More than 60% of automotive customers consider customer reviews important when searching for businesses online, but nearly the same number express disappointment after visiting those businesses, according to a new Better Business Bureau Great West + Pacific study.
Driving the news: The Better Business Bureau Great West + Pacific includes Alaska, Central Colorado, Hawaii, Idaho, Montana, Oregon, Washington, and Western Wyoming.
Working with research firm TrendCandy, they surveyed 100 consumers in July who recently shopped for auto services in Alaska, Hawaii, Idaho, Montana, Oregon, and Washington.
The survey focused on how customers choose auto businesses and the impact of reputation, communication, and transparency.
How customers are finding businesses: Word of mouth and referrals from friends and family remained the top way customers discover new auto businesses, according to 60% of the respondents.
Also, more than half use traditional search engines, and 47% rely on customer review websites.
Almost half of younger customers, under 40, are turning to AI tools.
“When we talk to the businesses that we have conversations with all the time, either that are already BBB-accredited or considering it, they still say word of mouth is the number one thing that they rely on to get more business because it's the number one thing that customers rely on whenever they're making those decisions,” Ben Spradling, director of content marketing for the BBB Great West + Pacific, told CDG News.
Importance of reviews: Customer reviews are influencing other consumers, with 65% saying they help narrow choices.
And when scheduling a service with a new auto business, 28% said customer reviews mattered most, even above price (20%) and reputation (19%).
Additionally, six in 10 respondents stated that more recent reviews were very important.
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Reviews not leading to positive experiences: While many customers are influenced by reviews, 66% say they were disappointed with their experience at the business they chose based on the reviews.
“It was alarming to see that so many of them ended up having such a bad time after performing some of their research,” Spradling said. “...I think what it confirmed is really just that a review can only tell you so much. It's one customer's experience on a particular day for a particular car purchase that they had. It's not necessarily an indicator of what your purchase experience is going to be like going forward.”
Silence on negative reviews turns off customers, with 81% stating they would like to cancel or avoid scheduling service if negative reviews or complaints go unanswered.
Winning trust: Clear pricing and estimates topped the nine factors to build customer trust at 77%.
Nearly half of the respondents stated photos, estimates, and repair documentation increased their confidence in approving expensive repairs.
That percentage jumped to 58% for costs over $1,500.
Additionally, 63% stated that surprise charges are the fastest way to lose their business.
More than half of respondents return and recommend a business, and drive out of their way to return, if they find the business trustworthy and with transparent pricing.
Bottom line: Dealers, especially in their service drive, need to focus on their reputation online and make sure complaints are addressed.
“It's really important for you as a business owner to prioritize really putting the right information out there,” Spradling said. “And if there's information that you don't feel like is maybe favorable for you, you can't ignore it. You've got to meet it head-on and couple it with the information that you do feel like is more reflective of the way that you do business because those are the things that influence customer decisions.”
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