Customer Buying Cycle: Steps in Buying Car

Usually, car retailers will think that the purchasing decision is simply a randomized process. Some makes and models of the cars appeal to a particular buyer, and the purchase may happen or not. Most car dealerships will have a similar approach in marketing their company, which is wholly based upon a trial-and-error procedure. However, studies show that consumers follow a distinctive step to help them decide whether they should or shouldn’t proceed with the purchase. Understanding the customer buying cycle will improve your marketing and increase the probability of closing the deal.

6 Steps in the Customer Buying Cycle

Knowing the scientific process of customer buying cycle marketing will help you laser-target the consumers who are ready to purchase cars. You will be able to improve your cost per acquisition while boosting your company’s revenue.

Purchase Triggers

Before the customer can even be convinced to buy, there should be something that triggers it. For instance, some people believe that ‘family needs’ will significantly influence purchasing decisions. Those who are looking for a replacement car may need a vehicle with more space. Perhaps others are interested in the newly introduced technology in the market. The purchase triggers will also be different between the first-time car buyers and the repeat buyers. It is critical to understand this customer buying cycle experience. The first-time buyers will consider the family needs more than the brand image. The repeat buyers, on the other hand, are looking for an upgrade.

Problem Recognition on Customer Buying Cycle

Recognizing the existence of the problem is a typical purchase trigger. However, not a lot of your potential customers will be aware of the problem. Therefore, your marketer should find ways to create this problem to start the whole customer buying cycle stages. There are different ways on how you can achieve this. One of the best ways is through content creation and marketing. You should share customer testimonials and facts on how your car or staff helped people with their predicament. Be sure to ask the critical questions that will pull the potential customers into the purchasing process. By doing so, you are reminding your prospects that they have issues that you can solve.

Information Search

Now that they are aware that they need to consider buying a car, you need to know what type of information they are looking for. You should also think about the sources of their data. If they need a larger space, they will look for the car models that offer them this advantage. If they need new technology, they will look at the current innovation in the car industry. For them to consider you as a source of information, you will have to establish yourself as a leader in this industry. You need to have a high trust score, online visibility, and authority to pull them into the customer buying cycle process.

Factors that Consumers Consider when Buying Car

We understand that there are just too many things that customers consider when buying cars. It should not only fit their wants and needs, but it should also be suitable for their lifestyle. Here are some of the pieces of information that customers will search for when going through the customer buying cycle stages.

• Value of the Vehicle- According to the latest report, most consumers will first consider the price and the value of the car. As a car dealership, you want to have a long-term relationship with your consumers. Show them an accurate idea of the cost and give them an easier way to compare the prices.

• Vehicle Features- After considering the car’s value, people will start to look at the available technology and additional features. One of the most important specs that prospects would look into would be the safety device. Buyers will look for a car that comes with the technology they need but avoid extra features that will only increase the cost.

• Engine- Not all your buyers will be car enthusiasts. However, they will still be doing extensive research, especially on the car engine as a part of the customer buying cycle. Most of them will choose a car with an engine that can provide them ease and comfort while driving. Some will be suitable for city driving, and others for highway cruising.

Customer Buying Cycle Sources of Information

In a report released by Deloitte, most car buyers in the US will rely on independent websites when searching for facts related to cars. Therefore, you have to make sure that you have solid web content. Also, be sure that you have high visibility on the online car database and listing site. It is also essential for them to hear the recommendation of their family and friends. It is not surprising why some dealerships will rely on word-of-mouth marketing. Offer some incentives to every successful referral to pull your prospect into the customer buying cycle marketing. They might also visit the manufacturer’s website and read some news articles about the car they prefer. Be sure that you also have an excellent salesperson. Make the initial interaction with them informative, avoid focusing on sales. Lastly, while social media marketing has become more popular nowadays, customers will pay the slightest attention to this platform.

Customer Buying Cycle: Direct Interaction with the Dealership

Now that your prospects have completed the prior customer buying cycle process, it is time for them to make an appointment with the dealership. You need to understand what the buyers are looking for when they visit your car lot. Usually, they will ask you questions that will help them validate the information they gathered. It is also true that some customers will not perform the research process and will depend on the dealership to supply them with the necessary information. Here are more reasons why they will set an appointment with the dealership. Given the short time that they will spend in your dealership, giving them an efficient and comfortable process may help them encourage to move further into the buying cycle.

• Test Drive- Around 70% of the customers will schedule an appointment with a dealership to have a test drive. Therefore, it is one of the crucial activities that will help them with their decision-making process.

• Shopping Experience- When your prospects visit your place, they are starting to measure the quality of service that you can offer to them. Generally, your customers should have a favorable view of your people and dealership. Close to 70% of the customers believe that the salespeople should at least treat them fairly. However, some individuals prefer to work with the dealership over the internet. With this, you should be armed with a solid online customer support system.

Customer Referrals

In the dealership market, your relationship with your customers will not be a one-time engagement. Your previous clients will also perform an integral role in the customer buying cycle stages. They should be convinced to endorse your products to their friends and relatives. As we mentioned above, your prospects will significantly rely on the recommendations of family members. You will be surprised to know that customers in the car industry will also happily endorse products that they didn’t buy.

• Vehicle Endorsement- All customers will have an average of 4 cars on their list before choosing the vehicle that fits their requirements. About 50% of these people will recommend at least one brand to others. It is also interesting to see that 40% of them will recommend that car they did not purchase.

• Dealership Endorsement- We often remind you not to settle on the first dealership you will encounter when purchasing a car. You must have a couple of alternatives that you can consider. The dealership needs to make every customer feel valued, whether they are a returning customer or a walk-in client. There’s a high chance that they will recommend you to someone they know if they had a generally pleasant experience with your company.

Making the Purchase

You have successfully created the ‘needs of the customers, they have completed their research, listened to the recommendations of others, and visited your dealership for a test drive; all the customer buying cycle experience will lead to the completion of the purchase. Nonetheless, it does not instantly mean that the customer will choose you. There’s a chance that your prospect could still be at a loss on the next step to take. Therefore, it is essential to continue your marketing strategy in this stage.

In this phase, you should keep your marketing straightforward. If the purchasing process is too complicated or applying for financing options is too demanding, they will consider their alternatives. Some want it to be convenient. Give them the chance to complete the procedure online or by using their smartphones. You should think about the right questions to ask them. Make the necessary adjustments to personalize your approach. A daunting process is a sure way to lose potential revenue.

Customer Buying Cycle: After-Sale Support

The customer buying cycle process will not end with the purchase. Simply because the purchase has been completed does not mean that the customer and revenue will no longer be lost. After the purchase, you need to ensure that the customer is delighted with their vehicle and your service. In this stage, it is a chance for the customers to evaluate your dealership.

Should they feel that they made a poor decision, there’s still a chance that a return could take place. You can prevent this occurrence by determining the source of the customer’s discontentment. If not, you can offer a direct exchange. On the contrary, if the customer is satisfied with their decision, they could still make a future purchase to your dealership. Try to send them a follow-up survey or an email that expresses your gratitude.

To ensure that your car dealership, you need to take your time to understand these 6 stages of the customer buying cycle comprehensively. With this, you can adjust and refine your marketing strategy and even shorten the cycle process.