You may be familiar with the saying, “Never let your emotions overpower your intelligence.”  This advice is smart and logical, but how many people follow it?

When it comes to car buying, not very many. Emotions often take center stage. 

Don’t get me wrong. There’s nothing inherently bad about putting emotions first. Consider a couple buying a new car because they are expecting a baby. Or parents buying a car for their teenager who’s going off to college. These are big, emotional decisions.

Unfortunately, many salespeople focus on selling vehicle features instead of meeting the emotional needs of customers. The typical qualification process is often dismal, with questions like “How are you today?” and “Are you looking for a new car today?”

It’s natural for salespeople to slip into the path of least resistance. However, tapping into customer emotions can help you sell more cars. Here’s how to get into an emotions-first mindset:

Operate as a trusted advisor. A study by Urban Science in conjunction with Harris Poll found that 81% of shoppers trust the information they receive from a franchised dealership, and 72% are influenced to work with a dealer based on staff experience. The salesperson is becoming a trusted advisor. That’s what our entire industry has hoped for. When you approach customers, be mindful that they are seeking expertise and vehicle knowledge.

Know that most buyers are undecided at the beginning of the shopping process. According to Autotrader, 6 out of 10 customers are open to multiple vehicle options when they first begin the shopping process. Uncover the emotions driving a purchase and you have a lot of opportunities to steer them towards the right vehicle on your lot for their needs.

Answer the customer’s questions first. We all know that today’s shoppers go online to do initial research before they pick up the phone or show up on your lot. A little bit of research often leads to a lot of questions. Answer every question and take notes in your CRM before you ask for the appointment or suggest a specific vehicle. This shows you’re there to meet their needs, not simply to sell another vehicle.

Focus on vehicle benefits, not features. Once you’ve answered every question and know the driving motivation behind a purchase, don’t fall back on selling vehicle features. Customers want to know how a vehicle will benefit them. Will it keep a baby safe? Will it help a teenager spend less money on gas? You get the idea.

Talk about how a car feels. The way a car feels to drive is important. Customers have to enjoy driving a car as much as they enjoy looking at it. Talk about how a reverse camera will instill a feeling of confidence. Or how plush seats and a smooth ride spark joy and happiness during a long commute.

Now that you’re focused on uncovering emotional needs, you can fine-tune your needs assessment process. A solid process is key to uncovering what is truly driving a customer’s purchase. Here is a sample of questions to ask:

 - Are you replacing a current vehicle or buying a second vehicle?

 - Are you buying a vehicle for someone else?

- What’s important to you in this new vehicle? What specific needs do you have?

 - What have you looked at so far? What did you like/dislike about that vehicle?

 - What’s your buying time-frame?

 - How much are you looking to spend?

Put on your investigator hat and follow up on every answer. Buying a car for a teenager going away to college? Okay, great. How often will your child be driving home? Will they have covered parking? Will they be paying for their own gas? Make sure to take notes and record everything in your CRM as the building blocks of a long-term relationship.

Keep in mind that most people don’t mind talking about their needs. In fact, it will probably be refreshing and welcomed. This is how you get customers to paint a picture of what they want. This makes it much easier to sell them the vehicle they need.

For many buyers, a vehicle is an emotional purchase. Tap into those emotions with a solid needs assessment process that uncovers the customers’ why, and you’ll sell more vehicles.

Truth be told: we’re all addicted to our smartphones. Nearly 80 percent of the U.S. population owns one, and adults spend an average of 3 hours and 35 minutes every day staring at that small screen. And it’s not just for millennials - even my 70-something parents are constantly on their phones, texting and going online.

This constant connection and easy access to information lead customers to expect nothing less from you during the buying process. They want instant vehicle and inventory details, transparency in pricing and faster in-store experience.

Simply put, mobile applications help you deliver what your customers want. You can use your mobile app to help your staff build trust and foster transparency while saving the customer’s time.

Improve your interactions with customers and sell more by tailoring your communication, research and in-store tools to a mobile-first world with these five tips.

