COX AUTOMOTIVE CAR BUYER JOURNEY STUDY PANDEMIC … · 2/1/2021 · 3. Dealer reached out with...
Transcript of COX AUTOMOTIVE CAR BUYER JOURNEY STUDY PANDEMIC … · 2/1/2021 · 3. Dealer reached out with...
COX AUTOMOTIVE CAR BUYER JOURNEY STUDYPANDEMIC EDITIONRelease Date: February 1, 2021
Study Background & Methodology
Background• Cox Automotive has been researching the car buying journey for 11 years to
monitor key changes in consumer buying behaviors
Goal• Inform strategic decisions for Cox Automotive and OEM & Dealer clients
In-Field Dates• September 10 – September 22, 2020
Respondents• Buyers/Lessees that took ownership between March and September 2020
• Used the Internet during the shopping/buying process
• Results are weighted to be representative of the buyer population
2
3,016Recent Vehicle Buyers
2,010New Buyers
1,006Used Buyers
Pandemic Accelerated Positive Change
3
% of Buyers Satisfied
with Shopping Experience
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Time Spent Researching & Shopping
NEW BUYER USED BUYER
11h 11m 2020
13h 49m2020
2019 11h 56m 2019 15h 53m
13h 13m 2020
14h 53m 2019
60% 61% 62%
60%
72%
66% 66%
69%
62%
74%
58% 58% 59%60%
71%
2016 2017 2018 2019 2020• Shifted Purchase Motivations
• Revolutionized Buying Process
Drivers of
Change
NewA
UsedB
Total
Source: Cox Automotive Car Buyer Journey - 2020
Pandemic Shifted Purchase Motivations
4
2) New Vehicle Market Recovery Triggered by Attractive Deals
3) Used Purchases Were Spurred by COVID-19 Impact
1) Online Research Accelerated by Decisive Buyers
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Pandemic Shifted Purchase Motivations
5
Online Research Accelerated
by Decisive Buyers
Purchases Motivated by ‘Want’ on the Rise During Pandemic
6
% of Buyers Purchasing
Because They ‘Want’ a Vehicle(vs. ‘Need’ a Vehicle)
41%
37% 38% 37%
44%
51%
48%
51%49%
57%
36%
32%34% 34%
39%
2016 2017 2018 2019 2020
New
Used
+Not Sure removed.
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
BC
BC
BCBC
BC
Total
A
B
C
Source: Cox Automotive Car Buyer Journey - 2020
Buyers Were More Certain About Their Vehicle Choices
Strategize a plan to maintain a comprehensive
online presence that includes third party sites
Intensify the urgency in offers and
strategically feature messages around
special deals and vehicle attributes
7
Total
New (A)
45%B
2018 Used (B)
32%
2018
(38%B)* (26%)*
35%2018
(29%)*
+Not Sure removed.
*Not asked in 2019 survey
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020
% of Buyers Who Knew Exact Vehicle They
Wanted at Start of Shopping Process
8
Time Spent Shopping Online Dropped SignificantlyWith Less Cross-Shopping Between Makes & Models
Source: Cox Automotive Car Buyer Journey
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Time Spent Researching & Shopping Online
Top Reasons
For Less Time Online
1. Already knew what they wanted“With our previous vehicle we weren't sure
which one to go with, but with this purchase, I knew exactly what I wanted in a
vehicle and the Make & Model.”
“There was less searching Internet for
makes, models, etc. We had decided ahead of time what we wanted, if available.”
2. Attractive offer
3. Dealer reached out with offers
Source: Cox Automotive Car Buyer Journey
NEW BUYER USED BUYER
5h 34m 2020
7h 44m2020
2019 6h 44m 2019 10h 25m
7h 14m 2020
9h 29m 2019
Source: Cox Automotive Car Buyer Journey - 2020
“Ready to Buy” Shoppers Visited Fewer Websites
99
Average Number of Automotive Websites Visited
NEW
BUYER
USED
BUYER
3.7 3.7
4.3
3.9
3.5
4.9
4.3 4.2 4.34.0
2016 2017 2018 2019 2020*
*In-f ield dates: September 10-22, 2020
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval
Source: Cox Automotive Car Buyer Journey.
