In the world of online shopping, customer reviews are often responsible for a person’s decision to abandon their shopping cart without making a purchase. Or, the reviews can help someone find a product that suits their wants and needs and keeps them coming back to the website for future purchases. In fact, a survey conducted by Nielsen reveals that 68% of people rely on and trust online reviews. Another survey conducted by Convergys Corp. shows that a single negative review is worth 30 lost customers.
When deciding which vehicle to purchase, today’s new car shoppers spend several hours online researching the vehicles. Then, they arrive at a dealership armed with an arsenal of questions, statistics, performance figures, customer reviews, and third-party ratings. A salesman has to be at the top of his game if he/she intends to sell a car to these informed customers. Most of the time, the potential buyer may go to several dealerships before they get the deal they want. But, there is a better way to find what they want at a reliable dealership and avoid all the research and legwork. For example, TrueCar has found the solution and has helped thousands of people get the right car at the right price without all the hassle. They have partnered with eKomi to provide authentic customer reviews to their potential buyers, thus becoming a leader in their field.
So, how does this relate to the automobile industry regarding their image and their bottom line? There are five key customer feedback factors that are prevalent in the automobile industry today. Each factor is vital for creating a positive public image.
5 Key Customer Feedback Factors for Long-Term Profitability
As one of the largest business sectors in America, the automotive industry employs thousands of people. They create products that are the second most expensive purchase made by most individuals. This level of influence dictates that automotive dealerships have a responsibility to provide a quality product, maintain truth in advertising, and create positive customer experiences.
There are 5 feedback factors automobile manufacturers and dealers should be aware of that will affect their success in today’s highly competitive marketplace:
- Positive Public Image
Automobile buyers are entrusting their safety and a significant portion of their income to the automotive company. For these reasons, their perception of the company plays a significant role in their buying decision. A positive public image involves factors such as word-of-mouth advertising, reviews, and opinions. These can include comments about customer service, product reliability, friendliness of the sales staff, time it took to complete the transaction, cleanliness of the facility, and more.
- A Strong Distribution Network
Auto manufacturers do not typically sell directly to customers. Instead, they rely on dealerships to provide showrooms and a sales force that is knowledgeable, people-oriented, and dedicated. The way a dealership conducts business is a direct reflection of the manufacturer and vice versa. Without a strong distribution network of qualified and productive dealers, the public loses trust in this brand.
- Sustainable Cash Flow
Achieving a sustainable, healthy cash flow is crucial in the automotive industry. But, while lowering prices may sell more cars, it may have a negative effect on the profit margin. Maintaining steady cash flow is a critical success factor that affects how the dealership conducts business and this, in turn, can affect customer relations.
- Compliance with Regulations
Compliance with federal and local regulations can be costly for manufacturers and dealerships. They must ensure that the vehicles meet emissions, safety, and fuel-efficiency standards. If the vehicles are subjected to a safety recall for government-mandated repairs, the costs can be staggering.
- Ability to be Flexible
American consumers are fickle and will change their buying habits seemingly overnight. The price of gas, the economy, and new technologies have a significant impact on a consumer’s buying habits. Automakers and dealerships must be attentive to these trends and keep pace.
By now, you’re wondering what these five factors have to do with customer feedback. First of all, when any of the above factors are deficient in any way, customers notice, and they talk to each other about your company. They go online and make sure everybody sees their comments. Social media can be a company’s worst enemy when it comes to negative reviews because they spread like wildfire across all social outlets. On the other hand, when customers talk to each other, it can be helpful because it gives businesses an opportunity to learn more about what their customers want and expect. This information is crucial in building trust and loyalty while ensuring continued profits.
In addition to customer feedback, entrepreneurs can also benefit from the online seller ratings. These ratings are based on data collected from consumer reviews.
What are Seller Ratings and Why Do You Need Them?
Seller ratings are a Google Adwords extension that will display your company’s average rating on the search engine ads. Your rating is compiled from customer reviews that have been researched and proven to be authentic. The rating appears as a series of stars alongside your add on Google. According to the gurus at Google, seller ratings increase click-through rates by 17%. What this means to your company is an improved public image, increased performance of your ad campaigns, and improved quality of traffic to your website. This tool helps you build your brand, gain trust and loyalty, and increase sales.
These ratings seem like a great marketing tool, but how do consumers know if the ratings are authentic? The best way to ensure that you are seeing valid reviews made by actual customers is through a professional review service such as eKomi.com. They are an official Google Partner who provides reviews that were evaluated by a feedback management team before publishing them online.
Find Out More About Customer Feedback
Whether you are in the business of selling cars or any of the other millions of products available today, customer feedback is a useful tool for improving your image and padding your bottom line. The folks at TrueCar recognize the importance and benefits of utilizing customer feedback and seller ratings in their marketing strategies, and so should you.
If you would like more information about customer reviews, we invite you to visit our website at ekomi-us.com today.