Thursday, 24 May 2012

Automotive



The Real Sales Trainers

Print E-mail
Industry Specific - Automotive
Written by Tim Rohrer   
My wife had just recently bought into the notion that there is such a thing as the Taco Bell diet.  A poor attempt to rip off Subway's Jared advertising campaign if you ask me.  But, nonetheless the mini-van was loaded up with Taco Bell "food" from the drive thru and she was tooling back towards the house to share the loot with the kids.

Up ahead, the traffic signal had turned yellow. 

"Close enough to go through," my wife thought as she checked to make sure the Hyundai ahead of her agreed with her assessment.  Assured by a lack of brake lights, she glanced to her left as she passed a daycare popular with the neighborhood Moms.

"I remember feeling really good right before I hit that stupid Hyundai," my wife told me later.  Well, sure, who doesn't feel good when they're on the Taco Bell diet?  Luckily, the airbags and seat belts in our Toyota Sienna worked perfectly and save for a scratch above my wife's eye where her sunglasses smashed into her face, both she and our five-year old son were fine.  The same could not be said for the Sienna or lunch from Taco Bell - both of which were a total loss.

On that day, a couple of weeks ago I became a very good new car prospect.  I thought the ensuing experience of shopping for and buying a car would be instructive.

Since I wasn't sure in the first couple of days after the accident if the Sienna would be repaired, my first step was to determine what type of car we would buy if we were forced to buy a car.  This turned out to be a pretty straightforward process as my wife was convinced that another mini-van was right for our family.  The only other option besides Toyota in her mind was Honda.  Having just recently driven her sister's Honda Odyssey my wife was familiar with it and quickly came to the conclusion that she preferred the way the Toyota drove.  So, in about a half hour of thinking about it and discussing it we had decided that our next car was going to be a Toyota Sienna -either the original one repaired or a new one.

Our smashed car was a 2005 version and over the years I had forgotten which options were available with which trim levels.  I went to www.kbb.com to read up on the newest Sienna mini-vans and to price out the options.  From there I went to www.autotrader.com to check local inventory.  At these sites, I was served up advertisements for Toyota dealerships.  On one occasion, I clicked the advertisement and then completed the on line form advising the dealership regarding the make and model of my interest.  Within a few minutes, my phone was ringing and on the other line was Dave representing Toyota dealership #1.

I told Dave that I was interested in purchasing a 2009 Toyota Sienna XLE Limited with less than 20,000 miles.  Dave was very friendly and we got along famously.  Dave told me that because the 2011's were expected on the lots beginning in late February the dealership had been pushing 2010's out the door and not ordering additional 2010's.  As a consequence, there weren't that many 2010's left and even fewer 2009's.  He checked his inventory for my exact specifications and said he didn't have any.  But, not to worry because his dealership was affiliated with more than one hundred other dealerships nationwide and he had access to their inventory and perhaps he could find what I was looking for at one of those dealerships.  He promised to get back with me.

Meanwhile, the insurance company confirmed the body shop's assessment that the van was a total loss and they began the process of determining the value of the car.  At this point, I went from being a very good prospect to a "now buyer". 

While I was waiting to hear back from Dave at Toyota Dealership #1, I called Toyota Dealership #2 and was transferred to Michelle.  I told her exactly what I wanted to buy and she told me that they didn't have any 2009's that fit my description.  I asked her to do a search and she told me something very interesting.  Unlike new cars, dealerships own their used car inventory and don't swap out that inventory with other dealerships.  So, if they didn't have the car I was looking for and one didn't come along as a trade then they didn't have the resources to find one and acquire it for me absent a guarantee that I would buy it.  Of course, that would mean that I would have to buy a car sight unseen which I wasn't willing to do.  Michelle apologized for not being able to help me.

I called Toyota Dealership #3 and repeated my request.  This time I added the fact that I knew a 2009 might be hard to find so I was reluctantly willing to consider a 2010.  My salesperson, Ted, told me they had a few 2010's left on the lot and was there a particular color I wanted.

"No, but there are colors I don't want," I said and I listed them for him.  "Plus, I want to let you know that the only reason I want a Limited is because it is the only trim level that comes with memory seats."  To my delight, Ted asked me which other options were important or unimportant to me.  We discussed leather seats (important), back-up cameras (not important), navigation (not important), DVD Entertainment (important) and a few other amenities.  When we were done Ted had a very good idea of what I was interested in buying.

The next day I called Toyota Dealership #4.  By now I wasn't even bothering with my request for a 2009 Sienna and just started the conversation with Katie with my 2010 specifications.  Katie told me about the cars they had on the lot that fit my description and asked me when I might like to come by to take a look. 

