondents said price and payments matter the most to them within the journey.
However, the disconnect between the online and offline shopping experience remains an issue for consumers; for online, 49 per cent of respondents said they need to restart the entire process at the dealership, even after doing their homework online and ahead of time. And 43 per cent of respondents indicated they were frustrated that there are still discrepancies between the online and the in-store offer.
Also worth noting is that 21 per cent of respondents said they begin to lose trust in the dealer when the discrepancy between the online and showroom offer is $50 or less per month, while 21 per cent said they will actually walk away from the deal. Forty-eight per cent said they will walk away if the difference is less than $75 per month.
“The survey results emphasize the importance of providing a scientifically perfect solution for any conceivable automotive transaction. When science, technology, data and automotive insight are applied correctly, it enables manufacturers, lenders, and retailers to provide consumers a frictionless, modern retailing experience — both online and in the dealer sales showrooms,” said West. “And when that happens, everyone wins.”
The company said consumers may be willing to pay slightly more for the convenience of a true online shopping experience: 34 per cent of respondents said they would sacrifice some negotiating power to offset the additional costs needed for an “ideal” online shopping process — one that transitions seamlessly from online to the in-store experience.
The online survey was commissioned by Market Scan in January, when it polled approximately 200 car shoppers on their pain points regarding the digital retailing process. The survey also considered how payments and offers are being presented to consumers.
