Presentation Transcript

1. More Deals, Quality Trades, Profits and Satisfied Customers How to Effectively Engage with Trade-In Customers and Avoid Losing the Deal
2. Deals - get the deals the others can’t or won’t Quality trades-vehicle history, more control, less volatility than auction, list of customers Profits- opportunity to sell two cars instead of one Satisfied customers- appreciate the process and the result; more likely to refer others
3. Website Valuation Tools How many offer one or more trade valuation tool(s) on your website? What challenges do you run into with customers?
4. Goal of Session Share practical true-to-life ideas to put to work right away Make more $$
5. Agenda Talk specifically about handling online trades Why? Because 42 percent of consumers plan to trade or sell current vehicle to dealer in next purchase1 If dealers do not provide trade value information, customers will leave to find it 1 Kelley Blue Book Market Intelligence Q3 2012 Consumer Sentiment Study
6. Website Valuation Tools
7. Why You Need One…or Two You must provide decision-making site content or risk losing customers to another dealer website Remember the goal of these tools is to acquire contact information from someone seriously interested in purchasing a car Your website provides your highest closing percentages!
8. Trade Valuation Tools on Website? We invite customers, yet get frustrated when they press for trade information Key is to address questions while providing credible answers, but not back yourself into corner Remember the goal of these tools is to acquire contact information from someone seriously interested in purchasing a car Objective is to sell a car, not a trade value
9. Generic Website Valuation Tool Danger! Gives customer perception that your dealership is determining the value (in most cases the value is less than the customer desires) Puts your dealership “behind the eight ball” and defensive in trying to justify value to customer Many customers now want to discuss trade value rather than new purchase, and it’s impossible to satisfy customer over the phone Many customers form an opinion on the dealership based on trade allowance before salespeople have a chance to share “value proposition.”
10. Some Sites Link to One Tool or Another… Not the result you are looking for!
11. Identify the Current Stumbling Blocks Competition Confused customers shop multiple dealers Impersonal communication Sometimes not actual conversation (chat, text, email) Importance of first impression Many initial inquiries involve availability, price, and trade value
12. Identify the Current Stumbling Blocks Customers push for trade value and dealers get off track Discuss trade value rather than wants/needs of customer Feel forced to pacify customer to “stay in game” Customer is scared, leery, defensive
13. Points to Consider It’s not just the value - it’s the presentation of the value Key lies in the dealer’s preparation Need to “mentally condition” the customer about how actual trade value will be determined
14. Handling Customers Online, on the Phone and at Your Dealership Understand: Customers immediately try to turn conversation to “selling price” or “trade-in value” because they are mentally conditioned to defend themselves against paying too much If you follow the customer’s lead down this path you will generally find yourself in a confrontational conversation Your first goal is to establish rapport, build trust and value, and establish a consultative relationship. You cannot sell anything to anyone until you have a receptive, attentive audience Your goal is to set an appointment for the customer to visit your dealership
15. The means to an end. Stop winning the battle, but losing the war. The point is to set appointments to sell a car, not justify why their car is worth less than they hoped. Presentation Sets Expectations
16. Rick Case Honda
17. AutoNation
18. Interacting with the Customer
19. It’s All in the Presentation “We recently traded ___ cars similar to yours and were able to allow them _______.” “We had our used-car manger look at your car and made a couple of calls and figure…” your vehicle to be worth______”
20. Acknowledge how informed the customer is Engage and educate the customer in the valuation process Manage expectations as to how value is determined Never discredit the customer’s source of information Talk in terms of what can be done instead of what can’t Establish credibility through transparency by being forthright with information Validate trade-in value with data
21. Managing the Conversation Warm, enthusiastic greeting “Take the Curse” off the call Gain permission to proceed or set a specific appointment to speak Discovery – Seek to Understand Clarify information provided to you Establish wants and needs of your customer Provide trade options (if necessary) Review and summarize the conversation Confirm you and the customer are on the same channel Provide broad, solution-based information Use a “Demonstration of Competence” to provide reasons to entice customer to visit the dealership. Move to set a specific appointment for dealership visit “I have an opening either later today or tomorrow. What works better for you?”
22. No. 1: Warm, Enthusiastic Greeting Goal: “Take the Curse Off” the call and make one of two things happen – gain permission to proceed now or set a specific appointment to speak Identify name and dealership Received your request for information Forwarded a couple of emails and was following up to make sure you received the information I sent Glad I reached you so I can personally answer any questions you may have The Big Question:   “Some of my customers prefer to start by telling me what they hope to accomplish, others prefer that I start by telling them about how I can be of great service to them. Where would you prefer to start?” If either end of your open-ended question is responded to – Congratulations! You now have permission to proceed.
23. If Customers Respond: Hope to Accomplish State positive about vehicle Discuss “must have” or “no way” equipment What else is important to you? Discuss “hope to accomplish” Great Service We will work together Present value proposition Discuss “Great Service”
24. Responses to Other Customer Reactions “I’m sorry, what is this about?” Restate name and dealership name Restate the purpose of your call Received your request for information and immediately forwarded information via email Just following up to make sure the information reached you and to be available to answer any questions you may have Since we’re on the phone anyway, maybe I can answer any questions you may have and you’ll be on the road to having a new car The Big Question:   “Some of my customers prefer to start by telling me what they hope to accomplish, others prefer that I start by telling them how I can be of great service. Where would you prefer to start?” I’m sorry, this is not a good time for me?” If you’re like most people, I provide this service so customers can tell me the main reason they elect to do business. Certainly understand how busy you are. However, it’s very important to get your questions answered so you’re on the road to having a new car. I have an opening either later today or another one tomorrow morning. What works better for you, so we spend a few moments together to get your questions answered. the right direction?
