The Rebirth of Automotive Sales: 3 Steps to a Brighter Future
Over the past months I’ve been documenting my car-buying journey in an effort to gain first-hand experience of the process and how it can be improved using digital marketing techniques and theories. Most recently I’ve been surprised at the gap that exists between the discovery phase and the in-store phase of the process. The discovery phase is controlled by the OEMs, and consists of the customer configuring the car and being exposed to the branding and sales advertising that make a car so appealing. The in-store phase is handled by the dealership and is a disconnected experience that could benefit from some of the lessons learned in the digital world.
- Transfer the OEM Experience to the Dealership
In my experience, I found that there was little to no communication between the OEM and the dealer. During the discovery phase I entered a lot of useful information about myself that could easily be captured and passed onto a dealership with my profile. Information like the type of car I was looking for, different configurations I looked at, my price range, and questions I asked can help a dealer build a more complete understanding of who I am as a customer, giving them more data to use when selling me a vehicle. The customer experience is greatly enhanced when customers feel as if the business knows them and knows why they are interested in a specific product.
- Improve the Sales Floor Experience
Most sales floor experiences consist of either an over-eager salesperson or someone who doesn’t seem to want to give you the time of day. In either case, the customer ends up feeling undervalued by the experience, especially after experiencing all of the feel-good messaging and excitement of the discovery phase. Sales floor employees should focus on coaching customers along in their journey instead of simply selling them a vehicle.
These individuals need to be given access to the right data to better understand potential customers walking in for a test drive. Data captured during discovery should be available so that the sales staff already understands where customers are in their car-buying journey. Moreover, sales staff should have the knowledge to answer questions and offer information to customers, based on their profiles, that will help them along in the car-buying process.
- Feed Information Back to the OEM
One of the most important purposes that the dealer can serve is as a test environment, or feedback center, for the OEMs. In the same way that data captured during discovery can be handed down to the dealers, the customer experience during the test drive can also be fed back into the OEM’s data stores. This creates a more complete profile of the consumer in much the same way that digital advertisers are connecting cross-device experiences to a single user.
An environment where data flows back and forth between OEMs and dealers creates a funnel of customers for the dealership as opposed to a cold lead. It also enables the salesperson to act more like a coach, using information about the customers and their needs to guide them through their car-buying journeys. Finally, it provides a feedback mechanism, allowing the OEM to gain insights into people’s purchasing decisions, both on an individual level and as an overall trend.
The Rebirth of Auto Sales
Auto industry OEMs need to think about how they can create a positive end-to-end experience for consumers. They need to implement two-way data management platforms that share information with, and gather feedback from, the dealerships. They need to empower salespeople with information from the point of first contact through follow-up and feedback.
Consumers are becoming accustomed to a more personalised buying experience as digital marketing expands, and this will eventually ring true for the auto industry. Brands that can adapt to this new type of business model will thrive as customer experience alone becomes a differentiator. The same goes for the dealerships. Those that choose to stay in the traditional role will undoubtedly falter at the hands of dealerships where people feel understood and valued by the sales staff.
What are your thoughts?