Waterloo Times

Greater Iowa Better Business Bureau issued the following announcement on September 16.

The good news for auto dealers across North America is that sales revenue is projected to rise. According to IBISWorld, the reasons why include low interest rates, declines in the unemployment rate, gains in disposable income, greater accessibility to credit, an aging vehicle fleet, an appetite for new technology, and Canadian environmental regulations.  

But the customer journey for car buyers is changing. Auto sales had already begun to shift toward online purchases and that impacts “business as usual” for traditional dealerships. The pandemic has only added to that trend. With the proliferation of online buying tools, consumers are spending more time in front of their computer and less time visiting multiple showrooms.

According to the 2019 Cox Automotive Car Buyer Journey study, car buyers who purchased from a dealership visited only 2.3 showrooms, down from 2.7 in 2017. Buyers who visited just one dealership during the car-buying process went up from 30% in 2017 to 41%, according to the study.

Unlocking Buyer Likes

It doesn’t matter if the odometer reads 20 miles, 20,000, or more, buying a car is an emotionally charged experience.

An analysis of customer reviews published on BBB.org for new and used auto dealers3 found that 21% of all sentences included one or more “emotional” words. That was about the same as reviews about pet-related and personal care services and exceeds that of reviews for various types of attorneys, home improvement, and repair services. The only industry reviewed on BBB.org found to have a higher percentage of sentences expressing emotion than auto dealers was health care.

• Positive customer reviews included words like “friendly,” “funny,” and “approachable.” 
• The BBB data shows customers like sales associates who are calm, patient, authentic, and transparent.
• Satisfied buyers frequently mentioned they planned to return to the dealership when it’s time to service their vehicle.

In addition to the demeanor of the salesperson, customers commonly remarked about aspects of the showroom and facility, including cleanliness, comfort, and hospitality, including things like coffee and other little extras.  

Car Dealers and Repair Shops Among the Top Industries for Complaints

Buying a car is a mix of excitement, anxiety, and pressure to make the right decision for years to come. There’s a lot riding on the transaction.

Between the emotion, the hours invested in research, and time at the dealership, customers who aren’t happy with their experience frequently turn to BBB for free dispute resolution.

BBB reports on more than 500 types of businesses. Historically, new car dealers are among the top 10 industries for complaints to BBB. Auto repair shops and used car dealers aren’t far behind.

Complaints to BBB              2019 and 2020                   January-June 2021

New car dealers                 4th most complaints                      7th

Car repair shops                 8th                                                          12th

Used car dealers                 12th                                             14th

A sample of 350 complaints and negative customer reviews against car dealerships published on BBB.org4 indicated 34% expressed concerns with the sales process, including allegations of bait-and-switch and other deceptive tactics. The dealerships handling of service and repairs were mentioned by 27% of the unhappy customers, and 29% called out issues after the sale, typically mechanical/functional problems.     

Reversing the Trend

Use the BBB Standards to focus on what is most important to consumers, boost your reputation, create customer loyalty, and grow your business.  

• Build Trust
• Advertise Honestly
• Tell the Truth
• Be Transparent
• Honor Promises
• Be Responsive
• Safeguard Privacy
• Embody Integrity

Customers who self-reported they came to BBB.org to get pre-purchase information on a business were asked, “Did the information at BBB.org help you make your decision?”

Only 27% exposed to an A Rated, business not accredited with BBB reported they, “Decided to engage.” But 77% exposed to an A Rated, BBB Accredited Business listing “Decided to engage.”5

Steer them with trust

Consumers ranked the influence trust plays on purchasing decisions at 8.6 out of 10.6

Give buyers the confidence to visit your lot or showroom by leveraging the BBB Accredited Business seal. Enhance your marketing mix by displaying it on your website, in your ads, on your BBB.org Business Profile, and, in "near me" searches online.

Apply for BBB Accreditation. Adhere to the BBB Standards to demonstrate your promise to maintain trust – one ad, one sale, one repair at a time – every time.

Original source can be found here.