How the Auto Industry Can Make a Personalized Customer Experience

Introducing innovative solutions to the customer experience in the auto industry is critical. The events of the past few years, including the current vehicle affordability challenge, have forced all industry players (dealers, OEMs and the agencies, connectors and partners that support them) to quickly adapt or be left behind. This presents an opportunity for those that get the consumer experience right to make an impact. Current data shows that:

• Omnichannel sales accounted for 31% of unit sales. 7% of sales sold end-to-end online and 60% being out-of-market buyers for one dealer group.¹ 

• 44% of consumers visit a website after receiving direct mail. Pairing with digital this can increase that response by 25%.² 

• Improving customer retention by 5% can increase profits by 25% to 85%.³

This means that the auto industry can increase profits and drive revenue if they can ‘get it right’ when it comes to customer experience. Having a unified view of consumers regardless of channel can help deliver a just-in-time, personalized sales strategy that provides the consumer with an offer that’s right for their situation. Here are three key considerations when creating an optimal customer journey.

1-Consider “Affordability-Driven Marketing”   

So, how do you ensure you’re targeting customers that are not only in the market for a vehicle but can also afford to buy? Build audiences based on affordability by using directly-sourced data versus survey-based, where possible. Making for a more precise view of  affordability,this direct-measured data enables marketers to generate relevant offers and offer smart alternatives. This puts consumers in the right vehicle.

2-Implement “DIY Identity Resolution” 

It is important to reconcile a consumer's physical and digital footprint into a single unified view across the enterprise, versus a fragmented view within business silos. By using identity data you can validate, enhance, verify, and link consumer records across silos for more effective customer relationship management (CRM) and prospecting results. That way you can drive more effective customer targeting, segmentation and market tracking.

3-Prioritize “Omni-Channel Activation” 

How can you deliver a consistent customer experience across all channels, in a world where high friction, fragmented encounters can lead to abandonment and defection? Whether your organization is strictly ecommerce, traditional brick and mortar, or a blend of both – all channels must be integrated so that the customer has a unified and consistent experience. Example channels include:

• Marketing and advertising

• Branded web app

• Internet hand raisers

• Service bay appointments

• Dealer showroom floor

Incorporating these solutions can give the ability to activate a hyper-personalized experience that allows them to grow while putting the customer experience first. Equifax solutions can get you the data you need to resolve identities, understand who is in-market, and what they can afford. To learn more about how we can help you meet the demand of today’s consumers and power a personalized end to end seamless, car buying experience reach out to Equifax today. 

 

¹ November 10, 2022, Automotive News “A digital shift: Dealer groups adjust as more customers turn to omnichannel sales” https://www.autonews.com/retail/car-dealers-adjust-customers-turn-omnichannel-sales

² Posting not provided, Kennedy Marketing Group “8 Statistics That Prove Direct Mail is Still Relevant” https://kennedymarketinggroup.com/8-statistics-that-prove-direct-mail-is-still-relevant/
³ June 17, 2022, Automotive Mastermind “Guide to Dealership Customer Loyalty” restatement of statistics revealed in a Harvard Business Review Study https://www.automotivemastermind.com/blog/uncategorized/guide-to-dealership-customer-loyalty/ , https://hbr.org/1990/09/zero-defections-quality-comes-to-services