CDK Global
Witt's Wise Words: Is Your Baby Ugly? [VIDEO]
In this episode of Witt's Wise Words, Bill Wittenmyer shares why you should get fresh eyes on your plans by involving other people to avoid missed opportunities.
CDK Global
Why Dealers Should Embrace Digital Retailing
All indicators point to 2018 as a milestone year for automotive digital retailing.
Manufacturers including Ford, Toyota and BMW are working to develop products that allow customers to buy a vehicle from their dealerships’ websites.
Large dealer groups like AutoNation, Sonic Automotive, Asbury and Penske have developed, or are in the process of developing, online car shopping tools and software for their dealers’ websites.
And vendors are jumping on the digital retailing bandwagon as well.
Consumer demand exists; according to Cox Automotive’s Future of Digital Retail Study, 83 percent of car shoppers say they want to complete one or more steps of the purchase process online.
It seems that the only people who aren’t thrilled about automotive digital retailing are dealers themselves. Many dealers are reluctant to implement a digital retailing solution. Their primary concerns include:
- Losing control of the sales process
- Decline in gross profits, especially from F&I products
- Significant investment required
- Process changes and training required
- Integration issues
While consumer demand for digital retailing is unlikely to go away anytime soon, it’s not necessarily going to be bad news for dealers. Most of the digital retailing products in development are designed to keep your dealership central to the vehicle purchasing process. Not all solutions require a significant investment, and integration can be seamless with the right solution.
The vast majority of consumers still want to visit dealerships at some point during the buying process. Car shoppers still rely heavily on dealerships for inventory selection, accepting trade-ins and arranging finance. Most consumers still want the touch, feel and smell experience of buying a car.
According to the Capgemini Cars Online 2017 study, 71 percent of car buyers want to take a test drive and see the car in real life. The Cox study found that 89 percent of consumers said they want to sign final documents at the dealership; although 25 percent of those would like to review the paperwork before coming in.
Additionally, there are many variables such as credit scores and state laws that affect a person’s ability to transact a vehicle purchase online. Some consumers will always find it easier to let dealership staff manage the process.
Bottom line? Even though consumer demand is there, adoption rates will likely be slow.
ELEAD1ONE predicts that within two years, five to ten percent of consumers will complete some of the purchase processes online. In three to five years, that will grow to 20 or 30 percent.
This doesn’t mean dealers should adopt a wait-and-see attitude.
The Time is Now
The faster dealers embrace digital retailing, the more control they will have over the car-buying process by lessening the impact of solutions that cut dealers out of the process.
You’ve probably heard about third-party websites that plan to offer consumers the ability to purchase a vehicle online. Their proposed format is to sell the almost-completed deals as leads to dealerships.
The fact is, car shoppers must complete the transaction at your dealership. They need you. Why bother with a third-party solution when you can have your own?
The reason there’s so much hype about online car buying is that consumers have an interest. Once the tools become available, consumers will start using them. You want to encourage consumers to spend time shopping on your own website instead of relying on a third-party where you won’t control the process.
In the near future, the vast majority of online car buying will be completed with a hybrid approach. The customer will start the process online, reach out to the dealership for help through the process, and finally come to the dealership for a test drive and/or to complete the paperwork.
There will always be a percentage of customers who want to visit your dealership. There may be disruptors threatening to upend our business, but the reality is, the laws are still in your favor.
However, that may not always be the case. Rather than fight the inevitable disruption, embrace it by giving your customers what they want. Digital retailing is not a revolution; it’s simply the next step in the natural evolution of the car sales business.
