But do we really need every minor technological introduction or update to be ‘AI controlled . . .’
I was surprised how many mainstream news feeds commented on the Princess of Wales ‘AI manipulated family photo’. What ever happened to the derogatory term – ‘photoshopped’.
The same applies with cars.
Hardly a week goes by without the latest AI update to improve battery life, charging time, air-con efficiency or route to the pub.
And most of it is basic mathematics. In a little equation. Opps sorry, ‘in a little algorithm,’ my mistake.
We didn’t shout in wonder every time the sat-nav software updated and gave us a different route because the A34 was blocked. No, why? Because it’s not AI. It is created a different result from a predetermined set of parameters, that happened to change.
And that’s what 90% of these purported AI advances are. “The machine has worked it out. It learned!, ooooooh”. Er, no. The parameters of the equation changed that’s all.
AI has to learn the parameters and the initial question. Not just calculate.
But then it does sound good in marketing terms. Something new and shiny to shout about 🙂
We have done a number of campaigns this year where the customer can – “come down and, in addition to the £4,000 discount we’re offering, see the latest AI on the new XYZ EV rocket”
I’m not really moaning. But it does make me smile. As they say, “nothing is new under the sun”, and AI is just the latest way to make something sound ‘new’, and therefore attractive, and therefore worth buying.
Interestingly – If you forget the early paper based systems, would you say the 1987 Toyota CD driven sat-nav, or the 1990 Mazda GPS sat-nav was the first ‘production’ satellite navigation system? What do you think?
Some good news for a change. The enquiries from Qtr2 and Qtr3, that didn’t buy, are still there.
As the old saying goes – “Deal or Dead”, well they didn’t die. They were just asleep and now they are buying.
We just need to make sure it is from you!
Having made enquiry and lost sale follow up calls for Motor Dealers for over 25 years we have a pretty good picture of what goes on in the showroom and in the sales exec’s mind.
“It was ages ago. If they still want to buy, they will come back to me.”
Which as we all know is complete rubbish.
We prefer the adage, “If you don’t ask, you don’t get”. Well that’s what we do, on your behalf so you don’t have to rely upon a disenchanted sales exec’ doing it.
AND THE GREAT NEWS.
Opportunities are flowing back into the showroom, not just from enquiries a month ago (25%) but from customers that didn’t buy during Qtr2 and Qtr3.
A number of retailers are using these older records much like a mini-event campaign, much lower numbers, but we can work through them. AND the deals are coming in.
Do you have stock you didn’t have in May or June?
Do you have a lower rate finance or contribution support from your brand?
Then now is the time to contact those outstanding customers.
If you want to make sure it happens give Cymark a call or have a look on the website, or the Blog pages for similar updates. Its worth a look –
Like most companies we send out email updates, newsletters etc to former customers / collegues etc. We aren’t a retail business, instead a business consultancy within the Motor Trade so my own subscriber list is thousands not millions.
By accident, our admin team sent out this weeks “Have a good September 1st” email, but instead of using the latest subscriber list they picked my own list from Spring 2020.
58% of my former colleagues and contacts are no longer there. Some 4,500 senior managers in the Motor Trade.
A lot of statistics will tell you that people move every 4-5 years, we have had a pandemic, blah blah. But mainly that is to sell the “updated industry list” they are trying to push.
I know people change jobs, but the Motor Trade is quite a family – sometimes a pretty dysfunctional family -, you might move jobs, but often with the same retailer, or certainly within the same group. You have just moved branch. Or quite commonly, returned to a group you were with originally.
So 58% gone, seeing it in one go is quite sobering. I hadn’t noticed it as we update our database and subscriber lists on a rolling basis, happily we have the telesales staff that can call the bounced emails to update the current managers details each week.
If you’re marketing cars and vans to local business and fleet buyers then your database probably went through the same changes as mine and need to have a chat with our data team to see how we can help. They have been making B2B marketing and research calls for over 25 years, and know how to do it.
I know every time they update my database they generate new opportunities for me to call and introduce the marketing services of Cymark. If we can be of help, drop me an email or DM.
