In the past several months, I have examined and highlighted the important phases of the journey that customers travel; their shopping patterns, their buying experience, and now their ownership period.  Arguably, the ownership experience may be the most important phase of the journey.  It will determine the likelihood of your customers doing business with you in the service drive, returning to buy additional vehicles from you, and referring their family and friends to you for both.   Considering that referrals close at 55% and return customers close at 60%, this ownership period demands attention.

Imagine how a high-quality and positive customer relationship with a car buyer who owns a vehicle for an average of six years will translate into a heightened lifetime value. The relationship’s good standing will not only increase their loyalty, but also overcome any negative experiences encountered in their shopping and buying journeys.  So what are some processes you can implement to improve the ownership experience and increase customer loyalty?

Mobile App

If you offer a dealer-branded mobile app to your customers, it should do more than target automotive shoppers.  Today’s consumers want an easy and fast way to manage the servicing of their vehicles as well.  If they can make a service appointment, be contacted by method of their choice when their vehicle is ready for pick up, view their service history, perhaps even browse your inventory while they are waiting – all from their smartphone, they will see that you are providing value past the point of just selling them a vehicle.  Create special offers for your mobile app users, or design a loyalty reward program that offers points to offset service pay.

How do you successfully adapt customers to the mobile app business model?  My recommendation to clients is to insert the mobile app download into the vehicle delivery process. Introduce the app in F&I, help the customer download and activate it in their mobile device.  Educating the customer on its dealership-driven value will reduce the chance of a service defection with loyalty points generated at purchase. You are setting the stage for a loyal customer!

What happens if your loyal service customer is thinking about purchasing a vehicle? Consider the convenience of that same loyalty mobile app providing a fast and easy barter-free shopping experience.  A hassle-free way to shop the dealership’s current inventory, value their trade and negotiate a purchase offer.  I believe the entire negotiation process of a car deal is moving toward a remote application, and forward-thinking companies who embrace this technology will see a large increase in service-to-sale retention and brand loyalty.

The Service Lane Contributes Over 40 Percent of Annual Gross Profits

With only one in three drivers committed to an auto service provider, it’s more important than ever to leverage smart, customer-centric service-marketing campaigns that use data inside your CRM and DMS.  Targeted and relevant messaging should connect with consumers in the way that makes most sense for them, from live calls or text messaging to emails and direct mail. For example, your service CRM should integrate with the service advisor’s daily plan to send prediction-based service reminders established by time or mileage, and scheduled in accordance with OEM intervals, as well as DMS events.  Sending automated coupons or incentives to the right person, at the right moment, using the right medium will yield the best return on your investment.  It’s a win/win for everyone.  You will immediately see increased results in service transactions, revenue and market share; and your customers will experience a better method of communication with messages relevant to their needs, keeping them loyal and happy.

Follow-up/Recovery/Retention

Whether you have an in-house BDC, or an outsourced/virtual BDC, make sure that your service customers are being followed up with about their experience.  These calls will offer you invaluable information about areas that may need improvement, as well as offer you additional opportunities to win more business.  Email address confirmation, discussion of driving habits in order to set up better triggers for your campaigns, CSI calls – these bits of information, to name a few, will help your service drive become more customer-centric.

Utilize recovery campaigns to gain back lost customers.  Entice them with special offers to encourage their return to your service department and use the knowledge you gain to prevent further defectors.

Getting your new customers into your service drive for their first appointment after delivery is key.  Examine your process for accomplishing this goal.  Is that first appointment scheduled at delivery?  How are the appointments confirmed?  If the customer does not show, are they followed up with to reschedule?  All of these processes need to be clearly defined and the staff responsible held accountable.

Remember, customers for life!  Are you following up with and supporting the customers who decided not to buy from you?  What did they buy, and is there a chance you could win their service business? Of course, you can!  Just because they buy elsewhere does not mean you should not stay in touch with them regularly and support them.  At the very least, they will remember your name and the level of communication you provided (even though they did not buy from you) when considering their next purchase. Statistics show that 87 percent of customers do not remember their salesperson shortly after leaving the showroom  - even if they bought a car.  Let the salesperson at the competitor from whom they bought be “that guy.”  I practice this even now on the vendor side.  I’ve lost deals to the competition and then closed them years later just by consistently following up.  Remember that it’s not always a sprint.  Sometimes it’s a marathon.

