Carzoos - Most Innovative Company of the Year
Company: Carzoos, Brisbane, QLD, Australia
Entry Submitted By: The Village of Useful
Company Description: Carzoos is an entirely new way to buy and sell used cars. It's the first customer-centric used car buying model. Car yards are replaced with retail stores in shopping centres. All cars come with a no questions asked money-back guarantee. All pain points have been identified and removed.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Most Innovative Company of the Year - Up to 100 Employees
Nomination Title: An Entirely New Way to Buy and Sell Used Cars
Tell the story about what this nominated organization has achieved since 1 January 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
How people buy and sell used cars has remained largely unchanged for 100 years. Yet, research revealed that more Australians would rather get root canal than walk into a used car yard.
A broken customer experience of that magnitude is a disruption waiting to happen.
100-year old car retailing group, A.P. Eagers Ltd, focused its full innovation attention at solving this problem. This was a customer experience challenge that would need customer co-collaboration to fix it.
The result is a global-first used car offer, Carzoos (https://www.carzoos.com.au/ ) an entirely new way to buy and sell used cars.
Extensive customer research exposed a series of ‘fear points’ (pain points, only more scary) with the current used car experience. Customers said they’re scared of:
Going to car yards.
Haggling with dealers.
Paying too much.
Getting too little for their car.
Buying a lemon.
In reality, Carzoos is a stubborn commitment to solving all fear points in the used car experience. This was manifested in the creative platform, Buy Fearless, Sell Fearless
To succeed, Carzoos had to disrupt A.P.Eagers’ very own business model. The first innovation was a set of benefits that make this new model possible:
Buying – all cars come with:
24/7 roadside assistance.
An algorithm powered ‘no haggle’ price based on the historical average negotiated sale price.
12-months free car insurance.
7-Day no questions asked money back guarantee. Customers love their new car or they just give it back.
Immediate auction exposure to a network of dealers.
A ‘best price’ offer within 24 hours.
If the car doesn’t sell within 30 days, Carzoos guarantees to buy it.
Carzoos does all the paperwork.
The customer is free to keep driving the car while it is for sale.
These exclusive benefits made it possible to remove car yards and instead allow customers to view aggregated cars from A.P. Eagers on a website built with the highest standards of UX design. A uniquely designed concierge service suggested suitable cars based on lifestyle rather than model specifics.
Customers can also walk into innovative Carzoos retail stores in shopping malls. There they could search on a purpose built app with the help of a store ‘buddy’, a highly trained staff member recruited from outside the used car industry and remunerated on customer satisfaction not sales commissions
It is still early days for Carzoos but already the results have been exciting
Enquiries are up 250% vs. Carzoos 1.0 model.
Conversion rates are at 1 in 5 vs. industry average of 1 in 13.
Sales have grown 3.6X the industry.
In-store customer is at 96% highly satisfied (GetFeedback.com).
5-Star customer rating (https://au.trustpilot.com/review/carzoos.com.au">https://au.trustpilot.com/review/carzoos.com.au ).
Expectedly, Carzoos is also creating a lot of noise in the industry and the media both in Australia and internationally;
A 2016 article by the Huffington Post described the Carzoos offering as follows:
“Finally, a start-up we can get behind that has the potential to help you with real-world issues. CARZOOS aims to take the fear out of buying or selling a used car, to remove the stress and worry around the topic.”
Australia’s leading national newspaper ‘The Australian’:
“The used car model, based on a physical floor plan and commission driven sales people hasn’t changed much since the model T days. As with most other industries, disruption is afoot. AP Eagers has recognised this by rolling out Carzoos, a sales channel for used cars based on a semivirtual shopping centre presence.
The preloved vehicle market is twice the size of the new car sector (about 2.2 million units) in Australia…Morgans says: ‘Given the higher margin nature of the used car business … we expect the new Carzoos model will be a meaningful contributor to the AP Eagers company value if executed successfully.’”
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this organization since the beginning of 2016 (up to 150 words).
-New business model developed based on learning from customer research and initial trial of the Carzoos concept.
-New value proposition: Buy Fearless, Sell Fearless.
-Seamless online experience allowing selection of aggregated dealer stock with Carzoos unique fearless benefits.
-Two innovative retail stores opened in Shopping Centres in Brisbane in 2016 with more in development.
-Recruitment and sophisticated training of dozens of store staff from non used car dealer background.
-Sales conversion rate 3.6 times the industry average.
-Lift in enquiries by 250% (vs. Carzoos 1.0).
-96% ‘High satisfaction’ rating via iPad exit interviews with customers (GetFeedback).
-5-Star rating on Trust Pilot review channel.
-Significant press coverage including articles in national newspapers ‘The Australian’, ‘The Financial Review’ and ‘The Courier Mail’, as well as coverage by national news broadcaster Channel 7.
Of the following types of innovation, which ONE do you want the judges to most appreciate about your organization's story of achievement since the beginning of 2016?
Customer Service Innovation