Planning and setting goals for the year ahead is hard considering we tend to plan month by month especially when it comes to measuring success. So instead of focusing simply on one month at a time, perhaps it is best to have overarching growth goals for the year. Not to mention, by planning for the year you can create more defined goals that are long-lasting vs. in the moment fixes that don’t stick!
Here are the top three growth opportunities your dealer should consider in 2020.
Selling More Extended Warranties in Finance
If you are not selling extended warranties you are leaving money on the table. Whether you have your sales consultants sell the extended warranty or have it be apart of your sales process the more warranties you sell the better chances you have in the customer returning to the dealership to have their vehicle both serviced and repaired. For the customers that do not purchase an extended warranty at the time of sale, you can easily create campaigns in your CRM. Once you have sent the customer an email about the extended warranty have either the sales consultant or finance manager follow-up and offer the warranty!
Sell More Service Contracts vs. Just Offering Free Oil Changes!
For the dealerships who give away free oil changes with the hopes of the customer coming back and spending more money - that is not the best way to increase retention. In fact, in many cases when the customer gets a free oil change they think of the word “free,” which does not always entice them to spend more money with you. Especially if the “free” oil change does not include the shop supplies that the customer usually winds up paying for - instead focus on selling service contracts at a discount. This way the customer is paying for their service - albeit, at a discount, but it increases their chances of not just coming in for service, but spending more in service. Not to mention, if you sell the customer a contract it often does not often increase their monthly payment by much at all making it that much easier to sell the contract.
Don’t Lose Financing Deals With Customers Bringing In Their Own Finance
One of the trends noticed in the last year or so is the number of customers bringing their own financing to the table, which means you lose out on the reserve from the lender. If the customer does bring in their own financing always be sure to offer matching it and or trying to beat their offer! Not to mention, in most cases the customer is not aware of the many stipulations their offers present - i.e. the vehicle cannot be over a certain year, and/or have too many miles. All of which can limit their selection.
Bottom Line: Every dollar counts and selling extended warranties, service contracts, and financing the deal for the customer is revenue towards your dealer’s bottom line. And if we simply focus on one month at a time we tend to lose sight of the bigger picture. In that, when you look at processes from a month-to-month concept you actually wind up falling short of one process to increase on another! As you are not actually changing the culture and or training them to do better! Whereas if you have growth goals, and offer training in the above areas (or whatever they may be) throughout the year it increases your chances of being successful.