Wednesday, January 27, 2016

Texting: Who Controls the Conversation?

The latest craze to have hit automotive sales where customer engagement is concerned has been texting.  You can scarcely scan any industry blog/newsletter headlines or attend any best practices seminar without the writer or speaker reminding you that everyone is texting these days and therefore you must text your customers.
Just a second, my salesman found a convertible with leather!

When texting first hit the scene, early adapters took to texting like a middle school kid at Christmas opening up their first iPhone.  To compare the volume of texts initially to the carpet bombing of Dresden would not be a bad analogy.  Like the poor folks in Dresden, some customers grew weary quickly of their new BFF in the car business.  Savvy lawyers quickly noticed the tort potential presented by a dealer or online marketer who pushed poor Ms. McGillicuddy past her text message allowance resulting in her phone bill going up.

Quick! Text everyone that we are making Deals! Deals! Deals!
While the texting frenzy has tamed itself a bit one cannot argue that it is, in fact, an effective and even desired medium of communication.  The issue now becomes one of data management and control.  To properly manage text you should make certain that the texting occurs through a vendor tool for texting or a CRM and not through the individual phones of your staff.  The way in which your sales staff texts their prospects and customers will determine whether you have control of the conversation, liability for the contents of the conversations, and finally the means to determine whether or not the exchange is consistent with your dealership's best practices.

Allowing salespeople and BDC reps to text using their personal cell phones does make texting convenient for your staff.  They are also more likely to respond immediately to a customer message.  While this is a powerful benefit and a strong argument for allowing the staff to text from their own devices,  you are letting them contain and control their conversation with your customer or prospect. A sales manager cannot demand to see someone personal cell phone, nor is it likely your staff will welcome them combing through text message logs to find customer conversations that they can review. They effectively own and control those records.  If several employees are texting a customer at the same time (salesperson, BDC, manager, service writer, etc.), there is no coordination of messaging.  They may even be contradicting one another inadvertently.  An employee whose phone gets lost or damaged results in you losing all record of what was said to a customer and when.  Likewise, if they leave or are let go, with them go your contact records.  

Another risk inherent in letting the staff use their personal devices is in liability.  Customers may have shared social security numbers, bank account numbers, or other sensitive data reasonably assuming that they are sharing it with your dealership.  What if this information is compromised through a stolen phone or the carelessness of an employee?  Not knowing what information is being exchanged and having no provisions for securing the data that the consumer may have assumed that you are responsible for only invites new liability.  Remember, those lawyers that are getting fewer chances to sue for texting without permissions or opt outs will welcome new reasons to file more suits these days!
Sooo, who can I sue today?
It is poor management that does not frequently monitor phone calls and emails to customers for the purposes of identifying both training needs and exceptional performance.  With an increasing number of customers communicating via text the importance of monitoring these exchanges is increasing daily. What if a member of your staff is promising perks to make a sale that are not in compliance with company policy?  What if they are being outright deceitful?  What is a salesperson is making unintentional mistakes because of product knowledge deficits?  With no control of the communication mechanism you have next to no provisions for reviewing and guiding these conversations.

So she texted me some questions and guess what I did?
I knew a sales manager who was a phenomenal networker and who enjoyed a sizable customer database from having been at the same location for all of his career.  He was forever calling and texting customers from his cell phone.  While he is hardly a liability in regards to professional or ethical conduct and is unlikely to suddenly pull up his stakes and leave, the reality is that he completely owns and controls those conversations.  Even if he welcomed the request to share his message log with the dealership there is no simple or effective means to transfer all that data.  The reality is that were tragedy or illness to strike the dealer would have, for all intents and purposes, no access at all to the most important records for his customer database!

I'm fine. Let me text my customers. What could possibly happen?

There are an increasing number of vendors who offer quality texting solutions to sales organizations.  Make sure that the one you choose is very convenient, integrates as seamlessly as possible with your CRM software, and that management maintains full control over the content of the records.  Once you've selected your texting software comes the herculean task of making your sales staff migrate their customer texting to the new system and agree to stop using personal devices all together.  It won't be easy - at all - but clearly is in the absolute best interests of your organization. 

Thursday, January 21, 2016

Digital Overload? Do Few Things But Do Them Well!

For the automotive dealer principal, it has been a rough twenty years.  For the longest time, the secrets to success in automotive retail involved getting the right piece of real estate, the best placement in the Sunday paper, and holding on to the very best closers you could on your sales floor.  Then along came the Internet.  Now I won't bore the gentle reader with endless cliches, the changes and necessary adaptations have been well chronicled.  For the established dealer, though, what should be the focus of their adaptive efforts?  The website? Vehicle listings? Conventional advertising messages?  Sales Training? For all the gigabytes of research data on the topic of automotive digital marketing, there still exists no single magical formula. 

The industry is constantly quoting a new favorite study with some stat demanding immediate attention.  Typically third party vendors seize on this new stat and storm dealer principals and managers with explanations of how their product perfectly addresses the issue.  If one looks at these innumerable studies over the past several years in their totality though one finds among the many flash points behavioral trends that can help identify the most important digital priorities for dealers.

Before you begin: Get to know your ZMOT. 

Years ago Google identified the concept of the Zero Moment of Truth, that magical moment that a consumer you may not even be aware of discovers you online.  What do they see?  What do they learn?  What is their all important first zero impression?  No dealer should start any discussion on its digital marketing strategy without first objectively discovering what their ZMOT looks like.

Six years ago people spent almost twenty hours online to shop for a vehicle and identified 4-5 dealers that they intended to visit.  Fast forward to now and they spend fifteen hours to find the 1.4 dealers that they intend to visit.  The number of online shoppers who showed up without contacting a dealer first used to be 20% (the old "stealth customer").  Now that number is nearly 70%.  What does one do?  What does it mean?  It means that Internet research is easier to do, people are better at it, and the quality of online merchandising is allowing them to eliminate dealers from their consideration that are not worth the time to visit.  

An automotive dealer must be able to put ego aside and give a critical, objective look at what the consumer finds when they find the dealer.  This means not only looking at their website but at all their online presences (Organic search, OEM sites, 3rd party listing sites, directory listings, etc.).  Next they must acknowledge that shoppers likely don't shop as they would.  With an objective eye, a dealers should ask:

  • What does the online shopper see when they discover the dealer online?  
  • How does what they see impact the online shopper's goals or intentions?
  • What impression(s) is made?

Step One.  Showcase your wares.

You sell cars, remember?  The seminars have been replete with dire warnings:  Google likes content!  Write blogs or else!  Video is king nowadays!  Get reviews, people want reviews! You need Facebook content!  All of these are great suggestions in and of themselves, but just as you wouldn't want the ER doctor to stop CPR because he sees you could use a quick procedure to eliminate an ingrown toenail, don't chase extras until your primary source of revenue is presented in the very best way possible.

Take any dealer website and measure the click through rates of their calls to action and you will see almost without exception that the top three will be:
  • New Inventory, 
  • Used Inventory
  • Specials.  
Most of your visitors are on your site to shop for cars.  Let them find cars!  The quality of your inventory listings - including NEW cars - should be impeccable.  Think like a shopper.  Will the shopper find clear, accurate and even candid (don't hide damage your aren't fixing) photos with informative -- not cheesey and industry banter filled -- descriptions?  People spend several minutes on average looking at Vehicle Detail Pages.  Dealers who make that stay worth while have taken an important first step in building trust and rapport with this unknown web visitor, which happens to be the next important step.
"...but just as you wouldn't want the ER doctor to stop CPR because he sees you could use a quick procedure to eliminate an ingrown toenail, don't chase extras until your primary source of revenue is presented in the very best way possible. "

Step Two.  Build trust.

If after reviewing the inventory a shopper is still on the dealer website where does he/she go next?  The research and interviews overwhelmingly indicate that they either want to know where you are or who you are.  Make sure your website answers both questions in the most favorable light.  This is where consumer reviews, community involvement, good staff pages, easy directions, and an idea of what to do when one arrives at the dealership come together to create the perfect "why buy" impression.  
(For the love of all things digital, if you have a page called "Why Buy" with a bullet list of things car buyers get please replace it with something a little more subtle and inviting.)  
While specialty pages and content help, in the short run make sure that every page -- including hours and directions -- instruct, welcome, and invite. 
  • Keep your staff page up to date and looking good.  Faces make an emotional connection.  Let your shoppers connect with your staff and lower their apprehension. 
  • Don't just show a map.  Describe how to get to you and where to park/stop once there.
  • If your social media is real and organic (not "car spam") make sure there are links to it.
  • Have tools on your site to help people plan their shopping strategy like trade estimators, payment calculators, and easy online finance applications.
In addition to building sufficient trust and rapport with the anonymous online shopper to convince them to include you in the 1.4 dealers they intend to visit, find every reason to softly encourage a more direct engagement.  Getting a web shopper to call or email increases the likelihood that they will visit exponentially.  For this no long term studies are needed.  Ask the most grizzled old school sales manager the key to winning a face to face encounter with a car shopper and he will grunt almost without fail, "you gotta get 'em on the phone."

Step Three:  Don't set up a disconnect.

A dealer's web presence should sync perfectly with the consumer experience.  Don't publish pricing that reflects razor thin margins if you plan on starting with an arbitrary price on the first pencil.  If there were conditions for loaner vehicles in service don't let the consumer discover that while dropping off their vehicle before work.  If you offer special incentives to buyers (car washes, first oil change free, etc.) don't make them ask for it.  These perks should be part of the overall presentation.  Finally, avoid "getting them in" on falsehoods.  If a vehicle is no longer available say so.  Work on pivoting the shopper to a different vehicle rather than risking the harshly negative experience of coming to the dealership for nothing.

The worst thing a dealer can do is to present a progressive, customer oriented online face only to have the consumer arrive on the set of the 1970's movie "Used Cars".  Hell hath no fury like an angry online reviewer and with so many possible sites for an enraged car shopper to "flame" a dealer online, it will be nearly impossible to keep a good positive/negative review balance everywhere.  Make sure your team knows the message you are projecting and manage the showroom experience accordingly.  It's that simple.

The Action Plan

Though each of these steps can be subdivided into any number of far reaching projects one cannot plug every hole or address every deficiency at once.  Content for Google search engine, engaging social media fodder, cool ascetic website enhancements can all come later.  For now, do few things and do them well.
  •  The inventory feed should be able to addressed with existing staff.  It is already being published, so make sure the effort spent publishing it is worthwhile.
  • The website can be cleaned up in a matter of days with a decent support staff from one's site provider.  Clear off distractions and only keep and enhance for now those things that help the consumer shop the vehicle and get to know the dealership.
  • Finally your sales managers should already be managing the staff to be in conformity with online messaging as they work to change the culture of the dealership to meet the challenges of the informed consumer.  If you have a cult of personality as opposed to a process driven culture, then this will be a lot more difficult.  (That should become the next challenge a dealer takes on.)
Attention paid to these three simple actions should begin to pay immediate dividends.

-----------------------------

Want an objective opinion about your efforts so far?  Ask Jeff to take a look at your online presence.   You can contact him via LinkedIn.