Average
Websites
Visited
4.5 4.1 4.2 4.2 3.9
Third Party Sites were the Most Popular First and Last Destinations for Buyers
10
Third Party excludes Carvana+Dealership includes CarMax
New Form Online Retailer is primarily Carvana.
*Data points exclude ‘Social Sites’, ‘Other Sites’, and ‘Not Sure’ from analysis
Arrows indicate signif icant differences from previous timeframe at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020
In-field dates: September 10-22, 2020
First and Last Websites Visited – Total Buyers*
First And Last Website Visited(Among Buyers Visiting Multiple Websites)
78%of vehicle buyers visited at
least 2 websites
Total Vehicle Buyers
New Form Online Retailer
Google Search
OEM Sites
Third-Party Sites
Dealership Sites+
17%
33%
56%
53%
9%
6%13%5%5% 3%
First Last
Cox
Automotive
19%Cox
Automotive
23%
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Pandemic Shifted Purchase Motivations
11
New Vehicle Market Recovery
Triggered by Attractive Deals
Purchase Delays Heightened Due to Pandemic
1212
17%
34% 33%29%
23% 21% 19%
EarlyOutbreak
Shelter inPlace
Reopening SummerSpike
Back toSchool
October January
March Late March
– April
May –
Mid June
Late June –
July
August –
September
Arrows indicate signif icant differences from previous timeframe at the 95% confidence interval.
Source: Cox Automotive COVID-19 Consumer Impact Study
% of Shoppers Delaying Purchase
Due to COVID-19
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OEM Incentive Spend Reached Record High at Onset of Pandemic
9.6%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inc
en
tiv
e S
pe
nd
as
% o
f A
TP
2015 2016 2017 2018 2019 2020
• Source: Cox Automotive Analysis of Motor Intelligence, KBB
Trended Incentive Spend as of % of Average Transaction Price
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Shoppers Said That the Right Deal Could Accelerate Purchase…
54%52%
47% 46%
40%38%
45%41%
47%
39%
26%29%
15%
April 4-6 April 25-27
COVID-19 cases start to
decline
Governments start to lift
quarantines
A deal or incentive I
cannot refuse
Personal/ family
employment
situation is secure
Schools and businesses
reopen
A promising treatment for COVID-19
emerges
Ability to purchase
completely
online
N/A
Source: 2020 Cox Automotive COVID-19 Digital Shopping Study 2.0
of New shoppers
believed they will get
some sort of favorable
deal
Triggers that Could Accelerate Vehicle Purchase(among those who have delayed purchase)
86%
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…So Incentives, Special Offers, and Cash Rebates Drove Research…
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
Looked for Incentives, Special Offers, Rebates(Includes those who did this online & in-person at the dealership, excludes those that did not do)
62% 56% 65%(-1) (+0) (-2)
Did at Dealership: 38% (+1) Did at Dealership: 44%B (+0) Did at Dealership: 35% (+2)
Total New (A) Used (B)
A
Did Online Only
…and New Buyers Were Enticed by Attractive Deals
16
NEW BUYERS
1. Previous vehicle had high mileage
2. Wanted a vehicle with certain features
3. Promotional Offer – Attractive Deals (17% Post-COVID vs. 11% Pre-COVID)
4. Wanted/Needed a different vehicle type
5. Lease expired
USED BUYERS1. Previous vehicle had high mileage 2. Previous vehicle was unreliable or expensive to repair
3. Wanted/Needed a different vehicle type4. Wanted a vehicle with certain features
5. Previous vehicle was damaged
Source: Cox Automotive Car Buyer Journey - 2020
In-field dates: September 10-22, 2020
Top 5 Purchase Triggers
Edit Master text stylesSource: Cox Automotive 17
Nearly 1 in 5 New Buyers Took Advantage of APR Deals at the Start of the Pandemic
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Jan-
17
Feb
-17
Mar
-17
Ap
r-17
May
-17
Jun
-17
Jul-
17
Au
g-17
Sep
-17
Oct
-17
No
v-1
7
Dec
-17
Jan-
18
Feb
-18
Mar
-18
Ap
r-18
May
-18
Jun
-18
Jul-
18
Au
g-18
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan-
19
Feb
-19
Mar
-19
Ap
r-19
May
-19
Jun
-19
Jul-
19
Au
g-19
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan-
20
Feb
-20
Mar
-20
Ap
r-20
May
-20
Jun
-20
Jul-
20
Au
g-20
Sep
-20
Oct
-20
No
v-2
0
Dec
-20
0% APR Finance Share
New Buyers Who Received 0% APR
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64%
18
Trust in “The Deal” Dramatically Improved Among New Buyers During the Pandemic
+Not Sure removed.
