eKomi’s Top Consumer Feedback Elements in the Automotive Sector
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 keep them coming back to the website for future purchases. In fact, 97% of the consuming public reads reviews online to search for local businesses, and 12% do so daily. (BrightLocal, 2023). Additionally, a single negative review is believed to be worth 30 lost customers.
As a result, when deciding on a vehicle, new car buyers today spend several hours researching vehicles online. Then they come to a dealer armed with an arsenal of questions, statistics, performance data, customer reviews, and third-party ratings. Most of the time, the potential buyer goes to several dealers before getting the offer they want. But there is a better way to find the car you want at a reliable dealer and save yourself all the research and legwork.
So what does this mean for the car industry in terms of its image and profits? There are important customer feedback factors that are prevalent in the automotive industry today. In this blogpost, eKomi explores how each factor is crucial for a positive brand reputation.
Key Customer Feedback Factors for Long-Term Profitability
Being one of the largest industries in any country, the automotive industry employs thousands of people. They manufacture products that are the second most expensive purchase for most people. Because of this influence, car dealerships are responsible for providing a quality product, maintaining truth in advertising, and creating positive customer experiences. There are 5 feedback factors that car manufacturers and dealers should be aware of that will influence their success in today’s highly competitive market:
Positive Public Image through Consumer Feedback
Car buyers entrust their safety and a significant part of their income to the car company. For this reason, their perception of the company plays an important role in their purchase decision. A positive public image includes factors such as word-of-mouth, reviews, and opinions. These include comments about customer service, the reliability of the products, the friendliness of the sales staff, the time taken to complete the transaction, the cleanliness of the premises, and much 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 help 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, which, 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
Vehicle 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. Therefore, automakers and dealerships must be attentive to these trends and keep pace.
Bottom Line: Consumer Feedback
By now, you’re wondering what these five factors have to do with customer feedback. Firstly, 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 is a Google Ads extension that displays the average rating of your business in search engine ads. This rating is compiled from customer reviews that have been researched and proven to be authentic. The rating appears as a series of stars next to your ad on Google. According to the gurus at Google, seller reviews increase click-through rates by 17%. For your business, this means an improved public image, higher performance from your advertising campaigns, and better-quality visitors 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. They are an official Google Partner who provides reviews that were evaluated by a feedback management team before publishing them online.
Final Thoughts on Consumer Feedback
Whether you sell cars or any of the other millions of products available today. Feedback from your customers is a useful tool to improve your image and increase your profits. Most industry players have recognised the importance and benefits of using customer feedback and seller reviews in their marketing strategies, and so should you. If you would like more information about customer reviews, we invite you to request a free consultation today.