Disrupting The Auto Industry Customer Experience With Carvana

Buying a car can be stressful and time-consuming. It’s not a task that most consumers look forward to. But Carvana is changing the experience by giving power back to customers and letting them find their perfect car from the comfort of their own home without having to haggle with salespeople.

Co-founder and Chief Brand Officer Ryan Keeton points out that the car-buying process hasn’t changed in more than 70 years. Carvana set out to create “Amazon for cars” to provide an amazing experience for customers to find their perfect used car. Using a wide array of technology, customers can peruse Carvana’s 15,000 cars (a much larger inventory than the typical dealership) and get a complete and accurate view of the inside and outside of each car. Once they choose a car, it is either delivered to their home as soon as the next day or available to pick up at a car vending machine around the country. In perhaps the biggest innovation over the traditional car buying experience, customers have a seven-day window to return the car with no questions asked.

Everything about Carvana is designed around the customer experience. Keeton and the other founders wanted to save people money and use technology to reduce friction. By removing many of the extra people and layers of the dealership buying experience, customers have more control and transparency into the process. Instead of salespeople, Carvana has customer advocates who answer questions about the process and specific cars. Customer advocates don’t fight the customer to haggle for a deal, but are on the same team and work with customers to find the perfect car.

In order to create an amazing experience, Carvana relies heavily on technology and data. The company invested heavily in photo and video technology, as well as logistics to be able to deliver cars to people around the country as soon as the next day. Technology also auto-populates many of the contracts, which turns a multi-hour car-buying experience into a 10-minute transaction. Data helps Carvana measure its progress and target its approach to potential customers.

Disrupting such a large industry hasn’t come without its ups and downs. Keeton says many customers, especially those in new markets, think Carvana is too good to be true. One customer even had 20 co-workers waiting with him when his car was delivered. They had a bet on if Carvana was real and if the car would even show up. To combat skepticism, Carvana works to surprise and delight customers with amazing experiences. Continually delivering on its promises helps Carvana stay close to its brand and customers as it continues to spread its message.

Carvana shows that even well-established industries can be disrupted with a renewed focus on customers.