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Car dealerships looking to tap into the lucrative younger end of the market should be making sure they have all of the right technology in place - especially including the basic modes of contact and communication that the current younger generation expect to be able to use.


Many forward-thinking car dealerships are adopting advanced technology, for example 'virtual' stock that displays different vehicle specifications on a computer screen rather than having a physical example of each model, spec or trim.

And while this is a good way to set yourself apart from the crowd - and can potentially save on your motor trade insurance by reducing the total number of physical vehicles on-site - it's important not to run before you can walk, in terms of putting basic technology infrastructure in place first.

According to the recently published J.D. Power 2017 UK Customer Service Index (CSI) Study, which awards a score of 1-1,000 for overall customer satisfaction with car dealers, the highest satisfaction when initially accessing a dealer's services is among those who are able to do so via SMS or instant messaging.

But these account for just 3% of the total, highlighting not only how few dealers are already catering for this mode of contact, but also the potential opportunity for those who can introduce IM or SMS enquiry lines.

Younger customers also express a preference for being allowed to plug in at a dealership, as well as access to other 'digital amenities' like Wi-Fi, tablets and public computers with internet access.

"Car dealers who aren't prioritising technology options are missing out on an opportunity to connect with a younger generation of customers," said Dr Axel Sprenger, managing director of J.D. Power Europe. "As these consumers begin to account for a larger number of vehicle sales and service visits, it's important for dealers to be able to cater to their needs to differentiate themselves from competitors and drive loyalty."

It's not just about making customers happy when they drive away a new car - it also increases the likelihood of them returning when they need paid repair or service work carried out on the vehicle.

The CSI found that 81% of customers with satisfaction scores over 900 on the 1,000-point scale 'definitely will' return to the same dealership for work they have to pay for - and 88% will return for work covered by their warranty.

For those with a satisfaction level of 700-899, meanwhile, only two-thirds will return for work paid for by warranty, and less than half for work they have to pay for themselves.

Overall, technology offers a way to boost customer satisfaction, with positive effects on your public reputation and on repeat custom - just be sure that if you have more high-value IT equipment on-site, your motor trade insurance cover is designed to protect the value of this against theft or damage.