Expert view: why online reputation is key to the future of automotive retail

For most would-be buyers, their first point of contact when searching for a new car will be through a Google search that will lead them to a website. This means that positive reviews, a slick online experience, strong social media presence and well-resourced comms channels are all essential for turning clicks into leads and turning leads into a sale.

In fact, research by Reputation shows that correctly managing your online reputation can boost sales by as much as 10%. And that’s just the start. “When it comes to the evolution of the automotive retail industry, we’re starting to see that online reputation is becoming more and more important,” says Matthew. “Ultimately, if customers don’t like what they see online, they’ll simply scroll past onto the next business, and that’s all done within a fraction of a second. That’s where we at Reputation can help dealerships and OEMs improve and manage their online presence with our patented Reputation Score.”

A staggering 85% of consumers say that online reviews are the most important factor in choosing a dealership (behind price and inventory), while 65% of buyers say that a dealer needs at least a four-star rating for them to consider making a purchase from them. To capitalise on this demand, businesses need to harness the value of online customer feedback, converting shoppers to customers, and customers to loyal patrons.

“Customer expectations are continuing to increase, which means meeting and exceeding these expectations is becoming more difficult than ever. Customers will compare their most recent experience against their best experience, regardless of industry,” Matthew explains. In terms of automotive retail specifically, if someone is dissatisfied with part of their buying or aftermarket experience – anything from delayed delivery to simply being ignored when walking into a dealership – they’ll likely use public channels like reviews or social media to voice their opinions. 

“This is the feedback economy, and getting it right is vital to success. Offering a great customer experience is the best way to earn positive customer feedback, but there are further steps that dealerships and OEMs can take to improve their overall online reputation.”

Why is your Google profile key when it comes to online reputation?

Roughly nine billion searches are made using Google each and every day, making it the most visited website in the world ahead of YouTube, Facebook and Twitter. So, it will come as no surprise that the majority of customers will use Google as their very first point of contact when researching their next purchase.

In fact, research highlighted in Reputation’s Automotive report shows that around 43% of online buyers cite Google specifically as having a significant impact when deciding which dealer or brand to buy a car from. This means that dealerships and OEMs need to be highly visible and active across Google. Run as many Google Business Profiles as you can for each dealership and keep them updated when you open, close or rebrand an outlet.

As Matthew says: “Google is massive, and while a lot of brands will invest heavily in their own website to offer a great online customer experience, they often fail to realise that Google has become the front door to their business. That’s where customers will first see your offerings, where they’ll get their first impressions of your brand or dealership, and where they’ll form their initial perceptions. Ensuring that your company information is accurate and that you have a positive online reputation on Google, is paramount.”

How can brands and dealerships enhance their websites?

While Google may act as the front door to almost all websites, having a strong profile is just half the battle. Dealership and OEM websites need to offer a slick and intuitive user experience that puts reviews, inventory and contact information front and centre.

In fact, data from Reputation’s Automotive Industry 2022 report shows that 40% of customers said that being able to schedule a test drive online is key, while 61% highlighted the importance of being able to search your inventory online.

“When it comes to your website, dealers need to utilise the technology available to them to make the customer’s online experience as complete, intuitive and friendly as possible,” says Matthew. “It should feel like the next best thing to physically going to a dealership. This is doubly important for OEMs using the agency model because they don’t have bricks and mortar sites to fall back on.”

How can brands and dealerships be more active online?

Today, immediacy is more important than ever. Next-day delivery, instant messaging and on-demand are all buzzwords of modern life. It’s the same story when it comes to buying a car. Research by Reputation shows that while 70% of customers prefer to talk to a dealer face-to-face, many like to chat online before visiting a dealership.

With that in mind, 40% of customers expect a response within an hour when enquiring about a car. While that seems like a big ask, dealerships or OEMs who fail to properly resource their comms channels across social media and online will quickly fall behind the pack.

“Some automotive retailers are doing a great job of moving with this times, while others are struggling to keep pace,” says Matthew. “When it comes to the new generation of car buyers – from late millennials to early gen-Zs – dealerships and OEMs need to accept that these customers expect near-immediate responses. Another car offered by a rival brand or dealership is just a swipe away, so don’t leave them waiting too long.”

How can dealerships improve their in-person customer experience?

For dealerships in particular, good online reputation is rooted in in-person interactions.

Data from Reputation’s Automotive Industry 2022 report shows that 50% of consumers see the professionalism of staff as an important factor when selecting a dealership, with adjectives such as ‘easy’ and ‘friendly’ appearing most frequently in positive reviews. But how can dealerships work to improve this?

Reputation’s report suggests that dealerships (and OEMs) should humanise every touchpoint for the customer. Everything from social media posts to the website should feel friendly, while the professionalism of staff and the importance of aftersales care and physical hand-overs can’t be overstated.

“To help improve in-person customer experience, it's really important to know what good looks like,” says Matthew. “We touched on earlier how customers are comparing you to their best CX experience, regardless of the industry. What are others doing, how do you compare and how do you bridge any gaps? Your people are also key in constantly delivering a great experience. Listen to them and empower them to do what's best in any specific situation. CX is all about the feeling, and your staff will have the biggest influence on that.”