Welcome back to our series for auto dealers on building customer trust. So far, we have outlined why customer trust is important and why consumers’ distrust of dealerships seems to be growing. After laying the foundation, we began exploring ways you can build trust at your dealership, starting with customer service standards. Today, we are turning our attention to a new area for trust building: customer education.
Educating your customers and prospects can boost trust in two main ways. Consumer lack of trust is primarily due to a perceived lack of transparency. Let’s revisit the stats from the recent KPA 2024 Dealership Trust Survey:
- 76% of Americans don’t trust dealerships to be honest about pricing.
- 86% are wary of hidden fees.
- 84% feel there’s a lack of price transparency.
These statistics indicate that clear, honest communication about pricing and other important information can help build consumer trust by promoting transparency.
Another way customer education can boost trust is through having knowledgeable and experienced staff. When customers and prospects work with someone who knows what they are doing and can answer their questions, they feel like they are in good hands. This builds relational trust – trust in your employees and confidence that things will be handled well throughout the transaction.
In this article, we’ll outline practical customer education strategies that auto dealers can use to build trust in every interaction. It’s time to bridge the trust gap with the advice below.
10 Customer Education Strategies for Dealerships
Below, we offer many suggestions on how you can educate customers and prospects to provide them with the information they need to make a good decision and build trust in your dealership. A great way to approach this list is to start with one or two options you think would make the biggest impact on your customers and focus your efforts there before moving on to additional strategies.
1. Transparent Pricing Guides
Develop detailed pricing guides for every vehicle in your inventory that break down the total cost, including taxes, fees, and optional add-ons. Make this information available on your website, in written form, and via a searchable database that employees can easily access when buyers ask questions.
2. FAQ Section
Create a comprehensive FAQ section on your website to address prospects’ common questions and concerns. This can include information such as pricing, financing, warranties, inventory, features, and other policies. Make your FAQ section easy to navigate with clear headings and a search feature so customers can always find the answers they need.
3. Online Chat Support
According to Think with Google, 95% of buyers use digital as a source of information, and twice as many start their research online versus at a dealer. Meanwhile, they also report that more than 95% of purchases still happen at dealerships.
That means it’s up to you to guide people from browsing your website to visiting in person. Online chat during your business hours can help you:
- Connect with online shoppers
- Enhance the shopping or browsing experience
- Answer questions and provide assistance
- Guide prospects to the goal of having them visit the dealership in person
4. Educational Content
Online content such as articles, guides, videos, and social media posts can also help educate your audience. From sharing tips on choosing the right vehicle to demystifying the purchasing process to offering advice on car maintenance, you can create content for prospects at each stage of the buying process that positions your dealership as a trusted resource. Don’t forget email newsletters, which can be used as ongoing communication to educate customers and keep your dealership top-of-mind.
5. Vehicle Comparison Charts
Buying a car is a big purchase, and consumers want to make an informed decision. Vehicle comparison charts show features, benefits, and pricing side-by-side so customers can weigh their options and find the best fit for their needs and budget.
6. Financing Education
Provide resources that explain the various financing options available at your dealership. Go beyond the numbers and explain the pros and cons of each in easy-to-understand language. Include tips for securing the best terms and insight into your application process to demystify what it’s like to finance a car from your dealership.
7. Informational Videos
Videos are an excellent marketing tool for dealerships because they blend education with excitement. Walkaround videos, in particular, offer a way to showcase vehicles, explain features, and highlight benefits. These videos can be embedded on your website to enhance the online shopping experience and used in social media. Research shows that:
- 60% of car shoppers are more likely to visit a dealership or its website after viewing a video of a model they’re interested in purchasing on YouTube.
- Consumers spend 44% more time on a dealer website where vehicle videos are available.
- Consumers watch, on average, eight videos before leaving a dealer’s website.
For more ideas on using videos at your dealership, check out our article, 20 Digital Marketing Strategy Ideas for Auto Dealerships.
8. Test Drive Advice
Train your staff to provide insightful advice during the test drive that elevates the buyer experience. Employees can guide prospects on what to inspect, which features to test, and how to assess if a car suits their needs. This personalized test drive experience builds trust by demonstrating your commitment to helping them find the right vehicle for them.
9. Trade-In Calculator
Create a Trade-In Calculator on your website that allows customers to estimate the value of their trade-in at your dealership. By clearly outlining the factors influencing trade-in value, you demystify the process and provide transparency into how your dealership sets a price. This clarity can set reasonable expectations and dispel customers’ fears about undervaluation.
10. Customer Reviews and Testimonials
Reviews and testimonials are forms of marketing, but they work because they are a trusted means of educating prospects. Prospective buyers want to know from real people like them what the buying process was like, why they chose your dealership, and what they love about their new car. Reviews and testimonials can be placed on your website and used in social media, emails, and blog posts. Stay tuned for a future article in this series, which will look at ways to use social proof like reviews and testimonials to boost trust.
Empowering Trust Through Customer Education
When thinking about customer education, make sure to approach it from two different angles: (1) offering comprehensive educational content on your website and social channels for those browsing online and (2) training your staff so they are knowledgeable and able to build trust with prospects in person. As recommended earlier, we advise that you choose just a couple of items from this list to work on before moving on to others.
Trust is the cornerstone of lasting relationships between dealerships and buyers. While customer education is important, we still have other strategies to cover. Stay tuned for our next article, which explores how communication during the buying process can further enhance trust and increase your chances of a sale. See you then!
