Auto Dealer Monthly, May 2015

MAY 2015 AUTODEALERMONTHLY COM 19 out lines Customer service representative rosters are being reduced as more people manage their accounts online When we self serve we retain control and remain the focus of the transaction which can be a great feeling but it only works when the company on the other side of the computer or mobile device has provided the tools to make it work When the utility of those tools is exceeded those same businesses must provide human interaction and they must meet or exceed their exasperated customers expectations On the other hand in many cases everything is easy until a customer service agent gets involved Weve all been there Consider your own shopping behaviors and think about how comfortable you have become in spending larger dollar amounts online Whats the highest price you have ever paid for an item online Would it be a stretch to believe that even you would be comfortable buying a vehicle off a website with minimal assistance from a car salesperson Not for me I have become so comfortable researching online and leveraging previous buyer product reviews that I think it is a foregone conclusion that I will eventually do the whole deal online All I need is a trusted source on the right platform YOU MAY SAY THEY ARE DREAMERS Its easy to pick on the trendsetters and suggest they are dreamers and money wasters I will admit that when an OEM wants to be the driver of this retail strategy I get nervous But when dealers are actively involved in the development the concept is a bit easier to swallow When I was on the Ford Dealer Council in 2000 our chairman Jerry Reynolds said that any decision made by a car manufacturer without dealer involvement is a bad decision I agree wholeheartedly If digital retailing strategies like Shop Click Drive which appears to be winning over General Motors dealers are to move forward the factory dealers and customer have to be involved Th e customer is part of the equation because they determine the ultimate fate of any sales experiment By keeping them involved throughout the development process we can likely shave years off the journey to ultimate success So what exactly would success with digital retailing look like Does the share of all sales have to reach 2 5 10 or more Th ink about it this way When dealer websites started popping up in and around 1995 few could have guessed that 20 years later more than 90 of car buyers would research their purchase online or that some dealerships would have more than 50 of their sales generated from online actions taken by shoppers Th ings change If youre still in shock I suggest you get over it Ive witnessed fi rsthand how confi dent Millennials are with shopping online and providing their own service Its not a stretch to imagine them leading the way down this path And by the way I believe Mom and Pop dealerships are most likely going to lead the way on this initiative Yes the big auto groups have more money to experiment but the smaller private operators have more of a personal stake For that reason alone I believe they will be the innovators All they need now is a creative technology partner to make it work I judge digital retailing to be a success because it is stirring the industry I am amused by the fact that some dealers are taking a stand against it as if they have the luxury of picking sides Th e genie is out of the bottle Th e Internet is not a fad and neither is digital retailing Th e right strategy will evolve through trial error and yes investment Im not just talking about money You will have to invest time and focus as well Consumers are engaged and the proof is everywhere you look Remember when online payment calculators were a novelty Th ey now account for an average of 8 minutes of the average car buyers time Th ey are not waiting for your experts to tell them what vehicle and loan will fi t their monthly budget I can imagine a day when salespeople use their smartphones to write deals accept deposits and handle all the paperwork If this is possible and I truly believe it is not only possible but probable then the Web or kiosk enabled transaction is not far behind BACK TO THE BACK END Th ese advances do not necessarily portend the demise of F I Far from it Th e eff ective yield is an experience that better connects the website to the store When todays and tomorrows car buyer arrives at your showroom they will be prepared with vast product knowledge and fi nancial literacy Th is is not a bad thing Experience has convinced me that a more informed customer means more trust and more trust translates into incremental opportunities to sell F I products If you are a dreamer and want to make it happen dont let anyone talk you out of it Decide for yourself if it is the right strategy for your dealership Here are a couple of important numbers worth considering Among my dealer clients those using digital retailing products on their websites have experienced a 13 increase in lead volume coupled with a 30 closing ratio on the leads generated Imagine a day when you open your doors and you already have 10 units sold from overnight shoppers and all you have to do is clean them up for delivery A dealer once told me I dont want to be a pioneer Ill be a settler He preferred to let others go fi rst and move in when there was no threat of danger Whichever approach works for you is fi ne with me but remember if you arent in that fi rst caravan you may never see the frontier for yourself Th anks for reading Id love to hear from you whether you agree or disagree David Kain is the president of Kain Automotive Inc winner of the 2014 Dealers Choice Award for best Internet training provider and a nationally recognized speaker trainer and consultant DKain@ AutoDealerMonthly com One year after launching Shop Click Drive more than one third of General Motors dealers had signed up for the program COURTESY GENERAL MOTORS CO