Bill Playford

Company: DealerKnows Consulting

Bill Playford Blog
Total Posts: 14    

Bill Playford

DealerKnows Consulting

Nov 11, 2016

Let Routine Maintenance Change the Internet Sales Routine

As I’ve said many times over the years, one of the critical barriers to selling a car over the Internet is that people have a preconceived notion of how they should buy a car. As many of you may already know, I sold cars over the Internet (as much as technology would allow) for six years. Although there were plenty of signals of an underlying weakness in the various programs, the real moment of clarity occurred when I was working on a direct buy program for AutoNation. After conducting some follow-up I discovered a customer had purchased locally after presenting them 100% of what they asked for. The customer confirmed that we had the exact car they wanted, option for option, at the best price. For some reason, all of the customer’s logic was overridden. It was too far removed from his research/buying routine. They just felt an underlying need to purchase the vehicle locally.

For those of us who have worked on a dealership floor, selling cars becomes part of a routine. Customers say yes. Vehicle gets prepped. Paperwork gets signed. Vehicle drives over curb. Rinse and repeat. It happens so much that we don’t realize that the transaction is an isolated event that won’t be repeated for several years. We forget that it’s special. Instead, we feel like our efforts somehow overcame decades of ingrained car purchasing behavior. No matter how stellar that isolated transaction might have been, it doesn’t happen at an interval where, in the customer’s mind, it becomes the norm.

In the meantime, the entire automotive ecosystem continues to fall into another related routine. Since the dawn of the Internet millions of dollars and man-hours have been thrown at creating solutions that create a novel buying experience. Although millions of cars are sold, those same customers didn’t return to the market for five, six, or seven years (As of August of 2016, NADA pegs the average loan schedule at 68 months, for those who are keeping score). Some haven’t returned at all. Those who came back returned to a new purchase pathway that didn’t resemble the “new purchase pathway” they followed before. Even if their brain tried to reference the new routine, what was being presented didn’t resemble what they were referencing. Like anyone faced with that situation, their brains revert back to what they understand. The same mechanism that controls how you get back and forth to work, or how you brush your teeth, also projects an image of how you should buy a car.

If we want to move customers into an e-commerce relationship, we need start by creating new and repetitive routines. How? It’s actually quite simple. Instead of focusing all of our e-commerce efforts on selling vehicles, we should look at the continuously overlooked profit center inside of every franchised dealership: The service department.

Providing a customer maintains their vehicle, they will interact with a (preferably your) service department dozens of times between purchasing vehicles. If a dealership is lucky, its service writers will get to see a household’s vehicles every three months or three thousand miles, or eight times a year if Hubby and Wifey Smith are loyal customers. Again, assuming the dealership is super lucky, and those same Smiths alternate twenty-four-month lease cycles, they interact with the sales team once a year. You tell me, who has a better chance of altering the routine, the department that delivers smiling faces eight times a year or the department that delivers smiling faces once a year?

Now that I’ve got your attention, go look in the mirror, and tell yourself you’ve fallen prey to your own unconscious habits. For a person who built their career on selling cars online, it’s a tough pill to swallow, but I’m ready to admit it to myself. All of the things we’ve been offering to customers on the sales side in the hopes of creating an e-commerce relationship aren’t enough to change a customer’s routine. The shopping carts, click-to-calls, live chats, no matter how fancy these things are, do nothing to alter the customer’s baseline model of how to interact with a car dealership. As soon as these tools drive a transaction, the relationship then reverts back to calling the dealership, or just showing up, to schedule routine maintenance on the vehicle.

Please let that simmer for a second.   

If you want to reinvent the wheel, start at the hub. If the automotive industry wants to drive change on the retail side of the business, it must focus its efforts where customers interact most. All of the whiz-bang technology that’s meant to create a seamless digital experience should start on the service side. If we can change a customer’s routine way of interacting with a dealership, then we can cultivate a way to change the way they purchase their vehicles in the future. Stop throwing money at a moving target five years from now, and invest that money in a future you can create today.

Bill Playford

DealerKnows Consulting

Vice President

2600

3 Comments

Brandon McNett

Sommer's Automotive

Nov 11, 2016  

Solid article and very good points!  Selling a vehicle doesn't happen only when the customer is in the showroom looking at a car.  It's an all around experience!

Jason Unrau

Automotive Copywriter

Nov 11, 2016  

I'm with you on this one, Bill. 

I think we've heard a lot about the service department being the backbone of the dealership in recent weeks and months. I agree with that, and I totally believe that the service to sales relationship plays a huge role in repeat sales especially. 

As for internet sales, how do you foresee the service department reinforcing the way you sell cars in the future? Do you propose the service department needs to evolve along with the method of selling cars online?

 

Bill Playford

DealerKnows Consulting

Nov 11, 2016  

Jason,

Thanks for the comment!

I'm totally proposing that the back end of the business should have access to the same conversion tools as the front end of the business. If we want to encourage customers to interact with these tools while purchasing a vehicle, they should be able to interact with these tools while owning and maintaining vehicle a vehicle. This is not only a call to action for dealerships, but for vendors to create, develop, and evolve tools that address the entire retail ecosystem, not just sales. 

Bill Playford

DealerKnows Consulting

Nov 11, 2010

The Passion of a Car Salesperson

Like some of you, I am just getting caught up from nearly two weeks of conference action in Vegas. After attending and participating in three conferences (I only know a few who stayed for four!), my head was left full of charts, graphs, concepts, and ideas. Beyond the sensory overload from all of the content, one thing became abundantly clear to me: I was surrounded by people with passion. Pure, unbridled, go-tell-it-on-the-mountain, passion. Hearing people tell their story, wildly gesticulating with their excitement. The enthusiasm was contagious!

