DealersGear
Slow Sales Can Equal High Revenue
Turn slow sales months into high revenue with CRM best practices.
Auto dealers, like most businesses, face months that are traditionally slow in sales. If you can predict sales downturns in advance, you are in an advantageous position to focus resources on other areas of potential revenue. You can create revenue during slow sales months by mining your DMS and marketing to customers who may be in a position to spend money.
The most productive non-sales searches include:
1. Sold, Not Serviced
2. Serviced, Not Sold
3. Declined Service
4. Lost Service
5. Unsold Follow-Up
6. Happy Birthday Phone Call
7. Lost Service Customers
8. High Dollar Customer Pay RO’s
9. Service Contracts or Extended Warranties
Dealerships can integrate these search categories into their annual business practices, implementing them when the traditionally slowest sales months inevitably rear their ugly heads. Use this calendar foresight to alert general managers, service managers and sales managers that the time has come to focus on bringing in revenue from the above non-sales categories.
Below are statistics and advice provided by Reuben Muinos, director of marketing of DealerSocket MarketPlace. Muinos has more than twenty years of dealership experience.
Serviced Not Sold:
An average-size dealer can generate five to fifteen more deals per month when a dealer offers to purchase a prospect’s vehicle that was recently serviced but not bought from the dealer. Acquisitions of these vehicles can be far more profitable than buying the same model from an auction. This scenario is a win/win, benefitting the customer and the dealer.
Unsold Follow-Up:
I have observed an increase of 33% of be-backs when someone other than the salesperson from the dealership, or an outsourced third party, is used in the unsold follow-up process. Prices, products or salespeople are the most-often referenced issues cited by customers when a deal is not made. Customers are more apt to speak candidly with someone other than the salesperson.
Happy Birthday Call:
Although most salespeople fear this call, it is an effective way to reconnect with the customer. It’s important to make non-sales calls; it really does thrill the customer to get the call.
Lost Service Customers:
Marketing through multi channels (e-mail, mail, phone call) can generate $20 to $35 per customer record. Potentially, 1,000 lost customers brought in through multi-channel marketing can result in a $20,000 to $30,000 service revenue gain.
Greg Hammond, DealerSocket product manager, provided the following information from DealerSocket's CallCenter, based on typical results from a campaign list of 1,000 customers in each category.
No Service X Months
• 100-120 leads (appointments/hot leads/call backs)
• Service Revenues $50,000 within six weeks
• Retention of 15%Vehicle Buyback (Equity)
• 80-100 leads (50 appointments, the rest call backs and hot leads)
• 8-10 sales within six weeksServiced Not Sold• 100-120 leads (70 appointments)
• 8-10 sales within six weeksSold Not Serviced
• 160 leads (53 appointments)
• 15-20% retention within six weeksDeclined Service
• 130 actionable leads generated (28 appointments)
• $85,000 in service revenue generated within 6 weeks
Remember that implementing non-sales DMS-mining into your dealership’s annual business practices during slow sales months works. Now get back on the floor and make some money!
Hunter Swift is the Manager of Market Development at DealerSocket and has been with the company since 2005. In addition to his current role he has fulfilled the responsibilities of customer support, consulting, training, and sales. He specializes in helping dealerships improve processes through the use of CRM technology. Prior to DealerSocket he sold cars and is a graduate of Pepperdine University.
Follow him: @HunterSwift
DealersGear
Slow Sales Can Equal High Revenue
Turn slow sales months into high revenue with CRM best practices.
Auto dealers, like most businesses, face months that are traditionally slow in sales. If you can predict sales downturns in advance, you are in an advantageous position to focus resources on other areas of potential revenue. You can create revenue during slow sales months by mining your DMS and marketing to customers who may be in a position to spend money.
The most productive non-sales searches include:
1. Sold, Not Serviced
2. Serviced, Not Sold
3. Declined Service
4. Lost Service
5. Unsold Follow-Up
6. Happy Birthday Phone Call
7. Lost Service Customers
8. High Dollar Customer Pay RO’s
9. Service Contracts or Extended Warranties
Dealerships can integrate these search categories into their annual business practices, implementing them when the traditionally slowest sales months inevitably rear their ugly heads. Use this calendar foresight to alert general managers, service managers and sales managers that the time has come to focus on bringing in revenue from the above non-sales categories.
Below are statistics and advice provided by Reuben Muinos, director of marketing of DealerSocket MarketPlace. Muinos has more than twenty years of dealership experience.
Serviced Not Sold:
An average-size dealer can generate five to fifteen more deals per month when a dealer offers to purchase a prospect’s vehicle that was recently serviced but not bought from the dealer. Acquisitions of these vehicles can be far more profitable than buying the same model from an auction. This scenario is a win/win, benefitting the customer and the dealer.
Unsold Follow-Up:
I have observed an increase of 33% of be-backs when someone other than the salesperson from the dealership, or an outsourced third party, is used in the unsold follow-up process. Prices, products or salespeople are the most-often referenced issues cited by customers when a deal is not made. Customers are more apt to speak candidly with someone other than the salesperson.
