Digital Dealer - December 2019 - 11

...76 PERCENT OF CONSUMERS EXPECT A DEALER
TO KNOW AT LEAST SOMETHING ABOUT THEM
BEFORE THEY STEP FOOT INTO THE SHOWROOM."
er with a history of sedan
ownership may come into a
showroom claiming only to
be interested in looking at
more sedans. However, their
browsing history reveals
some recent research on
SUVs. With this background
information in hand, dealers
can bridge the gap between
what customers say they
want and what their actions
show they want. Perhaps
the dealer suggests a crossover that offers the best of
both worlds to this customer,
even if the customer didn't
submit a lead on that particular vehicle.
This kind of advisory relationship is what customers
value from dealers, with 62
percent of respondents in
the Cox Automotive and VinSolutions Technology and
the Transformation of Retail
Study, saying they want a
more trusting dealer relationship. The dealer, armed
with the right information,
closes the sale and gets a
return customer thanks to
the sophistication of service.
On the other hand, the
dealer without the relevant
information wastes time
and frustrates the customer,
therefore making it more
likely they lose the sale and
any repeat business.
While knowing your
customer and their needs
is an advantage when
they step into the dealership, CRMs can be just as
powerful for attracting them

to your business in the first
place. Part of the customer
challenge today is capturing
their attention, to begin with,
and almost anyone with
phone or email capabilities
is flooded with irrelevant
offers that do more to push
the recipient away than
to draw them in. With the
specific, relevant customer
details that a powerful CRM
can provide, dealers can
create customized marketing communication that

October 2019 Industry Update. This makes it increasingly important for dealers
to execute an efficient
used inventory strategy
that reduces holding costs,
maximizes profitability, and
fosters positive customer
relationships.
Supply-and-demand for
used vehicles is equally
high, and margins are
razor-thin. The situation is
further complicated by the
$32-a-day cost to hold an

...STOCKING AND
SALES APPROACH IS
INFORMED BY CUSTOMER
DATA - NOT THE OTHER
WAY AROUND."
targets the right customer
at the right time, which is
proven to increase lead-tosale conversion rates.
CHALLENGE #2:
EXECUTING AN
INVENTORY STRATEGY

Knowing your customer
is crucial for initiating a sale,
but having the right inventory is crucial to closing it.
Previously, dealers were
able to get by based on a
reading of their marketplace,
past sales data, customer
feedback, and in the case of
the franchise dealer, advice
from the OEM. However,
new-car sales margins are
shrinking, with new-vehicle
sales down 11.3 percent
YOY in September, according to the Cox Automotive

unsold vehicle, so it is very
important to stock with the
goal of turning vehicles at
lightning speed. The best
way to do this is to match
specific cars with specific
buyers in real-time. This
buyer-centric strategy may
sound easier said than
done, but an integrated
CRM removes the guesswork and allows dealers
to appraise with specific
buyers in mind.
With the right technology,
dealers can receive notifications when a vehicle their
appraising fits the criteria of
what a customer is looking
for. Dealers can stock with
confidence, knowing they already have a potential buyer
for a vehicle. Moreover, the

D I G I TA L D E A L E R . C O M

same systems give dealers
a birds-eye view of active
leads on a vehicle in their
inventory, making it easier
to price the car according to
real-time demand. With over
half of respondents in the
Cox Automotive Car Buyer
Journey study, revealing
they were dissatisfied with
the duration of the sales process, it's in every dealer's
best interest to streamline
steps when possible. With
on-demand pricing, negotiations can get streamlined
and become more transparent. This creates a more
reliable sales experience
they are likely to repeat in
the future.
With the right tools, a
daunting auto retail market
can turn into an unprecedented sales opportunity. To
maximize the moment and
technology, dealers need to
embrace their CRM and its
many system capabilities.
Above all, successful dealers will adopt a buyer-centric
attitude where their stocking and sales approach is
informed by customer data
-- not the other way around.
Successfully deploying a
connected CRM, enables
dealers to enter an age focused solely on selling, not
speculating.
CHASE ABBOTT is vice
president of sales at
VinSolutions, Dealer.com,
and Digital Retailing at Cox
Automotive Inc.

