Automotive Specialists ASE recently published an Industry profitability update on their website. Data from ASE Global shows in February 2018 the average UK Motor Dealer posted a loss of £18,000 up £4,000 on the loss recorded in February 2017. This reversed the gains made in January and leaves the average dealer £2000 behind on a year on year basis. Having said this, it is largely led by new cars, with used cars showing continued strength and aftersales continuing to grow in profitability with more opportunities available.
The Automotive Industry is an exciting and fast paced place to be with constant changes and ongoing investment – it shouldn’t be so difficult to be a successful business. The internet has done great things for the automotive industry, yet it has also made life harder at the same time – Customers now have 24hour access to all the information they could ever need about buying a car meaning; much less ‘physical shopping’ is done and customers are able to make a lot of their decisions before they come into our showrooms. The likelihood, very much supported by Google analytics is; that if a customer sets foot on your forecourt these days, they are likely to buy a car. Great for your salespeople, and the customers who come to you as their first choice.
So the question is now – how do we make sure we are always first choice for sales and for service?
I never cease to be surprised and delighted by the quality of dealership websites and the advertising they use now. It is fantastic and as long as it is seen by the customer who has taken their decision to ‘e-shop’ it will undoubtedly help them make their mind up where they are going to buy.
Unfortunately, relentless hard marketing to customers who are not yet in that mind space is more likely to have the opposite effect. We all know there is a difference between a customer who is satisfied and a customer who is loyal. Customers can be satisfied with what we do for them but very easily go elsewhere for a better offer. Customers who are loyal want to do business with us again, recommend us to others, and resist the pull of the competition.
All the research done and the evidence collected supports the fact that the best way to achieve customer loyalty is with a proactive, personalised and customer aware contact strategy.
Let me work with you to formulate your personalised customer contact strategy!!