Happy Birthday Call:
Although most salespeople fear this call, it is an effective way to reconnect with the customer. It’s important to make non-sales calls; it really does thrill the customer to get the call.
Lost Service Customers:
Marketing through multi channels (e-mail, mail, phone call) can generate $20 to $35 per customer record. Potentially, 1,000 lost customers brought in through multi-channel marketing can result in a $20,000 to $30,000 service revenue gain.
Greg Hammond, DealerSocket product manager, provided the following information from DealerSocket's CallCenter, based on typical results from a campaign list of 1,000 customers in each category.
No Service X Months
• 100-120 leads (appointments/hot leads/call backs)
• Service Revenues $50,000 within six weeks
• Retention of 15%Vehicle Buyback (Equity)
• 80-100 leads (50 appointments, the rest call backs and hot leads)
• 8-10 sales within six weeksServiced Not Sold• 100-120 leads (70 appointments)
• 8-10 sales within six weeksSold Not Serviced
• 160 leads (53 appointments)
• 15-20% retention within six weeksDeclined Service
• 130 actionable leads generated (28 appointments)
• $85,000 in service revenue generated within 6 weeks
Remember that implementing non-sales DMS-mining into your dealership’s annual business practices during slow sales months works. Now get back on the floor and make some money!
Hunter Swift is the Manager of Market Development at DealerSocket and has been with the company since 2005. In addition to his current role he has fulfilled the responsibilities of customer support, consulting, training, and sales. He specializes in helping dealerships improve processes through the use of CRM technology. Prior to DealerSocket he sold cars and is a graduate of Pepperdine University.
Follow him: @HunterSwift
No Comments
DealersGear
Mobile CRM
- “Our people self-train themselves on how to use the MobileCRM. It’s incredibly easy to use.”
- "Managers are involved and logged into MobileCRM inspecting the sales dashboard which has added another level of accountability."
- “Salespeople no longer have to leave the customer to log information in the CRM. Customers feel more comfortable giving information to someone with an IPad vs. someone sitting behind a desktop.”
- "Some of our stores have even replaced their desktop kiosk w/ an iPad."
- "Our solds have gone up because we have more people to follow up with… because more information is being logged in the DealerSocket MobileCRM App."
Follow him: @HunterSwift
No Comments
DealersGear
Mobile CRM
- “Our people self-train themselves on how to use the MobileCRM. It’s incredibly easy to use.”
- "Managers are involved and logged into MobileCRM inspecting the sales dashboard which has added another level of accountability."
- “Salespeople no longer have to leave the customer to log information in the CRM. Customers feel more comfortable giving information to someone with an IPad vs. someone sitting behind a desktop.”
- "Some of our stores have even replaced their desktop kiosk w/ an iPad."
- "Our solds have gone up because we have more people to follow up with… because more information is being logged in the DealerSocket MobileCRM App."
Follow him: @HunterSwift
No Comments
DealersGear
Negative Selling
With the president election in full swing I have noticed that the majority of president hopefuls often use negative selling and mud-slinging attack campaigns. It has grown to something I expect from politicians but not from salespeople. Yet recently I experienced some negative selling tactics that I thought I would share.
The first occurred when I was a shopping for a new car a couple months ago. I had decided on what make and model car I was planning to buy but wanted reassure myself that I was making the best choice by looking at some other vehicles. When I visited a different dealership and I mentioned I was doing some research on two vehicles, I was surprised at the salesperson's approach. He immediately began to negative sell by talking about how bad the gas mileage was, that it didn’t score the highest safety ratings, and weaknesses in its performance while failing to point out any of the strengths of his brand. It was a big turn off for me and I ultimately bought the car I was original looking at.
I know this isn’t always a common occurrence but for some salespeople they get fearful and defensive as soon as the competition is mentioned.
It is ok to acknowledge that you have competition but there is a fine line between negative selling and pointing out differences between two products while focusing on your strengths. Knowing your competitions weaknesses is important, but this information should be used in a tactful informative way that is not offensive to your consumer. Too many sales people forget to focus on the strengths of their own product and services.
Salespeople that trick themselves into believing that they can make up negatives about a competitor are kidding themselves.
The second occurrence of negative selling happened last week in my own job. I work for a CRM company and often get the impression that some of our competitors negative sell on occasion. Recently a dealership I was working with was told by another CRM company that the integration we had with a particular DMS was not great. To resolve this concern, I immediately conferenced in a person from the DMS company that was referred to who reassured the customer of our great integration. We ended up getting this customer, but not because of our integration or us negative selling. The dealer said that the moment he knew the competitor had lied they lost all trust and began to doubt the positives of their product.
Spare the negative talk. Henry Ford said, “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.” Focus on you, your company, your strengths and most importantly your customer.
My business and my reputation are built on ethical standards and selling my company’s superior service, not bad mouthing rivals. Just because you are my competitor doesn’t mean we can’t be friends either. We can chat and talk about industry issues at trade shows, conferences, and through social media. I have referred dealers to others when I thought they were a better fit. And in turn, other companies have sent business my way.
