In the recent KPA 2024 Dealership Trust Survey, the results about customer trust were eye-opening and somewhat concerning for auto dealerships across the nation.
- 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 numbers show that most Americans don’t trust car dealerships. This is a wake-up call for the industry, and on a practical level, it’s a call to figure out what you can do to raise trust at your dealership.
Our new series has the answers you’re looking for. We’ll cover everything from customer service to communication to customer education, approaching each topic from the perspective of increasing customer trust. This first article lays the groundwork for why trust is so important for dealerships, the dimensions of trust, and how to build customer trust into the customer experience. Let’s dive in!
6 Reasons Why Customer Trust Is Important
If you’re wondering about the role of customer trust in purchase decisions and loyalty, check out these intriguing statistics.
1. Trust as a Core Requirement
According to a 2023 Capital One survey, 88% of car buyers stated that trust in a dealership is at least somewhat important to them. This statistic underscores that trust isn’t just a nice-to-have; it’s a fundamental expectation from consumers. When present, trust paves the way for a smoother sales process and more open and honest communication between buyers and your sales team. For dealers, emphasizing transparency and building trust can significantly influence a buyer’s decision to engage.
2. The Weight of Reputation
A survey by SalesFuel reveals that 59% of respondents consider dealership reputation to be the most important factor in deciding which dealership to visit. A positive reputation, demonstrated through consistent customer satisfaction and transparent dealings, can set your dealership apart. Every interaction, online review, and customer testimonial contributes to your reputation and builds perceived trust among customers and prospects.
3. The Transparency Gap
A mere 19% of consumers feel dealerships are transparent during the shopping and purchasing phases, spotlighting a significant gap in perceived honesty. This statistic is a call for dealerships to reassess how they communicate with potential buyers. Enhancing transparency isn’t just about providing clear pricing and fees; it’s about creating an environment where questions are encouraged and answers are given freely and honestly.
4. The Role of Digital Presence in Building Trust
With 88% of potential car buyers conducting research online, your dealership’s digital footprint is often the first point of trust-building. This statistic illustrates the critical role of your website, social media, and online reviews in shaping perceptions of trustworthiness and reliability. When your online presence reflects your dealership’s values and commitment to honesty, you can significantly influence a customer’s decision to engage further.
5. Trust and Loyalty Go Hand in Hand
Deloitte’s 2023 research highlights that consumers most trust the dealer from whom they’ve purchased or where they service their vehicle. This finding emphasizes the importance of nurturing customer relationships beyond the initial sale. Maintaining trust through quality service and consistent communication reinforces customer loyalty, making it more likely for them to return for future purchases.
6. Experience Over Price
The fact that two-thirds of consumers say the car-buying experience is more important than price underscores the power of trust and relationships. When dealerships prioritize creating a positive, transparent, and engaging buying experience, it can outweigh even the most competitive pricing. Taking a customer-centric, relationship-based approach lays the groundwork for lasting trust and loyalty.
Dimensions of Customer Trust
According to research by Deloitte, building trust with your customers boils down to four key elements: Humanity, Transparency, Capability, and Reliability. Let’s break these down to see how they can help you assess your dealership’s trustworthiness.
Humanity
This is about showing your customers you care. When customers see that your dealership understands their needs and treats them with respect, they’re more likely to buy from you. It’s as simple as listening to them, solving their problems, and making them feel welcome.
Transparency
Customers want to know what they’re getting into. By being open about prices, fees, and other details, you help them trust you more. This means no small print surprises or hidden costs – just clear, straightforward information.
Capability
This shows customers that you know your stuff. From understanding (and being able to communicate) the ins and outs of the cars you sell to providing top-notch service, showing you can meet their needs makes customers more likely to trust and buy from you.
Reliability
Consistency is key here. Customers are more satisfied and trust you more when they see you’re reliable – that means every sale, service, and interaction is handled well. When your dealership delivers on its promises every time, you demonstrate reliability and build trust.
To assess the trustworthiness of your dealership, look at how well you’re doing in these four areas. Check your reviews, ask your customers, and talk with your team. Improving these aspects of trust can make a huge difference in how consumers see you and the likelihood they’ll buy from your dealership.
How to Build Customer Trust
As we move forward in our series, we’ll explore how to build customer trust at your dealership through five critical areas of the customer experience:
- Customer service
- Customer education
- Communication throughout the buying process
- Social proof
- Post-sale communication
We’ll examine these topics through the lens of Humanity, Transparency, Capability, and Reliability, providing practical tips and strategies to enhance trust at every customer touchpoint.
We’re excited to start this series and share insights that will help you strengthen customer trust and loyalty. We hope to see you back next time when we discuss customer service!