• Focus on concise, real-time communications. The average person looks at his or her smartphone 150 times a day. That gives you a lot of opportunities to get in front of customers with marketing messages – whether it’s a phone call, email or text message. But messages must be tailored to the mobile experience. Make them short and to the point. Emails should be two paragraphs or less. Texts should be only a line or two. Voicemail messages should be under one minute. Then, be prepared to immediately respond when a customer reaches out because fast responses win business. A Harvard Business Review study found that if you respond to a lead within one hour, you are 7X more likely to have a meaningful conversation and qualify that lead.
  
  And don’t fall into a trap thinking that a missed call notification is as good as a voicemail. So many salespeople now just make the call, don’t leave a voicemail and expect the customer to call back. Take it from me: if the dealer doesn’t bother to leave a voicemail, I don’t bother calling back.

Send only personal, relevant messages. People don’t usually mind being contacted, but you better not bother them with messages that don’t apply to their current situation or needs. Mobile phones make it easy to block incoming spam, so make sure your marketing communications and personal messages aren’t regarded as such. Use your CRM to create targeted marketing lists based on where customers are in the buying cycle. Don’t get lazy and send unsolicited offers to a large group of people who never showed interest in the first place. That only increases your opt-out rate. Ask customers their preferred method of contact and communicate effectively with messages that fit their needs and where they are in the buying or service cycle.

Include a visual component. People, in general, respond very well to visuals. The more you can incorporate vehicle images, inventory videos or even videos of salespeople answering the customers’ questions, the higher your response rates will be. Let’s face it: it’s easy to scroll through text, but when you see a stunning image of a vehicle, you might be compelled to stop scrolling. If you see a video play button, you might be curious as to what the video contains.

Make research and buying tools mobile-friendly. We are certainly seeing dealers and consumers embracing more tablet and smartphone-based tools throughout the sales process. Many consumers want to shop and begin the buying process at their leisure, away from the dealership. They will seek out stores able to provide them with this experience. The best way to determine if your process is mobile-friendly? Try it yourself on your mobile phone. Also, make sure your sales team has access to your CRM using mobile devices. This allows them to collect and update customer data and conversations on the go, so nothing gets missed. 

One note of caution: do not allow staff to use their own devices. A private phone is not tied to your CRM. You can’t capture conversations, monitor for productivity, or review exchanges for training purposes. Purchase business-only devices for your employees. The price tag is small compared to the cost of losing customer data and valuable conversations.

Smooth customer experience with in-store mobile apps. Customers want a faster and more personal in-store experience. Apps like a mobile driver’s license scanner with an ID authentication tool before the test drive, a VIN scanner during appraisals and a mobile CRM and desking platform, speed up the buying process while ensuring the sales associate never has to leave the customer’s side. The whole process is transparent, faster and much more personal because the customer is included every step. On the service side, advisors should use a mobile or touch-less check-in process, so the customer is involved in the walk-through.

Smartphones are increasingly becoming the way we interact with the world. Your dealership has to meet the demands of the market with a solid mobile component. The five tips above will help you continue to infuse mobility into your communication, research and in-store tools so you can reap the benefits of greater customer satisfaction, retention and sales.

We all know that a sale is just the beginning of a customer relationship. But how do you manage that relationship so customers not only come back for service but also repeat sales?

Right now, dealers are focused on the here and now. I get it. Everyone is scrambling for used vehicles to meet the surging consumer demand as OEMs rebound from the slowdown in manufacturing. Used car inventory is low and the value of a trade has never been higher. Everyone is worried about coming out on top of the current economic crisis.

Retention has understandably been on the back burner for many dealers. But as we look forward, whatever the timeframe, we will return to a sense of normalcy and customer retention is a key part of ensuring your dealership’s success for years to come.

The good news is that dealerships are doing a better job of converting sales customers into service customers. According to the J.D. Power 2020 Customer Service Index Study, dealers capture 88% of customers’ annual service visits in the first three years of ownership vs. non-dealers. This is up from 79% in 2015. However, defection to the aftermarket occurs rapidly once warranties expire.

There are some simple, key practices you can put in place to inspire customer loyalty and keep retention rates high. The following list will help you get the customer back into the dealership for that first service, second service and all the way to their next new vehicle.