Strong competitors drive me to be even better at what I do. The automotive technology space is growing and I love the idea that more players are joining in. Yes, it is more competition, but I think there’s enough business to go around and it grows the overall performance of automotive industry.
Hunter Swift is a Sales Business Analyst at DealerSocket and has been with the company since 2005. In addition to his current role he has fulfilled the responsibilities of customer support, consulting, training, and sales. He specializes in helping dealerships improve processes through the use of CRM technology. Prior to DealerSocket he sold cars and is a graduate of Pepperdine University.
Follow him: @HunterSwift
No Comments
DealersGear
Negative Selling
With the president election in full swing I have noticed that the majority of president hopefuls often use negative selling and mud-slinging attack campaigns. It has grown to something I expect from politicians but not from salespeople. Yet recently I experienced some negative selling tactics that I thought I would share.
The first occurred when I was a shopping for a new car a couple months ago. I had decided on what make and model car I was planning to buy but wanted reassure myself that I was making the best choice by looking at some other vehicles. When I visited a different dealership and I mentioned I was doing some research on two vehicles, I was surprised at the salesperson's approach. He immediately began to negative sell by talking about how bad the gas mileage was, that it didn’t score the highest safety ratings, and weaknesses in its performance while failing to point out any of the strengths of his brand. It was a big turn off for me and I ultimately bought the car I was original looking at.
I know this isn’t always a common occurrence but for some salespeople they get fearful and defensive as soon as the competition is mentioned.
It is ok to acknowledge that you have competition but there is a fine line between negative selling and pointing out differences between two products while focusing on your strengths. Knowing your competitions weaknesses is important, but this information should be used in a tactful informative way that is not offensive to your consumer. Too many sales people forget to focus on the strengths of their own product and services.
Salespeople that trick themselves into believing that they can make up negatives about a competitor are kidding themselves.
The second occurrence of negative selling happened last week in my own job. I work for a CRM company and often get the impression that some of our competitors negative sell on occasion. Recently a dealership I was working with was told by another CRM company that the integration we had with a particular DMS was not great. To resolve this concern, I immediately conferenced in a person from the DMS company that was referred to who reassured the customer of our great integration. We ended up getting this customer, but not because of our integration or us negative selling. The dealer said that the moment he knew the competitor had lied they lost all trust and began to doubt the positives of their product.
Spare the negative talk. Henry Ford said, “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.” Focus on you, your company, your strengths and most importantly your customer.
My business and my reputation are built on ethical standards and selling my company’s superior service, not bad mouthing rivals. Just because you are my competitor doesn’t mean we can’t be friends either. We can chat and talk about industry issues at trade shows, conferences, and through social media. I have referred dealers to others when I thought they were a better fit. And in turn, other companies have sent business my way.
Strong competitors drive me to be even better at what I do. The automotive technology space is growing and I love the idea that more players are joining in. Yes, it is more competition, but I think there’s enough business to go around and it grows the overall performance of automotive industry.
Hunter Swift is a Sales Business Analyst at DealerSocket and has been with the company since 2005. In addition to his current role he has fulfilled the responsibilities of customer support, consulting, training, and sales. He specializes in helping dealerships improve processes through the use of CRM technology. Prior to DealerSocket he sold cars and is a graduate of Pepperdine University.
Follow him: @HunterSwift
No Comments
DealersGear
My Car Buying Experience
One of my first jobs out of high school was selling cars and I have worked as a vendor with a CRM company in the industry for 7 years. I enjoy working in the auto industry and take pride in helping dealerships be more successful either through the products I sell or through the processes I teach from my experience.
About every three years, I find myself as a customer in the market for a new vehicle. Recently, that time had come and I was looking for a new vehicle. I am not loyal to a particular dealership, but I usually buy my cars from the dealership that has the vehicle I want, and at the best price. Since I am only in this situation every so often I thought it would be wise to document my experience, with the hope that dealers and industry specialists could use it to improve their processes.
I sold my car to a private party and needed to buy a vehicle within the next day or two. In deciding my next vehicle, I did my entire search online. I looked at manufacture websites, read reviews from Car & Driver and other respected publications. I searched videos on YouTube and jumped on vehicle-specific online forums where I could read what owners of the vehicle had to say, both positive and negative.
Once I knew the vehicle I wanted I went back to the manufacture’s website and built that exact vehicle. An inventory search showed that five dealerships within a 50 mile radius had the exact vehicle (model, features, packages, MSRP).
The Phone Up
I began calling these dealerships, asking if I could get some numbers. I knew that they would have to work on the numbers so I gave them my cell phone number and told them to call me back. I was surprised by the following:
Dealership 1: Called me back two hours later.
Dealership 2: Called me back in twenty minutes.
Dealership 3: Called me back an hour later, only to ask what vehicle I was looking for again.
Dealership 4: Gave me my numbers over the phone.
Dealership 5: Never called me back with an offer!!!