Loyalty from your customers is not to be expected even in the slightest.  You must strive to earn it every single day.  With the tools, technology and talent available to us today, there is no excuse for anything less. 

“Make sure your business is creating an experience so good that it demands loyalty.”  - Steve Maraboli

Good Selling!

In the past several months, I have examined and highlighted the important phases of the journey that customers travel; their shopping patterns, their buying experience, and now their ownership period.  Arguably, the ownership experience may be the most important phase of the journey.  It will determine the likelihood of your customers doing business with you in the service drive, returning to buy additional vehicles from you, and referring their family and friends to you for both.   Considering that referrals close at 55% and return customers close at 60%, this ownership period demands attention.

Imagine how a high-quality and positive customer relationship with a car buyer who owns a vehicle for an average of six years will translate into a heightened lifetime value. The relationship’s good standing will not only increase their loyalty, but also overcome any negative experiences encountered in their shopping and buying journeys.  So what are some processes you can implement to improve the ownership experience and increase customer loyalty?

Mobile App

If you offer a dealer-branded mobile app to your customers, it should do more than target automotive shoppers.  Today’s consumers want an easy and fast way to manage the servicing of their vehicles as well.  If they can make a service appointment, be contacted by method of their choice when their vehicle is ready for pick up, view their service history, perhaps even browse your inventory while they are waiting – all from their smartphone, they will see that you are providing value past the point of just selling them a vehicle.  Create special offers for your mobile app users, or design a loyalty reward program that offers points to offset service pay.

How do you successfully adapt customers to the mobile app business model?  My recommendation to clients is to insert the mobile app download into the vehicle delivery process. Introduce the app in F&I, help the customer download and activate it in their mobile device.  Educating the customer on its dealership-driven value will reduce the chance of a service defection with loyalty points generated at purchase. You are setting the stage for a loyal customer!

What happens if your loyal service customer is thinking about purchasing a vehicle? Consider the convenience of that same loyalty mobile app providing a fast and easy barter-free shopping experience.  A hassle-free way to shop the dealership’s current inventory, value their trade and negotiate a purchase offer.  I believe the entire negotiation process of a car deal is moving toward a remote application, and forward-thinking companies who embrace this technology will see a large increase in service-to-sale retention and brand loyalty.

The Service Lane Contributes Over 40 Percent of Annual Gross Profits

With only one in three drivers committed to an auto service provider, it’s more important than ever to leverage smart, customer-centric service-marketing campaigns that use data inside your CRM and DMS.  Targeted and relevant messaging should connect with consumers in the way that makes most sense for them, from live calls or text messaging to emails and direct mail. For example, your service CRM should integrate with the service advisor’s daily plan to send prediction-based service reminders established by time or mileage, and scheduled in accordance with OEM intervals, as well as DMS events.  Sending automated coupons or incentives to the right person, at the right moment, using the right medium will yield the best return on your investment.  It’s a win/win for everyone.  You will immediately see increased results in service transactions, revenue and market share; and your customers will experience a better method of communication with messages relevant to their needs, keeping them loyal and happy.

Follow-up/Recovery/Retention

Whether you have an in-house BDC, or an outsourced/virtual BDC, make sure that your service customers are being followed up with about their experience.  These calls will offer you invaluable information about areas that may need improvement, as well as offer you additional opportunities to win more business.  Email address confirmation, discussion of driving habits in order to set up better triggers for your campaigns, CSI calls – these bits of information, to name a few, will help your service drive become more customer-centric.

Utilize recovery campaigns to gain back lost customers.  Entice them with special offers to encourage their return to your service department and use the knowledge you gain to prevent further defectors.

Getting your new customers into your service drive for their first appointment after delivery is key.  Examine your process for accomplishing this goal.  Is that first appointment scheduled at delivery?  How are the appointments confirmed?  If the customer does not show, are they followed up with to reschedule?  All of these processes need to be clearly defined and the staff responsible held accountable.

