See if these buzzwords sound familiar: “Internet shopping,” “educated buyers,” “increased speed of the buying process,” “transparency” and “gross profit compression.” All are legitimate challenges for today’s automotive retailers. And, for many, those challenges have become excuses to not make the gross profit they deserve. There are, at minimum, seven critical points that grow or eliminate gross profit.
Point No. 1: Website Visit
There has been a proliferation of template based Websites where the homepage acts as a portal. A common theme has been to throw as much on the homepage as you can to attract attention for whatever the customer’s interests may be. The unintended consequences are that customers are easily confused. I invite you to use the theory of “TOT” — The One Thing. If there’s one thing you want a customer to do — and it’s the one major thing they want to do — then utilize TOT and simplify your homepage based upon that theory.
Point No. 2: VDP (Vehicle Display Pages)
Your VDP should make it simple to educate the customer and answer questions about the car and have a simple but effective call to action. If it is a new vehicle, describe the option package, rather that just listing all equipment and leaving the customer to figure it out. If it is a used vehicle, then tell a story about the vehicle. Facts tell and stories sell. Utilize simple but intriguing call to actions, such as a button that offers “Get ePrice.”
Point No. 3: Phone Calls
Answer leads quickly. Do not hide behind emails and auto-responder emails. Pick up the phone, call quickly and call often. Be prepared by addressing the customer’s concerns and directly solve their problems by asking questions. If you are using phone scripts, avoid “form speak.” Be human.
Point No. 4: Emails
Answer quickly with a video email introduction. Personalize all emails while avoiding the robotic-sounding email templates. Video is personal and utilizes more communication modalities. Use a cell phone or Google voice number in the subject or body that will create a clickable link to increase response.
Point No. 5: Engagement at the Dealership
Realize that traditional “road to the sale” processes are outdated and must be modernized. Ask the customer, “What stage are you in the process?” “What are you trying to accomplish today and how can I assist you in making that happen?” “Have you been to our Website?” Acknowledge the time they have spent in the education and shopping process.
Point No. 6: Sales Process
Move the trade-in up front. The trade-in is a comfort zone of the customer and is often a point of contention. Go to the trade-in up front to save the customer time and do a better job of fact finding and discovering their buying patterns.
Always be thinking about “HFG” — What is the customer’s Hope for Gain? Utilize a “pick-two” process by offering two alternatives to every customer. More than 50 percent of customers will choose other options if given the opportunity. Educated consumers want to know their alternatives.
Utilize a Disneyland-type presentation. Pop the hood, trunk and all doors and make the presentation special. Don’t act like you are a commodity selling commodities.
Don’t skip demo drives. The Internet shopping process has become an excuse of many not to take customers in a test drive. You should not only take test drives, but you should take 15- to 20-mile test drives. Don’t ask customers to spend thousands of dollars without letting them completely experience the vehicle.
Point No. 7: Proposal Process
Utilize printed proposals. Stop using green sharpies. Be prepared for the trade-in discussion. You can show a trade value as follows:
Front Line Ready Value $ ____________
– Average Reconditioning
– Miles
– Tires
– Windshield
= Today’s Market Value $ ____________
Explain and justify the value of the trade-in and build in a top and bottom parameter for negotiating.
Give three budget options for all proposals. Do not show the longest term available and do not start proposals with zero down or lowest down payments options. Show 20 percent investment on the “buy” options and show a lease on all new car proposals.
Explain the 20 percent cash investments as equity-building options and let the customers know that, if they would like to see different options, it would be no problem. Stop asking deal-killer questions such as: “How much do you want to put down?” and, “Where do you want your payments to be?” Start the proposal, instead of letting the customer start at figure you cannot reach. Ask the customer which options works best for them and close.
This is a scaled down version of seven critical points. There is a lot more detail to each point, and there are other critical points, as well. Realize the importance of these MOTs – Moments of Truth — and utilize these suggestions to increase your gross profit.
For a free special report — “Critical Points of Creating Gross Profit in the Digital Age” — email me at info@tewart.com with the phrase “Profits in the Digital Age” in the subject.