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
Lessees
69% (+7)
New Purchasers
69% (+8)
TRUST DEALER
GAVE BEST DEAL…
Sept 2018 to
Aug 2019
Timeframe
(57%)
Trust the Dealer Gave the Best Deal Across Time+
61% 61%
71% 68%
55%59% 61% 64%
New
Used
Sept 2018 toAug 2019
Sept. 2019 to Mid-March 2020
March to May 2020
June to Sept. 2020
Heavy Incentives
Timeframe
Total
New (A)
69%B
Used (B)
63%
% of Buyers Who Trust the Dealership/
Retailer Gave Me the Best Deal
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…but Incentives Are Not a Long-Term Strategy…
Source: Cox Automotive Car Buyer Journey
*In-f ield dates: September 10-22, 2020
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey
Factor % of
Buyers
(A) The Brand 81%
(B) The Dealership 72%
(C) The Vehicle 71%
(D) The Deal 67%
Factors Driving
Purchase Decision in 2020(Among New Buyers Who Repurchased the Same Brand)
Intensify the urgency in offers and
strategically feature messages around
special deals and vehicle attributes
Total
New (A)
72%B
Used (B)
58%
62%
Brand Loyalty:% of Buyers Who Have Purchased
the Brand Before
Aug 2018 toSept 2019Timeframe
(56%)
A
A
A
Letters indicate signif icant differences between the vehicle selection factors
at the 95% confidence interval.
.
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Proactive Dealer Outreach About Deals Also Resonated with Past Buyers,but the Relationship Was the Ultimate Deciding Factor
38%
Dealers initiated
contact with
of Dealer Loyal
buyers
+Not asked of all respondents, asked as a follow -up in recontact survey.
Contact Initiated by the Dealership+
Results similar for
New and Used
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
“The dealer called me with a great deal
and I came in and bought the vehicle.”
Factors Driving
Purchase Decision in 2020(Among New Buyers Who Repurchased the Same Dealer)
Factor % of
Buyers
(A) The Dealership 66%
(B) The Brand 61%
(C) The Vehicle 46%
(D) The Deal 46%
AB
AB
Letters indicate signif icant differences between the vehicle selection factors
at the 95% confidence interval.
.
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Pandemic Shifted Purchase Motivations
21
Used Purchases were Spurred
by COVID-19 Impact
Edit Master text styles 22
COVID-19 Safety Concerns Motivated Used Buyers to Grow Their Garage
Arrows indicates significant difference since last wave or compared to other measures
Purchase Trigger Was
“Needed Additional
Vehicles in Household”
13% vs. 8%
Source: 2020 Cox Automotive COVID-19 Consumer Impact Study; Cox Automotive Car Buyer Journey Study - 2020
Over 1 in 4 Vehicle Shoppers
Who Plan to Add Another Vehicle
to their Household Cited
They No Longer Want to Use
Other Transportation*
Usage of Transportation Mediums
88%
56%
48%
31%
20%
88%
29%24%
15% 12%
Personal Vehicle Ride-Sharing Public Transportation Taxi Car-Sharing
Pre-COVID During COVID
% WHO SAY “VERY RISKY FOR COVID”
2% 32% 56% 39% 34%
Used New
Used Buyers’ Likelihood to Deliberate Between Buying a New or Used Vehicle Increased During Pandemic
23Source: Cox Automotive Car Buyer Journey - 2020 In-f ield dates: Sept 10-22, 2020
+Not Sure removed.
