It has long been suspected that customers feel more confident about buying cars from dealerships that incorporate technology into the purchasing experience, and this theory is now strongly supported by data. The J.D. Power 2015 U.S. Sales Satisfaction Index (SSI) Study has recently been released and the clear winners were the dealers that have fully incorporated consumer-interactive technology.
About the SSI Study
The SSI Study from J.D. Power is now in its 29th year, and its purpose is to measure satisfaction with the sales experience among new-vehicle buyers and rejecters (customers who shop at a particular dealership, but purchase elsewhere). Buyer satisfaction is based on 4 factors:
- Working Out the Deal: 17%
- Salesperson: 13%
- Delivery Process: 11%
- Facility: 10%
Rejecter satisfaction, on the other hand, is based on the following 5 factors:
- Salesperson: 21%
- Fairness of Price: 8%
- Experience Negotiating: 8%
- Facility: 7%
- Variety of Inventory: 7%
After these factors are considered, overall dealership satisfaction is calculated on a 1,000 point scale. This year, Porsche dealers rank the highest in satisfaction among luxury brands (with a score of 752), and MINI leads the mass market brands (scoring 762). Why?
Both of these companies utilize technology heavily in their showrooms, outfitting sales personnel with tablets so they can efficiently record customer vehicle needs, demonstrate vehicle features and instantaneously display pricing information. Technology also greatly improves their F&I performance because buyers are more likely to purchase after-market products if they can actually see how these add-ons work.
The Generation Y Factor
As consumers, Millennials carry a lot of weight. There are a lot of them and because they are young, they will presumably be active in the market for many years to come. During the past year, Gen Y accounted for 29% of new vehicle sales, and the average transaction prices for the new vehicles purchased by Millennials exceeded $30,000.
So, obviously, car companies and dealers care very much about appealing to this generation and their desire for the latest technology. The good news is that all generations of customers will ultimately benefit from the demands of younger buyers. Eventually, every dealership will need to be technologically proficient in order to keep up with their competitors.
Are You in the Game?
Using technology is no longer just an option in the automotive industry. Customers will probably get their first impressions of you from your website. Is it updated and user-friendly? How are you implementing technology both on your sales floor and in your F&I department? Even if you're on the cutting edge of everything, Auto Credit Express can give you an even stronger advantage over your competition. How?
We offer the best sales leads in the industry, sending you the buyers that you want to sell to. We can even help you with the management of these leads with our LotPro software. Basically, we can show you how to work less and make more money. If this sounds like a good plan for your business, give us a call at (888)535-2277 or fill out our convenient contact form on our website.