It’s the digital age so being social is a prerequisite in the consumer goods sector and car retailing is no exception. The real question is, are you social enough to effectively reach and influence the car shopper, who spends most of their shopping time online? In our earlier post you might have been surprised about the poor odds – only 1 in 4 – of changing a car shoppers mind about what make/model they want when they finally get to the dealership. What’s more they may never get to your dealership if they haven’t come across you in their online research or been recommended by a family or friend. Increasing your chances of success lies in a sales and marketing focus that effectively embraces the myriad of online and social media opportunities that exist.
Gen Y the nation’s youngest car shoppers – who are more likely to shop online and on mobile rather than in your dealership – are now Australia’s largest demographic with 5.22 million people. What’s more according to Deloitte’s 2014 Gen Y Automotive study, 75% of them expect to buy a new vehicle in the next 5 years and here in South Australia that works out to be around 277,965 cars! The Baby Boomer demographic, despite increases in life expectancy, is shrinking and so too is your customer base if you haven’t yet shifted your sales and marketing focus to the digital age.
Resources are poured into attracting and retaining customers, marketing your dealership – its product, its services but what attention do you give to attracting the best talent?
A well-tuned dealership can improve its bottom line by more than 2%. In the US a study (McKinsey & Co, Insights 2007) of over 700 dealerships compared the differences between top performing dealerships and average performing dealerships. Here are some of the interesting findings…..
Who doesn’t want to have a business whose market capitalisation is the envy of your industry?
Increased revenues and profits are what we all crave but how do we sustain increasing value, year in, year out?
Especially when your business is in the automotive dealership industry, it is even harder due to:
- aggressive competition
- small margins
- increasing demands from powerful suppliers
In recent years Mercedes show rooms have set the pace consistently outranking all other dealerships in being as helpful as they can, turning car shoppers into Mercedes owners, according to a recently published US based Pied Piper benchmarking study.
Pied Piper takes more than 50 factors and behaviours into account when generating a Prospect Satisfaction Index (PSI) score for a dealership. These behaviours are correlated with profitability ie dealership success but not necessarily customer satisfaction.
Now think about your dealership- hand on heart, are you ticking 50 boxes with each and every prospect? Arguably no. Then time to face the brutal facts- whilst you’ve probably been in the industry for years, if not a lifetime- there’s still more to learn!!
What lessons can the automotive industry learn from a professional sport such as tennis? I’ll argue a lot! Can your sales team reel off its performance statistics like world #1 player Novak Djokovic? For example Djokovic is a relentless returner with a 44% career break point conversion rate and some say he can ‘slide on cement’ with a career-to –date 90% service game win, 32% return game win and 65% break points saved. Recognising he couldn’t be the fastest server in the game he employed previous tennis great Boris Becker to improve his serve accuracy and now boasts a 99% service games win.