Remember, customers for life!  Are you following up with and supporting the customers who decided not to buy from you?  What did they buy, and is there a chance you could win their service business? Of course, you can!  Just because they buy elsewhere does not mean you should not stay in touch with them regularly and support them.  At the very least, they will remember your name and the level of communication you provided (even though they did not buy from you) when considering their next purchase. Statistics show that 87 percent of customers do not remember their salesperson shortly after leaving the showroom  - even if they bought a car.  Let the salesperson at the competitor from whom they bought be “that guy.”  I practice this even now on the vendor side.  I’ve lost deals to the competition and then closed them years later just by consistently following up.  Remember that it’s not always a sprint.  Sometimes it’s a marathon.

Loyalty from your customers is not to be expected even in the slightest.  You must strive to earn it every single day.  With the tools, technology and talent available to us today, there is no excuse for anything less. 

“Make sure your business is creating an experience so good that it demands loyalty.”  - Steve Maraboli

Good Selling!

I recently read an article published on Edmunds.com that stated in 2012 the average time it took to complete the automotive purchase process was 4.3 hours.  I’m sure we’ve all seen many instances where it was much longer.  The article went on to make suggestions on how to make the process faster – remember the title to your trade, driver’s license, proof of insurance, clean out your trade, etc.  The last suggestion made me laugh.  Bring snacks and refreshments so you don’t get woozy from hunger while you are signing your paperwork in the finance office.  Seriously?  With the technology available to us in 2014, there is no reason our customers should need to pack nourishment and sustenance like they are preparing for a natural disaster just to consummate a car deal.   

In part one, “The Inflatable Gorilla?  Really?” I discussed how critical and simple it is to design your processes to cater to today’s consumers and how they want to shop. Timely and relevant advertising that efficiently delivers relevant information or offers based on consumers’ shopping patterns, where they are in the process and most importantly, the channels in which they want to communicate.

Now, let’s assume that customers are finding it easy to shop with you.  Great!  Now how easy is it for them to buy from you?

GOING MOBILE

I promised to revisit mobile in this installment.  As important as mobile is to today’s shopping process, it is becoming equally as important in the buying process.  Not only has mobile technology made it easier for consumers to buy without ever leaving the comfort of their homes, but it has also made the selling process easier for us as an industry.  If the selling process is easier and more efficient for us, doesn’t it make sense that it would translate to a better experience for our customers?

Buying Online

• Does your digital strategy make it easy for customers to buy from you online?  First and foremost, your website must be responsive.  Your customers must have the optimal viewing experience regardless of what device they are using if they are expected to be able to navigate to the various pages required to view inventory, submit a credit application, value their trade, make an offer, or instantly chat with you about any of the above.   And yes, they should be able to do all of those things from your website.  R.L. Polk says that about 10 percent of all new vehicle sales are attributed to online transactions and that percentage will grow exponentially.  So be ready for it!

• Do you have a consumer-facing mobile app?  Your customers should be able to do everything we just talked about without having to visit your website.  You heard me right.  If they have ever purchased a vehicle or done business in your service drive, why wouldn’t you want to make it easy for them to stay loyal to your dealership?  With the tap of their screen they can schedule an oil change, search inventory, value their trade, or make a lease or retail purchase offer.   You should also be offering sales and service incentives through this channel, and linking to your incentive program, making it hard for your customers to deny the benefits of their continued loyalty.

Mobile CRM

• Does your CRM have a mobile app that improves the customer experience?  Of course your CRM makes your life easier.  With all of your customer information at your disposal, marketing tools that can find any segment of that customer base and reach them instantaneously, dashboards that keep managers organized and hold everyone accountable, reporting that proves (or disproves) the ROI of every vendor you use and every campaign you run, and so much more we can barely believe we did business without CRM, right?  Well, mobile CRM has taken that to the next level, improving efficiency for the entire dealership and therefore your customers.    

• Most CRMs will offer a mobile and VIN scanners allowing you to upload these items directly into the CRM using your mobile device without ever leaving the customer’s side.  And the days of back and forth between the desk and customers to negotiate price and terms are long gone.  If you are still using this antiquated process in your dealership, I recommend you rethink your strategy.  With mobile desking, your desk managers can communicate from the CRM to the salesperson through mobile devices allowing them to present professional pricing proposals without wearing a path in the carpet. 

