Forty five to sixty days ago if you said to most people you know that the world would come to a screeching halt in a matter of days they would have thought you were a bit extreme and probably recommend you see a therapist.
For those in the North American Automotive Space we’ve witnessed a shift from what may slow business down until it passes, to real uncertainty as the dynamics shifted literally hourly before our eyes, to full shutdown for many, or partial for most auto dealerships except for deemed essential services like parts and service.
As a result, most people find themselves working from home or laid off completely until this COVID-19 situation in under control.
We cannot forget the significant impact this has made on so many lives where the numbers are staggering and still climbing to unimaginable levels. I salute the brave front line workers across the world who risk their lives daily during this battle. I can attest personally as my sister is nurse at a NY City Hospital and witnessed the multiple layers of protective gear she must wear.
But now that many dealerships have fully or partially closed as a result, the question is will most reopen and eventually slide back to, or expect a (BAU) business as usual mentality? Is there such thing as business as usual anymore for the retail sector and specifically auto dealers?
The answer is glaringly obvious, but the question is, are many auto dealers willing to Pivot in-Time?
Make no mistake the change is already happening, and auto dealers must be ready now. There’s No-Time to waist, it’s time to Act.
Here are some facts as I see it:
Be the Dealership that Creates and Drives Change or be the casualty of change.
Be part of the solution in creating and adapting to change now to become a leader in your marketplace or become a has been.
Be Prepared for even more Consolidation. The dealers and groups that Pivot now will adapt and create the models of change to drive growth and seek to acquire the ones that continued BAU.
Will You be Ready for the Shift in How Consumers want to do Business? Consumers want Convenience and Value all day and will pay more to get it. Most dealership still think of the initial cost instead of the long-term gain to offer more conveniences to clients. They are still in the car business it seems. They either make half assed attempts and further alienate clients, and many make no attempts at all.
The service dept’s are an example where client’s will pay more to have their vehicles picked up and dropped off while they’re at work or sleeping at night for that matter. Just ask Brian Benstock of Paragon Honda and Paragon Acura in NY City on how offering this philosophy has solved many problems for his dealerships and more importantly his customer base. Initial set up will cost a bit but the long-term gain will be huge profitability and a more satisfied customer base.
Please for heaven sake, get out of the car business! if there’s one thing that drives clients crazy it’s dealerships mentality and communication style. Client’s hate being sold especially when they know it’s happening. Your client’s cars and trucks are of more value to them than visiting the spa, yet after a spa visit, they feel pampered and happy, after a dealership visit often displeased and miserable.
You can acquire more Hrs/RO, higher Customer Pay vs. Warranty hrs, higher parts/RO, more vehicles sales without selling. Opportunities are plenty to improve the customer relationship and service delivered throughout dealerships with better communications skills and a genuine focus on listening and learning what clients want and making the shift to delivery on the value added experience.
Dealers Need to Adopt the Philosophy of Being Solutions Providers. Practicing this 1st hand has generated thousands of auto deals for me consistently for many years. It comes from one’s ability to identify that clients seek you out for guidance, advise, and to be that trusted solution’s provider. This means often providing solutions or ideas they’ve not thought of or received elsewhere which inevitability sets you parts.
Invest and Value Your Teams Members. This I saved for last but should really be number one! Auto dealerships in general lack a Training Culture. Team members are constantly being asked to deliver unbelievable experiences without even knowing what that means to clients today. Of all the companies Nationally and Internationally that I’ve delivered my various training Philosophy’s to, there’s one thing that’s consistent in all! After receiving proper training especially my “Sales Mindset Principles Courses”, team member all individually feel more empowered within themselves.
Just imagine a staff of 30, 50, 100 or more feeling uplifted with a mindset shift about their own capabilities and each just performing 10% better. What sort of collective impact would that have on organisations and the customer experience especially in auto dealerships?
As Richard Branson say’s “train your employees so they can leave, treat them well enough so they don’t want to”
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