New Research Shows Flaws in Franchise Auto Dealer CSI Scores

Are the survey tools, used by OEMs to measure customer satisfaction, asking the wrong questions? Is it possible that CSI scoring has hidden consumer sentiments that could have accelerated change and propel more dealers to embrace modern retailing strategies?

Are CSI surveys designed to support and maintain the current new car sales process?

I'm not writing this article to advocate another new digital retailing tool. I'm addressing the core sales process that consumers experience when they choose a franchise dealer and start the new buying process.

Bill Zadeits, President of the Cherokee Media Group, hosted the 2022 Auto Intel Summit where new research was released and challenged traditional CSI feedback scores. The research was funded by A2Z Sync and presented by CEO Chip Perry at AIS last month. I asked Chip if I could share some of the slides from his presentation deck and he agreed.

Does Anyone Challenge High CSI Scores?

Dealers and OEMs truly want consumers to have a great experience buying a car. However, the traditional buying experience was developed with a mindset that the dealer controls the flow of information, and the time it takes to purchase a vehicle. While some improvements in the buying process have accelerated the digital retailing framework, data from the recent YouGov survey challenges the rosy picture that Cox Automotive CSI data suggests.

You can see from this article's featured image, that YouGov found that 85% of consumers have something they dislike with the current sales process. It is also possible that consumer angst is at an all time high with limited inventory and record selling prices for new and used cars. No sales process is perfect but what if we have been lulled into complacency with high CSI scores?

Asking Better Survey Questions

YouGov asked a different set of questions to better understand how consumers feel when buying a vehicle. Less than 30% of consumers very much liked the car buying experience which exposes a flaw in current CSI scores. If consumers already think car buying is painful, maybe the current CSI scoring frameworks are grading if consumers experienced less pain than expected!

The YouGov insights should accelerate conversations within franchise dealerships which ask deeper questions about the consumer experience.

Time and F&I Top Friction List

It should come as no surprise that the time it takes to purchase a vehicle is the top reason why the car buying experience received lower scores. Consumers were also not pleased with the way in which finance and insurance products were presented.

"Designing a better experience starts with asking customers what they want" - Chip Perry

Consumers Outline Their Ideal Scene

So, what do consumers want? Dealers should not skim over this list. Rather dealership executives should examine their current sales process and see where improvements can be made. The feedback shows that the structure of the automotive sales process needs to change. YouGov research, once again, confirms previous evidence that a single point of contact is a preferred framework for consumers. It's a preferred process for me!

The YouGov research also clarified that 74% of consumers are very comfortable with visiting a local dealer to complete the sales process, and are not that inclined to make a large purchase in an Amazon-like platform. Consumers just want to make the purchase on their terms with as little drama as possible.

"Giving customers what they want requires rethinking, retooling and restructuring the entire sales process from the ground up" - Chip Perry

Using YouGov Research To Change The Experience

To bring this article to a conclusion, dealers who are satisfied with record profits using their existing multi-person sales process, should consider testing new sales processes while the sun is still shining. If a single-point-of-contact (SPOC) sales model is efficient, profitable, and aligned with what consumers want, what is holding you back to test this framework in one of your stores?

One of the main reasons why dealers do not implement a SPOC in their dealership is that they have no experience making the transition from the traditional sales floor model. Another barrier is the fear of losing F&I gross, which is a myth and has been disproven by hundreds of dealers according to Chip Perry:

Although many dealers are worried that revamping their F&I process and team to remove friction with car buyers will damage their F&I PVRs, the latest data from single point of contact dealers is showing that their financial results are actually significantly BETTER after adopting the new sales process.?And we’ve also seen that most F&I manager stay with the dealership in new roles after the transition.??

The key to retail efficiency and profitability is the combination of technology, training, and accountability.

Modern retailing will require most dealers to move to a SPOC framework to remain competitive, profitable, and the have a stable sales team with low turnover.

Sharing Dealer Success Stories

Chip Perry will be back on stage in May at the 2022 Digital Marketing Strategies Conference (DMSC) with Murat Deljanin from Paragon Honda who is prospering using a SPOC sales process powered by technology and training from A2Z Sync. I encourage dealers to attend DMSC for this amazing conversation which challenges are current sales frameworks.

Check out the full DMSC conference agenda here: DMSC Agenda

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If you would like to get a copy of the full YouGov research report that Chip Perry presented at the 2020 AIS, contact Tori Morandi, Head of Marketing, [email protected].