• When you deliver the vehicle, use your service lane software to set the first service appointment for 3 months in the future. Emphasize to the customer how important this service is in making sure the vehicle is performing at its best. Schedule a reminder call for your service advisor or BDC in your CRM. You wouldn’t believe how many dealerships forget to remind customers of these crucial appointments. Schedule that reminder and get it done. Customers lives get busy. If you want that first appointment, you have to earn it.

• Process Improvement: The service advisor and the sales representative who sold the car should greet the customer when they come into your shop. This personal attention shows the customer that their business is valued and appreciated. If a customer wants touchless drop-off, have the sales rep give a welcome call instead.

• Prove that you want the customer’s business by offering options for their convenience. This may include vehicle pick-up and drop-off, and/or offering a loaner vehicle. Make life as easy as possible for your customer. They will remember and appreciate it.

• Use technology to the customer’s advantage. Implement online scheduling, enable a mobile platform so service advisors can text customers and get fast RO approvals and allow customers to receive invoices and pay via text. Again, it’s about making the process as easy as possible so your customers want to come back.

• Change your language when setting the next service appointment. Don’t ask for the next appointment. Let the customer know that based on mileage, a certain date in the future is the best option to keep their vehicle running at peak performance. Then ask what time on that day works for them. The customer will be more likely to schedule because you’re counseling them on what is best, not asking for the appointment. Change your words, change your results.

• Answer your phones. Customers get frustrated when they want to schedule an appointment or have a question, but they can’t get anyone on the line. Dedicate one person during your busiest times to pick up the phone. This person’s sole responsibility is to make sure every call gets a live voice on the other end. Can’t make this happen with current staffing? Consider a third-party BDC service. You’ll close more service business and keep customers happy when every call is picked up, handled, and routed properly.

• Stay top of mind. Targeted, cross-channel marketing is critical to stay on a customer’s radar. Use your CRM to create targeted customer lists based on mileage, vehicle make, etc. Then create messages to be sent automatically on a pre-set schedule. Don’t inundate customers with messages and don’t make everything about a sale. Seasonal travel tips, holiday greetings and birthday cards go a long way toward cultivating genuine relationships. 

• Create a clear process for equity mining. The ultimate goal of a vehicle sale is to turn that customer into a service customer and then into a repeat buyer. The service drive is a great place to equity mine for the used vehicles you need and move customers into their next new vehicle. But you have to have a process that makes sense. Don’t approach a customer who bought within the last 12 months and encourage a trade-in! Do dedicate an equity mining expert to review all service appointments for the coming day and identify those customers with equity in their vehicles that you can move quickly for higher profit. Have the expert create a written trade-in quote for every eligible vehicle and email, text or hand it to the customer in the service drive. Then have that expert or your BDC follow-up. As I’ve said in previous blogs, a clear equity mining process combined with a strong BDC delivers an ROI of 10 to 1. For every $1,000 you spend, you’ll get $10,000 back.

Retention may have slid to your back burner right now, but it still deserves your attention. Things will get back to a sense of normalcy, and retaining customers is still your best bet for long-term success in your market.

Many dealers have seen their online shopping tools be used nearly twice as much over the past six months. With inbound calls also continuing to rise, it seems consumer behavior modification is a natural response to the current climate.

So, what’s interesting about this? Phone and online closing rates are not corresponding to lead volume and the vast majority of customers still want to come into the dealership to finish the buying process.

Customers want an alternative shopping experience married to a traditional buying route. In today’s rapidly-changing retail environment, how do you deliver what customers want and still close leads? Use the following strategies to combine the old with the new for a blended sales process.  

Offer and communicate shopping alternatives.

Several dealers are doing a great job offering up alternative ways to shop. We’re talking about digital retailing tools, of course, but also remote test drives, contactless vehicle delivery and touchless trade-ins.

While we have not seen a big uptick in customers proceeding from start to finish using digital retailing tools, many complete at least a few steps before picking up the phone or submitting a lead form. Other touchless shopping alternatives may likewise not see large adoption, but some customers will want them, so they should be offered.  