Ask yourselves if you are, in any piece of your processes, choosing blind dedication to tradition over functionality.    Is there anything you can do, is there any technology available to you that speeds up the process for you and your customers?   The meet and greet, the needs and assessment qualification, the walk-around, the write-up – all of the steps on the road to the sale have changed.  You may get pushback on this concept from the veterans, or you may be the one pushing back, but it does not change the facts.  Your customers will not stand for an in-store process that takes them back 20 years.  Chances are they researched you and your competitors online, sent in a lead, scheduled an appointment and found your location all by using their tablet or smartphone.   So what might their reaction be to your sales process if it involves a Sharpie and a photocopied 4-square?  Think about how the use of technology can turn your sales staff into true state-of-the-art, cutting-edge sales professionals.   If you don’t honestly feel that technology can accomplish this, then talent acquisition may be a process in and of itself that needs to be examined. 

Until next time…

I recently read an article published on Edmunds.com that stated in 2012 the average time it took to complete the automotive purchase process was 4.3 hours.  I’m sure we’ve all seen many instances where it was much longer.  The article went on to make suggestions on how to make the process faster – remember the title to your trade, driver’s license, proof of insurance, clean out your trade, etc.  The last suggestion made me laugh.  Bring snacks and refreshments so you don’t get woozy from hunger while you are signing your paperwork in the finance office.  Seriously?  With the technology available to us in 2014, there is no reason our customers should need to pack nourishment and sustenance like they are preparing for a natural disaster just to consummate a car deal.   

In part one, “The Inflatable Gorilla?  Really?” I discussed how critical and simple it is to design your processes to cater to today’s consumers and how they want to shop. Timely and relevant advertising that efficiently delivers relevant information or offers based on consumers’ shopping patterns, where they are in the process and most importantly, the channels in which they want to communicate.

Now, let’s assume that customers are finding it easy to shop with you.  Great!  Now how easy is it for them to buy from you?

GOING MOBILE

I promised to revisit mobile in this installment.  As important as mobile is to today’s shopping process, it is becoming equally as important in the buying process.  Not only has mobile technology made it easier for consumers to buy without ever leaving the comfort of their homes, but it has also made the selling process easier for us as an industry.  If the selling process is easier and more efficient for us, doesn’t it make sense that it would translate to a better experience for our customers?

Buying Online

• Does your digital strategy make it easy for customers to buy from you online?  First and foremost, your website must be responsive.  Your customers must have the optimal viewing experience regardless of what device they are using if they are expected to be able to navigate to the various pages required to view inventory, submit a credit application, value their trade, make an offer, or instantly chat with you about any of the above.   And yes, they should be able to do all of those things from your website.  R.L. Polk says that about 10 percent of all new vehicle sales are attributed to online transactions and that percentage will grow exponentially.  So be ready for it!

• Do you have a consumer-facing mobile app?  Your customers should be able to do everything we just talked about without having to visit your website.  You heard me right.  If they have ever purchased a vehicle or done business in your service drive, why wouldn’t you want to make it easy for them to stay loyal to your dealership?  With the tap of their screen they can schedule an oil change, search inventory, value their trade, or make a lease or retail purchase offer.   You should also be offering sales and service incentives through this channel, and linking to your incentive program, making it hard for your customers to deny the benefits of their continued loyalty.

Mobile CRM

• Does your CRM have a mobile app that improves the customer experience?  Of course your CRM makes your life easier.  With all of your customer information at your disposal, marketing tools that can find any segment of that customer base and reach them instantaneously, dashboards that keep managers organized and hold everyone accountable, reporting that proves (or disproves) the ROI of every vendor you use and every campaign you run, and so much more we can barely believe we did business without CRM, right?  Well, mobile CRM has taken that to the next level, improving efficiency for the entire dealership and therefore your customers.    

• Most CRMs will offer a mobile and VIN scanners allowing you to upload these items directly into the CRM using your mobile device without ever leaving the customer’s side.  And the days of back and forth between the desk and customers to negotiate price and terms are long gone.  If you are still using this antiquated process in your dealership, I recommend you rethink your strategy.  With mobile desking, your desk managers can communicate from the CRM to the salesperson through mobile devices allowing them to present professional pricing proposals without wearing a path in the carpet. 

