Why the automotive customer experience is key

The key to a thriving dealership isn’t just about having the best range of vehicles or well-reviewed service centers. Today it's also about delivering an automotive experience that makes an impact. Defining and implementing an effective customer experience strategy isn’t always easy, though—especially if you’re unfamiliar with the evolving technologies and methods that many brands are adopting.

In this guide, we’ll explore the changing landscape of customer expectations and provide actionable strategies for success to help you create strong customer experiences.

Who is the modern automotive customer?

The automotive experience has drastically changed over the last decade. That’s largely thanks to advancements in digital technology. Now the modern customer's journey for purchasing a vehicle begins, and in some cases may even end, online. According to a recent survey from Cox Automotive, 7% of car buyers in 2023 completed all the steps online, while 43% did a combination of online and at a dealership. The remaining 50% completed all the steps in person.

Many customers value the flexibility and control that digital platforms offer. They also value the convenience of exploring and comparing vehicles at their leisure. Transparency, ease, and personalization have become crucial elements that influence their decision-making process.

That’s redefining the role of the traditional auto dealership customer experience. Customers are doing more of their own research, and they have ideas about the vehicle and the features they’re interested in and who they want to do business with; the same survey shows that buyers typically considered 2 vehicles and visited 2 dealerships. So how can dealers adapt?

Maximize the digital opportunity

Online dealership options can offer round-the-clock service, an extensive range of vehicles, and clear pricing with just a click or a tap. While traditional brick-and-mortar dealerships and service centers face the challenge of mirroring this seamless, personalized experience, they can provide additional personal interaction with products and individuals.

To cater to the high expectations of the modern customer, dealerships must seamlessly integrate their online and offline offerings. The goal is to provide a cohesive, omnichannel, customer-centric experience. Achieving integration and alignment isn’t only about keeping pace with industry trends; it’s also critical for future-proofing your business.

Benefits of an elevated automotive customer experience

Creating memorable interactions that set your dealership or service center apart from the crowd can transform your business, but it requires an investment of time and resources. Here's a more in-depth look at the key benefits.

Amplify customer engagement

According to Accenture, 92% of dealers surveyed see customer experience as extremely important to their growth. To improve customer experience, move beyond transactions and engage customers meaningfully. Tailor interactions, offer interactive experiences like test drives, and ensure seamless communication. Providing value-added services and regularly seeking feedback allow for continuous improvement. Prioritizing these steps deepens engagement, fosters loyalty, and drives success.

Nurture brand loyalty

Brand loyalty is a product of consistently positive customer experiences. When customers feel understood, appreciated, and valued, they'll remain loyal to your brand. Customer experience drives over 60% of brand loyalty, making it a bigger factor than price and product put together.

Loyal customers also often become brand advocates. In the social media era, organic promotion can significantly amplify your reach and reputation. When experiencing a positive customer interaction, almost three-quarters (72%) of customers will share that experience with 6 or more people.

Boost revenue

A satisfying customer experience can also lead to an increase in sales and revenue: 61% of consumers will pay at least 5% more if they know they’ll get a good experience. And that, of course, contributes to the long-term success of your business and has a positive impact on the bottom line.

Enhance competitive advantage

In a crowded market where product offerings may be similar across dealerships, customer experience is critical to differentiating yourself. Dealerships that provide superior customer experiences are likely to find themselves in a stronger position. Research shows that, on average, companies that work to improve the customer experience see customer retention rise by 42%.

Those facts say a lot, but the real impact on most dealerships says even more: 87% of auto dealers agree that digital retailing solutions have positively affected at least one area of their business, reducing time spent; improving efficiency; and/or helping sales, profits, and customer relationships.

Digging into strategies to provide a better automotive customer experience

Creating an exceptional customer experience requires a strategic approach that considers every touchpoint along the customer journey. What do you implement, and where should you start? Below are some strategies to consider.

Implement new technology

While our world is increasingly connected, many businesses haven’t caught up yet. According to Acxiom’s 2023 survey, only 54% of automotive customers feel their experience on the dealership’s website was very or somewhat personalized. This can be an opportunity for dealerships without much website personalization to consider it.

Many tools and platforms can streamline processes, provide value-added services, and personalize the customer journey. Customer relationship management (CRM) systems, for example, can help you manage and analyze customer interactions and data. These systems can improve business relationships with customers, assist with retention, and drive growth.

How this might look in practice

A CRM system can provide your sales team with insights into a customer's purchase history to make personalized recommendations. For the service department, a CRM system can store detailed vehicle history and service records, empowering your team to provide more accurate and efficient service.