The old adage remains true: Communication is key. Customers won’t know how you’ve augmented in-store shopping with digital and touchless alternatives if you don’t talk about it. Make use of cross-channel marketing, keep your website updated and use your CRM to create targeted lists of existing and potential customers. All of these tactics will help get the word out about what you’re doing to help your customers browse and buy safely.

Keep traditional shopping and selling methods high-class.

At the end of the day, the majority of customers still want to touch and feel that new vehicle before they go through with a purchase. It’s important to offer and communicate alternatives to a traditional in-person test-drives, but it’s more important than ever before to make sure the customer gets a high-class sales experience if they take the traditional shopping route. Customers expect a personal, knowledgeable encounter with your staff that above all puts health and safety first.

A trend on the floor that continues to grow is assigning a single point of contact to a buyer. Both because customers prefer it, and because it can be a safer experience for customers to come into contact with fewer people.

Dealers forced to downsize employees are increasingly turning to this new sales model for efficiency. If your team members aren’t taking on the work of two or more employees in the dealership right now, they probably don’t have a job. Creating a customer experience with a single point of contact can be an effective way to deliver a high-class customer experience with a smaller staff.  

Get your systems to talk to each other.

Customers are doing their own vehicle research and gathering their own knowledge. By the time they call or contact your dealership online, they are at the stage of the process where they’re looking for validity. If customers see something online and then get different information from your sales representative, it delivers an inconsistent experience that leaves a bad taste in the customer’s mouth. A better approach is to develop an omni-channel retail strategy that creates a fully integrated user experience - from mobile shopping to the brick and mortar store, and everything in between.

Systems that integrate, talk to each other and share data are even more critical now to provide the consultative sales approach that customers demand. The process has to be seamless or you may as well not have it at all. Make sure your phone system and digital retailing tools tie into your CRM so information is readily available during customer interactions.  Sales reps should have instant access to inventory and pricing. Keep inventory up-to-date on your website and in other tools. The trick is that all your systems have to communicate so you can deliver correct information to customers at a fast pace to keep transaction moving.

A lot of customers are eager to take advantage of aggressive manufacturer incentives and historically low interest rates. But shopping and buying needs to be on-demand, seamless, and safe. Offer shopping alternatives, make sure your traditional in-store experience is high-class, integrate your systems so customer information is standardized across all platforms, and communicate everything that you offer. That’s how you close leads in today’s retail environment.

Stay tuned for part two of this blog where we’ll discuss: So, you closed a sale. Now what?

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If your CRM helped you nurture customer relationships, could you transform more leads into loyal customers?

The short answer is “yes,” and here’s why:

 - Today, a great customer experience drives loyalty, not product and/or price.

 - Consumers expect personalized, relevant information to help them make the best purchasing  decisions. 

- Self-educated consumers want a consultative experience, not a hard sell.

Lead volume is up dramatically as people continue to shift from traditional drive by to more touchless research and shopping. What customers expect from a shopping experience has changed. Your dealership needs to change too.

The more you know about a customer, the better you can tailor and personalize your lead follow-up. You become a trusted expert, not just another dealer out for a quick sale. Customers will appreciate and reward your efforts. 

So, how do you get to know your customers better and nurture long-lasting relationships?

A recommended first step is to use a CRM that includes shopping intelligence tools. These tools allow you to track, record and analyze your customers’ online shopping behavior, tying it back to the customer record in your CRM. You can know where they are shopping, what vehicles they’re researching and what features matter most to them.

The CRM aggregates all of this data so your salespeople can have more relevant, consultative conversations with potential customers - and you get a true view of every customer. This includes their online activity, how the customer prefers to be contacted, vehicles of interest, pricing, etc. This level of insight contributes to more thorough, personal follow-up for a better customer experience that leads to long-term relationships.

Then, email alerts notify you when a customer is shopping on your website. They can also flag when they’re shopping with a competitor, or on a third-party site. This empowers salespeople to reach out at exactly the right time, with exactly the right information for that customer.

This technology is also a powerful addition to your marketing efforts. The perfect time to send a personalized email message or offer is right after a customer is looking at a particular vehicle make and model. Getting a pop-up notification in the CRM when the customer is actively shopping makes this type of hyper-personal and relevant marketing a breeze.

