Creating Customer Confidence is Central to Car Sales, especially online

# Creating Customer Confidence is Central to Car Sales, especially online*“Creating a customer continues to rely largely upon the well-established marketing model, ‘AIDA’ (attention, interest, desire, action), but at Codeweavers we have tweaked this to AIDCA – the ‘C’ being confidence. Creating confidence is central to the final action step, especially in a sales environment led by digital platforms.” *This is the conclusion of Shaun Harris, Sales Director at Codeweavers following their latest Consumer Insight focus group.The latest Codeweavers Customer Insight Focus Group held in early October gained feedback from a wide demographic age group, 22 – 63 focusing upon the online car buying experience for new and used cars.The group was consistent in the importance of confidence in the dealer as being an essential aspect of the buying experience. Franchised dealers have a clear advantage, courtesy of the manufacturer connections, but all dealers can boost their confidence rating through the quality of their online proposition. Building this ‘confidence quota’ is about far more than the car. Information about the dealer, their location, heritage, guarantees and reviews all boost ratings. Providing real detail and transparency on financing and warranties is also seen as important. It is clear that buyers do want more self-control of these processes.As anticipated, new cars carry a significant confidence quota advantage over used car. 70 percent of the group said they would have more confidence buying a new car online without seeing it rather than a used car. The importance of creating consumer confidence is evidenced by what older buyers consider to be the part exchange hurdle. Older members of the focus group were extremely apprehensive about this key part of the buying process. Their concern that a dealer would not take their word on the condition of their car and change their estimated value points strongly to a confidence issue.The Focus Group findings make an interesting comparison when hard data driven by the use of Codeweavers FlexiCalc and Finance Finder tools are assessed. From a sample of 430 finance applications and motor credit checks received in September, 100 were for used cars and 330 for new. The most popular finance product quoted on was new car PCP with 317 applications. Whilst buyer confidence is it seems stronger for new cars, there remains plenty of scope to capture the attention, interest, desire and confidence for used car buyers. Extra attention to create confidence is essential. In September, a used car dealer using Codeweavers tools received 292 leads of which 194 were customers checking if they were eligible for finance. These customers had an average or high credit score.In closing Harris reflects\; *“New cars from franchised dealers enjoy a natural online advantage, but this should not be taken for granted. However, all dealers can benefit their new and used sales activity by adopting tools and content that focuses upon building confidence. Such tools should include those that help involve the customer in the purchase process. Reviewing user interactions on FlexiCalc in September there was a clear demand to have the finance options available on used cars. The product remains very new but even from early adopting dealers, 70,998 unique users customers accessed the finance calculators against used cars in the month. This type of confidence creator is what all dealers should be looking at to boost sales enquiries.”*

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By: Codeweavers - 16/11/15

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