Secrets to Creating a Customer-Centric Automobile Dealership

Every week hundreds of thousands of dollars in potential sales – customer leads – walk into car dealerships, yet sales and profits in the automobile industry continue to record mediocre performance in 2005. The cost to the dealership of bringing each of these potential customers through the door averages $300 per lead; the cost of watching them walk out the door without making a purchase can be thousands of dollars per lead. As a result, every year, automakers turn to incentives – ranging from simple rebates to complicated dealer bonuses – to try to make a difference in their bottom line. And, while some incentives do increase short-term sales, Total Vehicle Gross (TVG) typically takes a turn for the worse.

Why do customers leave?

Automotive Profit Builders (APB), through extensive experience and research has found that prospects who leave dealerships usually describe their experience as uncomfortable either because the sale is not moving in a positive direction, the salesperson is not connecting with them, or they are not being shown a car that meets their needs. What customers want is a retail culture that makes car buying a comfortable experience where sales professionals give them quality time. Most prospects walk into a dealership ready to buy, so instead of persuading them to purchase, the salesperson just needs to find a car with the features they want and a price they can afford. The helpful attitude of the salesperson is ranked as one of the major reasons why a consumer buys a car from a particular dealer; it’s all about the buying experience.

Creatinga customer-centric environment is an ongoing process comprised of training, evaluating, coaching, and retraining. It cannot be accomplished by allocating a lump sum for a one-time, quick fix solution. APB’s research shows that identifying dealership goals and then training staff to address those goals form the foundation of all customer-centric dealerships.

Identifying Goals

Customer-centric dealerships help their customers choose three things:

1.The vehicle – guide customers, help them build an emotional tie to the car that meets their needs, wants, and desires; only then talk price.

2.The dealership – make the customer glad they came and eager to purchase from you now and over time.

3.The Selection Specialist – ensure the customer gets quality time, “The Red Carpet Treatment.” The Selection Specialist must connect, listen, learn and lead the sale in an inviting and comfortable manner, and avoid confrontation at all costs.

Training

Training for employee, from the Management Team to the Greeter, Payroll Clerk, Service Manager, Service Advisor, and Technician, should focus on building Selection Specialists, professionals specifically trained to help customers satisfy their automotive wants, needs, and desires.

The training program should emphasize using a clearly defined sales process. For example, theGreeter welcomes the guest saying, “Welcome to APB Motors. My name is Susan.” Susan collects the guest’s name and introduces them to a Selection Specialist. (This is where Management begins monitoring the process to support the Sales Specialist on a continuous basis.)

§The Selection Specialist: “I’m glad you are here; my job is to help you select a car and get you a price.”

§From there, the Selection Specialist communicates with the customer – connects with them in a manner of speaking – listens and learns what the guest needs, wants, and desires, and quickly identifies a model that fits those needs. The Selection Specialist scans the driver’s license before creating the Demo Drive. Throughout the drive, the Selection Specialist guides the guest as they experience the features that will satisfy their wants and desires, and builds an emotional bond with the car at the same time.

§Upon returning, they visit the Service Department where the guest receives a thank you gift. After selecting the vehicle from inventory that meets the customer’s needs, wants, and desires, they move to the Showroom to close the deal.

§Price is the last point of discussion, raised only after the guest feels at home and has built an emotional bond with the car, dealership and the Selection Specialist.

For this to work, Management must keep the training program going on a continuous basis using both internal and external resources. To capture today’s buyers, dealerships must create a customer-centric culture through continuous training. When viewed as a priority, this process will pay back exponentially in increased sales, TVG and lifelong customer relationships.

Do you agree or disagree?

I agree with much of your methodology.

Many customers would argue that, to be "customer-centric", you shouldn't have to wait until the end of the process to get a price, but should be offered the price up front so the price becomes one of many factors in the decision-making process. What are your thoughts?