Remember that instantaneous communication is important to today’s always-connected consumer. If your staff is too busy to immediately follow up with a lead, your customer experience suffers. But many dealerships are experiencing limited resources right now. So, how do you make sure that you’re providing that instant communication customers have grown to expect?

Here’s where you can lean on a trained automotive virtual BDC to function as an extension of your dealership. The BDC can respond to requests, make follow-up calls and track every interaction in your CRM. When a tracking alert pops up, the BDC can jump on it immediately and send personal communications to keep relationships growing, while you staff can focus on the customers in front of them. A flexible mobile platform gives staff the ability to engage in conversations quickly and manage customer details from anywhere at any time.

A virtual BDC can nurture leads on an ongoing, long-term basis, using proven strategies to move customers down the funnel. The best part is, all of this ties back to the customer record in the CRM. When you aggregate all customer data in one system, you can have more productive conversations with customers and deliver a personal experience every time.

Your CRM can also help you make the most of the customers you already have. Most dealerships have hundreds of unclosed leads already in their CRM.

Using an integrated equity mining tool can leverage your existing database to generate more revenue. Lean on your CRM and shopping intelligence technology to nurture these relationships with personal, relevant communications that will help you transform leads into loyal customers.  

It’s much more cost effective to sell to a current customer than to acquire a new one, so there is a huge opportunity to increase profits without incurring those hefty customer acquisition costs. And who doesn’t want to do more while spending less?

Your CRM is a powerful tool that can certainly help you transform more leads into loyal customers. Make sure you are utilizing your tools to their fullest extent so you can have happier customers and close more deals.

Good selling!

As states continue to loosen stay-at-home restrictions, will people continue to shop online for vehicles?

What I’m hearing from dealers is that digital retailing tools are a great research platform and the majority of consumers prefer to complete some purchase steps online. But, many  consumers still prefer to complete deals in the traditional way.

This may reflect a lack of comfort with a purely digital experience on the part of some consumers. Another aspect is that most states are not equipped to handle all forms digitally. Florida is just one example of a state where a wet signature is required for tag and title forms.

It may take years for consumers to feel comfortable completing 100 percent of a deal online. And even then, no one knows how long it will take state laws to catch up with a new way of doing business. But, market uncertainties don’t mean you should take a wait-and-see approach. Isn’t it better to get ahead of the curve? 

Digital retailing is an important alternative to offer consumers. Much like dealers offer purchasing alternatives such as financing or leasing. You wouldn’t offer just one financing option, so why offer just one path to purchase?

Your best bet is to offer an integrated omni-channel approach where consumers move effortlessly back and forth between your digital and physical showrooms.  

The first step towards this goal is to make sure your systems all work together. Information needs to move seamlessly between your online retailing tools, CRM and desking tools, so no information is lost and customers never have to fill out the same paperwork more than once.

Seamless information flow also ensures every customer action and interaction are tracked in one location and are accessible to your staff. When a customer poses a question online, or shows up on your showroom floor, everything they’ve done previously is easy to view so you can pick up right where they left off. This saves time, builds trust, and creates a better customer experience.

Transparency and trust are key throughout the entire process, but especially when it comes to calculating payments online. The digital retailing process must offer penny-perfect calculations. The payment seen online must match what’s seen inside the dealership, and it should include state and local taxes and fees, as well as the customer’s credit score in the final price.

Although consumers may say they don’t like negotiating over price, the irony is that the majority do just that when they enter your showroom. That doesn’t make accurate online pricing less important. In fact, it’s just the opposite. A real, viable purchase price builds trust before the customer enters your store and sets the stage for a better customer experience moving forward.

Another key to winning more business is responding to every Internet, email, and text lead within minutes. As I discussed in a previous blog, fast responses win business. If your response time lags due to staff constraints, consider an external BDC to help with overflow and after-hours inquiries.

Pay attention to how your team responds to leads. With so much information now available online, the majority of customers narrow down vehicle choice before they contact your store. These lower-funnel shoppers will likely recoil at a hard sell. They want information and will visit the dealership that answers all of their questions quickly and thoroughly, instead of one that immediately presses for an appointment. 