"Soon.  Very soon," I said.  I was surprised when Katie didn't ask me why I was in such a hurry or pin me down with an appointment.

That same day, Ted from TD #3 called me back to say that he had found what I needed in Idaho but that it wasn't an option for his dealership to send someone out to Idaho to bring it back to Atlanta.  He offered to give me the phone number of the dealership in Idaho in case I wanted to work out shipment directly with them.  I passed.  Ted then offered to work with me on a new car.  Since he already had the specs of the car I wanted I told him to check what kind of deal he could make me and get back with me.

I called TD #1 to see how Dave was doing.  He said that he found a 2009 at auction that the dealership could buy for me but I would need to put $500 down as a non-refundable deposit and I would have to buy the car sight unseen.  He sent me some pictures and I saw a big scratch in the side of the car and called him back to pass on it.  He promised to keep looking and I promised to call him back if I decided to go with a new car instead of a used car.

The next day, having given up on a used car altogether, I called Dave back to tell him that we should be talking about 2010 models but learned from the receptionist that he wasn't working that day.  I left a message.

That same day my wife and I decided to go to Toyota Dealership #5 as we had checked their inventory on line and they had a few 2010 models.  Upon walking in we went straight to the receptionist's desk, using a showroom Sequoia to block an approaching salesperson, and  I asked to speak to the sales manager.  Benny came out to see us and I let him know that we had been driving a Sienna XLE and we wanted to upgrade to an XLE Limited and that, while I didn't mind dealing with a seller, we didn't really need one at this point.  Benny decided to help us himself.  He pointed out the differences in the Limited versus the XLE and explained some of the changes Toyota had made to the Sienna since 2005.

I asked how much a person might expect to pay for a 2010 Sienna XLE Limited and Benny said this:

"I'll make you an invoice deal."

"How much would that be?" I wondered.  Benny said that he would go and figure that out and would have our numbers in just a minute.  We sat down and five minutes later Benny brought out a piece of paper that showed exactly how the car was equipped and how much he would sell it for. 

We asked if we could think about it over night and Benny said, "Of course!"

The next day I asked my wife to call Katie at TD #4 and tell her exactly what we wanted to buy and ask for a price.  Katie gave us a price $400 lower than we had received from Benny for exactly the same car.  On that same day, my wife dropped by TD #5 and asked Benny what other colors he had available besides the one we had seen the previous day.  He showed her the cars and, without being asked, offered to drop his price by $400.

Later that day, we went back to TD #5 and bought the Sienna XLE Limited from Kyle - the seller that Benny assigned to us after he knew he had made a deal.  We learned while we were there that another couple had inquired about the Sienna that we wanted and Kyle ended up putting the keys in his pocket so that the other seller couldn't even open the doors for them.  That couple ended up buying a gold XLE Limited on the same night as us.

Okay, so here are my questions and thoughts:

1) Why didn't the sellers ask me what had caused me to start shopping for a new car?  If they had they would have learned that our other car was no longer drivable and our situation was fairly urgent.  Wouldn't this have moved us further down their sales funnel and caused them to act as if we were not just your ordinary, run-of-the-mill tire kickers?

2) Why didn't the sellers ask me how quickly I was going to make a decision and how soon did I plan on buying and under what circumstances could they get me to buy sooner? 

3) Why did Benny offer me an "invoice deal" when he only had three 2010's on the lot and at least one other very hot prospect?  Why did he lower his price further without being asked to do so?  Why didn't he put some conditions on his lowered price - like you'll need to get this done within 24 hours to get the better deal?

4) I only heard back from one salesperson after making the purchase.  Ted from TD #3 called me ten days later to tell me that he had some 2011 LE's on the lot but they didn't have leather or memory seats.  Why did he call to tell me that he had product that didn't meet any of my needs?  Why didn't any of the other sellers follow up with me?

Okay, we could bang on these sellers for not doing everything possible to understand my needs, offer solutions and get a deal done.  But, I am more interested in this observation: 

The automotive sellers acted the way they did because 1) they have been taught by their customers that they shouldn't get too excited about a prospect because there are waaaay more tire kickers than buyers and 2) they have been taught by the other sellers at the dealership how to sell cars.  Do not underestimate the importance of these two factors when trying to understand why seller's behave in non-productive ways.

Despite the vast amounts of training being offered to sellers in every industry and despite the vast resources available to motivated sellers who might like to learn on their own, the two most influential groups for sellers are their customers and their peers.

Those two groups are the real sales trainers - like it or not.

