Providers & Administrators, 1st Qtr 2019

in 2017 said if it were possible they were likely or very likely to buy a car entirely online By 2018 that number had grown to 60 based on Deloittes latest global automotive consumer study Car companies like Tesla and Genesis Motors Canada have already created the technology pathway for the online purchase process but is that all it takes No not at all Theres a balance weve got to provide between the virtual and the physical Purchasing a vehicle like many things is such a personalized decision How do we try things on online According to a 2017 study by Capgemini 71 of car buyers still want to take a test drive and see the car in real life Digital retailing is about far more than just ecommerce and simply adding a buy now button to your website is not a solution that will succeed According to the Bain Globals 2017 Automotive Consumer Survey the average car shopper will switch between online and offline channels four times before buying This means solutions that dont seamlessly connect the consumers online experience with their instore journey are not following the winning playbook Keeping in mind the why factor is critical when drafting your new plan You can probably guess why consumers dont enjoy their instore vehicle purchase but data from aforementioned Deloitte study tells us the aspects they dislike the most are that it requires too much paperwork it takes too long and they dont like price haggling Essentially the statistics point to evidence that consumers consider a car purchase a major investment And yet they still want the ease of process and lack of negotiation afforded by the existing online retail model So what does the winning play look like Its available Digital retailing happens 24 7 Implement technology solutions based on proven infrastructure because you cant afford to be down in a digital world Its thorough A buy now button is not enough We have to both provide reliable payment estimates and incorporate F I product offerings to further facilitate the paperless transaction Its transparent Todays consumers demand online access to information to truly educate themselves on available options and also seek out reviews and feedback from other buyers Its frictionless Shift waiting time to the couch at home Dont you love that you can register online to go to your local doctor and get to wait at home rather than in a tiny lobby full of sick people for hours Its seamless It incorporates an omnichannel approach with both technology and people processes incorporating both the online and offline experience In other words care enough to keep track of data the customer has already given you where they were in the process and who they were talking to last time they interacted with you In short the winning play decreases the most painful aspects of the customer experience SHIFTING PERCEPTIONS On Feb 7 2018 Forbes published Ford Explores Alternatives to Car Ownership with Canvas Vehicle Subscription followed by Your Next Car Could be a Flexible Subscription Model on July 30 2018 In September they highlighted the transition from only high end brands to a wide variety of dealerships in Are Subscriptions the Prescription to Cure Sagging Car Sales Then a prediction that the subscription model is something every business should be looking at Is a Subscription Model in Your Companys Future It Had Better Be Nov 25 2018 Then boom a declaration that Vehicle Subscription Services Doomed to Fail Nov 26 2018 Finally another change of heart with this one Want a Tesla Model S But Not Sure You Can Aford It Just Subscribe for 3 Months Dec 23 2018 1ST QTR 2019 P A 15 Photo by Kate Spatafora