One of the biggest purchases people make in their lives is that of a car. And with a host of decisions to make around brand, size, cost, and functionalities, it’s not surprising that, until recently, the majority of that car buying journey took place offline.
But new Google and Kantar research about the customer journey of car buyers reveals this is changing. The research took place in Belgium, one of Europe’s biggest markets for new cars, owing to a nation-wide lease scheme for professionals. This makes it a strategic target market for car brands all around the world.
Equally, retailers of other big-ticket items — furniture, luxury fashion, high-end electronics — can use the data gained from this study to better understand how consumers use online sources to research larger purchases.
We unearthed the insights retailers should know about — and coupled them with actionable takeaways.
Key purchase drivers
Buying a new car isn’t a weekly occurrence. It requires a significant budget, and for many, public transport and secondhand cars offer satisfactory alternatives, so people often wait for a good reason to justify their purchase.
Of the consumers surveyed in the research, a third were first-time car buyers, whose purchase was often triggered by a life event, such as a marriage, relocation or a new financial situation.1
Key purchase triggers for first time vs experienced car buyer
Meanwhile, experienced buyers mostly act out of necessity, and either stay loyal to their current brand (35%), switch to a different brand (26%), or return to a brand they owned previously (8%). For both new and experienced buyers, the most important purchase factors are reliability and safety.2
Key purchase factors for all new car buyers
Takeaway: Identifying the key purchase drivers of potential customers can help retailers include and emphasise the right information in their advertising. For example, new parents looking for a baby-friendly car will be on the lookout for ads that highlight space as well as reliability and safety. The same goes for furniture: ads that call out easy-to-clean fabrics are more likely to appeal to young parents.
To win over customers at the research stage of their purchase journey, ensure you make it as easy as possible for them to access the information they need. In addition, remind people of who you are and what you stand for by investing in brand building. This doesn’t just build brand preference with new customers, but also helps you stay connected with brand loyalists.
The modern research journey
Shoppers increasingly combine online and in-store shopping experiences. And our most recent Smart Shopper study shows that across Northern Europe, the majority of surveyed shoppers research online to find specific product details or store-related information.
The same is true for car buyers, with search interest in Belgium for “welke auto” (“which car”) up 18% last year. In fact, 90% of new car buyers researched online, with nearly 3 out of 4 discovering their new car this way.3
Buyers value this approach because it makes it easier to compare cars (39%), saves time (32%), and gives access to detailed vehicle descriptions (29%) and information on a wide range of models (24%) before visiting a dealer.4
The most used online sources are Search (and video, with the majority of surveyed consumers stating that using YouTube triggered a follow-up action such as visiting a dealer website or scheduling a test drive.5 This makes it an important decision-making tool.
Top online sources used in the research phase of the car buying journey
Takeaway: While consumers use Search to guide their research journey, video allows them to experience products in a real-life way, whether that’s hearing the sound of a motor engine or seeing the software design of a computer.
Video helps customers experience products in a way that doesn’t fall short of the real “touch and feel”, whether that’s through 360° videos or virtual reality content.
This means it’s more important than ever for brands — whether they sell cars or other big ticket items — to make video a key part of their marketing strategy. Collaborate with creators, invest in creating high-quality brand content, and boost performance by tapping into YouTube ad campaigns.
Gearing up for the future
The number of car buyers that research and compare online has rapidly increased over the years, but the majority of product experience and actual purchases still take place at dealerships. Looking at the overall path-to-purchase of surveyed consumers, we can see that the amount of dealer visits spikes significantly during the buying stage, while the use of Search, online video, and social media visibly drops.6
New car buyers mostly explore online, but prefer to purchase offline
However, surveyed consumers expect this to change in the near future. While only 8% of them purchased their latest car online or via an app, a much bigger 45% will consider an online purchase for their next car. The driving factor of this approach is that it helps avoid the pressure of being sold unwanted services, and they can access a more transparent overview of vehicle options and available finance plans.7
Takeaway: With nearly half of surveyed consumers expecting to buy their next car online, there’s an opportunity for retailers to better meet customer needs through digital experiences. As access to transparent information is a key reason consumers choose online over offline, ensure you deliver on this — and consider offering live chat features that allow consumers to ask questions without feeling any pressure.
Ultimately, you want to make it as easy as possible for consumers to get a feel for your products and pick the one that best suits their needs, whether you’re selling kitchen appliances, luxury fashion, or cars.