 

Closing….on Value-Priced Vehicles - The “P” Word

Print E-mail
Industry Specific - Automotive
Written by Dave Kemp   

I have been automobile sales training coast to coast in the last three weeks.  Some of the best, most high achieving automobile sales consultants on the continent attended these sessions. It was all about  Closing.  All about helping customers make positive decisions.  It is not about pressure or manipulation.

These sales pros get it. Their pay cheques prove it!!

Your customers need your help overcoming the “P” word. Procrastination!

Procrastination is natural when it comes to making a buying decision. Heck, I have seen sales people procrastinate over what beer to choose when their favourite brand is gone—and the beer will just be twiddled away in an hour anyway!!

Your customer is trying to avoid making a mistake!

They fear making payments on the wrong car or truck. Fear makes cowards of us all!

The question they need help with… “Is this the right vehicle for me…. regardless of the price?”

Until this question is decided positively, your customer will procrastinate.

Unfortunately, some sales consultants just don’t get it.  They keep pounding the other ‘P’ words… price or payments.  Therefore their closing ratio sucks.

Your key to Closing success? Take away the fear factor and you take away the procrastination. The result is a sale for you and customer solves their problem.
So land your prospect on the ‘right vehicle’ and you eliminate fear. Focus on asking effective, quality questions, listen, probe and then select a vehicle that is the closest you have to meeting their needs.

If the ‘best available vehicle’ is not perfect so what?  You seldom have the exact vehicle in stock. Therefore present what you have that is similar and use it to sell what your client wants.

Do a POWER PRESENTATION DRIVE next. Not a Mickey Mouse one that I got recently in a mystery shop of a car and truck dealer down near Mississauga, Oakville, Ontario.  It was pathetic. Is your vehicle presentation pathetic?  Maybe… occasionally… too often?

Create the ‘right climate’ for closing.

The easiest way to close your customer is right in the vehicle you are demonstrating. You drive first—do a smoking job of presenting the features, benefits and advantages of your vehicle. Then have your client drive after your power presentation drive.
Stay in the car at the conclusion of the Presentation Drive… review the various features one at a time.  Come right out and ask the customer’s opinion on each positive feature they enjoyed and experienced during your Presentation Drive.

“Mr. Kemp, now that you have driven this truck, does it have the power you were looking for?” You can expect a positive response because you target only features they previously identified as first-class.   “Dave, do you feel the seat is comfortable enough for the long business trips you take?”  You already know the answer is positive because you were there.

Do you get it?   Closing is eliminating any fear of mistakes or wrong choices. Closing is helping your automobile customer come to a decision without feeling pressure.   When your client identifies positive feature after positive feature, their fear of making a bad decision is reduced and their confidence is increased.   Your customers need to procrastinate is over. This is your job.  Do this well and you increase your sales! 

Keys to Closing Success,

•    Always go on the Presentation Drive to discover your client’s hot buttons or the positive features they experience during the road test.
•    Always drive first to show off your vehicle features. That is what ‘demonstration’ means, right? 
•    Stay in the vehicle at the conclusion of the presentation drive.  Review positive features one at a time.
•    Ask your customer’s opinion of each positive feature you discovered during the drive.  Make the list substantial.
•    Then you have earned the right to ask a closing question.

You will discover more people willing to say, “YES, this vehicle is just right, I will take it”.

Your POWER PRESENTATION DRIVE drives out your customer’s procrastination.

Once your clients want what you sell they stop procrastinating and help you make the price and payments work.  They want you to help them get the deal done. Be better at closing.  There is one  “P” word you will love—PAY cheque!

 

Interviews on the Lot - Are you crazy?

Print E-mail
Industry Specific - Automotive
Written by Warren Cederberg   

It is surprising when we see even experienced salespeople follow a prospect around the car lot looking at all of the inventory and trying to interview the client on the run. That's crazy! It wastes the client's time and we fail to take a leadership position in the relationship. Leadership or "soft dominance" in the sales process starts at the introduction. Who should be the leader in the buying process them or you? Well...

Who knows where the vehicles are, what is on order, and in transit - them or you?

Who knows the models, options, and configurations better - them or you?Who knows what information is needed to make the best product selection in a time effective manner - them or you?

Who knows the best test drive routes to show off the features of the vehicle - them or you?

Who's paycheque depends on a good relationship that results in a positive buying decision - them or you?

Who's better equipped to lead - them or you?

