Buying a car has become dramatically simpler than it used to be a few years ago. I recently bought a car on my iPhone via Beepi’s iPhone app. The transaction took a couple minutes, required a few clicks, an email confirmation and a few signatures at the time of delivery. Beepi andShift are attempting to build a massive marketplace for cars (watch out EBay Motors) by transforming a potentially complex and tedious customer transaction with deft simplicity. While their business model and marketplace design are both efficient, I want to highlight how they offer a superior customer experience through reduced friction.
Buying a car is a non-trivial decision for most customers. Even after narrowing down on the make/model/color/price range of a car, a typical car buyer faces about a dozen decision points through the life cycle of that transaction. Each decision point introduces friction due to three main factors:
- Avoidable effort needed to complete a task
- Forced context switching
- Count and complexity of decisions
- Avoidable effort needed to complete a task: Beepi reduces friction by addressing basic questions upfront. Some of the most common anxieties for a car buyer are caused by questions such as — “Is anything wrong with this car?”; “Are the basics OK?”; “Is the price fair?” and many more. Typically a customer would check sources such as Carfax to verify the car’s condition, KBB or Edmunds to check the car’s fair market value, and IIHS for the car’s safety rating. Beepi avoids the need for the customer to visit these sources by providing all necessary data to inform the purchase decision. Another task every that every car buyer dreads is to go to the local DMV to get the car registered. Beepi avoids the need to do so by taking care of the paperwork, so the customer does not have to.
- Forced context switching: Several decisions and tasks involved in buying a car require a customer to switch context, which often increases friction. For instance, even after deciding the make and model of a car, customers often end up taking the car for a test drive and getting it checked by a mechanic at the local dealership before closing the final transaction. Beepi avoids this need to switch context by replacing test drives with a 10-day “No questions asked” return policy. It also offers a detailed inspection report (sometimes a better report than the local mechanic), so the user does not have to switch context “browsing” cars on an app or a computer to meeting the seller and taking the car to a mechanic for inspection. Along similar lines, existing car owners often end up needing to switch context between buying their new car and selling their old car. Beepi avoids context switching by offering a low-friction selling experience as part of the purchase workflow.
- Count and complexity of decisions: The count and complexity of decisions required in traditional car buying are increased due to typical fear, uncertainty and doubt. Beepi shifts the focus from anxiety to convenience by offering generous return policy and peace of mind guarantee.
Beepi’s product experience is a useful case study in taking a multi-step transaction and reducing friction one step at a time.