Survey: Dealers & OEMs have chance to build lasting loyalty via timely payouts
Onbe, a corporate disbursements platform that is involved with test drive incentives, auto rebates and settlement payments, recently released the findings from its Summer 2023 Auto Survey.
The survey polled 732 vehicles shoppers, aiming to better understand their preferences when receiving payments from their finance company, dealership or manufacturer.
While purchase incentives are among the top three factors that influence a consumer’s decision of when to buy or lease a new vehicle, Onbe’s survey uncovered that businesses have an “untapped” opportunity to build lasting loyalty by offering the frictionless, fast payouts their customers prefer, while improving their efficiency.
Whether beginning their journey with an automotive brand from an incentivized test drive to the trade-in process to the maintenance of the vehicle, Onbe said payments are a “key contact point” between automotive customer and automotive companies.
“And by reducing friction, these companies can exceed customer expectations,” Onbe said.
According to the survey, 43% of respondents indicated that lack of choice was a leading cause of frustration with their payment experience, and more than half — 56% to be exact — of buyers or lessees are not offered a choice in how they receive their contract or lease overpayment or automotive incentive.
Onbe explained payment choice gives automotive companies the opportunity to better meet their customers’ needs by distributing payments easily, quickly and conveniently.
Beyond the initial point of purchase, Onbe said dealerships and manufacturers can leverage modern modalities to execute their incentive or rebate programs to acquire and to cultivate loyal customers — through convenient goodwill payments in the case of a mistake, dealership maintenance or additional services such as tires or fuel incentives.
Further survey results showed an opportunity for dealerships to drive spend-back, with 47% of respondents saying they are likely to spend back the incentive payment with the dealership they receive it from.
“Our longstanding experience in providing solutions for top automotive brands are bolstered by the findings in this survey — highlighting the importance of choice and a modern payout experience, which produces loyalty building opportunities long before and after the initial sale of the vehicle,” Onbe CEO Bala Janakiraman said in a news release.
“An effective fintech partnership that delivers convenient, frictionless payment solutions, empowers auto businesses to exceed today’s consumer expectations,” Janakiraman continued.
Additional findings from Onbe’s Summer 2023 Auto Survey include:
—55% of consumers have received an automotive payment in the past, with 55% receiving an incentive or deal payout and 34% for a loan or lease overpayment refund.
—For larger automotive payments (over $100), nearly three quarters prefer payments made to their digital wallets, such as PayPal and Venmo, or direct to bank solutions such as ACH.
—47% of auto shoppers say the leading cause of frustration with their payment experience is time it takes to receive their funds.