It just amazes me that there are salespeople who don’t call customers like me back! What also makes me concerned is that not one dealership that gave me pricing has called me back since to follow up.
One dealership I called answered with an automated service, telling me that “the call might be recorded for quality assurance”, only to ring to another automated service “call is being recorded” two more times! By the time I got someone on the phone I was pretty sure I wasn’t talking with anyone at the dealership, but to someone at a call center. I gave my information to them, only to be transferred to the actual dealership where I had to give all of my info again.
The Deal
I ultimately went with the dealership that offered me the best price, which happened to be located an hour away from my home. An hour before I got off work, I told the salesperson at the dealership that I was going to come up that night. He told me that he was leaving early but to talk to his counterpart in the internet department. When I got off work I called and told him that I was planning on driving up and that I would have my two kids with me (3 year old and 8 month old). I asked if I could give my credit info over the phone to get all of the paper work started, so my wife and I didn’t have to spend all night there with our kids. I told him to also make sure I qualified (credit) and everything was good before we drove up.
We got the kids all ready and waited for the call. An hour and 15 minutes later he called me to ask if I own a similar make product: No. If I am currently leasing a vehicle: No. If I am active Duty Military: No. Then he says to me that the original salesperson misquoted me and included all of those rebates in my price he gave me. Now my lease payment would be $120+tax more a month! This was higher than two other dealer’s quotes I had received.
I understand mistakes happen but I think the lesson I learned is about managing customer expectations. If he originally told me a fair payment I would have been happy with it. Instead, he quoted me a very low price and got me to expect a low payment just to get me in the store, and then at the last minute the price changed. Now this may have been a mistake, but it also sounds like it could have been a dirty business tactic. I was shocked to say the least. I was sure glad I called ahead of time instead of driving all the way there with my kids only to find that the deal was too good to be true.
I ultimately had to call the manager at the dealership. I felt uncomfortable by putting the dealer in this position but it seemed as though the dealer could honor the misquoted price and have a happy customer or not honor it and have an unhappy customer. Unfortunately, it was only after a heated discussion, that the manager was willing to work with me. We eventually meet at a price we both felt comfortable with and I picked up the car.
Looking back, it was an interesting experience. One I hope that by sharing others can improve their processes. I still am surprised, it’s been 5 days and I still haven’t received a follow up call from the dealership.
Hunter Swift is the Business Analyst at DealerSocket and specializes in Automotive/Dealership processes that help dealerships become more effective by maximizing their opportunity to improve all aspects of the sales cycle, including: driving traffic, marketing, proper sales, and demonstration techniques. He also specializes in helping dealerships increase their customer satisfaction, reduce their web-lead response times and to improve accountability. Follow Me: @HunterSwift
20 Comments
DrivingSales, LLC
I'm totally torn. As new to the industry, I've lived the entirety of my life on the consumer side and this is the exact replica of everything I thought a car buying experience was like. I even worked (briefly) in a car dealership and the sales people I was surrounded by did not do much to battle that perception. Now, being involved in our DrivingSales community, my perception is different. There are so many progressive dealers and dealership people who are pushing the boundaries and actively working to change the car buying experience to a better one. Because of this, where my initial reaction a year ago would've been, "Well, what do you expect?" my reaction now is more along the lines of frustration for all of the dealers out there who are stepping up to change the game, but have to fight against their own kind who aren't making it easy. Thanks for sharing -- it's a huge reminder that, even with as far as we've come, there's so much more ground to cover.
Southern Automotive Group
Hunter this is, unfortunately, a classic example of a shopping/buying experience that happens all to often. It shows that transparency and being of service to the client is the furthest from those dealer's minds. It truly is the "just get them in" syndrome and dealers who continue to practice it will remove themselves slowly from consideration. I just don't get it. Although you ultimately made your deal, I am reading a truly negative experience. Now I hear so much about dealers looking to increase loyalty, it seems in this case by not following up on your experience or even a "thank you", their opportunity to build any loyalty is gone. That is just lazy. What are your thoughts?
Southtowne Volkswagen
Sad to say, but many dealers follow that exact pattern. I even know some that quote the price BEFORE destination and then spring that when they get the customer in. You, like most, still bought from that Dealer thus proving their theory that"ya have to hook em and take them out of the market". I wish it was different, and yes I know legitimate mistakes can occur, but until buyers are willing to walk out and call in the next day to inform the Owner that they purchased elsewhere and why, it won't change. Sorry to hear about your experience. Sadly, you probably won't get a OEM survey due to an"accidental"mistake webring you're email. Thanks for sharing!
Classic Chevy Sugar Land
Although you think by publishing this article you are doing the industry a favor in reality by buying from this dealership all you have done is solidify the fact in heir minds they did it right. I work at the best dealership in America and compete against dealers like his one everyday, we are not the biggest yet but we will get there by treating customers right. By completing your purchase with this dishonest dealer you have done nohing to help he public. The first salesman did not make a mistake, you were hooked, turned and closed. This type of bad behavior has been going on for 50 years and those of us who do it the right way are disgusted. The fact you claim no allegiance with any dealer and will buy from the one with the lowest price just perpetuates what goes on at most dealerships. It amazes me when people don't appreciate the service a caring dealership can provide you with such a big purchase, you don't get good at Walmart but you get a cheap price.
