How should I approach getting a customer in the door?

[Jeff Kershner]

I am a pretty successful ISM at a Volvo store in an area that is very competitive. A 1200 or even 2000 dollar loser is not unheard of in my area.

My problem is my owner is very conservative and will not allow me to send ANY quotes out. He wants me to only set appointments. I do understand what he is trying to do. I also understand that it is my job not to provide too much information and to set an appointment. However, consumers shopping on the internet expect a quote and can get one within an hour.

Do you have any ideas as to how I should approach getting a customer in the door without using any numbers?

Thanks for your help guys.

Best Regards,
Johnny Swartz
Internet &
Fleet Manager

 

[Ryan Vaughn]

I am having nearly the exact same issue. I will definitely be interested to hear comments.

 

[Brandon Hoffman]

You can try using an incentive such as a free gas card for coming in and test driving the vehicle. This way you get then through the door to test drive the vehicle and have the opportunity to sell them something. You can also encourage them to gather their quotes and then come in to you last for the best price. This way they have done their shopping and can feel comfortable talking numbers once they actually get there.

 

[bhoecht]

There are two conversations going on in any buyer + seller conversation.

The buyer's conversation + the seller's conversation.

Your dealer is ignoring the reasons why the consumer is on the Internet (they are weary / leary of the traditional sales tactics) and only having his own conversation.

He is bringing the traditional sales approach (which is what drove consumers to the Internet in the first place) to the Internet.

So that is the bad news. The good news is you're not the only one doing this. Just don't expect any consumers to buy from you again once you pull it off.

Go with programs like complimentary trade equity analyses, gift bags for coming in, free trade in safety inspection, wash + vac. Consider a program of buying the trade whether they buy the new car from you or not.

You also mentioned $1,200-$2,000 gross profit losses being typical. I've been doing this a long time. Whenever I hear that, all I can think is someone's sales conversation is sooooo far out of sync with the consumer's conversation (better experience) that they feel they have to "buy" the business. Dealers do not have the gross profit to do it - as your case shows.

Maybe it is not your case, but anywhere I've found a dealer buying the business, I also find a horrific customer satisfaction issue. Even with unbelievable deals, consumers still don't believe dealers because their buying conversation hasn't been heard.

Perhaps when your owner's pain starts getting high enough he'll be brave enough to try a new approach. I do know that most dealers still relying on his approach plus traditional media to create selling opportunities are mostly hearing crickets in the showroom these days.

If it were me, I'd assess whether I could change the system or go somewhere where you can make what you are worth. I just don't believe in false paradigms (it has to be this way, what can I do) that leave you pushing jello up a hill. It is just too messy and ineffective. Ineffective, frustrating and unprofitable for you and your dealership.

 

[Johnny Swartz]

Your Right Brian, this is a tough issue and very frustrating. I have thought of moving on but I don't like to just give up.

The gimmicks like free gas card and such I have thought of. I guess I have to give something away to give them incentive to come in. Unless there is a better way to present yourself via email that may attract customers like a magazine ad approach? I don't know. I figure If I can get them on the phone of course that will help 10 fold.

You said it Brian:

"Your dealer is ignoring the reasons why the consumer is on the Internet (they are weary / leary of the traditional sales tactics) and only having his own conversation."

So frustrating.

 

[Steve Williams]

Johnny,

If "giving up" is not an option...

I have found that most owners who feel this way have based their decisions on antiquated business practices that were all the rage 5 years ago, according to the process snake oil salesman that sold them a bottle of the latest and greatest at the time.

The good news here is that your owner learned this from someone... so... he can learn something new.

Send an email to the folks that you feel are the best and brightest in the industry with verifiable, published (e-100) results and ask for what seems to be their best practices and processes that drive customers to their dealerships.

I bet you will find that they all share at least one practice - they give the customer what they ask for without all the gameplay.

Gather this info from the best of the best and share it with your owner in a discreet, little by little, article by article kind of way...

My guess is that when he sees what the best and brightest are doing, he won't want to be left behind.

Better yet, after he "gathers" all this information and comes to you with his ideas... well, you get the picture.

If this does not work, then, a change of scenery might do you good.

Just my 2 cents.

