In recent conversations with our dealers, we’re hearing that 2014 was an action-packed year, with sales and opportunities growing at record pace.
The new year looks just as promising, with more than 1.8 million vehicles forecasted to move from your inventory into customer’s driveways – exciting times to be in the automotive industry!
So, how do you make sure your dealership is ready for the year ahead? Well, with the “New Virtual Shopper” spending an average of 2.5 hours online (and increasing) and using every available device to shop, you’re going to need to focus your efforts on the “online customer experience” to ensure you are meeting the needs of this virtual shopper. The problem is “The New Virtual Shopper” isn’t “new” anymore – this is simply “Today’s Shopper.”
So, that begs the question – how do you align your online presence with the expectations of “today’s shopper?” Well, I like to simplify things by breaking them down into 3’s (thank you, Steve Jobs!). Your dealership’s 2015 focus must be on having the right People, Process, and Technology in place to meet the needs of the hyper-informed Shopper – someone who is expecting a seamless continuation of the virtual experience once he or she walks through your dealership’s front door.
PEOPLE
An effective team begins with having the right people in the right positions, with the common goal of creating an exceptional customer experience.
This isn’t new, but the methods by which we create this exceptional experience have changed. At the recent TalkAUTO conference in Toronto at which I hosted a panel discussion, we examined the evolution of the digital customer and the importance of engaging with customers throughout their entire experience, which now starts online typically.
Interestingly, a recent JD Power study found that the customer satisfaction score of those who engaged online prior to showing up in your showroom is lower by an average of 20 per cent across all age groups than those who simply started and finished their shopping experience offline.
What that tells me is that there is still work to do on learning how to engage in this virtual space. During the talk, I addressed the significance of designing an effective digital strategy for your dealership. Despite the steep learning curve, the upside is better conversions and higher close rates.
A solid customer-focused team should carry out effective marketing activities by greeting your customers, using technology (i.e. tablets, mobile phones), providing transparency, and asking the right questions to help bridge that transition from virtual to traditional.
What’s more, your sales team must have a product or service advisor. Your entire team must be as hyper-informed as today’s customers about the products and services you offer. Customers arriving at your dealership may know more about a vehicle than you think, so make sure you have your team prepared to identify their knowledge level as a part of a quality needs analysis.
Team members who do not have strong product or service knowledge will struggle to gain the confidence of today’s customer. As a leader, be certain your team is getting the training and development needed to identify the needs of this new shopper quickly and effectively.
PROCESSES
The most successful dealers have their best-practices and supporting processes set, and review them often to ensure they work. Consistency is key! Reliably delivering on today’s shoppers expectations drives positive customer reviews and sales across all departments. Consider the following:
- Is your process the same for all customers?
- Do you include a walk around, even if the customer has spent three hours watching product videos on your YouTube channel?
- What is your process for tracking leads to showroom visitors?
- Do you know the ROI for your online marketing efforts?
- Are your website visitors converting to leads at a high rate?
Okay, you get the point — today’s customer requires a modified process to support their needs.
The customer experience often starts online, so your processes should be a direct reflection of their shopping journey. From brainstorming to creation, your dealership’s processes must support clearly defined objectives and be tied to Key Performance Indicators (KPIs) and industry best practices.
I recommend to our dealers that they develop a plan, a digital blueprint of sorts, which would help them incorporate a process that is focused on results, that is trackable, and most importantly, that supports the customer experience – from marketing all the way to the sale. Without a process that is tied to KPIs, you and your team are navigating the ship without instruments or gauges – and that’s a risky maneuver.
TECHNOLOGY
The last piece of the trifecta is the enabler of both people and process – technology.
You’ve seen it change quickly over the years…DMS, CRM, email, website, chat, and mobile, just to name just a few. For many years, OEMs and dealers have focused a great deal of attention (and dollars) on improving the appearance and functionality of the dealership facility.
Don’t get me wrong — the bricks and mortar components are important. But based on the purchase path of today’s shopper, your virtual dealership may need some attention as well. Can you stand proudly by your online presence as you do your new showroom? Being technologically capable is crucial. Your systems must reflect your commitment to excellence.
Inspect what you expect. Here are a few practical tips to help you keep on top of your virtual dealership:
At least once a month, shop your dealership and your competitors on the internet and have other members of your team (and their family and friends) do the same. Determine ease of use from a customer’s perspective.
Search for your dealership like a customer. Type in your name, but also search for models in your area. Is your store the first one that comes up in the search results? Do you appear anywhere on the first page?
During your monthly managers’ meeting, play “Pass the Mouse.” Have each department manager walk you through their department online. This may be uncomfortable during the first run through but it will quickly encourage each manager to own his or her virtual department. This will identify your website strengths, but also areas that will need improvements for each department.
For each virtual shopping experience, you’ll want to pay attention to how easily a customer can reach out to contact you. If you don’t feel compelled to make contact with your store during this exercise, you can be sure that shoppers will move on as well. If there are opportunities for improvement, ensure they are handled promptly — you wouldn’t allow a leaky roof in your showroom, would you? These weaknesses must be addressed with the same urgency.
PUTTING IT ALL TOGETHER
How effectively you reach today’s shopper is largely determined by how well your People, Process and Technology work together. Focus on the shared vision of an excellent customer experience, and all team actions backing that up, and your dealership will see positive results. Having your online channels running on all cylinders all of the time will keep you moving forward in the ever-changing automotive industry.
In your weekly and monthly management meetings, ensure you’re discussing online activity. It’s not enough to have a great Internet Manager who understands the online business — you need your entire leadership team on top of all online activities. It’s what the customer will expect.