Arrows indicate signif icant dif ferences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Strategize a plan to maintain a comprehensive
online presence that includes third party sites
Intensify the urgency in offers and
strategically feature messages around
special deals and vehicle attributes
Total
New (A)
30%
2019 Used (B)
66%A
2019
(32%) (60%)
57%2019
(53%)
% of Buyers Who Considered Both
New and Used Vehicles
Edit Master text styles 24
With New Inventory Scarce Due to Plant Closures, Especially Mid-Year…
2,400,000
2,600,000
2,800,000
3,000,000
3,200,000
3,400,000
3,600,000
3,800,000
20
19
-12-1
6
20
20
-01-1
3
20
20
-02-1
0
20
20
-03-0
9
20
20
-04-0
6
20
20
-05-0
4
20
20
-06-0
1
20
20
-06-2
9
20
20
-07-2
7
20
20
-08-2
4
20
20
-09-2
1
20
20
-10-1
9
20
20
-11-1
6
20
20
-12-1
4
Available Supply weekly, last 12 months
40
60
80
100
120
140
160
180
200
20
19
-12-1
6
20
20
-01-1
3
20
20
-02-1
0
20
20
-03-0
9
20
20
-04-0
6
20
20
-05-0
4
20
20
-06-0
1
20
20
-06-2
9
20
20
-07-2
7
20
20
-08-2
4
20
20
-09-2
1
20
20
-10-1
9
20
20
-11-1
6
20
20
-12-1
4
Days of Supply weekly, last 12 months
The supply situation is now stabilizing but remains well below 2019’s levels.
Source: Cox Automotive VMA Database
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c
Consumer Sentiment Decline Triggered Shoppers to Consider Affordable Options…
1 in 2Consumers Believe Their
Financial Situation Will Be
Negatively Impacted if
COVID-19 Continues for
Another Year
Over…
PERSONAL IMPACT FROM
ANOTHER YEAR OF COVID-19
#1 Use most/all of savings
#2 Lose job
#3 Move to cheaper place
#4 Defer student loan payments
#5 Tap into retirement accounts
Decline Since
Pre-COVID*
23%
Source:; 2020 Cox Automotive COVID-19 Consumer Impact Study; Morning Consult 25
Consumer
Sentiment
*Consumer Sentiment Decline from 1/29/20 to 12/1/20
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…and With Rising New Vehicle Retail Prices, Used Buyers Stayed Committed to Used Choices
8%
19%
18%
22%
10%
36% 44%
46%
5%
35%
52%
57%
Reopening(May-Mid June)
Summer Spike(Late June-July)
Back to School(August-September)
October
% of Dealers Reporting Higher Retail Prices vs. February 2020
New Vehicles (Franchise)
Used Vehicles (Franchise)
Used Vehicles (Independents)
2020 Purchases(Among with Less than $75K HHI)
45% Used vs. 30% New
Arrows indicate significant difference to prior wave or year at the 95% confidence interval
Source: 2020 Cox Automotive COVID-19 Dealer Impact Study; Cox Automotive Car Buyer Journey Study - 2020
Pandemic Revolutionized Buying Process
27
2) Streamlined Process Delivered Higher Buyer Satisfaction
3) Higher Digital Retailing (DR) Engagement Proved to Build Trust, Save Time and Impact Loyalty
1) Online Retailers Became More Mainstream
28
Online Retailers Became
More Mainstream
Global Pandemic Changed Shopping Behavior
Utilize valuation tools to optimally price vehicles for faster turn
29
70%Impact on Likelihood to Visit Dealer
(Much/Somewhat less likely)
Source: 2020 Cox Automotive Covid-19 Consumer Impact Study,
Wave 3 (March 20-22 fielding)
Consumer Level of Concern About Pandemic(Extremely/Very)
55%“Shop online first and spend as
little time in the dealership as possible. Or buy a car completely online”
30
Dealership Visitation Dipped to an All-Time Low
Number of Dealerships Visited
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
New
Used
Total2.7
2.4 2.3 2.32.0
2.62.4 2.5
2.22.0
2.8
2.42.2
2.42.1
2016 2017 2018 2019 2020
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
Online Retailers Grabbed Share, While Dealership Website Traffic Fell
31Source: Cox Automotive Car Buyer Journey - 2020
In-field dates: September 10-22, 2020
Automotive Website Category Usage
60%56%
61% 61%
52%
29%25% 27% 26% 24%
76%79% 79% 78% 79%
3%7%
11%17%
2016 2017 2018 2019 2020
Dealership
OEM
Third Party*
New Form
Online Retailer
*Third Party excludes Carvana
New Form Online Retailer is primarily Carvana.