Ok, so you need to be the leader. How do we do it? It starts from the moment you meet them. When you first meet many prospects they might say something like "I don't have much time today" or "We're just starting to look at cars". Even if they don't, you can suggest time savings, relieve their stress, and begin to lead by saying something like:

"Are you pressed for time today? Ok, no worries. May I make a suggestion that will save time and allow us to quickly get the information you need today? Ok let's go inside and sit down. I'll ask you some questions and I'll take a few notes. That way, we can quickly figure out which vehicles best meet your needs... then I can give you the information on just those ones. Ok?"

When we transition like that, our prospect will take our lead. Why? Because it makes sense. We are offering professional service that gets them the information they need in the most friendly and efficient manner. We need to do most of our interviews at the best place: our desk.

Now what have we done? We have relived a bit of the stress from the introduction. We have reassured them that we are going to help them get what they need. We have begun to lead by giving them a good reason to follow. We get to do an effective interview at the most comfortable place that has all of your resources close at hand. The best part is that once you begin to lead then they are more likely to continue to follow you through a good interview, a personalised presentation, an effective demonstration drive, and wow maybe even buy the car!

Given that, why would you choose to hand them your tie and allow them pull you around the yard?

Ok so you bring them inside for a proper needs assessment interview.  Do your Interview questions make them think?

We have always said that the number one job of a salesperson is selection. Making the best vehicle selection can be complicated. The customer can make a selection but is it the best one? The best selection marries their needs, habits, desires, and changes in lifestyle to a vehicle with the right capabilities, options, and equipment. They need our professional service and product knowledge to feel confident with their choice. To be effective, we need a complete understanding of the buyer and their needs. That requires an effective interview.

Think about the questions you typically ask in the interview process. Are they provocative? Do they make the client pause and think or are their answers just a series of yes-nos. What about the depth of their answers? Do they give you what has changed in their life? Do you know what is driving their desire to change vehicles? Do you get a clear dominant buying motivation? Can you describe their typical week of driving? Do you know why their old vehicle doesn't suit them anymore?

Really good interview questions are not going to occur to you "on the fly". You need to put some thought into it - develop and memorize stronger questions for yourself. Make yourself a list of questions in your own words. Something like these:

What is it about your old vehicle that doesn't work for you anymore?

What has changed in your life that makes you want a different vehicle?

If there was one thing your next vehicle has to do really, really well what would that be?

Describe a typical week of driving for you. What kind of trips and who do you take?

What kind of family needs does your next car have to fit? What other drivers do we need to satisfy with your next vehicle?

If they already have a model in mind when you first meet them, how does our responsibility change? Well, it doesn't. Our number one job is still helping them make the best selection. We need to be sure that they will be completely happy with their choice.

So if they say: "I want to have a look at your Camrys", you still want to find out what it is that would make that their best selection. You could say: "The Camry is a very popular choice for our customers! What is it about the Camry that has gotten you excited about having one?" or "The Camry is a great choice! What was it that got you thinking about a new vehicle?"

There is always something "behind" their desire to change vehicles. Something has changed in their life. Ask provocative questions and they will give you everything you need to help them buy.

Copyright © 2010 by ISI/PAL Automotivaters Inc.


 

Building Added Value - Why should I buy here?

Print E-mail
Industry Specific - Automotive
Written by Warren Cederberg   

It is a question many buyers have. With all of the choices in the marketplace and even other locations that sell your brand it is a valid question: "Why should I buy here?" We created a defined step in the sales process that answers this question for the customer but that isn't all it does!

Building Added Value is a step in the process that immediately follows the Demonstration drive.  Why here? We'll if you have done a great job so far in the process you understood the customer’s needs from a strong interview at your desk, you selected a vehicle that meets their motoring and lifestyle needs perfectly, you gave a customized presentation on the vehicle with special attention to their needs and DBM, and you took them on a demonstration drive that built mental ownership by proving that it is the right vehicle for them. Now what? They are excited! They love it! They want it! They could even be scared you might ask them to buy it! Without an effective transition at the end of the demo drive, too many customers get nervous and leave.

We can make this dynamic worse with an ill-timed “front seat close” that aggressively asks if they want to buy this car. That will almost always create a squirm and a quick excuse to leave. This is often why we see a huge drop in customers progressing from the demonstration to the information review and write up. Ask if they liked the ride and handling – sure. Confirm that it seems roomy enough for their needs - sure. Keep it light and on the vehicle but lead back inside the dealership to Build Added Value.

Building Added Value is a smooth transitional step back into the dealership to show them the service department, dealership awards, and client amenities they will enjoy as a customer. Our transitional language at the end of the demo drive is something like this: "Mr. Smith, before you go I want to show you something about the dealership that we are very proud of and I think will be very important to you".

