ONTARIO, Calif. — It's time credit unions mix in personal service and the human touch with their online car shopping services, according to CU Direct.
Research the company has conducted with credit unions, and evaluating studies from the Pew Research Institute and J.D. Power, indicate many consumers want more than an online car shopping service — they want someone to help them with the final purchase of the vehicle.
CU Direct has been piloting AutoPREMIER, a concierge service the company operates that connects members with a live person to walk them through the final steps of buying a car.
"This service marries the human touch with the online experience," said Marci Francisco, senior director of automotive marketing and business development. "Consumers now can find out online all they need to know about the vehicles they are looking for. Data shows that the average consumer spends 16 hours gathering information during the car shopping process."
That can lead to information overload, said Francisco, and the need for someone to lend a hand. She explained the concierge service talks to members, finds out what car they have decided on and can even help with that decision, and then through the CUDL (Credit Union Direct Lending) network of local dealers finds the car, secures a pre-negotiated price and then sets up the meeting at the dealership.
"This really becomes one-stop shopping with the credit union and keeps members from straying during the car shopping and car buying process," said Francisco. "The concierge service does the footwork, tracking down the car, getting the right price and setting up credit union financing. Credit unions often position their auto shopping and concierge auto buying service side-by-side on their websites under an 'auto resource center' umbrella."
CU Direct has been piloting the service for 18 months with 25 credit unions and plans to roll it out in selected markets in 2014.
The $505 million Centris FCU in Omaha, Neb., is part of the pilot. Dan Palmquist, VP of indirect lending and merchant lending, said AutoPREMIER appeals to members who are either in a hurry, require a higher level of service or are uncomfortable with car buying.
"I see the concierge service as another tool in our auto financing options. It isn't the only answer and won't appeal to every consumer. I think one of the outlying benefits, though, is the service sends a message to participating dealers that the credit union wants to bring business to their door and help them succeed, resulting in dealers providing a higher level of service to our members."
Francisco added that a higher level of service is needed, as well, once the loan is closed. She said credit unions have to find reasons to reach out to members about their new car, and their car loan, on a regular basis. "It's now about creating a one-to-one experience with members as opposed to sending a broadcast message two to three years into the loan."
Francisco is concerned that if credit unions don't take this approach, even leveraging social media to connect to members, the credit union will lose loans to the automakers.
"Manufacturers are reaching out to customers after a car purchase, staying in touch," said Francisco. "After that vehicle is delivered they focus on the service experience, and the experience of owning the car. Credit unions have to mirror what the dealers are doing, create more engagement with the member and build brand loyalty."