Timing is everything. Talk of an appointment should only come after every question is answered and rapport developed.

This shift in how customers research vehicles and educate themselves is why many dealerships have carved out new roles such as product specialists and/or digital concierges.  These employees are trained to guide online shoppers from initial contact to contract. Duties may include personally responding to digital retailing leads, controlling deal-making decisions, and strategizing the best deal for each customer.

As our industry prepares for a glut of lease vehicles to hit the market, strategizing the best deal for end-of-lease customers is more important than ever. Set your team up for success with a desking tool that includes solid rates and incentives integrations and allows for the display of multiple different financing and lease options for easy side-by-side comparisons.

Finally, promote your dealership’s modern, integrated purchasing approach. If consumers don’t know about it, how can they take advantage of it? Place digital retailing tools prominently on your website and social sites. Outline the path to purchase, including how customers move from online to in-store seamlessly, and place that on your website. Create multi-channel and targeted marketing campaigns to spread the word to current customers and prospects.

Digital retailing is not a silver bullet. You can’t plug in the tools and expect sales to just roll in. Success comes from shifting traditional lead responses and process, re-thinking some employee roles and wrapping it all in solid in-store processes.  Taking an integrated approach that seamlessly moves between your digital and physical showrooms creates an efficient and convenient customer experience that leads to more sales and loyal customers. 

We all know new leads are important and you always want to keep that pipeline full. But attracting new customers is expensive, and making more money while spending less is something that every business wants to do.

What if I told you that you could save both time and money by nurturing the relationships you already have in your CRM?

Research suggests you should spend only 20% of your time acquiring new leads, and spend the other 80% nurturing your existing relationships.

Mining your CRM for unclosed leads, customers with equity in their vehicles, or sold customers who did not convert to service - your biggest profit center - is a huge opportunity to increase profitability while keeping customer acquisition costs down.

These three strategies will help you properly utilize the data and reports in your CRM to profit from the relationships you already have.

Target and market unclosed leads.

Unclosed leads are a reality for every dealer, and success winning business sometimes depends on how you plan to handle them long-term.  To take these opportunities from leads to customers, you have to re-engage them on a regular basis with messages that intrigue them or make them want to take action. Use advanced search functions in your CRM to create a list of every unclosed lead in the last 90 days, then create personal, targeted marketing messages based on where the customer was in the buying cycle when you last engaged.

What good are your email campaigns if no one is reading them? Untargeted email open rates are only in the teens, whereas you’ll get an open rate of around 30 percent if you personalize those messages. Using targeted marketing messaging lowers your costs, increases customer engagement and ensures relevancy so customers open your emails.

Leverage the power of multi-channel marketing by following up with a phone call. If your salespeople don’t have the time to properly execute phone campaigns, engaging an external BDC is a no-brainer. It takes an average of four attempts to get a hold of a customer. Stressed out salespeople will give up after a call or two, but a dedicated BDC will stay the course until the call connects.

Finally, continue to market to customers who opted to buy a car at another dealership or who purchased with you but aren’t using your service center. They are not lost opportunities. Stay in touch with service specials, seasonal tips, holiday greetings, etc. Even though you may have lost one deal, they’ll have automotive needs in the future and you have the opportunity to become their go-to “car guy” just by staying in touch and providing value.

Create an equity mining strategy.

I’ve written about equity mining a lot, and for good reason: it’s a proven way to earn more sales while sourcing the pre-owned vehicles you need.  And these are leads you already have a relationship with inside your database.

When combined with a strong BDC, equity mining delivers an ROI of 10 to 1. In other words, for every $1,000 you spend, you get $10,000 back. Not a bad investment, right?

But like any investment, you must have a solid strategy to succeed. You need to dedicate one salesperson to your equity mining efforts. Have them look for customers in a position of equity, or those coming up on the end of a lease or loan, with a vehicle that your dealership needs. It could be beneficial to also post a used car manager in your service drive to provide immediate vehicle valuations and proof of incentives to trade up.