Ask yourselves if you are, in any piece of your processes, choosing blind dedication to tradition over functionality.    Is there anything you can do, is there any technology available to you that speeds up the process for you and your customers?   The meet and greet, the needs and assessment qualification, the walk-around, the write-up – all of the steps on the road to the sale have changed.  You may get pushback on this concept from the veterans, or you may be the one pushing back, but it does not change the facts.  Your customers will not stand for an in-store process that takes them back 20 years.  Chances are they researched you and your competitors online, sent in a lead, scheduled an appointment and found your location all by using their tablet or smartphone.   So what might their reaction be to your sales process if it involves a Sharpie and a photocopied 4-square?  Think about how the use of technology can turn your sales staff into true state-of-the-art, cutting-edge sales professionals.   If you don’t honestly feel that technology can accomplish this, then talent acquisition may be a process in and of itself that needs to be examined. 

Until next time…

Delivering a better customer experience is not difficult!  We all know that today’s automotive consumer is educated and tech-savvy and that they are in search of transparency and efficiency in not only their shopping experience, but in their buying process and throughout their ownership. 

Sure, it’s great to offer premium coffees and soft drinks, a fun and safe place to keep children occupied or free hot dogs and hamburgers on a busy weekend.  You may even decide that “super-sale” signage and a giant inflatable gorilla is the way to go.  But perhaps we should give our customers more credit than that and customize our processes around their desired experience.    For now, let’s focus on their desired shopping process.  We’ll focus on buying process and ownership experience in future editions.

Data Mining

Whether a customer is looking for a service provider or a new vehicle, marketing to them in a concise and highly targeted manner has never been easier.  A robust data-mining tool should be sitting right inside your CRM tool.  Your email, phone and even SMS campaigns are largely a waste of time and effort if they are not targeted to the right segment of customers within your database.  Examine the ROI of your campaigns carefully.  Examine your opt out rates and unsubscribe rates carefully.   There is no reason for your customers to remain engaged if they are receiving irrelevant or ill-timed advertising messages. 

Do you know when your customers are in equity or when their lease term is about to be complete?  Are you marketing to them accordingly?  You should be taking advantage of direct mail integration here as well.  Don’t waste precious marketing dollars on calls to action that don’t make sense for that consumer.   

Take control of your targeted marketing by making it targeted.  There is no excuse not to with today’s data mining technology!  Here’s a very specific example for you:  Find customers in your data base who have been in service within the last 12 months with model years from 2006 thru 2012, who live less than 30 miles from your dealership, with current mileage more than 30,000 & less than 99,500 and have not serviced in the last 10 Days. Exclude anyone you have already marketed to in the last 90 days and anyone that’s purchased within the last 18 months.  Offer them an enticing service incentive and…Bam!   Let me know what your results are.

Mobile, Mobile, Mobile! 

Google states that 47% of all auto inquiries come from mobile sites and that number will rise to over 50% in 2014.  That percentage grew over 460% from 2011 to 2013.  Is your website responsive?  Does it make a mobile user more likely to be able to contact you with ease, or more likely to move down to the next dealer on their Google search page?  It’s not just about them being able to view inventory or click on your “directions” page or even fill out a lead form.  In fact, for every one lead form submitted from your website, mobile users will make 26 phone calls to your dealership.  26 to one! 

I’ll discuss more about mobile apps in future installments of this series, but it’s definitely worth mentioning here as well.  Although statistics show that most of your prospects will simply pick up the phone and call you to discuss their desire to do business at your dealership, let’s not forget about your current customers and how you can make it easier for them to return to your dealership.  A mobile app that can make scheduling service appointments, view service history, receive coupons and incentives, or even view inventory, appraise a trade and submit an offer on a new vehicle.  It’s all about loyalty and keeping them coming back!

SMS Marketing

Text messaging is the most popular data service in the world and the foundation of any mobile communications strategy. While customers are likely to ignore phone call and emails, a text message rarely goes unnoticed.  Think about how often you will ignore a phone call from an unknown number, or delete an email without reading it.  Now, how often will you delete a text message or let them pile up without reading them?    In fact, recent statistics show that 98% of text messages are read, compared to 22% of emails, 29% of tweets and 12% of Facebook posts.  