Best regards,

Steve

 

[Alex Snyder (blog)]

We all know customers are being conditioned to ask for a price, and the "best price". And they have every right to ask - it is an important piece of information in the buying process. However, most customers do not buy the car they originally set out to purchase. There are five million reasons for this, and we only hear a small percentage of the 3%ish who actually submit Internet inquiries (or so the statistics say). There are ways to position your approach to play off this fact.

Fortunately for most Internet Managers/BDC personnel, the majority of dealers are still holding onto the old ways - struggling to maintain control of the customer. We are in a revolutionary time in the auto industry. Call it the "Wild West" where anyone can be a gunslinger. Since Henry Ford made mass automobile manufacturing possible dealerships were successful based on two things: the brand they carried and location....anything else was a plus. Today, those factors haven't changed a whole lot, but they are going to. Customers want a fair price (not your best price), but what they really want is a fantastic experience....look at MINI and Scion, and soon SMART.

Before I get too far into my philosophizing, let me get back on the subject. There are ways to avoid a price quote with most customers: get them on the phone with a strong communicator who has a call guide or have the best value added program/reputation blasting in every media. The latter is very expensive by the way. If you don't have those two things going for you, then you're going to have to give the customer what he/she is asking for: a price. It doesn't have to be your best price, but it should be fair.

 

[Lee Palmer]

It must be tough. We offer our lowest, no haggle price upfront. Some want to dance with the numbers and many don’t. Give them no price, and that’s even more work. Maybe build value in the Dealership, and or Service Department there. I agree, gas cards, fruit baskets, and free key chains are a bit tacky. I have found that price is important to a shopper, but not the most important. Trust in the Dealer, and reputation goes a long way. Response time is the key to the internet lead. If you are waiting an hour to follow up, that’s too long and allowing others to give that client prices. The best bet is guiding them to your web site, to help them buy in to your Company. Remember; sell the appointment not the car. If you get that must have a price person, have a Sales Associate give them a call. Then you follow up and book the appointment. Good luck.

 

[Ashley Antonio]

AutoRevenue vs. OnStation? Any thoughts. Anyone used AutoRevenue and then switched to Cobalt's OnStation? Which gave you better results?

 

[Lao Shi]

What you are sending Internet customers is a reason to do business with your dealership over your competition? If you believe it's just about price then you should be listing your cars on an auction site like eBay discount sites like Craig’s list. If it's just price, everyone would be driving a base model, budget vehicle. It's about perceived value for dollars spent.

A successful ISM builds relationship and communicates product value. This means answering the questions to the best of your ability the client asks in their email.

The dealership confident of their formula: Service + reputation + price + value + brand + consistency over the years = successful business will not be ashamed to place inventory, price on the site and answer the questions the client has.

Always respond to all emails and clients as you would any client, never pre judge a client. You maybe right 7 times out of ten and you lose the 3.

Always respond to in a personal manner. You never ignore a customer who walks into your store; don’t ignore a customer in the inbox.

Contact the client right away. The longer you wait to respond to their initial inquiry, the greater the chance that they will get the information from another dealer. Develop the relationship early.

The Internet is a 24/7 operation 365 days a year. This gives your dealership a tremendous advantage if you set up the site and response programs well. Many dealers are still out to lunch, on ecommerce and how to use it effectively.

How many dealers have bought into the fancy flash sites at $4-6 thousand dollars a month that do very little to sell the client? They make the dealer feel like “Sumpom” and do little for the client except to reaffirm the dealership is as “tacky” as their website. The web site is a window on the dealer.

I have seen dealers who invest in a nice site and enjoy greater monthly sales for $8 to 1200.00 a month. That is a savings of $50-60,000 a year. The sites that rely on the supermarket tabloid approach with lots of pizzazz and no substance are a waste of money. Most customers do not want this; they want honest answers, good service, reliability, and to believe they are not going to get raked over the coals.

Almost 50% of car shoppers begin their search for their new vehicle on the Internet. Today the Internet is in 90 % of American homes many with broadband connection.

Answer their Email questions, honestly and to the point. If you lead them on or give them false hopes you are not being honest. This will prove you’re interested in earning their business.

Always follow up with emails and phone calls, as my grandfather and father always told me when we fished together; “keep the lines tight” Do not be pushy; be service orientated and helpful. Never give up….follow up.