Customer Sources Business Journal

Here is an idea let’s just give away free gas, that’ll fill the showroom ... Maybe we should just give them free cars too.

As long as I have been in this business I will never understand why we let customers run our business, control the profits and despise the car sales industry at the same time.

It amazes me that there are still over 18,000 car dealers still in business. I didn’t go to a preppy college or attend a fancy sales school to figure out why some dealers are successful and some dealers are not successful. As business people all we have to do is look in the mirror and see who is at fault.

Because we have newer and better vehicles every year doesn’t alter the fact people are still people. No matter what the dealership sales environment seems to be people have purchased new or used vehicles based on four basic concepts while shopping. If these four basic needs are not solved your hopeful buyer is buying elsewhere.

Here is how it breaks down:

You will have an opportunity to answer four basic questions, whether real or perceived. If these four basic concerns are answered your chances to sell a product is vastly increased.

1.    What is it?   What are you selling, how will it meet their needs.

2.    How does it work?   Does the customer really understand the product features and the benefits of those features?

3.    What’s in it for them?  All those features and all the benefits, do they really meet the goals of the customer trying to purchase the vehicle.

4.    What’s it cost?  The key here is cost. Can you justify a $20,000 to a mega money decision based on what has been presented to the customer. 

You say, “Wait a minute, customers are tough, all they do is shop, shop, shop and come into the dealership looking for discounts, discounts, discounts.”

Before I answer the how to blow away the pricing and increase the possibility of closing 20 to 30 percent more business let’s take a look at why your customers think the car sales industry stinks. And another reason you may need to look in the mirror.

Not too long ago I was involved with evaluating a survey of 26,412 buyers in 64 market areas in the USA. The information revealed some shocking answers but also just verified my suspicions’ I have had all the many years in this business.  These 26,412 buyers had purchased a product within 12 months from the date of the survey.  Keep in mind this survey was derived from customers who had purchased.

Here we go.

83%    Could not recall the name of the salesperson 12 months later.

67%    Would not buy from the same salesperson or company again.

81%    Told the salesperson they were just looking entering the dealership.

38%    Had actually shopped two other dealers before they came into the dealership.

87%    Felt an attitude of indifference or concern from the salesperson.

91%    Of the salespeople failed to follow-up after the customer walked-out.

70%    Purchased a vehicle with-in 14 days of their first shopping effort.

74%    Of the 70% who said they were just looking, 74% purchased within 48 hours. 

94%    Of salespeople never attempted to write a sale during the first time in.

90%    Never got a complete product presentation.

91%    Believed the salesperson did not know the product.

90%    Were never contacted after delivery by the salesperson.

Keep in mind this survey was based people who actually purchased and their feeling of the treatment during and after the selection process and buying decision was completed. If we were to take a survey of all who entered a dealership, buyers as well as lookers, I think the numbers would be even worse.

Keep in mind all these percentages were based two things. The customer’s attitude and the feelings of what went on at the time they were the key understand the influence to make a decision.

If we were to add another element to what was an influence to purchase we could add loyalty and what if they were previous customers. How do you think the numbers would change if the majority of the customers in this survey were previous customers, happy previous customers?

Because price is said to be the number one reason people move to do what they do, shouldn’t you take advantage of that by making the price feel insignificant while the important stuff is where they purchase, how service will be performed, that the management and sales staff really cares.  Would this really make a difference?

Only if you really care.

Bill Zahrte

www.touchpointloyalty.com