Many of us have passions in life. For some, it’s the outdoors. For others, it’s sports. Still for others, it’s working in the garage. You can debate for hours about the best way to rebuild a carburetor. You work tirelessly on your fantasy football team at all hours of the night. You spend weeks scouting out the best place to put a deer blind. You have rooms dedicated to mounted fish, classic Fords, and the New Jersey Devils.

I’m one of the guys who’s extremely passionate about his career. I love what I do! I rarely ever stop thinking about how I can improve processes, discover efficiencies, or make people more productive. I’m bouncing ideas off my friends in the industry all of the time (and they are always bouncing ideas off of me). I know my wife wishes I’d take a break in the evening, but she tolerates it because it’s what I do. I feel like the car business found me and I’m going to give a 100% back.

I know many of you, however, don’t feel that same passion. Maybe you feel like you are stuck in a dead-end job or someone around you constantly drags you down. Well I have bad news for you: your customers can hear it, see it, and feel it. How are they going to tell you “yes” when all they see is ‘no’? Unfortunately, the car business is not one of lateral moves. You’re either productive or you’re packing.

If you’re lacking that passion, you don’t need to get a prescription. I’ll leave the pills to Pfizer, Glaxo, and Bayer. I’m merely suggesting you change your outlook on what you do for a living. When asked, I’m guessing most of you would say that you sell cars for a living. I would argue that the sale is the end result of what you do. Before that vehicle puts rubber to the road, rolls over the curb, and starts killing bugs (did I miss any?), you need to sell yourself first. If the customer is not buying what you’re saying, then you have a tall hurdle ahead of you.

So how do you change your outlook? It’s actually pretty simple. Start thinking about what you really do every day. You’re not some robot that picks up the phone, pecks away at the computer, and shuffles papers around. You’re a cheerful voice after a hard day at work. You help people save their hard earned money. You are your own business. You assure people that they are making good decisions. You’re solving people’s problems. You make lasting friendships. In some cases, you’re even helping people achieve their life’s aspiration. You’re not selling cars: You are changing people’s lives!

Now I can hear the skeptics out there now saying that I’ve read too many books (and some other things that can’t be written here). To the naysayers, I say give it a shot. Talk to your customers with the same energy you would talk about college basketball during March Madness. Remind yourself that you are providing a valuable service to people. Sometimes it’s simpler than metrics and technology. Sometimes it’s the simplest things that can make all of the difference. What do you have to lose?

Bill Playford

DealerKnows Consulting

Vice President

10868

No Comments

Bill Playford

DealerKnows Consulting

Nov 11, 2010

The Passion of a Car Salesperson

Like some of you, I am just getting caught up from nearly two weeks of conference action in Vegas. After attending and participating in three conferences (I only know a few who stayed for four!), my head was left full of charts, graphs, concepts, and ideas. Beyond the sensory overload from all of the content, one thing became abundantly clear to me: I was surrounded by people with passion. Pure, unbridled, go-tell-it-on-the-mountain, passion. Hearing people tell their story, wildly gesticulating with their excitement. The enthusiasm was contagious!

Many of us have passions in life. For some, it’s the outdoors. For others, it’s sports. Still for others, it’s working in the garage. You can debate for hours about the best way to rebuild a carburetor. You work tirelessly on your fantasy football team at all hours of the night. You spend weeks scouting out the best place to put a deer blind. You have rooms dedicated to mounted fish, classic Fords, and the New Jersey Devils.

I’m one of the guys who’s extremely passionate about his career. I love what I do! I rarely ever stop thinking about how I can improve processes, discover efficiencies, or make people more productive. I’m bouncing ideas off my friends in the industry all of the time (and they are always bouncing ideas off of me). I know my wife wishes I’d take a break in the evening, but she tolerates it because it’s what I do. I feel like the car business found me and I’m going to give a 100% back.

I know many of you, however, don’t feel that same passion. Maybe you feel like you are stuck in a dead-end job or someone around you constantly drags you down. Well I have bad news for you: your customers can hear it, see it, and feel it. How are they going to tell you “yes” when all they see is ‘no’? Unfortunately, the car business is not one of lateral moves. You’re either productive or you’re packing.

If you’re lacking that passion, you don’t need to get a prescription. I’ll leave the pills to Pfizer, Glaxo, and Bayer. I’m merely suggesting you change your outlook on what you do for a living. When asked, I’m guessing most of you would say that you sell cars for a living. I would argue that the sale is the end result of what you do. Before that vehicle puts rubber to the road, rolls over the curb, and starts killing bugs (did I miss any?), you need to sell yourself first. If the customer is not buying what you’re saying, then you have a tall hurdle ahead of you.

So how do you change your outlook? It’s actually pretty simple. Start thinking about what you really do every day. You’re not some robot that picks up the phone, pecks away at the computer, and shuffles papers around. You’re a cheerful voice after a hard day at work. You help people save their hard earned money. You are your own business. You assure people that they are making good decisions. You’re solving people’s problems. You make lasting friendships. In some cases, you’re even helping people achieve their life’s aspiration. You’re not selling cars: You are changing people’s lives!

Now I can hear the skeptics out there now saying that I’ve read too many books (and some other things that can’t be written here). To the naysayers, I say give it a shot. Talk to your customers with the same energy you would talk about college basketball during March Madness. Remind yourself that you are providing a valuable service to people. Sometimes it’s simpler than metrics and technology. Sometimes it’s the simplest things that can make all of the difference. What do you have to lose?

Bill Playford

DealerKnows Consulting

Vice President

10868

No Comments

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