DealersGear
Mark I understand. I honestly thought initially that this dealer was offering the best service by the price. I would normally have left, and gone to another dealership, but the fact that I was without a vehicle I needed to get a car that night, and since they already ran my credit I tried to make it work. I wish my experience was better. I would have still written about my experience.
DealersGear
Also I feel price is an important factor to most consumers but the experience from the sale effects if they will buy from them again and where they will service their vehicle.
Southtowne Volkswagen
How many "one hit wonders" will they achieve? Sadly their reputation will catch up to them. I only wish it would happen faster. :/
Silver Star Mercedes
I don't agree with misleading the customer, I make sure that I always tell my team not to offer something that we can't honor in the dealership. However this is a perfect example of a dealership who misleads customers into coming in with prices that can't be honored and yet in the end they got the sale. You mentioned that you had received a better price from other dealers, please tell what good did it do for that dealer to be honest with you?
Dealer Inspire
You would think that dealers that use practices like that would learn. You have now taken this online. Even though you haven't mentioned names, I'm sure that the dealer knows who they are. This is something that you will see consumers take online and blast every review site out there talking about the experience. It is ashame that there are dealers still out there trying bait and switch practices.
Classic Chevy Sugar Land
My Point is some dealers will never stop this because in the end they sold the car because of what they did. I am sorry to say but the author failed us all, the consumer, honest dealers and the dealer that got the sale because he proved to the salesman who lied how to "get" the sale.
DealersGear
Mark, Sorry if I failed you. One thing to add, if the other dealerships I called for quotes had followed up with me, they would have learned why I was not buying from them (a lower price) and maybe they could have warned me that it was too good to be true. I ultimately bought from this dealership because they agreed to sell me the vehicle at a price lower than any other.
DrivingSales, LLC
I think it's tough to say that the author failed the dealers, when clearly his experience is a massive fail on the part of the dealership. Did they sell the car? Sure, but will he ever buy there again? Most likely not. Dealer reputations, as with any group, are lumped together, so at the end of the day, maybe it's that dealer who failed his community of dealers, dealers like you and countless others that are standing up against "the way things have always been" and trying to find a better way. Perhaps we're the one that have failed that dealer by not reaching out enough to show him that there is a better (and more profitable) way to conduct his business. Basically, it's a bold statement to say that it's the customers' fault for why some dealers have shady practices, and I can't say that I agree with that.
Hansen Ford Lincoln
Yeah I would have to say that the failure was on the part of the other salespeople who couldn't demonstrate the difference between a fair price with great service and a low ball price that's often too good to be true. If someone from one of the "fair and honest" dealers would've gotten back to the author, he would've had somewhere to turn when he realized what was going on at the first dealership.
DrivingSales, LLC
Mark, thank you for taking the stand of treating customers fairly within you business model. You're exactly right that stores have been treating customers terribly for over 50 years - How do you ensure that your customers know that you are different from the rest?
Classic Chevy Sugar Land
I understand what you are saying but no matter what they said you only wanted to believe in the lowest 'price'.
Classic Chevy Sugar Land
We always do what we say we are going to do, no ifs ands or buts.
DrivingSales, LLC
That's awesome and unfortunately, not the case with all dealerships or companies in any industry for that matter. How do you ensure that your customers know this before they buy from you and don't just think you're like everyone other store? That you actually WILL do what you say? I think conveying that message and making sure your customers know you are serious about it is instrumental in attracting those people into your store and not someone else's.
Car
If your African America do not buy a car from Toyota of fort worth, they are racist and look down on all blacks. Never buy here trust me.
Fountain Car Leasing & Sales
Something to remember: Prices you get over the phone are generally not binding. Ask for an official price quote over email. Secondly, it very very likely wasn't a mistake. The first salesperson gave you a price, and likely didn't make any mistakes. The second salesperson just wanted to make more money. Finding these discounts is a large part of our business model, and finding out whether or not you qualify is done in the initial questionnaire, usually long before you get even an initial quote. If you want to see what that's like, check us out at www.fountaincarleasing.com . We also save you from having to drive the hour (or more) to the dealership with the best deal by delivering the car to you.
Fountain Car Leasing & Sales
Something to remember: Prices you get over the phone are generally not binding. Ask for an official price quote over email. Secondly, it very very likely wasn't a mistake. The first salesperson gave you a price, and likely didn't make any mistakes. The second salesperson just wanted to make more money. Finding these discounts is a large part of our business model, and finding out whether or not you qualify is done in the initial questionnaire, usually long before you get even an initial quote. If you want to see what that's like, check us out at www.fountaincarleasing.com . We also save you from having to drive the hour (or more) to the dealership with the best deal by delivering the car to you.
DealersGear
My Car Buying Experience
One of my first jobs out of high school was selling cars and I have worked as a vendor with a CRM company in the industry for 7 years. I enjoy working in the auto industry and take pride in helping dealerships be more successful either through the products I sell or through the processes I teach from my experience.
