Two-Thirds of New-Vehicle Shoppers are in Market Now.
According to the studies, dealers believe that well over half of new-vehicle shoppers (58%) are willing to wait for their vehicle. In contrast, less than a third of consumers (28%) actually say they will order and wait if their vehicle of choice isn’t available in 2-3 months.
The perception that consumers will wait could result in an even-more unsettling outcome for dealers who fail to realize the depth of their misalignment between what they believe and what consumers are saying: 42% of new-vehicle shoppers say they would consider a different dealership, and 22% would consider a different dealership for the same brand, while 14% would go even further and consider a different brand. In other words, the competition.
Given the circumstances, it’s imperative that dealers create and implement strategies proven to influence shopping behavior and promote positive customer experiences. One of those strategies is incentives.
Don’t Overlook the Power of Incentives to Motivate Shoppers to Consider Alternatives.
Incentives are a tried-and-true strategy for motivating behavioral change. This carries over to a large purchase like a new vehicle. What’s more, incentives need not be big to motivate behavior. And they are relevant to all kinds of buyers. According to a recent study commissioned by Urban Science,3 gift-card incentives worked nearly as well for those making between $50,000 – $74,500 (40%), as those with HHI over $124,999 (43%).4
In fact, the Urban Science Harris Poll mentioned earlier found that 6 in 10 consumers said incentives would be influential in getting them to change their vehicle purchase or lease decision. It also identifies the four areas that consumers reported that incentive would be likely to influence.