Pub 2 2021 Issue 1

http://wvcar.com 16 WVADA matters to them and speaking up at the right time with the right offer. To reach customers at the right time, monitor channels such as social media, your website, and customers who walk in the door; that includes customers in the service department. Reach out to customers with a call to action. As you focus on the service department, you may want to rethink compensation. Employees on the service side should be compensated as generously as employees on the sales side when contributing to the dealership’s success. Reward their help if they are involved in a sale. When reaching out to a customer, how do you know what you should offer them? People generally have two goals when they are making a big purchase. They want financial help to make the purchase possible, and they want to mitigate the risks inherent in spending a large sum of money. Customers are also interested in saving money. Look for ways customers can find money to spend at your dealership, and set up deals that make sense for them to agree to. Of course, it isn’t enough to sell to existing customers. You also have to look for new customers. Customers have changed their buying habits, and the pandemic has accelerated the change. Some customers still only buy in person because they understand that process. But customers also like buying online, and some customers use a combination of the two (such as researching online and communicating by email). According to IHS Markit, U.S. customers buying at the first major pandemic peak could be classified as follows: • Dealership purchases: 38% • Combined purchases (dealership and online): 27% • Online purchases: 34% How you handle online leads will make a difference in whether you make sales. More people are shopping online and seeing posts than are walking through the door of the dealership. Assuming they don’t make the entire purchase on your website, they may eventually step into the building ready to buy. That readiness is useful information for you to have. Your goal should be to make the process seamless and frictionless. You also have an opportunity to streamline. One way to analyze your existing processes is by looking at how many employees a customer interacts with during a purchase. IHS Markit researched this question at dealerships in the U.S. and other countries: The table shows a couple of missed opportunities. • In the U.S., 5.7 employees interact with a customer when the sale is conducted online and in the dealership. That’s more than at the dealership or online. • Outside the U.S., customers deal with fewer employees, period. Let’s explore the missed opportunities: • The handoff between being online and going to the dealership is not seamless. When online customers walk into dealerships, they start the process at the beginning again instead of resuming where they left off. That shouldn’t happen. • U.S. dealerships are less efficient than dealerships outside the U.S. Online customers at U.S. dealerships are generally directed to a receptionist. Outside the U.S., dealerships send online customers directly to a product expert. The expert focuses on solving problems for the customer. What is going to change after the pandemic ends? Less than you think. It’s a no-brainer to improve your website service, of course, but time-tested sales strategies will also continue to work. Manage inventory intelligently, strategize every sales channel and let data help you focus on customer service: • Good relationships continue to be the real foundation of any business. People like to buy from friends they trust. That hasn’t changed, and it isn’t going to change. • People are social. They will still want to come to the dealership. They will appreciate having the option of picking up their vehicle from the dealership or having it delivered to their home. • Look at your sales processes, and adjust them to make them work better. The first contact with a customer should be with a member of the sales staff, or someone who specializes in, or is a product expert about, whatever the customer is likely to buy. Have this employee gently guide the customer through the process by focusing on whatever problem the customer has. Be solution-centric, not sales-centric, and emphasize professional expertise, not selling. You can upsell later. • You will do your best on the internet if you put high-quality people online to interact with potential customers. • Study Amazon’s example when it comes to your website. Amazon provides a tailored, quality experience. When Amazon makes suggestions, the suggestions increase its revenue by 40%. • Online and hybrid options are convenient. Customers like them, so they are here to stay. Anything that makes buying effortless and uncomplicated is good. t Sale Type U.S. World At the dealership 4.7 3.8 Partially online, partially at the dealership 5.7 3.0 Online 3.8 2.1 continued from the previous page