Now lead through the service reception area pointing out things like: how many service bays, master technicians on staff, friendly service advisors, and parts inventory. Show off the awards wall of fame, community sponsorships, client waiting area, and other amenities. Show and tell them how important customer satisfaction and aftersales care is to the dealership. Build the case for why this is a good place to be a customer. Now we offer a refreshment and suggest we go back to your desk to review the information on the vehicle you drove and answer any questions they may have.

So what have we done? When we pulled up to the dealership after the demo drive we might have confirmed selection by asking something like: "You really seemed to enjoy the car. So we have selected the right vehicle?" If they agree to that statement then they might fear the next thing out of your mouth might be: "wanna buy it?" Remember the many things that go into a positive buying decision. Some of those are:

•    Do I like and trust the business?
•    Is the business a good contributor to my community?
•    Will they look after me after the sale?
•    Do the service people seem friendly?
•    Do they have qualified staff to fix problems?

When we insert the building added value step right there, we help the customer over that fragile and stressful moment at the return of the demo drive. We have Built Added Value in the dealership and shown them where and how they will be looked after when they have the new vehicle. We have answered one of their key buying questions: "why buy here?"

Copyright © 2010 by ISI/PAL Automotivaters Inc.

 

 

Perspiration but no Demonstration - PART 2

Print E-mail
Industry Specific - Automotive
Written by Warren Cederberg   
We have talked about how the demonstration drive is where mental ownership really takes hold. People only become fully and emotionally involved with the vehicle when they are experiencing it. A well led Presentation will link the buyers needs and lifestyle to the vehicle features but the "proof" really only comes after they have seen and felt how the vehicle meets those needs and desires.

The transition from Presentation to Demonstration is where many sales consultants fail to progress with their prospect. If you have a big drop in the percentage of people you lead  through the Presentation and the number who go on to the Demonstration drive, you have a big problem!

A customer can't make an informed buying decision without experiencing the vehicle on a demonstration drive. It is inconceivable to us why a sales consultant would stop leading after the Presentation and a customer would have to "ask" to drive the vehicle. Yet even with less traffic walking in our doors these days we still see many mystery shopper results where the customer had to ask if they could drive it!

What makes a good demo process? It starts back in the Presentation. Put your demo plate on the vehicle during your Presentation. Plan your walk-around so that you end up with the customer in the front passenger seat. Use an effective transition like: "Sue, may I show you what I believe is most impressive about this vehicle? (Most will say 'yes') That's the ride and handling. I’ll drive first to show you a few things and get us safely away from the dealership. Then you can try it for yourself. Ok?"

We'll say here that accompanied demonstration drives must be non-negotiable. This crucial stage of the buying process where mental ownership either happens or doesn't is too important to just toss them the keys and say: "try it out - see you in a while". That's crazy! If we are not with them on the drive:
•    We can't answer any concerns that come up.
•    We can't help them with controls they don't understand.
•    We can't make sure they experience how the vehicle meets their needs.
•    They may select a route that doesn't show off the best attributes of the vehicle.
•    We have no idea where our vehicle is and when it will be back.
•    We will miss the fragile moment upon return where a smooth transition back into the dealership is needed. 

We want to drive first because the controls may be unfamiliar to the customer and the lot is typically a congested place. When you drive first it is less stressful for the customer, you start away on your pre-planned route, you confirm that the vehicle is running correctly, and you can drive and demonstrate the features that are most meaningful to the client. Here is where you show them how the vehicle meets their Dominant Buying Motivation (DBM). 

You must have a few pre-planned routes that will best showcase the typical sets of driving habits and client needs. It seems obvious but we regularly witness a customer who does mostly highway driving receive a demo drive that is just a quick "around the block" route!

Where do we trade places? Make sure it is a "happy spot" where you can safely get out and walk around the vehicle. Some scenic spot like a park is an excellent choice.  You can comment on the styling at that moment because it is easier to appreciate the looks of the vehicle when it is not surrounded by a bunch of other inventory.
Once the customer initially takes over driving we should limit our comments to answering their questions. Let them experience the vehicle without distraction on the way back to the dealership.

What is the relationship between price negotiations and demonstration? Look, everyone wishes that customers wouldn't be so fixated on price. The reality is that price will always be part of the buying decision. However, when the customer becomes emotionally involved with the vehicle and mental ownership builds, then price takes its rightful place as ONE of the considerations BUT not the ONLY consideration.

Increase your percentage of Demonstration drives and we guarantee you will increase your closing ratio. Do it for yourself or do it so the customer can make an informed buying decision. Just do it.
 
<< Start < Prev 1 2 3 Next > End >>

Page 1 of 3
Contact Us