Embrace an omnichannel approach

Omnichannel refers to the integration of all your dealership's touchpoints. This could include your physical showroom, website, social media platforms, email communications, and after-sales service. Implementing this strategy ensures that customers enjoy a consistent, seamless experience. Customers’ information and their interactions with your dealership are shared across all channels, empowering you to offer personalized services and recommendations.

An example of an omnichannel approach

A customer begins researching vehicles on your dealership's website. They compare models, read reviews, and finally call your dealership or book a test drive using an online appointment system.

When the customer arrives for the test drive, the sales team will already be aware of their online activity and preferences. That creates a seamless transition from the online to the physical experience.

After purchasing the vehicle, they receive follow-up messages with maintenance reminders and updates. If they have a service appointment, they receive that communication through their preferred channel, which could be email, text, or phone.

Note that you don’t need to implement this all at once. Start with identifying the touchpoints most relevant to your customers. As you gather data and learn more about your customers' behaviors and preferences, you can gradually expand to include other touchpoints.

Add personalization

With the amount of customer data available today, dealerships can craft highly detailed customer profiles and offer targeted services. That’s a win-win for customers and businesses: 60% of consumers report that they’ll likely become repeat buyers after a personalized purchasing experience.

How you might be able to use personalization

Imagine that your dealership has data that a particular customer frequently browses luxury SUVs on your website and looks at financing options. Your sales team could use this information to tailor their approach when this customer visits the showroom.

In the service department, personalization might mean acknowledging a customer’s service history and preferences. If a customer’s schedule requires them to book their vehicle maintenance on a weekday morning, you could cater to that. Your team could proactively offer them a convenient early-morning slot for their next service appointment and even help them arrange transportation.

Measure the automotive customer experience

When you refine your automotive customer experience, implementing changes is just the first step. You also need to track and measure your efforts to understand the progress you make. Below are some ways to do that effectively.

Quantitative metrics for evaluating the customer experience

Quantitative metrics are numeric or statistical measurements used to track performance, productivity, or effectiveness. In the context of customer experience, this approach translates the results of your efforts into hard numbers. That provides a structured way to assess customer satisfaction, loyalty, and overall experience.

What these metrics could include

Customer satisfaction score (CSAT): Gauges customer satisfaction associated with a specific interaction or transaction.
Net Promoter Score (NPS): Assesses customer loyalty by asking customers about their likelihood of recommending your dealership to other people.
Customer effort score (CES): Evaluates the level of effort a customer has to put in during a specific interaction or transaction.

Metrics like this can provide you with a high-level view of how well you’re catering to customer expectations and indicate areas where you might need to enhance your efforts.

The essential role of qualitative feedback

Although quantitative metrics are crucial, they don't tell the whole story. Qualitative feedback focuses on exploring the qualities, characteristics, and more subjective aspects of the customer experience. It’s less about the numbers and more about understanding the “why” behind customer behaviors and feelings.

Qualitative feedback brings the thoughts, emotions, opinions, and motivations of your customers to light. It helps to paint a more comprehensive picture of the customer experience by helping to uncover the insights that numbers don’t show. You could go about gathering this feedback in many ways.

Popular and effective options

Customer interviews: The conversational nature of interviews can uncover nuanced information that may not surface through other feedback methods.
Surveys with open-ended questions: While surveys with rating scales and multiple-choice questions can be useful, adding open-ended questions will capture the customer's perspective in their own words. This provides context you may otherwise miss.
Social media comments: Regularly monitoring comments, reviews, and discussions about your dealership across platforms can give you a real-time pulse on customer sentiments and help identify areas for improvement.
Focus groups: This option can promote discussions, generate ideas, and uncover fresh insights, as customers bounce ideas off one another and share their experiences. It provides a way to connect more directly with and understand your customer base.

These techniques will help you comprehend the emotions and thought processes behind your quantitative metrics while providing you with direct, actionable insights. It’s important to balance what you learn from metrics and feedback to create the best possible customer experience.

Rev up your automotive customer experience with Central

An excellent customer experience in the automotive industry is essential to driving engagement and building brand loyalty. Central can help you create better customer experiences by contributing to your overall strategy.

How Uber for Business can shift the automotive experience

Service and repair rides: Central empowers you to take some of the stress out of service appointments. Provide a convenient ride home to customers who drop off their cars for maintenance or repair.
Loaner car supplement: Supplement your fleet of loaner cars and shuttles with Uber rides. Minimize customer wait times and tackle availability issues for a smooth and efficient customer experience.

No matter where you currently stand in enhancing your automotive customer experience, having the right tools can make all the difference. To learn more about how Central can fuel your auto dealership’s customer experience, explore our platform today.

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