DECEMEBER 2019

11


http://www.Dealer.com http://www.DIGITALDEALER.COM

Digital Dealer - December 2019

Table of Contents for the Digital Edition of Digital Dealer - December 2019

Digital Dealer - December 2019
Online Extras
Four Keys to Build a Better YOU
9 Areas That Build Value in Your Dealership
From Speculating to Selling: Overcoming Sales Challenges with Technology
For Sustainable Profit – Build a Purchasing Department
Meet the Marketing Mastermind Speaking at Digital Dealer Orlando
Get a Jump on Making It a Great New Year
Job Management Makes or Breaks Your Bank
Interview with Derek DeBoer of TC Chevy
Elevate Your Year-End Sales Event with Immersive Instagram & Facebook Stories
It’s Time to Move Beyond the Chaotic Dealer Website Experience
The Power of Used Car Marketing
9 Benefits of Doing a Year-End Social Media Audit
Auto Brands and Dealers Need to Move Toward a ‘Tierless’ Marketing
A Case for an Efficient 2020 Dealership Advertising Budget
4 Critical Components of Effective Sales Training
Five Tips to Improve the Sales to Service Handoff
Seasons of Opportunities
Digital Dealer - December 2019 - Digital Dealer - December 2019
Digital Dealer - December 2019 - Cover2
Digital Dealer - December 2019 - 1
Digital Dealer - December 2019 - Online Extras
Digital Dealer - December 2019 - 3
Digital Dealer - December 2019 - Four Keys to Build a Better YOU
Digital Dealer - December 2019 - 5
Digital Dealer - December 2019 - 9 Areas That Build Value in Your Dealership
Digital Dealer - December 2019 - 7
Digital Dealer - December 2019 - 8
Digital Dealer - December 2019 - 9
Digital Dealer - December 2019 - From Speculating to Selling: Overcoming Sales Challenges with Technology
Digital Dealer - December 2019 - 11
Digital Dealer - December 2019 - For Sustainable Profit – Build a Purchasing Department
Digital Dealer - December 2019 - 13
Digital Dealer - December 2019 - Meet the Marketing Mastermind Speaking at Digital Dealer Orlando
Digital Dealer - December 2019 - 15
Digital Dealer - December 2019 - Get a Jump on Making It a Great New Year
Digital Dealer - December 2019 - 17
Digital Dealer - December 2019 - Job Management Makes or Breaks Your Bank
Digital Dealer - December 2019 - 19
Digital Dealer - December 2019 - Interview with Derek DeBoer of TC Chevy
Digital Dealer - December 2019 - 21
Digital Dealer - December 2019 - 22
Digital Dealer - December 2019 - 23
Digital Dealer - December 2019 - 24
Digital Dealer - December 2019 - 25
Digital Dealer - December 2019 - 26
Digital Dealer - December 2019 - 27
Digital Dealer - December 2019 - Elevate Your Year-End Sales Event with Immersive Instagram & Facebook Stories
Digital Dealer - December 2019 - 29
Digital Dealer - December 2019 - It’s Time to Move Beyond the Chaotic Dealer Website Experience
Digital Dealer - December 2019 - 31
Digital Dealer - December 2019 - 32
Digital Dealer - December 2019 - 33
Digital Dealer - December 2019 - The Power of Used Car Marketing
Digital Dealer - December 2019 - 35
Digital Dealer - December 2019 - 9 Benefits of Doing a Year-End Social Media Audit
Digital Dealer - December 2019 - 37
Digital Dealer - December 2019 - Auto Brands and Dealers Need to Move Toward a ‘Tierless’ Marketing
Digital Dealer - December 2019 - 39
Digital Dealer - December 2019 - 40
Digital Dealer - December 2019 - 41
Digital Dealer - December 2019 - A Case for an Efficient 2020 Dealership Advertising Budget
Digital Dealer - December 2019 - 4 Critical Components of Effective Sales Training
Digital Dealer - December 2019 - 44
Digital Dealer - December 2019 - Five Tips to Improve the Sales to Service Handoff
Digital Dealer - December 2019 - 46
Digital Dealer - December 2019 - Seasons of Opportunities
Digital Dealer - December 2019 - 48
Digital Dealer - December 2019 - Cover3
Digital Dealer - December 2019 - Cover4
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