The process of buying a car has evolved considerably with the
proliferation of the internet, as nicely explained in a recent article
by The Economist "Death of a car salesman".
Where once upon a time, customers visited 5 dealers on average before
buying a car, they now visit 1.6 dealers. What has changed?
Customers
now do most of their research online beforehand, choosing the car they
are interested in, comparing prices, and selecting the features they
want before setting foot in a dealership. By the time they are face to
face with a salesperson, all that is left is the test drive and haggling
about the price.So what can be learned from the automobile industry?
There are a number of obvious parallels between a solar purchase
and a car purchase, such as the similar price point and the complexity
of the purchasing decision, but there are also some differences.
Homeowners are not nearly as solar savvy as car savvy on average,
meaning that the initial time and effort spent on researching solar
energy is even more important. A Google Think infographic
of the car buyer's experience shows that more time is spent in the
"Thinking" and "Researching" phases than in the "Buying" phase. In the
solar business, where most homeowners are first-time buyers, (unlike the
car industry where most people are not shopping around for the first
time), this time spent thinking and researching, and the quality of
these experiences, can make the difference between a sale or no sale.
Homeowners may not be going online to choose one brand of panel
over another, or choosing the features to include in their solar
installation, but they are trying to figure out if solar energy makes
sense for them. What does it cost? Will they save money? Is their roof
suitable? Will trees and shade be a problem? What size system do they
need? Should they buy or lease? And will the solar panels cover all of
their normal electricity use?
These are the same questions that solar installers have to answer,
explaining in detail, time and time again to prospective customers, all
while the homeowner wonders if the installer is just saying the right
things to make a quick sale or if they are getting the honest goods (as
the expression goes, never ask a barber if you need a haircut!). One of
the reasons people prefer doing more of their car research online is
because they find the experience at a dealership to be stressful and not
enjoyable. Customers are finding what they want online so they can
minimize this time. The solar industry can learn from this, making it
easier for homeowners to find the information they need online, while
making the sales process simpler and less expensive for the installers.
Addressing soft costs
We know that more than half of solar system costs are actually
soft costs, to do with installation, permits, and customer acquisition
to name a few. That last soft cost - customer acquisition - is an
important one, making up about 9% of the total system cost. Bringing
down this cost, along with other soft costs, is a major goal of the
industry and the U.S. Department of Energy, with many millions in
government funding being spent supporting new ideas to lower them,
thereby making solar more affordable for homeowners.
One way to help lower the customer acquisition cost is to
recognize that innovative software tools have a big role to play, making
the experience of researching solar energy a more enjoyable and
rewarding experience for homeowners, so that when they are finally ready
to go solar, they approach solar installers fully armed with the
knowledge that solar energy makes sense for them. This in turn makes the
sales experience easier and shorter for the installers, and ups the
chances that the installer site visit with the homeowner will convert
into an actual sale.
Yes, there are quite a few websites out there, but most are either
highly technical government or university sites that are not easy for
homeowners to navigate or they are lead generation machines, giving a
bare minimum of information and hoping to off load the potential
customer to installers as quickly as possible. What the homeowners
really need in this rapidly evolving market are truly innovative tools
that are user-friendly and take their best interests to heart, guiding
them through the early stages of the process without aggressive sales
tactics.
Digital touch points
Studies
have shown that brands with more digital touch points are more likely
to be selected by consumers, where touch points are means by which an
individual is reached, whether online or at the point of sale. According
to the Google Think infographic,
the top online sources for car buyers are manufacturer sites, dealer
sites, review sites, auto-related sites and video sites. In the case of
the solar purchasing experience, homeowners may not be focused on
specific equipment brands, but still a parallel can be drawn: homeowners
will need a number of touch points before they feel ready to go solar,
and a good deal of those will be online.
Eventually, the homeowner,
after doing his/her homework online, will approach installers for
quotes. When they do so, with the right online experience under their
belt, those calls to installers will not be preliminary fishing
expeditions with little chance of resulting in a sale - they will be a
reasonable opportunity for a good solar quote to result in a satisfied
customer. There's lots to be learned from other industries. A solar industry
that is open to new ways of doing business and ready to adapt to the
latest realities will be stronger for it!
http://blog.renewableenergyworld.com/ugc/blogs/2015/09/what_the_solar_indus.html
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