Cymark Newsletter.
A quick update for retailers. What’s coming back from the sites, what seems to be working and suggestions. Just one update per month. This is a shortened version of the monthly update provided for Cymark retailers.
Another great month in the showroom for retail sales. Used sales leading the charge in around 2/3 of retailers, but new car sales are now not far behind.
If a customer is comfortable and confident in their work / home position they are putting their hand in their pocket. Many for top of the range, high spec models as they can see a good deal on offer.
A new sub heading I am putting in is –
COVID-19 Safe for staff and customers alike.
As you would expect there is a vast amount of showroom arrows and signs in existence to guide customers around more spacious showrooms as fewer cars are included to aid social distancing.
But this is certainly not an even playing field. The vast majority of sites have service and sales exec’s alike behind plastic screens, all wearing masks with clear and ‘in and out’ routes. But a sizeable minority only seem to be taking these steps for service or reception staff.
On my monthly visits around sites we are seeing a number where either service assistants are taking customers back to their cars without masks or sales exec’s are sitting behind normal desks without screens or masks.
I know one metre plus is the rule and not wearing a mask is completely legal for staff working within a retail environment, but we are seeing rising levels of concern in customer comments. Both sales customers and service customers along the following lines –
“I felt a bit silly. They all seemed to be wandering about without masks, walking across the showroom, taking keys back to customers and the like. But I feel a bit ‘wrong’ for wearing a mask, almost as if I am being rude for covering my face, if they aren’t”
No one is doing anything wrong, or against guidance, and not wearing the PPE if your actions make a customer feel . . . . . . .
Of course, there is a flip side to this –
A franchised retailer was having difficulty with his union representative over staff safety because some customers were coming in without appointments and masks. Almost pushing the situation out of bravado.
The retailers solution : He mounted (they weren’t wired up) low cost CCTV cameras in clearly visible spots right behind the receptionists just above a large bold sign that announced “Due to complaints we are working with local law enforcement to video people not wearing masks to help identification. Masks must be worn at all times in our showroom”
The problem stopped quite quickly.
Retail Sales.
While enquiry levels, year to date 2019 to 2020, are down many sites are reporting the best August sales figures for years.
Potential customers have been looking at the spec’s, looking at the adverts and making a lot of decisions. By the time they get to your door they are a lot further down the sales process.
Which is great for conversion figures.
Source of enquiry is very interesting. We have been doing a lot of proactive work with sites, mini campaigns of perhaps only 300-400 customers are showing very strong results.
But for reactive enquiries, when speaking to potential customers through our lost sale process we are seeing an overwhelming number that have come via the manufacturers website.
Many groups and retailers have comprehensive websites – very expensive with google pay per click, but the vast majority of customers identified the manufacturer as the site they most visited when ‘deciding’ to buy a particular make or model. Over 75% of customers.
Many customers did search for the local retailers webpage, but only after they had made the decision, to check the location / opening hours to see if a particular car is in stock.
The other good news is the overdue contacts and end of contract / 32 month calls. So don’t let your sales exec’s off the hook. When making calls – covering for sales exec’s that are isolating – we are finding 1:4 customers wanting to speak to the sales team straight away. Even if the record is now 3 months overdue they are worth a call.
Aftersales.
Service Is still leading profitability, but the numbers have certainly eased off. Many sites have caught up with the backlog.
The workshops are busy, often with reduced technicians per ramp, but we are seeing a reduction in hours sold compared to July. Sites have made a great job of getting customers in that took advantage of the MOT window.
Collection and delivery back is very popular, and while costly for the retailer – and the customer : Some sites are charging a £10 collection / delivery fee to contribute to increased driver costs.
Parts activity is also dropping this month as the non-franchised workshops are also seeing a drop in business in August. But like sales, many departments are seeing an increase in year to date results.
I know that our email bodyshop / mechanical programme is seeing a lot of activity as parts departments are getting their offers out every few days instead of every few weeks.
Local Business.
Small fleet sales continue to be very strong. Larger fleet users are still really only changing a vehicle if they have to, and many vehicles are a long way behind their projected mileages. So companies are holding onto the cars for a little longer.
Van sales continue to be very strong, but some manufacturers are reporting low stock levels for new vehicles, with no new replacements until well into Q4.
If you supply electric or hybrid LCV’s you are certainly riding the crest of a wave at the moment. Particularly if you’re around the M25.
Email marketing is rising.
While sales from digital marketing is strong, we are seeing a slow increase through August in the percentage of customers that are opening and clicking through email’s upon first contact/receipt.
This is the case across all industry sectors, not just the motor trade, as people return to work mode. We are seeing some very impressive campaigns through our eSend platform but its certainly true that small, targeted campaigns are working best with short, to the point, emails.