Customer loyalty suffers in the digital age

The expansion of digital technology is fast eroding traditional customer loyalty to vehicle brands and retailers, according to an audience of more than 300 dealers at an automotive retail conference staged at the Birmingham NEC earlier this month by EurotaxGlass’s.

At the event, entitled ‘The Internet – gaining the competitive advantage’, 79 per cent of delegates stated that the Internet-savvy customer is less likely to remain loyal to a particular dealership than in the past.

Reacting to this, Kevin Gaskell, Group Chief Executive Officer at EurotaxGlass’s, suggested that retailers need to respond more effectively to the new challenges of the digital age.

“The Internet enables consumers to research products and services before they meet a sales executive, so it is essential that dealers communicate their key sales messages online, in front of their target audience, during the research phase,” he commented. “Giving customers a positive experience will always increase the chances of retaining their business in future, regardless of the new technologies available.”

Diminishing loyalty was one of several issues to recur during the day-long event. The fundamentals of website design, the increasing importance of video, and the impact of the Internet on vehicle pricing were also hot topics.

Throughout the conference delegates were invited to participate via interactive handsets, which allowed them to submit questions to a panel of experts, as well as respond to on-screen polls relating to discussion points.

44 per cent of the audience at the conference disclosed that they had spent over £50,000 on developing their corporate website, yet a significant proportion – some 18 per cent – admitted to spending less than £5,000. Trader Media Group’s Nick King advised that most dealers should be spending half of their marketing budgets on their websites.

When surveyed about search engine marketing, 26 per cent of respondents said they did not have a search account. Of those that did, over a quarter (27 per cent) hold accounts with more than one provider, with Google proving to be the dealers’ most popular choice.

Dan Smith of law firm Wragge & Co spoke on the risk areas for dealers operating online. After his presentation, over a third (36 per cent) of the conference attendees acknowledged that there were some legal issues to address with their websites.

The conference was organised by EurotaxGlass’s following demand from customers and the industry for an event which would raise awareness of new media developments. The day’s itinerary included presentations by representatives from a broad spectrum of organisations which are leading the way in online developments, including Google, eBay Motors and Auto Trader. The event was hosted by international television journalist Stephen Cole.