Did your dealership hit its retail sales targets for the month and quarter? Whether or not your store did, a new shopper study CDK Global might illuminate why more vehicles rolled over the curb than you expected or that batch of models still is in inventory.
CDK Global said there are a lot of assumptions made about Gen Z — loosely defined as individuals born between 1997 and 2012 — and the need for instant gratification, from simple online purchase experiences to real-time social media engagement.
However, when it comes to buying a vehicle, CDK Global discovered Gen Z seems to be more thoughtful and spends more time weighing decisions, while finding the experience of buying a new car more frustrating than any other generation.
In a recent survey, CDK Global asked more than 1,100 shoppers of all ages who recently purchased a vehicle about the car-buying experience. It found Gen Z respondents, most of whom were buying their first car (56%), were least likely to recommend their dealership experience than older generations with a net promoter score (NPS) of just 32, compared to an NPS of 49 for millennials and 53 for Baby Boomers.
With Gen Z most interested in understanding all their options (81%) compared to millennials (73%), Gen X (60%) and Baby Boomers (45%), the need for education — both online and from a knowledgeable representative at the dealership — proves to be critical, according to the CDK Global study.
The survey results also showed deeper insights into Gen Z vehicle shoppers, such as:
—They found it more difficult to buy a car online (22%) than any other generation.
—Waiting on a salesperson ranked near the top of their list of friction points at the dealership, and 45% ranked it as the most frustrating part of buying a vehicle.
—They were much more likely to buy luxury brands (39%) compared to millennials (29%), Gen X (27%) and Baby Boomers (12%).
“Buying a car is much more complex than buying a smartphone. Consumers are presented with seemingly endless options like trim levels, stand-alone features, accessories, service packages, financing and insurance,” CDK Global chief operating officer Joe Tautges said in a news release. “In today’s world of simple and convenient shopping experiences, we not only have to make cars easier to buy, but we also have to meet consumers where they are based on their unique needs.
“By implementing more seamless processes at the dealership, sales departments can work more efficiently and spend more quality time with their customers explaining products and processes in greater detail,” Tautges added.
For more information on this survey, including additional generational insights on vehicle shoppers, download the white paper via this website.
Source : AutoFinanceNews