By Chase Abbott, Vice President, Sales – Dealer Software Solutions Dealertrack DMS, Dealer.com, VinSolutions & Xtime

You know the importance of matching customers to the right car. But do you understand the personality traits that lead shoppers to the vehicle? To break through and drive more sales today, you have to understand shoppers for who they are.

According to the 2021 Cox Automotive Car Buyer Journey, there are five different types of car buyers: The Guarded, the VIP, the Informed, the Experiencer, and the Straight Shooter. Understanding the difference between each is an undeniable asset to dealers looking to streamline the path to purchase and close more deals.

Luckily, identifying which buyer segment a customer falls into doesn’t require a sixth sense. Your CRM and artificial intelligence tools can help guide you. With these insights, salespeople can deliver unique experiences that will leave people on both sides of the transaction satisfied.

Here is an overview of the five buyer segments you can expect to see and how you can adjust your communications strategy accordingly.

The Guarded

The Guarded shopper is often inexperienced and cautious during their buying process, primarily focused on practicality and sticking to their budget. This shopper tends to be a single millennial (25-30) living on a modest income and hunting for a great deal. Their apprehension likely increased amid the COVID-19 pandemic and knowing this will help you form a relationship of trust and assurance.

They will appreciate coaching and mentoring, sticking to the basics, and foregoing heavy ‘upselling’ during the initial purchase. These buyers are open (and accustomed to) leaning on digital communication like email and text. But don’t forget that a video chat or FaceTime can go a long way to boost confidence.

The VIP

This millennial buyer is different than their Guarded counterpart. They view their car as a reflection of their social status and are parents looking for something that will look good parked in their driveway. The VIP will gravitate toward the path of least resistance. Their focus on speed and ease makes them an ideal candidate for a digital or hybrid sales experience, in which your dealership can use tools like virtual assistants, integrated desking, and digital retailing to get them into their new ride faster.

When interacting with a VIP you can be as direct as the data when it comes to negotiations and recommendations. They will appreciate doing business with someone who respects others’ time and taste level as much as they do.

The Informed

Preferring the finer things in life, the Informed shopper is meticulous and invested in the process. Think of them as an older VIP with deeper pockets and an appetite for every stage of the experience. They will appreciate the convenience of completing steps of the deal online, but will also be a prime candidate for traditional communication methods, including phone calls and in-person appointments.

The Informed is likely to highly engage with digital tools prior to making contact with a salesperson. 35% of car shoppers in 2020 knew exactly what kind of vehicle they wanted before they started their shopping process1 and many of the Informed fall into this category. They won’t be afraid to make their preferences known so salespeople can expect a healthy negotiation.

The Experiencer

The Experiencer is an older urbanite millennial who views the car-buying experience as an opportunity to learn and fuel their enthusiasm about cars. While a bit more adventurous than the Guarded, the Experiencer has a similar financial situation, deterring them from the market. A high volume of communication is a safe bet to give them the full experience they crave, as well as to build their confidence.

Knowing that this buyer is eager to learn can help you form a relationship based on knowledge sharing. The Experiencers will likely also see this as an opportunity to practice their negotiation skills, even if it might be over text.

The Straight Shooter

Likely a member of Gen X or a Baby Boomer, the Straight Shooter is well versed in the car buying process and would never purchase a car they felt they could not afford. Residing in the suburbs with a more moderate-income, they are most concerned with pinpointing exactly what they need.

During the COVID-19 pandemic, there has been a spike in confidence among buyers like the Straight Shooter. They are willing to make a deal, even during these abnormal times, if it is right for them. They won’t expect or appreciate unnecessary communication, so being direct will help move things along in the right direction.

Now that you’ve been introduced to these five different types of car buyers, it’s easy to see that varied approaches are needed to form the best relationships. Lean on insights from your CRM and artificial intelligence tools to tell you who is who, and then personalize. In 2021, digital retailing is predicted to skyrocket, and those who take advantage of the data being generated to strengthen human connections will drive action that really moves metal.