Digital Schmidgital Retailing Mad Marv I t seems that everywhere you look these days, someone is writing about their version-or opinion-of what Digital Retailing is all about. Spreading the good word that’s somehow going to revolutionize the way we market, sell, and finance automobiles seems to be their plan of action. True, there has been a huge exodus from the days of newspaper and television advertising. The internet has taken over and reigns supreme so what are we to do? As a kid, the newspaper was a sacred item to be first read by my father as he would read it while supper was being prepared. I was a big fan of Joe Palooka and Alley Oop comic strips. And sometimes my impatience would get the best of me. Careful not to break the rubber band, I’d gently unroll the paper and ease out the comic section to catch up with my characters. Afterward, I’d restore the paper back to its original state. Much to my surprise, dad would often shout out “Who’s been messing with my paper?” Of course, my lame reply would be something like “Why does it matter?” His answer was clear “It doesn’t read the same”. This was his way of reminding everyone the newspaper was a personal right of his to unroll and read before anyone else and we had better remember that in the future. Of course, the paper was stuffed with car ads, but I didn’t notice until I started selling cars. It began to matter a lot then because that was the main way dealers advertised. Back then, I read them all familiarizing myself with the competition, so I’d be armed when a customer came on my lot. But, times have changed and we now are bombarded with so-called Digital Retailing (DR) advertisements for everything from ravioli to real estate. With the clever design of pop-up ads on our smartphones and other devices every time we do an online search, these ads make our digital lives less enjoyable. The car business has seemingly caught on as well. Scores of companies are out there trying to sell DR platforms to dealers as though theirs's is the only one that will yield results. ‘Subscribe to our process for just $XXXXX per month and customers will not only be able to shop from the privacy of their homes but can completely transact a car deal online!’ They go on to say, ‘Imagine the customer getting approved and e-signing their documents then making an appointment simply to pick up their new car!’ ‘Sign here and you’ll have exclusive rights to our product in your market. This will enable you to capture market share and save money.” Almost sounds like a ShamWow towel commercial doesn’t it? Yeah, I know I’m having a little fun here but what’s the real problem they’re trying to address? ‘Time savings’ immediately comes to mind because everyone tends to agree that the car buying process-especially that of F&I-seems to take too long. Well, let’s put some things into perspective for a moment. “According to a study in LendingTree.com the average financed amount for a new car in the US has now increased to $32,480 and Americans-on average-are shelling out $550 monthly. Overall vehicle debt has increased by 41% between 2010 Q1 at $698 billion to 2019 Q3 with Americans owing $1.2 trillion. And that’s a “T” not a “B” This study doesn’t take into account the love affair Americans have with the automobile-just what their spending. Most customers get excited about that new car smell which spurs them to emotional ownership. DR folk have no clue about that emotional attachment and so they remain in a quantum flux merely addressing the mechanics of the purchase rather than the emotional drive of the buyer. But shouldn’t buying and financing a car be faster? Perhaps, but here’s a clue; It takes as long as it takes. All the important study’s prove people still want that belly-to-belly process of interacting in a live sales setting. Choosing a car plus repayment options can often takes hours. As a professional FIM, one of the smartest things we can do is develop a good Meet & Greet process keeping the customer informed. Again, it’s not how long it takes-it's how long it seems to take that matters. While the deal is simmering, get everyone involved by introducing the customer to the fixed ops, the cashier and show them the amenities of the customer lounge. A salesperson should take time to familiarize them with the complex array of equipment on the car such as memory seats and syncing their phone. There’s a lot a SP can do to keep the customer engaged rather than sitting idle waiting for bank approval. Teach everyone to get proactive and the time spent won't seem so long to get into F&I on a busy Saturday. Nobody knows the car business better than we do so, advertise all you want using Digital Retailing but leave the sales process to professionals. Good luck and keep closing. 17
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