Set clear parameters for eligible prospects. For example, a customer who hasn’t purchased a vehicle in at least two years, or a customer coming up at the end of a lease. Don’t bark up the wrong tree and call a customer who bought within the last 12 months to encourage a trade-in.

Remember to highlight the benefits of trading up to good prospects , and offer service coupons or other incentives to sweeten the deal.

Get to know your customers better.

Technology has advanced to track a customer’s online behavior and we can now use shopping intelligence to make relevant purchase suggestions. Customers are conditioned to this level of personal engagement from companies like Apple and Amazon, and they now expect it from your dealership.

Flexible CRM tracking technology allows you to maintain a 360-degree view of each customer so you can engage at the right time with the right message to meet their specific needs. When you know what they’re considering buying, you can send them information on that vehicle, as well as additional, similar options before they reach out to competitors.

You can receive alerts within your CRM when the customer performs relevant activity, like researching vehicles on your website or a third-party site. Think of it as digital breadcrumbs that allow you to follow where a customer is in the buying cycle.

All of this data is aggregated in your CRM so you have one centralized location to view and analyze a customer’s profile. These insights enable you to develop a strategy for salespeople to stay in touch at key points with relevant messages. Customers feel more seen, heard, valued, and happier. And you increase your chances of closing deals faster.

To grow your business from within your CRM, remember to target and market unclosed leads, identify and nurture equity mining prospects, and get to know your customers better so you’re there to meet their needs and wants. These three strategies will help you profit from the opportunities and relationships you already have, instead of buying more leads.  

Good selling!

The vehicle sales forecast for 2020 looks strong, with S&P Global Ratings expect sales to hit a relatively healthy 16.8 million units. But earning your share of this market depends a lot on how well you manage your inventory: what you stock, when you stock it and how quickly you can get vehicles off your lot. The following inventory strategies will set you up for a profitable New Year.

Clear out the old and bring in the new.

Don’t waste valuable floor space with aging 2019 models. Establish programs, processes, incentives and aggressive targeted marketing to push out the old and make way for the new. Used advanced search functions in your CRM to create a targeted list of customers who purchased a vehicle at least two years ago and make another list of every unclosed lead in the last 90 days. Send a mailer or email and follow up with a BDC call to net up to a 24 percent higher ROI, according to CJG Digital Marketing. 

Lean on your inventory management solution to identify your best new vehicle sellers so you don’t overload your floor. Your solution should also offer real-time updates and market data so you can easily manage your inventory and price vehicles correctly.

Create a pre-owned stocking plan.

Focus on stocking the top 10 vehicles that move fast and have maximum profitability. To be successful at this, you must also pay attention to seasonality. For example, a 2x4 pick-up in the north won’t sell in the winter but in the south, those trucks sell all year long.

We all know vehicles are a depreciating asset. You lose money when you buy the wrong car, overpay for the right car, price vehicles too high for your market or fail to retail every unit in a predetermined time frame. Lean on your inventory management tool and market analytics to avoid these common pitfalls that cost you money.

Eliminate pre-owned “lemons.”

Every dealer has pre-owned vehicles that don’t move and become a liability. Investigate why they aren’t selling. Is the car dirty? Is there an odd smell? Is it stuck in the back of your lot with no visibility? Or is the dealership down the road offering better pricing? Solve whatever problems you can and then market aggressively. Your CRM should match current inventory to customers searching now – or in the past – for similar vehicles. Use that information to send out targeted marketing.

If a car still doesn’t move, cut your losses and sell at auction before you’re in a position of negative equity. Most importantly: Learn from these lemons. If a vehicle doesn’t move or bring in profit, don’t buy it again. Eliminate the problem up front so you don’t end up in the same situation again.

Stock strategically.

Sourcing pre-owned vehicles has become more difficult for dealers with companies like Carvana scooping up a lot of stock. Be very selective at auctions and get aggressive in your store to win trade-ins.

Equity mining is a smart way to get the vehicles you need at a cheaper price than at auction. When combined with a strong BDC, equity mining is a proven strategy that delivers an ROI of 10 to 1. In other words, for every $1,000 spent, you get $10,000 back.