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
N/A
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Competition Between Online Retailers and Brick-and-Mortar Dealerships Will Start to Heat Up in 2021
Source: Cox Automotive 2021 Predictions Study
believe New Form Online
Retailers (like Carvana or
Vroom) will become more of a
competitor
in 2021
20%Independent
Dealers
30%Franchise
Dealers
32
Streamlined Process Delivered Higher Buyer Satisfaction
33
Satisfaction With Dealership ExperiencesRose to New Heights…
34
+Not Sure removed.
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020
% of Buyers Satisfied
with Dealership Experience
67%
61%
67%
70%
77%
69%
64%
72%73%
79%
66%
60%
65%
69%
76%
2016 2017 2018 2019 2020
NewA
UsedB
Total
35
…as the Dealership Experience Became a More Streamlined Process
57%
(+10%)
69%
(+9)
64%
(+7)
74%
(+7)
76%
(+6)
69%
(+6)
81%
(+3)
Source: Cox Automotive Car Buyer Journey
How Long the
Process Took
Interactions
with Finance
Trust Dealer
Gave the Best Deal
The Price
Paid
Interactions
with Sales
Selection of
Vehicles
The Test Drive
Process
*In-f ield dates: September 10-22, 2020
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
% of Buyers Satisfied in 2020*
( ) = year-over-year change
Total
New (A) 62%B (+14) 71% (+9) 69%B (+8) 74% (+6) 78% (+5) 70% (+1) 83% (+5)
Used (B) 56% (+10) 68% (+8) 63% (+8) 74% (+8) 75% (+6) 68% (+7) 81% (+3)
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With Efficiencies Across the Entire Dealership Experience…
Total 0:44 (-0:04) 0:25 (-0:03) 0:29 (-0:03) 0:44 (-0:05) 0:15 (+0:02)
New (A) 0:43 (-0:05) 0:24 (-0:01) 0:32B (-0:04) 0:39 (-0:02) 0:17B (-0:01)
Used (B) 0:44 (-0:04) 0:26 (-0:03) 0:28 (-0:02) 0:45A (-0:07) 0:14 (+0:02)
Lookingat Vehicles,
Talking with SalesTest Drive
Negotiating a Price or
Trade-in Offer
Discussingand
Signing PaperworkSetting up the Vehicle
2:35 (-0:13)New
2:37 (-0:13)Used
2:37 (-0:13)Total
Time Spent with the Dealership/Seller
+Outliers Removed
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
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…Time Spent at Dealership Reached a Record Low
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
Time Spent with the Dealership/Retailer
2:55
2:42
2:53
2:50
2:37
2:532:47
2:58
2:48
2:35
2:55
2:40
2:512:50
2:37
2016 2017 2018 2019 2020
+Outliers Removed
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
“I interacted by phone with my salesman and told
him the type of vehicle I was looking to buy. I was
able to test drive immediately without having to look
at their whole inventory on the lot.”
“No price negotiation. We had already paid
and taken care of most things online - just
needed to pick up the car!”
Total
Used
New
Buyers Especially New Also were More Likely to Work with Only One Point of Contact at the Dealership…
3838
*In-f ield dates: September 10-22, 2020
*Not asked in 2019
Arrows indicate signif icant differences from 2020 or previous timeframe at the 95% confidence interval
Source: Cox Automotive Car Buyer Journey.
