Inflation and supply chain issues have been plaguing the automotive industry for the last two years, and some OEMs and dealerships have dealt with the challenges better than others in the eyes of consumers. To gauge who is sailing high and who is struggling, Reputation, the reputation experience management company, has released its annual automotive industry report, ranking the top industry brands and dealerships, as well as looking at consumer and industry trends that are shaping the future of the automotive business.
The report analyzes five million customer reviews, and includes surveys from buyers about how they shop for cars and service their vehicles. Reputation found that:
- The consumer survey shows that 50 per cent of respondents found the professionalism of the staff to be an important factor when selecting a dealership.
- 47 per cent of people are motivated to write a review based on their experience with the service department, and as the Service and Parts departments account for about half a dealership’s profitability, it’s a critical part to get right.
- Reputation’s own research shows that dealers with stronger reputations increase sales up to 10 per cent.
- 80 per cent of consumers say they have delayed a purchase due to inventory shortages.
- 85 per cent of consumers say reviews are important.
- 65 per cent say a dealership needs to have at least a four-star rating to consider purchasing from them.
- Reviews are the most important factor in choosing a dealership, behind price and inventory.
- 70 per cent of consumers said they’d be willing to travel 20 miles to a top-rated dealership.
“The automotive industry continues to navigate significant change, from inventory challenges and price increases to electric vehicles changing the way manufacturers and dealerships navigate the sales and service process,” said Joe Fuca, CEO of Reputation, “In an ever-evolving environment, each part of the business must rely upon customer feedback to continue to grow their businesses and evoke customer loyalty. It’s more important than ever for dealers to act on the feedback received; reaching out to customers in an effort to close the loop and ultimately reimagine the experience altogether. Our dealer and brand rankings this year highlight the critical role the Reputation Score plays in the automotive industry, with many of our customers ranking in top spots.”
Additionally, Reputation outlines five key trends shaping the automotive industry:
- Electric vehicles creating tension between OEMs and dealerships
- The service lane is ripe with opportunities to improve customer experience
- Subscription add-ons create a customer experience problem
- Continued price increases and supply chain challenges
- Customer feedback directly shaping the future of the industry
The top five non-luxury brands were:
The top five luxury brands were: