At two and a half months since the showrooms opened a lot of sites have made great strides, not just in the way the showrooms are presented – safe and secure – but also in their approaches to selling over the internet and telephone.
Retail Sales.
Compared to this time last year it is no surprise that the overall enquiry numbers are down. The surprise to most of us is that sales appears to be up.
While base enquiry levels are down the conversion rate is up across virtually all brands as customers are only venturing towards a showroom if they are serious about buying.
With the extra time allowed by lockdown, sites have updated online records and photo’s for virtually everything and about a 1/3rd of retailers are reporting an increase in used vehicle sales (up to 200% in some cases) while new car sales are running at half normal levels.
But this certainly is not the case across all retailers. There seems to be very little pattern in the new / used split. It’s not brand specific and its not location. Which leaves stock and the sales team.
Used stock levels through March and April certainly are making a difference with certain franchises reporting a big increase in the price of ‘good stock’ they are looking to buy.
There is also a percentage that believe that some sales executives are focusing more on used than new as a means to getting commission quickly.
We are seeing a drop in test drives being offered. Again, as expected, down from an average of around 80% to just below 70%.
The big surprise is the drop in enquiry follow up. Usually 80%-85% in a normal market we have seen these fall into the low 70%’s across virtually all non LCV franchises. With the reduction in sales staff coming back from furlough it looks like a degree of cherry picking through the backlog of enquiries that were received.
From those sites using the Cymark lost sales follow up, the good news is that 40% of these lost sale records are still looking to buy. The general lack of confidence across the country slowing down the customers buying process.
The mythical ‘buying at list price’ customer also seems to be returning! for some franchises at least, with a number of sales managers declining to get a car from the compound, prep it for a test drive etc, without seeing some form of commitment to buy from the customer.
Aftersales.
Service Is still leading the profitability in a lot of sites as workshop staff are slowly being brought back up to full strength, although administration staff are being cut, or at least remaining on furlough for as long as possible.
One area within aftersales that is making a difference is the preparation of the customer before they visit the showroom. Retailers that have been sending out information packs, COVID-19 packs complete with maps and diagrams of the customers movements between the car park and the service desk are certainly reporting a brisker trade than others.
Early booking for MOT’s is being seen in about 25% of sites where they are actively marketing e/o October and November MOT records with the advice that the customer should get in now before the workshops become very busy taking in delayed MOT bookings.
It might be a false economy, keeping track of the up-sales from the bookings seems to be hit and miss across a number of sites – with the drop in admin and reception staff – and there is not a lot of money in an MOT test on its own.
Local Business.
Small fleet sales are flying, the larger fleet operators have slowed down where possible. But if your model line up includes hybrids and new electric models you have probably seen the most activity. LCV models are being quoted upon heavily even when the ‘new’ vehicles aren’t available yet.
Very strong enquiry levels across Vauxhall, Ford and Renault for electric models. While stock remains an issue we are seeing (or hearing) a number of retailers selling cars and vans full up.
We are also seeing an increase in sites introducing ‘retail’ electric car customers to local business teams in an attempt to draw in customers with lower BIK and tax breaks.
Email marketing is a mixed picture.
While sales from digital marketing is strong, we are seeing a drop in the percentage of customers that are opening and clicking through email’s upon first contact/receipt.
But, if the same customer is hit a few times over the course of 2 weeks, the eventual opening rate returns to pre-lockdown levels.
Through our eSend email platform we are seeing this across virtually all industry sectors, not just the motor trade. But then digital marketing statistics are reporting a huge increase in emails being sent to private individuals. Unfortunately everyone seems to be marketing the same way at the moment!
The general advice here is try Saturday afternoon and Sunday email campaigns. Normally a quiet period of the week for most industry sectors, automotive campaigns across these days seem to be getting a better take up rate.