About every three years, I find myself as a customer in the market for a new vehicle. Recently, that time had come and I was looking for a new vehicle. I am not loyal to a particular dealership, but I usually buy my cars from the dealership that has the vehicle I want, and at the best price. Since I am only in this situation every so often I thought it would be wise to document my experience, with the hope that dealers and industry specialists could use it to improve their processes.
I sold my car to a private party and needed to buy a vehicle within the next day or two. In deciding my next vehicle, I did my entire search online. I looked at manufacture websites, read reviews from Car & Driver and other respected publications. I searched videos on YouTube and jumped on vehicle-specific online forums where I could read what owners of the vehicle had to say, both positive and negative.
Once I knew the vehicle I wanted I went back to the manufacture’s website and built that exact vehicle. An inventory search showed that five dealerships within a 50 mile radius had the exact vehicle (model, features, packages, MSRP).
The Phone Up
I began calling these dealerships, asking if I could get some numbers. I knew that they would have to work on the numbers so I gave them my cell phone number and told them to call me back. I was surprised by the following:
Dealership 1: Called me back two hours later.
Dealership 2: Called me back in twenty minutes.
Dealership 3: Called me back an hour later, only to ask what vehicle I was looking for again.
Dealership 4: Gave me my numbers over the phone.
Dealership 5: Never called me back with an offer!!!
It just amazes me that there are salespeople who don’t call customers like me back! What also makes me concerned is that not one dealership that gave me pricing has called me back since to follow up.
One dealership I called answered with an automated service, telling me that “the call might be recorded for quality assurance”, only to ring to another automated service “call is being recorded” two more times! By the time I got someone on the phone I was pretty sure I wasn’t talking with anyone at the dealership, but to someone at a call center. I gave my information to them, only to be transferred to the actual dealership where I had to give all of my info again.
The Deal
I ultimately went with the dealership that offered me the best price, which happened to be located an hour away from my home. An hour before I got off work, I told the salesperson at the dealership that I was going to come up that night. He told me that he was leaving early but to talk to his counterpart in the internet department. When I got off work I called and told him that I was planning on driving up and that I would have my two kids with me (3 year old and 8 month old). I asked if I could give my credit info over the phone to get all of the paper work started, so my wife and I didn’t have to spend all night there with our kids. I told him to also make sure I qualified (credit) and everything was good before we drove up.
We got the kids all ready and waited for the call. An hour and 15 minutes later he called me to ask if I own a similar make product: No. If I am currently leasing a vehicle: No. If I am active Duty Military: No. Then he says to me that the original salesperson misquoted me and included all of those rebates in my price he gave me. Now my lease payment would be $120+tax more a month! This was higher than two other dealer’s quotes I had received.
I understand mistakes happen but I think the lesson I learned is about managing customer expectations. If he originally told me a fair payment I would have been happy with it. Instead, he quoted me a very low price and got me to expect a low payment just to get me in the store, and then at the last minute the price changed. Now this may have been a mistake, but it also sounds like it could have been a dirty business tactic. I was shocked to say the least. I was sure glad I called ahead of time instead of driving all the way there with my kids only to find that the deal was too good to be true.
I ultimately had to call the manager at the dealership. I felt uncomfortable by putting the dealer in this position but it seemed as though the dealer could honor the misquoted price and have a happy customer or not honor it and have an unhappy customer. Unfortunately, it was only after a heated discussion, that the manager was willing to work with me. We eventually meet at a price we both felt comfortable with and I picked up the car.
Looking back, it was an interesting experience. One I hope that by sharing others can improve their processes. I still am surprised, it’s been 5 days and I still haven’t received a follow up call from the dealership.
Hunter Swift is the Business Analyst at DealerSocket and specializes in Automotive/Dealership processes that help dealerships become more effective by maximizing their opportunity to improve all aspects of the sales cycle, including: driving traffic, marketing, proper sales, and demonstration techniques. He also specializes in helping dealerships increase their customer satisfaction, reduce their web-lead response times and to improve accountability. Follow Me: @HunterSwift
20 Comments
DrivingSales, LLC
I'm totally torn. As new to the industry, I've lived the entirety of my life on the consumer side and this is the exact replica of everything I thought a car buying experience was like. I even worked (briefly) in a car dealership and the sales people I was surrounded by did not do much to battle that perception. Now, being involved in our DrivingSales community, my perception is different. There are so many progressive dealers and dealership people who are pushing the boundaries and actively working to change the car buying experience to a better one. Because of this, where my initial reaction a year ago would've been, "Well, what do you expect?" my reaction now is more along the lines of frustration for all of the dealers out there who are stepping up to change the game, but have to fight against their own kind who aren't making it easy. Thanks for sharing -- it's a huge reminder that, even with as far as we've come, there's so much more ground to cover.
