BEING CLEAR AND CONCISE WHEN DEALING WITH CUSTOMERS BEATS PRICE EVERY TIME WHEN IT COMES TO GENERATING REPEAT BUSINESS
February 11, 2009 seems like yesterday. I was part of a NADA panel discussion when Internet process for the automotive industry was drastically different than it is now. Said panel discussion centered on best lead handling practices and the most popular advice given during the discussion was to be “vague.”
The self-proclaimed experts that I was on this panel with were sharing advice like, “don’t give the customer too much information, they will take that information elsewhere.” I have to admit I was confused how somebody could deliver such advice. What confused me even more was that the audience was falling for it — hook, line, and sinker.
DON’T BE VAGUE
If you were to ask someone a question and they did not answer, how would you feel? If you were to pose a question to somebody and they responded with a question, what would your feelings be? Now, what if you asked a question and the person never provided a confident answer?
In any of these scenarios, I imagine you would be annoyed and distrust the individual, and the chances of them earning your business would drastically diminish. So I propose this question to you: are you a dealer, manager, or salesperson that chooses to be vague? If you are, your lack of transparency highlights the following:
• Poor sales process and customer behaviour training;
• Absent product knowledge skills;
• Lack of a unique selling proposition.
Instead of choosing to purposely dodge customer inquiries, you need to address their questions head on. If you want to double your Internet leads, appointments and sales there is a solution that may seem contradictory at first.
It’s called “Authoritative Selling” and it’s the most profitable form of sales and marketing (it also has the least amount of competition.) It’s a practice we follow within our agency and it brings results, but it was a scary direction in which to move.
When you empower your team to be transparent they are now able to become consultants who, in turn, allow your customers to become clients. Customers don’t have loyalty and the lowest price is the determining factor of closing the sale. Clients on the other hand, choose to work with trusted advisors because of their transparency, choosing credibility over price.
LESS EQUALS MORE
The question I pose is simple: Would you rather sell 100 vehicles with a $300-$500 profit or 50 vehicles with a $1800-$2500 profit? How many of the low profit customers will return for service and how many will return for another vehicle if your price isn’t the lowest? How many of them will take your calls to establish a relationship for long-term loyalty? Face it. The customers you drive in with low-prices are not loyal to you; they’re only loyal to the best deal they can find.
To be successful at Authoritative Selling you must have 100 per cent adoption from everyone on your team. If you have one salesperson move to the “what’s it going to take to get this deal done” method, your system will fail.
Beyond consistency on everyone’s behalf, Authoritative Selling is difficult because it requires continual learning, the best product knowledge, and a shift in business attitude from providing the lowest price to providing the solution.
PRICE VERSUS VALUE
When your team is trained in process and product, their confidence will rise and so will profits. The key to Authoritative Selling is believing in the power of transparency. Have confidence in the quality of the product and services you provide and clients will choose you over a competitor time after time. Think about yourself. Do you visit a shop that costs a little more but treats you like a VIP? Why do you think that shop is worth the extra penny?
The reality is that people will always choose genuine interactions over low-quality customer service because there’s value in it. When a service technician or sales advisor greets you with a smile and gives you an honest evaluation of your needs, the price on the bill can’t dissuade your loyalty. You trust them because they give you an extra level of care and consideration, and your clients will do the same.
If you were part of the audience for that panel back in February 2009, how would you respond? Would you take the advice to be vague and bring only deal-hungry, temporary customers? Or would you choose to be transparent and build a foundation of loyal clients? Take my advice: persuade clients to choose you for your reputation. After all, aren’t you about more than a low-price?
