Car dealerships that take longer than 2.5 hours to complete the transaction lose out on customer satisfaction. Dealerships saw customer satisfaction dip below average at the 2.5-hour mark.
In fact, according to a Cox Automotive study, the amount of time it took to complete a purchase has taken the top spot in car buyer frustrations. It beat out negotiations, fair trades, salespeople, and even financing options. People, more than ever before, are equating customer satisfaction to time.
Time has become a priority in reducing customer friction.
The sentiment isn't confined to car buying. It creeps into every consumer touch point. While email, for example, is still one of the most effective means of delivering content to people, nearly 60 percent of consumers won't read or open an email unless they are certain it contains relevant content.
Facebook has always been sensitive to this issue too. It developed its EdgeRank algorithm with relevancy in mind. How people react to the content you post determines how often and likely they will appear in your news feed. If people ignore or complain about the content, page managers begin to see a diminishing rate of return unless they pay to push their exposure.
That in itself makes for a standalone discussion, but the point for this post is clear: Customers don't want to waste their time. They want relevant on-demand and/or intuitive content, compressed purchasing cycles on everything they buy, and post-purchase communication with an emphasis on multichannel personalization over calendar sales and email spam.
Car buying provides an extreme example for marketers in every industry.
As part of the cited white paper, Cox Automotive also conducted an in-depth analysis of four distinct dealerships to track actual cycle times across key processes and better understand the disconnect between customer expectations and the dealership experience. What they found is not only enlightening for car dealerships, but also every industry that cares about customer satisfaction.
• Sales Process. The average time it took to complete the vehicle sales process was nearly 53 minutes – more than half the desired ideal total customer cycle time of 90 minutes.
• Purchase Negotiation. It took an average of 21 minutes and a maximum of 41 minutes, making it potentially the most time-consuming variable in the vehicle sales process.
• Vehicle Appraisal Process. The average time it took to complete the appraisal process was 43 minutes, nearly half of the total desired customer cycle time of 90 minutes.
• Appraisal Negotiation. It took an average of 16 minutes and a maximum of 39 minutes, making it a significant time-consuming variable in the appraisal process.
• F&I Process. The average time it took to complete the F&I process was nearly 61 minutes – two-thirds of the desired length of the ideal total customer cycle time of 90 minutes.
• The F&I Paperwork. The process is often lengthened by requiring signatures on multiple paper forms, and filling out these forms took an average of 21 minutes and a maximum of 44 minutes, making it a significant time-consuming variable in the F&I process.
When you add up the amount of time that each process requires (including negotiations), it becomes clear that most car dealerships are unintentionally designed to deliver unsatisfactory experiences that don't meet customer expectations. But before you simply nod in agreement based on your own personal experience, ask yourself if your company is any better.
Time has become a priority in reducing customer friction.
The sentiment isn't confined to car buying. It creeps into every consumer touch point. While email, for example, is still one of the most effective means of delivering content to people, nearly 60 percent of consumers won't read or open an email unless they are certain it contains relevant content.
Facebook has always been sensitive to this issue too. It developed its EdgeRank algorithm with relevancy in mind. How people react to the content you post determines how often and likely they will appear in your news feed. If people ignore or complain about the content, page managers begin to see a diminishing rate of return unless they pay to push their exposure.
That in itself makes for a standalone discussion, but the point for this post is clear: Customers don't want to waste their time. They want relevant on-demand and/or intuitive content, compressed purchasing cycles on everything they buy, and post-purchase communication with an emphasis on multichannel personalization over calendar sales and email spam.
Car buying provides an extreme example for marketers in every industry.
As part of the cited white paper, Cox Automotive also conducted an in-depth analysis of four distinct dealerships to track actual cycle times across key processes and better understand the disconnect between customer expectations and the dealership experience. What they found is not only enlightening for car dealerships, but also every industry that cares about customer satisfaction.
• Sales Process. The average time it took to complete the vehicle sales process was nearly 53 minutes – more than half the desired ideal total customer cycle time of 90 minutes.
• Purchase Negotiation. It took an average of 21 minutes and a maximum of 41 minutes, making it potentially the most time-consuming variable in the vehicle sales process.
• Vehicle Appraisal Process. The average time it took to complete the appraisal process was 43 minutes, nearly half of the total desired customer cycle time of 90 minutes.
• Appraisal Negotiation. It took an average of 16 minutes and a maximum of 39 minutes, making it a significant time-consuming variable in the appraisal process.
• F&I Process. The average time it took to complete the F&I process was nearly 61 minutes – two-thirds of the desired length of the ideal total customer cycle time of 90 minutes.
• The F&I Paperwork. The process is often lengthened by requiring signatures on multiple paper forms, and filling out these forms took an average of 21 minutes and a maximum of 44 minutes, making it a significant time-consuming variable in the F&I process.
When you add up the amount of time that each process requires (including negotiations), it becomes clear that most car dealerships are unintentionally designed to deliver unsatisfactory experiences that don't meet customer expectations. But before you simply nod in agreement based on your own personal experience, ask yourself if your company is any better.
What steps have you made to ensure promotions are not only relevant, but also efficient in leading customers to a specific point of purchase? How easy is it to find a product, make comparisons, and complete a purchase? How easy is it to place an order on your website (or shopping app)? Has your company minimized any additional steps that elongate the purchasing process? How likely will customers have to re-enter, change, or update stored data for future purchases? Does your company have any appropriate/personalized post-purchase communication planned (without being intrusive)?
Ultimately, the car dealership study provides excellent insight into how time can influence customer satisfaction throughout the car buying process. And, along with that, it creates a framework to help other companies start asking questions about their marketing plans and purchasing cycles too.
The simple truth of it is that customers know their time is too valuable. And since they don't want to be held captive anymore, maybe it's time to invite them in and then let them go. They'll appreciate it.
Ultimately, the car dealership study provides excellent insight into how time can influence customer satisfaction throughout the car buying process. And, along with that, it creates a framework to help other companies start asking questions about their marketing plans and purchasing cycles too.
The simple truth of it is that customers know their time is too valuable. And since they don't want to be held captive anymore, maybe it's time to invite them in and then let them go. They'll appreciate it.