Southern Automotive Group
Hunter this is, unfortunately, a classic example of a shopping/buying experience that happens all to often. It shows that transparency and being of service to the client is the furthest from those dealer's minds. It truly is the "just get them in" syndrome and dealers who continue to practice it will remove themselves slowly from consideration. I just don't get it. Although you ultimately made your deal, I am reading a truly negative experience. Now I hear so much about dealers looking to increase loyalty, it seems in this case by not following up on your experience or even a "thank you", their opportunity to build any loyalty is gone. That is just lazy. What are your thoughts?
Southtowne Volkswagen
Sad to say, but many dealers follow that exact pattern. I even know some that quote the price BEFORE destination and then spring that when they get the customer in. You, like most, still bought from that Dealer thus proving their theory that"ya have to hook em and take them out of the market". I wish it was different, and yes I know legitimate mistakes can occur, but until buyers are willing to walk out and call in the next day to inform the Owner that they purchased elsewhere and why, it won't change. Sorry to hear about your experience. Sadly, you probably won't get a OEM survey due to an"accidental"mistake webring you're email. Thanks for sharing!
Classic Chevy Sugar Land
Although you think by publishing this article you are doing the industry a favor in reality by buying from this dealership all you have done is solidify the fact in heir minds they did it right. I work at the best dealership in America and compete against dealers like his one everyday, we are not the biggest yet but we will get there by treating customers right. By completing your purchase with this dishonest dealer you have done nohing to help he public. The first salesman did not make a mistake, you were hooked, turned and closed. This type of bad behavior has been going on for 50 years and those of us who do it the right way are disgusted. The fact you claim no allegiance with any dealer and will buy from the one with the lowest price just perpetuates what goes on at most dealerships. It amazes me when people don't appreciate the service a caring dealership can provide you with such a big purchase, you don't get good at Walmart but you get a cheap price.
DealersGear
Mark I understand. I honestly thought initially that this dealer was offering the best service by the price. I would normally have left, and gone to another dealership, but the fact that I was without a vehicle I needed to get a car that night, and since they already ran my credit I tried to make it work. I wish my experience was better. I would have still written about my experience.
DealersGear
Also I feel price is an important factor to most consumers but the experience from the sale effects if they will buy from them again and where they will service their vehicle.
Southtowne Volkswagen
How many "one hit wonders" will they achieve? Sadly their reputation will catch up to them. I only wish it would happen faster. :/
Silver Star Mercedes
I don't agree with misleading the customer, I make sure that I always tell my team not to offer something that we can't honor in the dealership. However this is a perfect example of a dealership who misleads customers into coming in with prices that can't be honored and yet in the end they got the sale. You mentioned that you had received a better price from other dealers, please tell what good did it do for that dealer to be honest with you?
Dealer Inspire
You would think that dealers that use practices like that would learn. You have now taken this online. Even though you haven't mentioned names, I'm sure that the dealer knows who they are. This is something that you will see consumers take online and blast every review site out there talking about the experience. It is ashame that there are dealers still out there trying bait and switch practices.
Classic Chevy Sugar Land
My Point is some dealers will never stop this because in the end they sold the car because of what they did. I am sorry to say but the author failed us all, the consumer, honest dealers and the dealer that got the sale because he proved to the salesman who lied how to "get" the sale.
DealersGear
Mark, Sorry if I failed you. One thing to add, if the other dealerships I called for quotes had followed up with me, they would have learned why I was not buying from them (a lower price) and maybe they could have warned me that it was too good to be true. I ultimately bought from this dealership because they agreed to sell me the vehicle at a price lower than any other.
DrivingSales, LLC
I think it's tough to say that the author failed the dealers, when clearly his experience is a massive fail on the part of the dealership. Did they sell the car? Sure, but will he ever buy there again? Most likely not. Dealer reputations, as with any group, are lumped together, so at the end of the day, maybe it's that dealer who failed his community of dealers, dealers like you and countless others that are standing up against "the way things have always been" and trying to find a better way. Perhaps we're the one that have failed that dealer by not reaching out enough to show him that there is a better (and more profitable) way to conduct his business. Basically, it's a bold statement to say that it's the customers' fault for why some dealers have shady practices, and I can't say that I agree with that.
Hansen Ford Lincoln
Yeah I would have to say that the failure was on the part of the other salespeople who couldn't demonstrate the difference between a fair price with great service and a low ball price that's often too good to be true. If someone from one of the "fair and honest" dealers would've gotten back to the author, he would've had somewhere to turn when he realized what was going on at the first dealership.
DrivingSales, LLC
Mark, thank you for taking the stand of treating customers fairly within you business model. You're exactly right that stores have been treating customers terribly for over 50 years - How do you ensure that your customers know that you are different from the rest?
Classic Chevy Sugar Land
I understand what you are saying but no matter what they said you only wanted to believe in the lowest 'price'.
Classic Chevy Sugar Land
We always do what we say we are going to do, no ifs ands or buts.
DrivingSales, LLC
That's awesome and unfortunately, not the case with all dealerships or companies in any industry for that matter. How do you ensure that your customers know this before they buy from you and don't just think you're like everyone other store? That you actually WILL do what you say? I think conveying that message and making sure your customers know you are serious about it is instrumental in attracting those people into your store and not someone else's.
