Whether you are a Bank, Credit Union, P2P lender or direct Auto Financing company, by now hopefully you have transitioned to the latest technologies and can provide most if not all of your process online: application, doc process, and final decision-making.
Ok, so let’s review your customer’s journey. Your marketing operation brings the customers, who then go through the online process, and end up with a pre-approved auto loan in their hands. While it might seem like your job is over, it’s not. What is your ultimate goal? Your goal is to fund the approved auto loan. Therefore, it is imperative to continue the customer’s journey to reach your ultimate goal of funding the loan. If you stop at the pre-approved auto loan, there are pitfalls ahead…
What are the pitfalls ?
- Customer has a higher chance of switching to another lender.
In an instance of a “pre-approved only” or secured auto loan, the process is not complete yet so there is a chance that your customer might get sold a loan from another lender. The longer the distance from where you drop off your customer to where he/she actually purchases a vehicle, the higher the chance of your loan being switched out.
- Bad user experience
Generally customers prefer simplicity and they don’t want to jump through hoops. That’s why we love bundled deals, and shopping at supermarkets since that’s where we can find everything we need, all in one place. There is also less to think about, it’s more convenient and it’s easy to follow one common process.
- Customers might change their mind
It might take some time for customers to find a vehicle they want, remember they are on their own. During that time they might decide not to go through with the loan and get cold feet. This is why you want to minimize the amount of time they spend looking for a car.
But don’t worry there are ways to solve the above mentioned problems. Read on to find out what they are…