Urban Myth Refuted: The One Stop Car Shopper

For the past few years a number has circulated around the industry that dealership visitation by consumers has declined to the point that auto buyers are only visiting 1.4 dealerships before purchasing a car. While there is no doubt that there has been a decline in the number of dealership visits by consumers as the Internet has allowed more research online, the 1.4 number has had dealers scratching their heads as that would imply they need to be closing over 70 percent of new walk-ins to be “average” – not accounting for repeat visits.

One of the findings of DrivingSales’ 2015 Customer Experience Study is that this number is a urban myth, but with a tinge of truth.  The DrivingSales survey of nearly 1,300 recent purchasers determined that, in aggregate, the average number of dealerships visited by shoppers was 3.4. Using this number, closing about 30 percent of new walk-ins would be a typical dealer performance.

However, this average is skewed by a relatively small number of shoppers (18 percent) who visit 5 or more dealerships.  Nearly 1/3 (31 percent) of shoppers reported visiting only one dealership. Eighty percent reported visiting either 1 or 2 before purchasing.

The bottom line is that one needs to understand where the shopper is in their process and respond accordingly.  If you be responsive to their needs many don’t feel the need to shop multiple stores.