The traditional car market is largely offline, with customers having to visit dealerships to make a purchase. However, digital retailers can disrupt the market by offering car shipping as part of their customer offering. In this article, we will explore the benefits of offering car shipping and how it can impact customer satisfaction.
Benefits of Offering Car Shipping:
- Convenience: Offering car shipping provides convenience to customers who can buy a car online and have it delivered to their doorstep. This saves them time and effort that they would otherwise spend visiting dealerships. According to a study by AutoTrader, 61% of car buyers would prefer to complete the entire car-buying process online, including delivery.
- Increased Market Reach: Offering car shipping expands the market reach of digital retailers beyond their local area. This allows them to sell cars to customers across the country and potentially even globally. According to a report by McKinsey & Company, digital retail can reach up to 30% of total car sales in the US by 2030.
- Competitive Advantage: Offering car shipping gives digital retailers a competitive advantage over traditional dealerships. According to a survey by Cox Automotive, 61% of car buyers would choose a dealership that offers online purchasing and home delivery over one that does not.
- Revenue Stream: Offering car shipping provides an additional revenue stream for digital retailers. They can charge shipping fees to customers, which can offset the cost of offering the service. According to a report by Deloitte, car shipping fees can range from $500 to $1,500 depending on the distance.
Impact on Customer Satisfaction:
- Increased Satisfaction: Offering car shipping increases customer satisfaction by providing a convenient and hassle-free experience. Customers appreciate the ability to purchase a car online and have it shipped directly to their doorstep. According to a survey by Capgemini, 74% of car buyers are satisfied with the online car-buying experience.
- Trust: Offering car shipping builds trust between digital retailers and their customers. Customers are more likely to do business with a retailer they trust, which can lead to repeat business and positive word-of-mouth advertising. According to a study by Accenture, 62% of car buyers are more likely to buy a car from a retailer that offers a hassle-free delivery experience.
- Competitive Pricing: Offering car shipping allows digital retailers to offer competitive pricing to customers. They can potentially offer lower prices than traditional dealerships due to lower overhead costs. According to a report by J.D. Power, digital retailers can save up to $2,000 per car sold by avoiding the cost of operating a physical dealership.
Offering car shipping as part of their customer offering is a strategic move for digital retailers. It provides convenience to customers, expands market reach, and generates additional revenue streams. Moreover, it can increase customer satisfaction and build trust between the retailer and the customer. By incorporating car shipping into their business model, digital retailers can disrupt the traditional car market and attract a new generation of car buyers.
Net Promoter Score for Digital Retailing
There is evidence that the Net Promoter Score (NPS) for digital car retailers is higher than traditional bricks and mortar dealers. According to a study by J.D. Power, the average NPS for online-only retailers of new cars was 71, compared to a score of 52 for traditional dealers. The same study found that online-only retailers had a higher satisfaction rating among customers than traditional dealerships.
Another study by Accenture found that 80% of consumers would consider purchasing a car online if it was available, and that 62% of those who had already purchased a car online reported a high level of satisfaction with the experience.
Additionally, a survey by Autotrader found that 57% of car buyers would be more likely to purchase a vehicle from a dealership that offers online buying options, and 30% said they would even pay more for the convenience of buying online.
Overall, these studies suggest that digital car retailers have a higher NPS and customer satisfaction rating than traditional dealerships, due in part to the convenience and transparency of the online buying process.
RunBuggy is an ideal partner for digital retailers looking to incorporate car shipping into their customer offering. As a provider of automotive logistics technology, RunBuggy offers a comprehensive solution that includes end-to-end transportation and logistics services, as well as vehicle tracking and real-time updates. By partnering with RunBuggy, digital retailers can leverage their expertise in the automotive logistics industry, ensuring a seamless and hassle-free delivery experience for their customers. Furthermore, RunBuggy’s advanced technology and data analytics capabilities can help digital retailers optimize their shipping processes and reduce costs. Overall, partnering with RunBuggy can enable digital retailers to offer car shipping with confidence and differentiate themselves from traditional dealerships. To learn more or schedule a demo, please visit runbuggy.com.