By Ben Freedman,National Sales Director, FlickFusion Video Marketing
Transparency in car sales has become increasingly important because it builds trust with customers, and trust is fundamental for creating long-term relationships and loyalty.
According to Capital One's 2023 Car Buying Outlook report, 88 percent of buyers say that trust is important when working with a dealership, yet only 21 percent of shoppers felt that the car-buying process was completely transparent.
How to Improve Transparency
Improving transparency during the purchase process benefits dealerships in several ways:
Transparency Boosts Customer Satisfaction. Buyers who know exactly what they are getting are less likely to feel deceived or dissatisfied. Customers appreciate it when retailers provide them with all the information necessary to make an informed decision. For dealers, this includes sharing details about the vehicle's features and benefits, pricing, and comparisons to alternatives.
The more transparent dealers are with vehicle merchandising and marketing, the more confident customers will feel that they're making the right purchase decision.
Transparency Enhances Reputation. Dealerships known for their transparency tend to have better reputations. Positive word-of-mouth and good reviews naturally follow transparent practices, which in turn attract new customers. A solid reputation for honesty and openness is a powerful competitive advantage.
Transparency Mitigates Risk. Transparency during the purchase process mitigates the risk of unexpected surprises or post-purchase regrets that can lead to dissatisfaction or disputes. In addition, transparency ensures that dealerships are compliant with legal and ethical standards such as the FTC's Combating Auto Retail Scams (CARS) rule. This rule states that misleading advertising can lead to legal repercussions, which means that dealers must reveal flaws on the vehicles they market.
Video: The Star of Transparency
Here are some recommendations on how dealers can be more transparent and how video can provide the transparency that today's consumers demand.
Post Educational Videos on Digital Tools. Most car shoppers who start their purchase process online use digital tools during the research process. However, the data these tools provide, such as estimated monthly payments, must match what shoppers are told in the showroom. Dealers can prevent misunderstandings and enhance transparency by posting educational videos that explain to customers how to correctly use their digital tools.
Provide Clear Pricing and Financing Details. Customers want price transparency. According to the Capital One report, 55 percent of car shoppers say they are willing to pay a little more for a vehicle if it was from a dealership they trust. Instead of fearing that customers will flee to another dealership if the price is posted, dealers should embrace transparent pricing and focus on value selling.
Video is an ideal way to value sell online shoppers. Walkaround inventory videos help prospects understand the value of the vehicle they are buying. Have the video narrator explain how the features and history of a vehicle make it worth more than similar vehicles in the market.
Keeping the Customer in Mind
Personalize the Customer Experience. According to a study by Epsilon, 80 percent of consumers are more likely to do business with companies that offer personalized experiences. An Adobe study found that 71 percent of consumers expect personalized interactions, and 76 percent get frustrated when this doesn’t happen.
Use videos to provide personalized experiences for both leads and current customers. Sales teams can send personalized lead follow-up videos, thank-you videos after purchase, and personalized trade-in offer videos. In the service department, advisors can send personalized service reminder videos to boost show rates for service appointments.
Load Vehicle Display Pages (VDPs) with Video. According to Cox Automotive's 2023 Car Buyer Journey Study on average car shoppers considered two vehicles and two dealerships. This highlights the importance of effectively merchandising and marketing your vehicles.
Different Video Types
To ensure that your dealership has the highest chance of being included in the "final two," load your VDPs with a variety of videos. I recommend walkaround inventory videos, 360 interactive spin presentations, test drive videos, manufacturer and dealer incentive videos, value proposition videos, and customer testimonial videos.
The more videos you have, the more prospects will engage and become emotionally attached to your dealership and inventory.
Transparency is good for dealerships and good for car shoppers. Video helps to increase transparency by providing education, vehicle details including flaws, and personalization to active car shoppers.
Make sure to join Ben Freedman for his session at the 2024 Digital Dealer Conference and Expo this October.
Ben Freedman, FlickFusion's National Sales Director, oversees sales and marketing operations in the company's direct-to-dealership sales division. Freedman has 17 years of experience in retail automotive, the majority of which have been in leadership roles at multiple-rooftop dealerships, including Morrie's Automotive Group and Car Pros Automotive Group. Freedman's experience includes management positions at a large digital marketing consulting firm and at ACV MAX (formerly MAX Digital), where he serviced three of the largest dealership groups in the country.