3 Comments
Automotive Internet Management
Always smart stuff written by Mr Wittenmyer as this, but the predictions are I believe wrong. This isn't groceries or clothing we have already tasted or owned, its product that changes yearly and the clients change their brand use almost as often. What drives one way this year, does not drive the same next year, or even looks the same. These factors along with many others will dramatically slow down true on line purchases slower than he or Eleads predicts. Until the automobile carries no status symbol, or entertainment value consumes will always need to experience the product to get the effect of it on their lives in the areas they value. Some but not many, are caught between public transportation and driving something they have no emotions what so ever towards. Paperless transactions in the auto industry was predicted to be standard by 10 years ago, but its not. I believe adoption will not as fast or near as much as he predicts, unless more MFGs like Porsche provide drive centers to experience the product with out a dealer. Porsche charges for this, and isn't doing it free yet. The solution to any of this is a better place to buy that pays attention to the customers true needs, more than a sale. Look in any CRM (even Eleads, one of the best) and you will see why the clients might contact anyone but a dealer. My twist and take on it.
3E Business Consulting
Bill... GREAT Info on the evolution of buying a vehicle from a dealership. Especially, like and agree with the last paragraph of your post, "There will always be a percentage of customers who want to visit your dealership. There may be disruptors threatening to upend our business, but the reality is, the laws are still in your favor.
However, that may not always be the case. Rather than fight the inevitable disruption, embrace it by giving your customers what they want. Digital retailing is not a revolution; it’s simply the next step in the natural evolution of the car sales business."
Automotive Internet Management
Thanks James Don't agree this will be the evolution, possibly some hybrid of it. Too many buying factors that can not be done on line for this product. Live in CRMs (all of them) across the county, and see what dealers staff doesn't do right with their customers, who continue to buy anyway. Just as manufactures for their own benefit not ours, try to convince the dealers they must give price quotes to clients that are already looking that the price on line. The TRUTH comes out in correct data studies(not what the MFG hands you) that show me very few are focused on price, its lazy staff that are. So focusing on the very minority of people who will actually buy totally on line, while ignoring the development of our process to correct proper handling of those who do interact is foolishness. Everyone with any time in the business knows we can convert a willing buyer who isn't focused on price, to one that is by NOT knowing how to sell. So lets just focus on push them all to never being at a store? Time for a rethink.....
CDK Global
Witt's Wise Words - You Are Your Own Brand [VIDEO]
Create and Have Your Own Brand Reputation takes a long time to create and can be destroyed overnight. ELEAD1ONE Partner gives some insight into creating your own brand to enhance your success and how to build and protect your reputation in this week’s Witt’s Wise Words.
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CDK Global
Freebie Friday - The Two Most Powerful Words [VIDEO]
What are the two most powerful words both personally and professionally? ELEAD1ONE Partner Bill Wittemyer talks about the power of “I CAN!” in this #FreebieFriday.
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CDK Global
Witt's Wise Words - How To Build A Culture of Consistency [VIDEO]
How do you know if you’ve got the trust and respect of your customers and employees? In this week’s Witt’s Wise Words, ELEAD1ONE Partner Bill Wittenmyer breaks down how to earn that trust through a culture of consistency. Watch now to learn more.
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CDK Global
Freebie Friday - It's Not What You Say, It's How You Say It! [VIDEO]
In this Freebie Friday quick-tip ELEAD1ONE partner and Automotive Sales expert, Bill Wittenmyer discusses the importance of body language in our interactions. When it comes to car sales especially - it's not what you say, but how you say it.
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CDK Global
How to Create a Memorable Customer Experience
As a seasoned road warrior, I don’t always look forward to the next airport, cab ride or hotel destination. There are definitely some aspects of traveling that are forgettable. However, over the years I have developed a list of favorites, as in favorite restaurants and hotels to visit.
When I walk into these places, I am immediately greeted like an old friend. They know my name, they know what I like and everything is ready for me. The service is authentic, meaning it feels real. I believe the employees in these establishments are genuinely happy to see me (if they aren’t, they sure do a good job pretending).
When I have a great experience somewhere, I will also sign up for its email list. Not only do I sign up for it, but I will actually open the emails to see if there are any special offers being promoted the next time I visit that hotel or restaurant. If there aren’t, that’s okay. I choose to go there anyway because of the experience.
