Pub. 11 2012-2013 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S F A L L 2 0 1 2 18 new jersey auto retailer The char t data (lef t) shows that by far the top reason for not pur- chasing is no contact. It sounds simple, but it bears repeating: if there’s no communication with customers, it’s impossi- ble to make sales. That’s why it’s imperative to examine and refine your processes so your sales team knows they did everything they could to contact a customer and get them in the door. The second most-cited reason customers gave for not purchasing was that they are still looking for a vehicle. These are the cases when contact is made with a customer but they drop off the radar. In these cases, it’s important to examine why your team hasn’t closed the customer. Consider implement- ing a better process for the 7+ to 14+ days aged lead. Make sure you have a trained sales person working on follow up, armed with solutions to meet the customer’s needs. Customers’ expectations change based on what their research and inquiries have told them, and you can take advantage of this. There’s usually plenty of op- portunity to win a customer back if they’re undecided. Finally, the thirdmost common reason that customers gave for not purchasing was price. Here, accept the fact that data is plentiful for the customer, and that there are dealers ready to talk price. In turn, make sure that you’re giving customers a price online so that there is no surprise about price on first contact. Also, make sure that you’re priced competitively in your area. Your prices could be out of line with the rest of your local market if you’re not keeping tabs on pricing trends in the surrounding area. The information age has made data more accessible to every- one – both the consumer and the dealer. As a result, constantly monitoring data relevant to your business – be it from surveys, social media, or internal metrics – is more important than ever. But don’t just monitor – take action as well. At CarsDirect, we have sold well over 100,000 vehicles through our brokering business to customers we have never met and never laid eyes on. Dealers can benefit by designing their communica- tions to fit into the customer’s buying process, not force them into the dealership’s selling process. The best dealers executing the highest sales rates understand this dynamic. They’ll go the extra mile and do dealer trades, search for used cars all over the country using things like the online wholesale auctions, and have delivery solutions for their customers. Using data to help you manage to your store’s strengths can reap big rewards. But remember that before any meaningful change can take place, you need to make sure you understand why customers do and don’t buy from you. Todd Dearborn is Vice President of Sales at CarsDirect. He can be reached at (310) 280- 4283 or todd.dearborn@carsdirect.com. Why didn’t you purchase a vehicle? No Contact 28% Still Looking 13% Not Buying Now 10% Price 10% Other 8% Wants Different Car 7% Didn’t Have The Car 6% Dealer Location 5% Purchased Elsewhere 4% Financing Issues 3% Contact Time 3% Dealer Complaint 1% Vehicle Condition 1% SELLING MORE CARS  continued from page 17