SOUTHFIELD – How automotive dealers respond to online shopping inquiries significantly impacts vehicle purchase decisions, contends a forthcoming study that will be released in April by R. L. Polk & Co.

More than 570 new car purchasers were surveyed about

their online shopping experience. The study concluded that simply

initiating a response is not enough to build customer loyalty. Rather,

dealers must respond as consumers request, factoring in content, speed and

method of response, in order to increase the chance of selling a vehicle.

Consumer expectations from dealers

When considering the content of dealer follow-up to Internet leads,

Polk’s study found that consumers are most interested in vehicle

availability and price, with model purchase price range tending to be the

most important pricing information. Getting the lowest price for a vehicle

is not the single most important determinant for most consumers. Rather,

buyers are willing to pay a competitive price for a vehicle.

“Dealers can improve make loyalty significantly by improving

satisfaction with response time and pricing information,” said Lonnie

Miller, director of Industry Analysis, R. L. Polk & Co. “If a dealer is not

already including price information in their response, they should begin

doing so immediately. That, coupled with speed, can yield an average

increase in make loyalty of 3.4 percentage points.”

Additionally, Polk’s analysis reveals that 47 percent of consumers

wishing to receive an email response view 10-24 hours as an acceptable

turnaround time. Sixty-eight percent of consumers preferring to be

contacted by phone expected to be contacted within one hour, according to

the survey, giving dealerships some insight into the increasing

expectations of consumers using online tools for vehicle shopping.

“Paying attention to the method of response is critical to the success

of a dealer’s online leads. Customers want to do business with dealers who

listen to them,” said Miller. “Polk’s study shows that 70 percent of

respondents who purchased from a responding dealer were contacted by their

preferred communication method.”

First time buyer observations

In addition to dedicating resources to ensure consumers’ content and

method needs within responses are met, dealers also need to consider the

significance of the first time buyer audience as they evaluate Internet

inquiries. Overall, 68 percent of consumers who received a response

purchased from the responding dealer. Of that sample, first time buyers

make up more than one-third. Because brand loyalty begins with this group,

Polk recommends dealerships make immediate changes in how they respond to

Internet leads to ensure they are capitalizing on this very important

audience.

“Polk’s study found that first time buyers are often overlooked, but

can be customers for life if dealers listen to their needs. Of the

respondents who did not receive an answer to the leads they submitted, 46

percent were first time buyers,” said Miller. “Though not all first time

buyers are the same, dealers can reap near immediate reward by responding

to them in a timely manner and providing the information they request.”

For more information, click on Polk.Com

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