(Published in a Linkedin group) I suggest we reformulate a new car buying experience! But don’t count on a walk in the park! It will be actually necessary to get out of the box! The starting point that I suggest today is far from the auto product, but it’s close, as far as vision is concerned, to the experience quality that we should aim to in this industry. Give it a shot…

Agility – and the lack of it

The auto sector reacts unexpectedly well to some market limitations. It can actually be surprising how an industry, which is potentially inflexible, is able to promptly place models into the market that are perfectly adapted, for instance, to the recent environmental demands; it actually allows itself to match this type of evolution to the auto product emotional component, thus assuring in this case features such as driving pleasure or even the sporster behaviour.

But it’s exactly when demand slows down that the sector reveals its greatest weaknesses. Invariably, the reaction involves an extreme bet in financial incentives, in order to make some Customers come to retail. The problem is that from this moment on, there are no new arguments able to transcend the financial aspect and the excruciating tendency towards smaller margins goes on until the deal is closed. Buying a new car is becoming more and more of a bad experience for the Customer and a bad deal for the one who sells.

Seducing Factors

In a nut-shell: When it comes to buying the next new car, what are the essential factors that contribute to seducing the Customer? Satisfaction regarding the product global quality, suggested price and PURCHASING EXPERIENCE.

Nothing but the product quality and the PURCHASING EXPERIENCE can fight the suicidal tendency of the sector to focus on crashing the retailing margins each time we want to boost demand. Considering the commitment that this engineer industry has towards the product component, let’s formulate a PURCHASING EXPERIENCE reinvention as an alternative to seducing the Customer with the price.

The World upside down

I have recently lived a fabulous PURCHASING EXPERIENCE. I bought a product twice as expensive as it would be to purchase it in the traditional market. I paid it ahead, whereas in the conventional way I would only be required to pay upon delivery. I waited for a month for the product to be delivered, whereas an equivalent item is promptly available at a store. At the end, I received my new acquisition: I was ecstatic and willing to experience this again!

Parallels

Just like a car, the product I bought can be totally configured over the internet; just like a car, it can be customised – very much customised. Actually, part of this PURCHASING EXPERIENCE success is due to the possibility that the Customer has of acquiring a virtually unique product. But, the auto industry already has an answer for this: BMW Mini and Fiat 500 have democratised the access to customising levels that only had such a parallel in Premium brands high rank models. The point where this sector is an utter flop is its ability to extend this exclusiveness notion to the selling process. Seldom do we see a Dealership that is able to add value to its proposal. Most of them explore the opposite way; instead of heading, for example, towards a sufficiently differentiated service level, they end up being dragged to that price war.

The remaining ingredients for this fantastic PURCHASING EXPERIENCE to be successful are a clear price and rules of the game communication, pro-activity so as to inform the Customer about the process evolution, since the order until delivery and, at last, maximum convenience, avoiding scheduling and travelling limitations. The thorough promotional activity to which the auto sector is currently exposed to, some operators’ condition and the pressure due to the need to sell make the price as well as the retaking value negotiation process a misty, tactic and uncomfortable experience for the Customer. Regarding post-purchasing follow-up, the Customer is often abandoned, only to be contacted to be briefed about the delays regarding previously agreed delivery deadlines.

My brand new sneakers

The extraordinary PURCHASING EXPERIENCE was actually granted to me by Nike, during the acquisition of a new pair of sneakers at www.nikeid.com. This website allows the configuration of an exclusive pair of snickers, with colour combinations defined by the Customer and home delivery of the final product. From the very website quality and configuration tools, to the reception of several e-mails related to the various steps of the manufacturing, sending and confirmation process – all has contributed for the Customer to feel unique and to value the added cost of this purchasing option. This commercialising model has the potential to consistently produce elevated levels of Customer’s satisfaction, thus granting substantial profitability margins and reinforcing the brand’s image.

They were shoes, not cars… It was over the internet, not at a brick and stone dealership… Rather than the differences, let us focus on what should be the same. A visit to a dealership should always provide the customer with a unique contact moment with the car and the values of each brand. The product static presentation should be able to conquer the Customer. Detail should surprise. The dynamic test should conquer. The specific services of each dealership should make the difference. Just like the product, the service should also be customisable. Transparency in pricing should build up the customer’s trust. Wise business follow-up should assure enough communication and balanced management regarding the offer competitiveness.

The PURCHASING EXPERIENCE evolution is utterly necessary so as to create a sustainable working model for the auto retail sector. All of us must work: starting from the Brand to the Consultant that contacts the Customer. Thinking outside the box may help!

by Ricardo Oliveira

Workshops “.inspiring”

Presentations on this subject to be integrated in Dealerships General Meetings, Sector Conventions or Local Workshops are available.