Depending upon the franchise and the available model mix from stock we are seeing a diverse set of retailer results. All driven by the level of enquiries.
Should we expect it? The summer months were always a big dip in the years enquiries, but over the past few years the pandemic has smoothed out a lot of the peaks and troughs.
Overall the picture is good. This August we are seeing the level of enquiries only slightly lower than the peak of 2021. The agency model sites and the ‘electric only at the moment’ brands seem to be fairing the worst, but the levels are still strong right across the board.
On the marketing side, the push for new car events has returned as we try to drive customers into the showroom and encourage them to start a new customer journey, particularly if September registrations are looking weak.
If you can plan the DM in advance and schedule any calls at least 10 days before the event, you are likely to have some success. There are some tricks of the trade to ensure provisional bookings turn up, but at the moment if the offer is good or the finance rate attractive enough, event marketing calls are creating strong appointments.
96 sales from our last event is not to be sneezed at. (Discounted call rate of just £1.65 per record)
I read today that the latest EV battery manufacturing plant is to be built in France and not in the UK despite millions of pounds of subsidies offered by the Government. Apparently France signed up for 1.6bn.
The new plant is for Stellantis and Mercedes, and I can’t really blame them for taking the money.
When I started this post I was disappointed – let’s hear it for British manufacturing and British jobs – but then I thought about it. If that money was mine, which I suppose government money is, would I want to invest in a factory making batteries?
The word is ‘electric’s the future.’ But Germany just argued with Brussels to allow for e-fuels and I notice that the German government didn’t put their hand in their pocket.
Now I like electric. It makes sense, in a lot of cases. But I also like hydrogen and I like e-fuels.
So I’m not 100% sure I would ask the government to hand over 1.6bn pounds of ‘our money’ to what is probably a non-UK company anyway.
Hands up if you remember August 1st in the 1980’s? It is certainly a different world today.
Fresh out of Pendle training, the showroom was open at midnight, customers everywhere. Great cars to sell, and the #Cossie was a great car to drive.
Thankfully I didn’t have to sell Austin Rover like my mate, that #MG Montego Turbo wasn’t a patch on the #Ford and used to leap sideways 3 feet when the turbo kicked in!
I seem to remember lots of white XR3i and the RS Turbo’s. (Anyone who drove a steel wheeled XR3 couldn’t believe how much better the RS was – mine cornered on rails, but was chipped up)
I seem to remember a 17% market share and great PPU. Today we need to know all about the #CustomerJourney and the #pointsofinterest. Getting the most out of every enquiry.
We still sell cars, and I certainly still enjoy the trade. Even if it’s not the same – I’ve stopped eating bacon sandwiches at 10am every morning!
I ‘had’ given up being surprised by customers within the Motor Trade. But this autumn is really something.
I think most of us are hoping that this positive sales bubble won’t burst, despite lockdowns, social distancing and localised tiers.
But in 32 years in the trade, 25 years with Cymark I have absolutely no idea what is driving customers in 2020.
I am sure I could come up with a load of marketing waffle, to sound coherent, but in reality I hear that many professional versions of – ‘this is what is happening’, that I have given up trying to second guess the market.
For example –
For years, Cymark has been making bespoke event / appointment calls to drive customers into the showroom. Every retailer does it. It’s a good, reliable source of business.
This November we geared up to make a number of calls for a particular manufacturers used car event, scheduled for the 6-9th November. Calls from the 2nd to the 6th.
Then, as we all know, Lockdown 2 arrived, effectively closing the majority of showrooms and access to the stock.
The dealers were out of pocket, having committed to taking extra stock from the brand.
We were out of pocket having scheduled everyone to make the calls.
But COVID-19 is COVID-19 and it is better to be safe.
Now the interesting part –
Normally, when we make appointment calls we have a pretty high hit rate and expect to make around 12% showroom appointments. Give or take, we get through to around 75-80% of the customers and get about 12% in through the door. Don’t over sell it, we need these people to turn up!
But, a couple of sites that decided to push ahead with the used event anyway, despite the lockdown.
