Car Buyers Want Better Digital Experience, Most Ready to Complete Entire Process Online, Accenture Study Finds
April 16 2015 - 12:01AM
Business Wire
Consumers want to see improvements in auto
industry websites, while dealerships are yet to fully embrace
digital technologies
Most consumers are doing online research to help them make
car-buying decisions, and most are doing so before visiting a
dealership, a new survey by Accenture reveals. The survey also
shows that 75 percent of drivers polled would consider conducting
the entire car-buying process online.
The survey of 10,000 consumers in eight major countries found
that 80 percent of drivers seeking to purchase a new vehicle are
using some form of digital technology to research their buying
preferences, and nearly two-thirds (62 percent) are initiating the
car-buying process online, including consulting social media
channels, before entering a dealership.
Additionally, three-quarters (75 percent) of the survey
respondents said that if given the opportunity, they would consider
making their entire car-buying process online, including financing,
price negotiation, back office paperwork and home delivery.
Two-thirds (69 percent) said they have either bought a car online
or would consider doing so. The findings also reveal that consumers
would be open to using new, emerging online channels for purchases.
For example, 63 percent of respondents said they would be
interested in buying a new car through an online auction.
According to Accenture, the survey findings point to the growing
need for automotive original equipment manufacturers (OEMs) and
dealers to increase their focus on online engagement with
consumers. More than half the drivers surveyed said they want the
industry to improve online channels in order to make researching a
new vehicle easier. Specifically, they are interested in getting
more tailored information online, more virtual demonstrations and
more sites that provide an opportunity for comparison shopping.
This is consistent with Accenture B2C commerce research which shows
that retailers now see an omni-channel customer experience as a
brand differentiator.
With respect to dealer visits, more than half (53 percent) said
they would be interested in access to an interactive touch display
that provides information on the available models during a visit to
a showroom, and 48 percent would like to be able to take a virtual
test drive at the dealership.
“The impact of the digital customer is becoming pervasive,
disrupting the traditional car-buying experience and the
competitive landscape,” said Christina Raab, global managing
director for Digital Consumer Services in Accenture’s Automotive
practice. “This is clearly supported by the fact that many would
consider conducting the entire car-buying process online. In order
to grow business in this environment, OEMs and dealers will need to
pursue an aggressive digital strategy online, in the showroom and
in aftersales, while creating a seamless, integrated experience to
accommodate all customer needs.”
The survey found that consumers believe the aftersales process
and the availability of extra pricing options online are the
weakest links in the digital car-buying experience, and about a
fifth of the respondents believe these areas need to be improved.
Accenture believes enhancing aftersales is particularly critical,
since poor performance in this area can make or break brand
loyalty. “Consumer interest in making car purchases fully online or
through new mechanisms such as online auctions suggests that OEMs
and dealers should consider exploring those options,” Raab
said. “They have the opportunity to develop a multi-channel
presence to meet varied and additional demand, increasing
profitability.”
Car-buying changing around the world
While the survey indicates that digital technology is
increasingly influencing auto markets throughout the world, the
results also show that there are marked differences by country in
consumer preferences:
- Chinese respondents had the strongest
interest in buying a new car online, with 92 percent saying that
they had done so or would consider it. By contrast, drivers in
Japan expressed the lowest interest: 80 percent of Japanese
respondents said they would not consider such a buying option.
- Eighty-two percent of the drivers
surveyed in India and 83 percent of their counterparts in China are
interested in online financing negotiation in the car-buying
process.
- U.S. drivers are particularly
interested in comparison shopping sites, while Chinese respondents
are most enthusiastic about having instant access to information
about a car model.
- Among all options presented, drivers in
every country surveyed expressed the least interest in engaging in
an online “chat” with dealers.
- When making a car-buying decision,
drivers in India are most influenced by car websites and online
automotive publications. In contrast, drivers in Japan are most
likely to buy a vehicle without doing any online research, and more
drivers in Italy are influenced by visiting a dealership than
anything else.
- In China, 90 percent of surveyed
drivers would be interested in using online auctions for new-car
buying. Drivers in Japan, France and Germany would have less
interest, with 80, 65 and 55 percent, respectively, saying “no” to
this option.
- When considering the weakest areas of
the buying process related to the digital experience, German
drivers view the pre-sales advice from online sales teams
ineffective, while U.S. drivers feel the trade-in value of a
current vehicle needs the most improvement. Overall, however, the
respondents feel pre-sales online information needs the least
attention.
“Whether in China, Germany or the U.S., using online processes
to a greater extent for car-buying is becoming the norm, not the
exception. OEMs and dealers that want to succeed in the future will
need to adjust their business models to take advantage of the
emerging digital reality that is transforming car-buying,” said
Raab.
The survey results and country breakdowns are available
here.
Methodology
The research was conducted by Coleman Parkes on behalf of
Accenture. In total, 10,000 car owners were surveyed in eight
countries: Brazil, China, France, Germany, India, Italy, Japan and
the United States.
About Accenture
Accenture (NYSE:ACN) is a global management consulting,
technology services and outsourcing company, with more than 323,000
people serving clients in more than 120 countries. Combining
unparalleled experience, comprehensive capabilities across all
industries and business functions, and extensive research on the
world’s most successful companies, Accenture collaborates with
clients to help them become high-performance businesses and
governments. The company generated net revenues of US$30.0 billion
for the fiscal year ended Aug. 31, 2014. Its home page is
www.accenture.com
AccentureAnthony Hatter, + 44 7810 756
138anthony.hatter@accenture.com
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