I’ve read a lot of articles lately about how dealers took a digital leap forward in 2020 due to the pandemic. In the majority of cases, this means they added digital retailing tools to their websites. Did anything else change?

I’d argue, no. In most cases, dealerships have not changed their sales processes to adapt to technology and changing customer behavior. We’re still pushing the in-store appointment, ignoring online leads and offers (yes, an online offer is a legitimate offer!), and trying to get customers to follow the path we want them to take.

Why do we make it so hard for customers to do business with us? The fact is, the way it’s been done for 50 years is pushing customers away. The day OEMs get the green light to sell cars, dealers who don’t adapt will be out of business just like that.  

Our business has completely changed; dealers have to change with it. Plugging in digital retailing tools and marketing your “digital sales process” doesn’t cut it. There also has to be a shift in mindset and processes towards serving customers in a virtual world and following their lead for how they want to purchase a vehicle.   

Industry expert Ron Frey calls this marriage of technology and process “modern retailing.” As he explained in an Auto News article, a dealer using the modern retailing approach would envision the type of customer experience he or she wants to offer, install the technology to support that experience, and change the organizational structure as necessary to implement it.   

There’s a lot to unpack there, so in this blog I’m going to talk about changing internal sales processes to implement the customer experience you want.

First, let’s look at the traditional road to a sale. The customer comes in, salesperson does the meet and greet, qualifies the customer, takes the test drive, haggles over price, then maybe makes the sale. The goal is to make the sale, at whatever cost. Cram that family of 5 into a 4x4 room, take away distractions, and get it done.

Today, the road has to start sooner. The salesperson needs to be involved from the very beginning of the internet lead, with all the customer information in front of him or her so the customer never has to repeat details. Every lead has to be worked as a deal because in reality it may be.

The attitude also must be different. Instead of a sale at any cost, salespeople must have a customer-centric attitude that’s about “I’m here to help, no matter the outcome.” Remember, customers can find all the vehicle details online. They know the price, they know what your competition is offering, they won’t stand for the hard-sell.

What they want is a consultant. A salesperson who can answer every question (online, over the phone, in-store), has a great personality, and is completely focused on helping customers answer every question and find the best solution – whether that means they buy a car today or not. A customer in the market is going to buy a car. Becoming a trusted consultant makes it 100x more likely they will buy from you.

Changing expectations from making the sale at any cost to delivering a great customer experience is a huge shift. The fastest way to get salespeople on-board the new road to a sale is by changing pay plans. Tweak pay plans to base part of pay on CSI, customer surveys, and customer retention (notice I am not including social media reviews which are notoriously unreliable and heavily weighted toward the negative. People just can’t help sharing bad news!). 

I’m not going to sugarcoat it, it will be awful. You will lose good people. But with buy-in from owners and managers, salespeople will either adapt and enjoy the ride or go somewhere else.

I know some of you reading this just thought, “That can’t happen. What if the customer won’t take a survey? What if I lose all my salespeople?” There are a ton of ‘what ifs,” but the alternative is you continue to make it hard for people to do business with you so they simply don’t.

Your competition is a click away. Beginning the shift toward modern retailing by changing the sales process from sale-at-any-cost to trusted consultant is the way to win today’s customers. Keep doing business the way we have for 50 years, and why wouldn’t customers go somewhere else?

The New Year is shaping up to be a good one for dealers. According to a report by the Economist, new car sales will be up by 15 percent in 2021.

I think we’re all happy to have 2020 in the rearview mirror. Now it’s time to refuel, refine and ride into stellar sales numbers. Get every department in your dealership in tip-top shape and drive into profitability with the following five tips:

Tip 1: Market to new audiences

This year, commit to reaching new audiences. Millennials and Generation Z (those born between 1993 and 2007) are rapidly gaining buying power. Generation Z alone is estimated to have direct spending of up to $143 million, according to research company Frost & Sullivan.

These digital natives prefer to do their vehicle research on YouTube, and spend their days using apps like WhatsApp and Snapchat. It’s smart to add these channels to your marketing mix. When it comes to messaging, authenticity and transparency are critical to them. They don’t want to be sold, they want to be informed. In their minds, your role is a consultant, helping them to find the best vehicle for their needs.

Many dealerships are outsourcing their marketing, which makes a lot of sense. An outsourced firm has many employees with different ideas and skill sets who can help to vary your marketing messages for different audiences.

Tip 2: Manage leads with an outside BDC

Furloughing staff helped keep profits up during the pandemic shutdowns. At the same time that stores were running lean, online and phone leads spiked. It’s likely that leads fell through the cracks.

If your on-site employee numbers are down and you are struggling with lead management, lean on an outside BDC. A professionally trained automotive BDC can expertly handle an influx of leads, as well make CSI and service calls. All lead information flows into your CRM so your salespeople can spend time closing the best opportunities.

Outsourcing is also a solid cost control move because you don’t have to pay high employee wages plus benefits. Yet, you get all the benefits of a professional team who will work long hours and never call in sick.

Tip 3: Sell with digital retailing

The pandemic proved that shoppers are ready for rapid digital change. Dealers with digital retailing tools experienced a spike in activity that’s likely to stay. It seems shoppers like to search inventory, take a 360-degree walk-around, review all pricing options and get trade-in information, without stepping foot in the dealership. Yet only 15 percent of dealerships offer this online experience. Digital retailing tools that offer “the Carvana experience” and seamlessly interact with salespeople to create quick and accurate quotes are needed badly. Dealers who continue to insist that shoppers come into the store will lose out to more forward-thinking competitors. 

Tip 4: Build your service techs

As of late June, vehicle travel steadily ascended to pre-pandemic levels as most states and municipalities reopened. It follows that dealerships all over the country were, and continue to be, flooded with repair work. That’s a problem if you need additional service technicians. Techs  are increasingly hard to come by, and hard to keep due to cutthroat competition.

The answer is to build your own technicians. Hold an event or volunteer to speak at a local high school. Bring in someone young that you can train in your core values and processes. Then value them for their work. Younger generations thrive on praise and positive reinforcement. Hold daily or weekly meetings to talk about wins and single out top performers. Competitive pay plus recognition can stop attrition in its tracks.

Tip 5: Train employees to wear multiple hats

Leaner operations likely mean employees are wearing multiple hats. You may have a service marketing person taking over sales marketing. Or a service advisor who’s now in the service drive. Don’t throw these employees to the wolves. Offer some type of training so that employees don’t get frustrated, and so that customers receive a uniform experience. Consider job shadowing or informal one-on-ones. Always reward good work with some kind of recognition since you are asking employees to go above and beyond.

Wave goodbye to 2020 and get every department ready for a profitable New Year with these five tips. The dealerships that learn from the events of last year and adapt will survive. Be one of those dealers!