Capgemini’s 14th annual global automotive study found that 94% of car buyers today start their shopping experience online. As customers become better informed, dealers must work within a shorter buying cycle and offer customers the personalized, interactive buying experience they desire.
Highlights of the Study
- Greater loyalty to brands and dealers. Manufacturers and dealers have worked hard to improve customer experience, and it seems that their efforts are paying off. Overall, loyalty increased by 10 percentage points for brands and by 6 percentage points for dealers from last year.
- The best dealers connect the virtual and the physical. The dealer is still an integral part of car buying. Shoppers increasingly expect the showroom to be informative, interactive and entertaining and dealerships must be able to meet this.
- The buying cycle continues to shorten with an increasingly demanding customer. 74% of respondents said that if they’re not happy with the response time from the first “touch point” – the manufacturer’s or dealer’s website – they will walk away before they even get to the showroom.“Connect me” technology enhances the ownership experience. Customers expect their new cars to have all the technology they’re used to everywhere else in their lives. In developing markets, 86% of customers are willing to share data for these features.
- Social media continues to influence consumers, especially in developing markets and among younger buyers. Customers in developing markets are 50% more likely to purchase because of positive comments, and 35% less likely to purchase because of negative comments, than those in mature markets.
- Alternative mobility solutions are seen a viable alternative for purchasing. Car sharing and intermodal mobility packages are growing in acceptance and require increased attention.