“We can try virtual. Ask the customer for a time when the sales exec’ can call them to talk to them about a particular car. Then we can do Click and Collect. . . .”
So, we did. The deal on offer was good, but probably no more so than before March, but we were getting much more interest from customers.
Appointments / Time for a call – UP from 12% to 16% across sites.
PLUS – Possible interest and wanted to talk to a sales exec anyway – Another 6%
And these customers bought. With the new lockdown the retailers were able to stretch their event offer window slightly, and the customers put their hands in their pockets.
We were expecting a little kickback when we made the calls, but they were all made at sensible times of the day, and with as little pressure as possible. Just polite and professional.
The customers are easier to chat to, sure they wanted to speak about the summer and COVID in general, but as long as you aren’t chasing a ‘must speak to 12 customers per hour’ target and have the time it works. But then all our calls are like that. No pressure. Just professional.
I hope this continues. Retailer staff are back into furlough, but sites are getting lots of enquiries. Not just from the event calls outlined above, but normal telephone / manufacturer leads, our enquiry follow-up calls and local business B2B prospecting calls are showing great results.
The Motor Trade has been having a great autumn, sales are strong and profits are up year on year in many sites. Lets make sure we convert as many of those enquiries as possible. Now. While the market is strong.
A long time ago I made my living selling Ford Escorts and Sierra’s. But I and virtually every sales exec’ I worked with knew exactly where we wanted to be.
We wanted to be in the Porsche showroom selling 911’s.
As far as we were concerned Porsche salesman did absolutely nothing. The customers walked in and if they had the money, they ordered a car. “You would like a test drive? Have you got your cheque book?”
I know the reality was slightly different, but how many times have we heard in the past few years – “Oh they are just order takers now, they don’t do any real selling.”
I am sure a large part of this is the older generation looking back with rose tinted glasses, and there is certainly more paperwork, professionalism, and legal hoops to jump through, but the sentiment is certainly still with us.
Take this summer. A bloody awful summer. But again, the message I am getting back from our dealers is that it has been the best Autumn in years. One Volvo site confirmed that it has been the best September they have EVER had.
I have lost count of the number of dealerships that have told me that they are ahead of 2019 budget year on year. Which is fantastic. And doesn’t look like easing up yet.
It’s difficult to argue with the numbers. Sales are up. Admittedly still more on the used side, but at least the profit is really good on used.
The reason for my comparison in the opening couple of paragraphs is to ask the question – “Are we being order takers at the moment?”
Our showrooms are certainly enquiry rich, and with retailers running very lean to keep costs down, the sales exec’s are doing what any sales exec’ would do when there are only so many hours in the day. They cherry pick.
Which is great. Sort of. We are certainly selling cars, so this is definitely not a complaint.
But a lot more customers are saying that their enquiry hasn’t been followed up. To be fair, perhaps the sales exec’ has looked at both the enquiry and the customer and decided that A) the car is to hard to find, B) there is not enough money in the deal or C) It’s a new car, forward order, that won’t pay him any commission for 5 months.
As a company, for 25 years, Cymark has followed up lost sale records to ensure that customers that are actually still looking to buy a car and flipped back into the showroom.
With as much information about what, when and how serious they are.
For 25 years these customers have been buying cars and generating much more income than our own nominal costs. (that and we are good at it).
But today, how can we fault a sales exec that is flat out and hitting his numbers. He has enough enquiries to go at.
As one Sales Director said recently.
“Guy. In the showroom I have two execs’ off, self-isolating, you are sending these customers back to us that are still wanting to buy a car from us. But I don’t have anyone to give the record to!”
But I would still have to ask, “Wouldn’t you want to know?”
I know time is the problem at the moment. Sales exec’s and sales managers are running around left and right trying to sort out orders, click and collect hand overs and virtual sales videos. But I still go back to my Ford days –
“I can sell these Fiesta’s all day long. But they only bring in £100. Or I can convert that Cosworth enquiry and make £2,000.”
I know which one my sales manager would want me to follow up this afternoon.
Good luck everyone. At least this lockdown seems more manageable than the last.
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.