Equity mining in your service lane is an especially sound strategy. After all, you see cars there all day long. You know the cars you service, the problems they have, and their service history. There are no condition surprises and no transportation costs. The benefits here are twofold – you acquire an inexpensive pre-owned vehicle, plus you move the customer into a new vehicle, giving you a sale.

Keep in mind that to reap the benefits, equity mining cannot be a part-time job. You should have a dedicated salesperson who understands what makes a customer a good prospect. A scattershot approach to boost sales at the end of the month will likely only alienate your best service customers, so make sure you implement a solid strategy to keep the process moving all month long. 

This new decade holds a lot of potential for dealers. Set yourself up with a sound inventory strategy now and reap the benefits all year – and decade – long.

Good Selling!

Listening more and letting your customer do the talking is your greatest asset when closing a deal. Visit www.elead-crm.com 

Today’s customers expect and demand an amazing customer experience. The dealership with the right vehicle and the best experience will ultimately win the business. To deliver the best experience possible, you must maintain expertise about your customers and their shopping behavior.

The average consumer today visits only one or two dealerships before buying. The odds are good consumers will purchase from your store if you focus more on delivering a great customer experience than on being lead-centric.

How do you do that? By mastering three touchpoints: research, communications and the showroom visit.

Research

Shaping that exceptional experience begins with research. According to AutoTrader, nearly 80 percent of shoppers use third-party sites to research and locate vehicles. Make sure your inventory pages on these sites are highly descriptive with critical information above the fold, including pricing, options, and interactive photos or videos.

Digital retailing tools can differentiate your dealership and enhance the experience. Consumers today do more work online. If customers are forced to rehash steps when they arrive in the store, it leads to frustration and erodes the great experience you’re trying to create.

But, if that previously-completed work flows into your CRM and DMS, it translates to a shorter and more pleasant in-store experience. That’s where your digital retailing tool comes in.

Communication

When you receive a phone call or lead form, don’t simply answer a question about price or availability and end the conversation there. Differentiate your dealership by offering customers critical information to make informed decisions.

For example, along with information on the requested vehicle, present information on similar vehicles in stock with more and less equipment, as well as a pre-owned option. Now the conversation isn’t only about price. It’s about defining what is really important to the customer and how your dealership can meet those vehicle needs.

Learn which communication channel the customer prefers and engage with them there. Be transparent about pricing and financing. Focus on delivering high-quality and relevant answers before asking for an appointment. Asking too soon can stop the transaction in its tracks.

Remember that the human touch still matters. Be warm, welcoming, and competent. Once you’ve answered every question, it’s time to ask for the appointment. By this point, you will have earned it.

Between setting the appointment and the showroom visit, continue shaping a great customer experience. Email the customer valuable information, such as a video of the vehicle of interest, or outline what to expect once they enter your store.

Maintain follow-up with an appointment reminder that clearly states the customer is coming in for a pre-scheduled VIP appointment.

If the vehicle of interest sells before the appointment, reach out immediately with details of other vehicles that meet the customer’s wants and needs.

A NADA survey found that 80 percent of consumers buy a different vehicle than the one they inquired about, so even if the vehicle of interest is still on the lot, prepare a list of alternates.

The Showroom Visit

On the day of the appointment, pull up the vehicle and make sure it’s spotless and ready for a test-drive. Write the customer’s name and VIP status on a prominently-placed appointment board for the customer to see as soon as they step on the floor. Ensure your receptionist has an up-to-date list of appointments and can greet each customer by name.

When you’re with the customer, be a product expert. Demonstrate all the vehicle features and how to use them. Set up preferred radio stations and synchronize mobile phones with the vehicle.

Introduce every customer to your service manager to close the gap between sales and service. This also lets the customer know that you care about the ongoing maintenance of the vehicle and are invested in a long-term relationship.

If the customer misses the appointment, follow up immediately through their preferred communication channel. Give them options of several new appointment days and times and let them know the vehicle is there and ready for the test drive.  

Winning more sales requires an amazing customer experience. Don’t see customers as just leads to be closed. Deliver the best possible experience throughout the customer journey and you’ll see results.

Good selling!