Strategize a plan to maintain a comprehensive
online presence that includes third party sites
Total
New (A)
47%B
2018 Used (B)
46%
2018
(39%B)* (44%)*
% of Buyers Who Interacted with One Point of
Contact at the Dealership They Purchased At
47%2018
(43%)*
Proactively Managing Online Reputation Can Result in More Vehicle Sales
3939
Source: 2020 Automotive Reputation Report by Reputation.com
10%
Dealers that Improve their
Reputation Score See Up to
Increase in Sales
Higher Digital Retailing (DR) Engagement Proved to Build Trust, Save Time and Impact Loyalty
40
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As Dealers Adapted Their Business Because of COVID-19,Consumers Took Advantage of a New Digital Experience…
69%
74%
• Test drive home delivery
• Purchased vehicle home delivery
• Online credit application
TOP STEPS ADDED DUE TO COVID-19
of franchise dealers say
their customers have
used digital retailing tools
more since COVID-19
of franchise dealers added
at least one digital step due
to COVID-19
41
Source: 2020 Digitization of End-to-End Retail Study
Encouraging Higher Consumer Engagement With DRImproves Satisfaction With the Shopping Process
42
.
Letters indicate signif icant dif ferences between DR categories at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020
In-field dates: September 10-22, 2020
Total
72%
Light Digital (0% - 20% of steps
entirely online)
(A)
Heavy Digital(51%+ of steps
entirely online)
(B)
70% 77%A
Trends are similar across New and Used Buyers.
Overall Satisfaction with Shopping Experience (%8-10)
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Expectations were That Digital Retailing Will “Save Them Time”…
Source: 2020 Digitization of End-to-End Retail Study
Saving time in person
at the dealership
86%
#1 SHOPPER BENEFIT:
Edit Master text stylesSource: Cox Automotive Car Buyer Journey - 2020 44
…and Actual Experiences Delivered on Those Expectations…
Light Digital (0% - 20% of steps entirely
online)
(A)
Heavy Digital(51%+ of steps entirely
online)
(B)
Satisfaction Level
(Among Digital Retailing Users - Completed Online Away From the Dealership)
Satisfaction with How
Long the Process Took
(at Dealership)
(%8-10)
Time Spent at the
Dealership
Shopping Experience
was Better than
Previously
2:49 2:07
In-field dates: September 10-22, 2020
B
Letters indicate signif icant differences between New and Used at the 95% confidence interval.
A
38% 58%
53% 68%
A
Edit Master text styles 45
Ultimately, Digital Retailing Drives Higher Loyalty and Trust
Source: Cox Automotive Car Buyer Journey - 2020In-field dates: September 10-22, 2020
+Not Sure excluded.
Letters indicate signif icant differences between DR categories at the 95% confidence interval.
ATTRIBUTE New Used
Light (A) Heavy (B) Light (A) Heavy (B)
BRAND LOYALTY 70% 77% 58% 58%
DEALER LOYALTY 48% 63% 30% 28%
TRUST IN THE DEAL 65% 76% 63% 70%
A
A
A
Edit Master text styles 46
Key Takeaways
• Ensure high satisfaction in the customer experience is the new norm and continue to streamline the purchase process.
Encourage dealer staff and consumers to partake in more DR steps to optimize time efficiency and elevate brand/dealership
loyalty.
• Consumers were less likely to finalize the deal online as they need guidance especially during the contract execution part of the transaction. Consider offering a single point of contact for customers through out the purchase process and clearly
communicate all the touchpoints when the assigned contact person is accessible for questions and guidance.
• Redirect reliance on incentives by consistently advertising, improving the customer experience and strengthening the brand to
maximize resilience in a slowdown in the economy.
• Continue to strengthen and invest in CRM programs, which have proven to be effective and essential.
• Reputation management is crucial and impactful to the bottom line. Capitalize on the fact that customer satisfaction is at a ll-
time high. Encourage customers to provide reviews of their dealership experience and keep them engaged. Utilize less than favorable reviews to strategize on ways to improve the retail experience.