3 Consumer Trends Dealerships Should be Aware of in 2023!

One of the most significant developments that is having an effect on dealers is the desire that modern consumers have to participate. They like to have a dialogue and build a connection with the dealership before making a purchase, as opposed to simply being spoken to, which has become increasingly annoying to them in recent years. According to a survey that was recently published by McKinsey & Company, seven out of ten buyers have stated that they anticipate dealers to personalize the buying experience in order to gain their business.

1. Approach Marketing as a Two-Way Street

In order for dealers to be prosperous in 2023, they will need to place a high priority on interacting with their clients and concentrating on the development of personal connections through constructive digital interactions. This might be accomplished through the use of comments on social media postings, responses to reviews that customers have written on the company website, or the sending of reminder emails and texts on impending service appointments.

Live chat, on the other hand, is by far the most efficient method for dealers to rapidly communicate with their clients. A recent poll conducted by Statista indicated that more than half of millennials utilize chat on a regular basis to contact dealerships, with the majority of millennials beginning the process of making a purchase online.

The most important thing to remember is that customers are no longer content with simply seeing or listening to advertisements; instead, they want to have a dialogue and establish a rapport with dealerships before making a purchase. The use of chat tools and other pleasant digital experiences should be utilized by dealerships in order to proactively generate possibilities for connection and engagement.

2. Direct a greater portion of your attention on pre-owned (recommerce) marketplaces.

The process of buying an automobile has shifted entirely online. According to the results of an annual shopper study conducted by GE Capital Retail Bank, 81 percent of customers now conduct product research at home. This is especially true for substantial acquisitions such as autos, for which the research phase might take up to 79 days on average. Furthermore, according to Cox Automotive's research, three out of every four customers are open to the possibility of completing their whole vehicle purchase and finance process online.

Dealers ought to shift their businesses online in 2023 alongside customers. The use of internet marketplaces, particularly those that specialize in re-commerce such as Craigslist or Offerup should receive special attention. According to the findings of Offerup's 2022 re-commerce Report, 63 percent of consumers look into used choices for the things they require before considering buying anything brand new. In point of fact, a good number of these customers are looking over the inventory as part of their preliminary investigation. This presents dealers with the ideal chance to connect with audiences at an early stage in the process of acquiring a product and offer helpful advice that can contribute to increased foot traffic at their dealership.

3. Create a Shopping Environment That Is Primarily Digital

Customers placing a higher emphasis on the shopping experience is developing as one of the most significant trends in today's industry, and it's important to keep this in mind. 88% of customers believe that the experience that a company offers is just as important as, if not more important than, the product that the firm sells. When it comes to making a purchasing choice, especially in the automobile business, research conducted by Cox Automotive found that two out of every three customers place a higher value on their experience than they do on the price.

So, what are the components of a memorable experience? To begin, the term "salesperson" is changed to "product specialist" in this version. Customers would rather work with reliable advisers who can assist them in gaining a deeper understanding of each offering and making an educated choice than with a salesperson who is only interested in closing the deal. Dealers may contribute to the fulfillment of this requirement by ensuring that all of their employees are kept current on the latest advances in their field. When it comes to assisting your clients, your staff' level of expertise will directly correlate to how well prepared they are to do so.

One other development in the field of customer experience that should be brought to your attention is the utilization of augmented reality (AR) and virtual reality (VR) technologies to deliver a more comprehensive online experience. To assist customers in previewing available inventory before making a purchase, several car shops are beginning to provide virtual test drives and 3D modeling. A poll conducted in Italy indicated that seven out of ten clients were eager to buy a car after taking part in a virtual test drive or seeing a film that was 360 degrees around them, even if they had not seen the automobile in person. Even though the use of this technology is quite recent, early adoption rates are showing promise.

In addition to the most cutting-edge AR/VR technology, dealers may also improve the quality of the online experience for customers by utilizing AI and machine learning to offer an increased number of technical channels for engagement with customers. According to J.D. Power's findings, 42 percent of consumers preferred to do business with dealerships that offered straightforward ways for communication, such as online scheduling, sending SMS reminders about appointments and offering anticipated pickup times, and providing online payment alternatives. Dealers who make investments in these relatively minor operational adjustments will be rewarded handsomely in 2023 by satisfied clients who place a high value on having a positive experience both before and after the initial purchase of a vehicle.