If SMS marketing is not in your marketing plan, you should seriously reconsider your strategy! The truth is that SMS campaigns have high engagement rates because they are targeted to an already highly engaged audience.  When a customer willingly hands you their mobile number, they are signaling their willingness to engage via that channel.  If that is their preferred method of communicating, why wouldn’t you tailor your process accordingly? 

Until next time…

Bill 

Delivering a better customer experience is not difficult!  We all know that today’s automotive consumer is educated and tech-savvy and that they are in search of transparency and efficiency in not only their shopping experience, but in their buying process and throughout their ownership. 

Sure, it’s great to offer premium coffees and soft drinks, a fun and safe place to keep children occupied or free hot dogs and hamburgers on a busy weekend.  You may even decide that “super-sale” signage and a giant inflatable gorilla is the way to go.  But perhaps we should give our customers more credit than that and customize our processes around their desired experience.    For now, let’s focus on their desired shopping process.  We’ll focus on buying process and ownership experience in future editions.

Data Mining

Whether a customer is looking for a service provider or a new vehicle, marketing to them in a concise and highly targeted manner has never been easier.  A robust data-mining tool should be sitting right inside your CRM tool.  Your email, phone and even SMS campaigns are largely a waste of time and effort if they are not targeted to the right segment of customers within your database.  Examine the ROI of your campaigns carefully.  Examine your opt out rates and unsubscribe rates carefully.   There is no reason for your customers to remain engaged if they are receiving irrelevant or ill-timed advertising messages. 

Do you know when your customers are in equity or when their lease term is about to be complete?  Are you marketing to them accordingly?  You should be taking advantage of direct mail integration here as well.  Don’t waste precious marketing dollars on calls to action that don’t make sense for that consumer.   

Take control of your targeted marketing by making it targeted.  There is no excuse not to with today’s data mining technology!  Here’s a very specific example for you:  Find customers in your data base who have been in service within the last 12 months with model years from 2006 thru 2012, who live less than 30 miles from your dealership, with current mileage more than 30,000 & less than 99,500 and have not serviced in the last 10 Days. Exclude anyone you have already marketed to in the last 90 days and anyone that’s purchased within the last 18 months.  Offer them an enticing service incentive and…Bam!   Let me know what your results are.

Mobile, Mobile, Mobile! 

Google states that 47% of all auto inquiries come from mobile sites and that number will rise to over 50% in 2014.  That percentage grew over 460% from 2011 to 2013.  Is your website responsive?  Does it make a mobile user more likely to be able to contact you with ease, or more likely to move down to the next dealer on their Google search page?  It’s not just about them being able to view inventory or click on your “directions” page or even fill out a lead form.  In fact, for every one lead form submitted from your website, mobile users will make 26 phone calls to your dealership.  26 to one! 

I’ll discuss more about mobile apps in future installments of this series, but it’s definitely worth mentioning here as well.  Although statistics show that most of your prospects will simply pick up the phone and call you to discuss their desire to do business at your dealership, let’s not forget about your current customers and how you can make it easier for them to return to your dealership.  A mobile app that can make scheduling service appointments, view service history, receive coupons and incentives, or even view inventory, appraise a trade and submit an offer on a new vehicle.  It’s all about loyalty and keeping them coming back!

SMS Marketing

Text messaging is the most popular data service in the world and the foundation of any mobile communications strategy. While customers are likely to ignore phone call and emails, a text message rarely goes unnoticed.  Think about how often you will ignore a phone call from an unknown number, or delete an email without reading it.  Now, how often will you delete a text message or let them pile up without reading them?    In fact, recent statistics show that 98% of text messages are read, compared to 22% of emails, 29% of tweets and 12% of Facebook posts.  

If SMS marketing is not in your marketing plan, you should seriously reconsider your strategy! The truth is that SMS campaigns have high engagement rates because they are targeted to an already highly engaged audience.  When a customer willingly hands you their mobile number, they are signaling their willingness to engage via that channel.  If that is their preferred method of communicating, why wouldn’t you tailor your process accordingly? 

Until next time…

Bill