Ewout van Jarwaarde, the CEO of used-cars marketplace CarNext.com, spoke about the used-cars value chain at AutosBuzz.
“From a customer perspective, how do you deliver the perfect experience?” – that’s the ambitious question posed by van Jarwaarde.
“We have a massive opportunity. We try and look at things from a customer perspective. We all know people who have had a terrible experience buying a used car. Is the price right? In the test drive, you wonder am I missing because the consumer is not an expert.”
“You have to start with customers.”
The market opportunity is huge. Every year over 10 million quality used cars are sold in Europe. Subscription models reduce cycle times, so it’s an area likely to grow.
But are they 10 million poor customer experiences? The answer lies in the used-car value chain.
“The buy sides and the sell sides are simply not aligned,” he said.
“We think you need to move toward transactions. Marketplace 2.0 is emerging, and with this marketplaces own the quality of products.”
“Marketplace 2.0 is about the end-to-end customer journey, offering a range of flexible models that customers are looking for. All of these industries are moving toward relationships and all are data-driven. That is what we are doing at CarNext.com.”
“We try to match supply and demand. We are opening up our platform to other sources like leasing and subscription models.”
“We let them buy or rent a car and offer finance and ancillaries. We offer remarketing as a service and have pricing data for b-to-b and b-to-c across 23 territories.”
The results show the success. In 2018, CarNext sold 250,000 vehicles, with 65% year-on-year growth in sales However, the most important number, according to Jarwaarde, is the NPS score of 73. “This is unique across any industry, particularly used cars,” he said.
“We did this by rethinking the entire process step-by-step. Now, within two minutes consumers can buy a car online, signed, contracted and with delivery arranged. We introduced escrow payments so consumers have the discretion to wire the payment at the moment they buy the car.”