How do you make the most but still keep your customer’s loyalty?
Vehicles may still be in short supply and they’re bringing good prices, but that isn’t enough to guarantee the highest profitability for your store. You have a lot of competition, and you need to maximize your reach, make the most of each transaction, and then retain those customers for future sales.
The goal of profitability is twofold – to maximize what you’re able to sell on each transaction but of course without gouging your customer, and then to keep those people as loyal repeat customers who will also recommend you to others. And yes, we have some tips!
Invest in training. People who go into sales usually have a “natural knack” for it, but everyone can benefit from ongoing training. That isn’t just on the products they’re selling, but on their sales techniques. Even if they’re already very good at the job, the right training can help sharpen their skills, teach new ones, or even help get them out of a rut if their methods have become shopworn.
Proper training can help with upsell, provide better negotiation skills, and ensure they’re “clicking” with their clients. This could involve individual online training programs, or in-person training for the group. Even if you’re working with your employees to upgrade their techniques, third-party coaching can be beneficial. It can bring new perspectives into your store – especially since these people are going into various dealerships and can offer perspectives on what it takes to stand out from your competition.
Search out your customers. You’ve heard this a thousand times, but it bears repeating: Times have changed and most people aren’t going to stroll into your dealership to browse around. You must go out and find them. Online is crucial to capturing them, through your own website, third-party auto sales sites, and social media.
Using your social media videos, let your customers know that you’re more than just a place to buy a new car. Tell them about your pre-owned department; how you can help walk them through the financing process with specialized auto knowledge that their lender might not be as well-equipped to offer; or how easy it is to get an accurate valuation on their trade-in.
When you’re watching online videos, on any subject, pay attention to how they’re presented. What keeps you watching some until the very end? What’s wrong with others that you can’t finish and just swipe to the next one? Use that knowledge to design your own “must-see” videos. And don’t be afraid to use a little humour to keep your store top-of-mind with viewers: If you have enough funny outtakes when you’re making yours, how about posting an occasional “blooper reel” to grab eyeballs?
Analyze your balance sheet regularly. Many department managers – and often the entire dealership itself – often wait until the quarterly statements before they look hard at the debits and credits. Ideally, you should be looking regularly at what’s going on. This will help you focus on what’s working, improve what isn’t doing so well, and maximize the return on what you’re spending to run the department. If you wait for three months to dive deep into the numbers, you might have missed opportunities, or paid out money that didn’t need to be spent.
Your department is entwined with others in the dealership, and while most businesses use up-to-date computer systems that interact and show the whole picture, make sure yours isn’t dividing the store up into “information silos.” This is when each department’s information is kept separately, rather than integrated. If this is the case, you may not be able to see if your customers are coming back regularly to service the vehicles you sold them, for example. This reduces your opportunity to see how effective your department is at customer loyalty, and getting the best returns on what you’re spending to obtain it.
Upsell, but do it right. Customers can be leery of extra items that your F&I wants to add on. To maximize profit, don’t just reel off everything that’s available. Instead, consider the vehicle, how much the customer expects to drive and how long they’ll keep the car, maintenance requirements, and the budget and financing, and try to assemble a bundle of products best suited for it. You can always “de-content” the bundle if negotiations require it, but that’s easier than trying to add additional items once you’ve sold them on a couple of individual ones.
Bring them back for service. Your role doesn’t end when the deal is signed. Introduce them to the service department, and then keep an eye on them. If they’re coming in for maintenance, stop by the service desk to say hello. As time goes on, talk to them about resale value and trade-in considerations; or if their model undergoes a makeover, take them to the showroom to see the upgrades over the one they own.
Every touchpoint is an opportunity to work toward a sale, and every sale is an opportunity to make a loyal customer. Always make the most of each one to help ensure your maximum profitability.