Think about your service experience. When a customer pulls into your service lane, are they immediately greeted like an old friend, or are they ignored for several minutes because your service advisors are too busy helping other customers?
When your customers are greeted, do they feel like your advisors are genuinely happy to see them, or do they feel that your advisors are stressed and hurrying them through the process?
On the sales side, when a customer arrives on your lot, do they feel like your salesperson is there to help them make the best decision, or do they feel like your salesperson doesn’t care what they buy, as long as they buy something, now.
In this industry, we so often focus on technology and all of its benefits. While technology can help to improve the customer experience, it can’t replace the human touch.
To create a truly memorable customer experience, you need to set clear expectations with your managers and staff as to what that experience should be like, every time. Mystery shoppers are a proven way to ensure these expectations are consistently met and determine if additional coaching is needed.
What your customers like is not a big secret. Here’s what you should shoot for:
Become a Trusted Resource
As we all know, earning your customers’ trust is still a major obstacle for dealerships to overcome. The way to accomplish this is with transparent pricing, honesty and taking the time to answer your customers’ questions and provide information quickly.
Your customers want options, not obligations. Instead of pushing a specific vehicle or service repair, present several options and let your customers choose.
Provide an Authentic, Friendly Atmosphere
As much as possible, create a comfortable, open and inviting space. However, the key to an authentic experience really lies with your staff. Hopefully you have created a culture where employees are happy to come to work in the morning and they like what they do. If your employees are happy, your customers will be happy.
Additionally, once or twice a day, managers should take a “walk around” and try to observe their work space from the customer’s point of view. Is everything clean and organized? Are your employees relaxed and open, or do they look grumpy and impatient to go home? If the latter, you may want to try complimenting them for the effort they’ve put in lately. A little acknowledgment can go a long way in re-invigorating an employee’s attitude.
Become a Product Expert
Haven’t you heard? “Selling” is out and “guiding” is in. Most car buyers do substantial research before deciding on which dealership to visit. So, it’s really critical for your staff to be at least as knowledgeable as your customers are when it comes to presenting your product line. The customer wouldn’t be there unless they wanted to buy something. Their biggest question is which vehicle is right for them?
That’s why I believe 80 percent of sales training should be product and presentation training. Coach your staff to take an advisory or consultative approach, rather than pushing the hard sell.
Be Appreciative
When you customers take the time out of their busy lives to visit your dealership, it’s really important to be genuinely appreciative. These days everyone is busy, so acknowledge and respect your customers’ time.
This is where technology can help. In sales, mobile tablets enable your sales force to spend more time with customers viewing and evaluating vehicles, instead of being attached to a desk. In service, mobile tablets can streamline the check-in and MPI process.
Also, remember to always thank your customers for their business.
Communicate
Your customer communications should be timely and relevant. Within 24 hours of a customer leaving, send another thank you.
Use multiple channels. Many younger people don’t open their emails, and prefer text or phone so make sure you have compliancy processes in place and that you are able to track this from your CRM, rather than personal devices.
Also, review your messaging. Is your verbiage direct, friendly and relevant? Or is it impersonal and look generic? Try to infuse your brand’s voice, image and personality into every communication.
Creating a memorable customer experience isn’t rocket science. However, it does require that you set clear expectations with your employees and provide them with the necessary training, so that they can be genuinely friendly and appreciative of your customers’ time.
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CDK Global
Freebie Friday: Preparation Eliminates Pressure [VIDEO]
Are you prepared? Bill Wittenmyer explains why being prepared will make you more successful.
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CDK Global
Witt's Wise Words - Dreaming Isn't Doing [VIDEO]
In this edition of Witt's Wise Words, Bill Wittenmyer shares why ideas are great but execution is more important.
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CDK Global
Freebie Friday - Inspect What You Expect [VIDEO]
In this Freebie Friday, ELEAD1ONE Partner Bill Wittenmyer says it’s time for you to inspect what you expect. That means always checking in on the customer experience, ensure processes are smooth, and making sure the experience you want to happen is actually happening. #FreebieFriday
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