Car
If your African America do not buy a car from Toyota of fort worth, they are racist and look down on all blacks. Never buy here trust me.
Fountain Car Leasing & Sales
Something to remember: Prices you get over the phone are generally not binding. Ask for an official price quote over email. Secondly, it very very likely wasn't a mistake. The first salesperson gave you a price, and likely didn't make any mistakes. The second salesperson just wanted to make more money. Finding these discounts is a large part of our business model, and finding out whether or not you qualify is done in the initial questionnaire, usually long before you get even an initial quote. If you want to see what that's like, check us out at www.fountaincarleasing.com . We also save you from having to drive the hour (or more) to the dealership with the best deal by delivering the car to you.
Fountain Car Leasing & Sales
Something to remember: Prices you get over the phone are generally not binding. Ask for an official price quote over email. Secondly, it very very likely wasn't a mistake. The first salesperson gave you a price, and likely didn't make any mistakes. The second salesperson just wanted to make more money. Finding these discounts is a large part of our business model, and finding out whether or not you qualify is done in the initial questionnaire, usually long before you get even an initial quote. If you want to see what that's like, check us out at www.fountaincarleasing.com . We also save you from having to drive the hour (or more) to the dealership with the best deal by delivering the car to you.
DealersGear
Technology, Processes and People
This week I attended Digital Dealer (sigh!), the exhibitor room was full of vendors selling all types of technology. I counted at least 7 booths that offer a Customer Relationship Management (CRM) Tool. As dealers visited each booth I noticed they were often comparing the different features each vendor provided. One thing that stood out to me is for the most part all CRM companies offer the same type of technology. They all allow you to input customers, receive leads, automate marketing campaigns, and reporting. It is important that the technology isn’t the only thing that you are looking at.
Technology should enable processes. Consistent processes create consistent business.
One of the ways to enable process is through the automation of business rules designed to target specific groups of people. If the data is there, the technology should be able to enable processes like:
A customer life cycle (customer for life)
Finance termination
Extended warranty
We want your trade
Declined services
Aftermarket accessories
Customers in equity
Bought elsewhere, service introduction
High customer pay RO to new vehicle
Future model introduction
Lead escalation
Sales notification of a customer in service
And the list goes on…
This can also apply to the technology of Social Media. Are you just using it or really using it to enable the processes?
Once you have the technology and the processes in place the last important part is the people. I have seen time and time again where technology fails because either the people don’t use it or don’t know how to use it effectively. Do you have the people to not only train you how to use and support the technology but also how to use the technology to enable the processes your dealership needs?
I am excited for the DrivingSales Executive Summit, where technology and innovation is discussed, something I hope dealers will use to enable more processes.
Your thoughts?
Hunter Swift is the Business Analyst at DealerSocket and specializes in Automotive/Dealership processes that help dealerships become more effective by maximizing their opportunity to improve all aspects of the sales cycle, including: driving traffic, marketing, proper sales, and demonstration techniques. He also specializes in helping dealerships increase their customer satisfaction, reduce their web-lead response times and to improve accountability. Follow Me: @HunterSwift
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DealersGear
Technology, Processes and People
This week I attended Digital Dealer (sigh!), the exhibitor room was full of vendors selling all types of technology. I counted at least 7 booths that offer a Customer Relationship Management (CRM) Tool. As dealers visited each booth I noticed they were often comparing the different features each vendor provided. One thing that stood out to me is for the most part all CRM companies offer the same type of technology. They all allow you to input customers, receive leads, automate marketing campaigns, and reporting. It is important that the technology isn’t the only thing that you are looking at.
Technology should enable processes. Consistent processes create consistent business.
One of the ways to enable process is through the automation of business rules designed to target specific groups of people. If the data is there, the technology should be able to enable processes like:
A customer life cycle (customer for life)
Finance termination
Extended warranty
We want your trade
Declined services
Aftermarket accessories
Customers in equity
Bought elsewhere, service introduction
High customer pay RO to new vehicle
Future model introduction
Lead escalation
Sales notification of a customer in service
And the list goes on…
This can also apply to the technology of Social Media. Are you just using it or really using it to enable the processes?
Once you have the technology and the processes in place the last important part is the people. I have seen time and time again where technology fails because either the people don’t use it or don’t know how to use it effectively. Do you have the people to not only train you how to use and support the technology but also how to use the technology to enable the processes your dealership needs?
I am excited for the DrivingSales Executive Summit, where technology and innovation is discussed, something I hope dealers will use to enable more processes.
Your thoughts?
Hunter Swift is the Business Analyst at DealerSocket and specializes in Automotive/Dealership processes that help dealerships become more effective by maximizing their opportunity to improve all aspects of the sales cycle, including: driving traffic, marketing, proper sales, and demonstration techniques. He also specializes in helping dealerships increase their customer satisfaction, reduce their web-lead response times and to improve accountability. Follow Me: @HunterSwift
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