Austin, Texas, Jan. 22, 2019
Rollick has released the results of their recent survey of 3,000 consumers engaged in the recreational product buying process. These results are included in their recent whitepaper — “The Recreation Shopping Experience: Why Customers Buy and How to Ensure They Buy From You.”
Four major themes were explored in the survey. They include:
Brand Consideration and Switching
According to the study, 81.2% of respondents seriously consider purchasing other brands, 43.1% of dealers suggested other brands, and 67.6% of respondents purchased the brand they originally inquired about.
Somewhere along the purchase funnel, consumers are being persuaded to switch brands. We know that one reason for this is that the dealers’ goal is to sell the consumer the product that best fits the consumers’ needs, not necessarily the brand that sent the lead in the first place.
This hurts relationships between OEMs and dealers and dilutes the investment OEMs make in marketing, nurturing and branding.
Dealer and OEM Follow-Up
According to Rollick data, the average days to close from lead to purchase for 2017-2018 was 221 days in marine and 198 days in RV. This is a long purchase cycle and there are many nurture opportunities within that time span. However, dealers and OEMs alike are only following up with consumers about once after the consumer made contact. Only 57.5% of dealers continue to follow up after their initial contact with a potential buyer.
The survey showed that consumers were mostly satisfied with their dealer experience in all areas except for price. Price is a challenging topic because it can change frequently, and because of customization, it is hard to assess exactly how much a recreation product will cost the consumer.
However, the survey results surfaced that dealers do a better job at communicating an accurate price early in the relationship so that consumers walk into a dealership with reasonable expectations.
The Rollick solution, which not only provides accurate pricing, but also special savings to members of certain affinity groups, helps solve this problem. Providing an accurate price instantly online helps the consumer build trust in the dealer and in the OEM. This trust creates brand and customer loyalty.
Areas where customers reported satisfaction included facility cleanliness, product knowledge, staff timeliness and communication, availability to answer questions, and product availability.
Why People Leave the Market
The survey found the number one reason consumers decide to no longer purchase a recreation item or to purchase a different brand is because of price. The second most common reason is because they found another brand that better met their needs.
It’s the job of OEMs to create brand loyalty and ensure that dealers see that loyalty through when a consumer walks into a dealership to inquire about a specific brand.
On a scale of 1 to 5, 5 being the highest, consumers reported that when purchasing in the recreation space, the experience ranked a 3.2 — about the same as their experience shopping in similar industries (like automotive). This still leaves plenty of room for improvement.
Both OEMs and dealers should focus on end-to-end improvements to retain existing customers, bring in quality leads, and manage their reputations.
How to Improve the Purchase Journey
Optimizing consumer engagement with your brand is imperative to set yourself apart both within the industry and also as you compete with other industries. Some areas of focus that will move the needle in your favor include:
How to Improve the Repurchase Journey
According to a study by Paul W. Farris, the probability of selling to an existing customer is 60-70% while the probability of selling to a new prospect is 5-20%. And according to Bain and Company, returning customers spend an average of 67% more than first-time customers. Tips to keep customers coming back include:
There is opportunity to sell the same consumer multiple products, and the goal is to make sure it is your products they repurchase, which is a joint effort between the OEM and the dealers. In fact, our data indicates that if a consumer leaves a dealer because of dissatisfaction with their service, they may also leave the brand of the product they were originally interested in.
Most recreation products are discretionary, or not a “need” product. Any friction the consumer may experience reduces the effectiveness of all the marketing dollars spent, the effectiveness of leads generated as well as the close rate. Both the OEM and the dealer do better when they focus on great customer service and working together.
To learn actionable ways you can improve the shopping experience at your dealership, register here for a special webinar presentation by Steve Pizzolato on Wednesday, Feb. 27 at 11am CST.
About Rollick, Inc.
Rollick connects manufacturers, dealers and in-market consumers in the powersports, RV, marine and industrial equipment industries to deliver a seamless customer journey. Rollick’s solutions include new customer acquisition, enterprise lead management, customer experience/loyalty and marketing automation. In addition, the company has rapidly built a national outdoor recreational vehicle buying network to include hundreds of dealers, over 80 manufacturers and an affinity partner network with access to over 150 million high-quality customers including policy holders of major insurance providers, employees at more than 2,000 top U.S. companies, members of the military, veterans and first responders. For more information, visit Rollick.
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Rollick wanted to directly engage military members and honor their service, so it created a way for dealers to offer an exclusive discount to active duty soldiers and veterans. To protect the offers and streamline the purchase process, Rollick used SheerID to verify shoppers’ military status. The program paid off, with a 2x year-over-year increase in military leads and a 130% increase in military verifications.
Join MRAA and Rollick for a deep dive discussion on launching and maintaining a digital dealership. Learn best practices for digital lead quoting, virtual lead follow-ups, and nurturing customers to a sale.