25. No. 2: Discovery – “Seek to Understand” Goal:Clarify info provided by the customer, what they hope to accomplish “I have some basic information here (name), but so I better understand, maybe you could share with me… Have you decided on ______or are you still looking at other makes / models Clarify vehicle to be purchased Will you be considering any late model pre-owned vehicles that would offer you substantial savings (if in fact you have a comparable vehicle in stock) What was it about the (model) that attracted you? It’s not important that you do something today is it? Are there options you must have? Are there any colors / options that you don’t want to consider? How soon are you hoping to begin enjoying a new vehicle? To help me understand, can you share with me, what else is important to you?
26. Additional “Open-Ended” Questions Clarify Trade Info: “I see you are/Are you considering trading in your current vehicle?” Are you currently making payments or do you have a free and clear title or lease termination date? What is the current mileage on your vehicle? Could you tell me more about the exact model/equipment/transmission and color? What is it that you like most about your car? What is it that you like least about it?
27. Key Points The key in the “Discovery” phase is that you are not trying to solve any of the issues. You are simply in information-gathering mode. The better job you do here, the easier it will be later in the negotiation phase. Key Point: Always use open-ended questions during “Discovery.” People buy on a combination of factors, not just how much. Your job is to find out what these factors are.
28. Word Tracks That Sell Upon finding your customer has a trade… Question: I understand you are considering trading in your vehicle? _______, we handle trades a bit differently here than most places to allow you the greatest trade allowance (top dollar). I think you’ll like it, would it be OK if I shared it with you? (Desire to Win) To fully grasp the market value of any vehicle at any given time we rely on 4-5 different sources . Of course one of them being you since you are most familiar. Since I find that most of my Internet customers’ focus is to save time and make a comfortable educated decision we help… t(Save time/ Reduce stress)
29. Word Tracks That Sell (Continued) “The values we gather come from…” You (engage) Several independent buyers to see who has the most interest Our own valuation expert Trusted third-party consumer resources like Kelley Blue Book’s KBB.com (Level the playing field) Remember to ask customers to use the “Rate the Condition” Report on KBB.com and evaluate the vehicle as if they were going to buy it The easiest way is to start by seeing your car and you’ll be able to drive the new one during the evaluation. Based on the total feedback we’re able to find the most that anyone will be willing to pay for a particular vehicle at any given time. Customer’s appreciate receiving top dollar and the ease of getting it. This method we find to be very fair to all parties since your input is considered along with all.(Solve problem/ Desire to Win)
30. When There is No Escape… A great opening when confronted with inaccurate or unrealistic information is: _______________, I really appreciate you taking the time to acquire this information. I find it much easier to work with educated buyers like yourself who have a point of reference. Working together, I’m sure we’ll figure this out and you’ll get your car at a great price while knowing you made a great decision for yourself. Can I ask you to show me how you arrived at this point so I have a better understanding and can help?
31. No. 3: Review and Summarize the Conversation Goal: Assure you and the customer are on the “same channel” and fully understand the customer’s buying motivations Thank you for sharing this information with me I have a much better idea of what we need to accomplish Repeat back a summary of what you now understand through the “Discovery” process. “The main thing you wish to accomplish is_________. In addition to __________it will also be helpful if we can _________. “Is this what we need to accomplish in order to move forward?”
32. No. 3: Review and Summarize the Conversation Goal: Assure you and the customer are on the “same channel” and fully understand the customer’s buying motivations Thank you for sharing this information with me I have a much better idea of what we need to accomplish Repeat back a summary of what you now understand through the “Discovery” process. “The main thing you wish to accomplish is_________. In addition to __________it will also be helpful if we can _________. “Is this what we need to accomplish in order to move forward?”
33. No. 4: Provide Broad, Solution-Based Information Goal: Provide options specific to the customers wants/needs and concerns that appeal to their “desire to win“ and encourages them to schedule a dealership visit. Remember: This is not the time to negotiate. (Of course there are exceptions to every rule. By now you should have a good read on your customer. You most certainly will run into the customer who knows this is the vehicle they want, have no trade and are looking for an “out-the-door” price. At this point you must provide the information or risk losing the customer altogether). You want to provide broad options that satisfy their need for information, but keep the focus off the price. You have not even landed them on a specific vehicle yet. The easiest way to present this information while staying off the price is by using what is called a “Demonstration of Competence” Basically, your message will be: “I’ve done this before, I can do it again - I can do it for you.”
34. Example: __________, if I didn’t mention why I was so anxious to speak with you, let me tell you now. In addition to specializing in working with Internet customers like yourself and delivering the simplest buying process, I have a thorough understanding of how to help you enjoy your new vehicle while keeping the most money in your pocket. You’ll get the right car and should you be considering making monthly payments. I’ll work with you to explore options that provide the right terms for your particular situation. I recently helped others in a similar situation and they were amazed at what we were able to do for them. They had no idea there was so much flexibility in helping them get their car at their budget. I’ll be more than happy to do the same for you… Desire to win!
35. No. 5: Transition into Setting a Specific Appointment for a Dealership Visit Goal: Solidify relationship with credit application or appointment to visit dealership. Example: “To begin saving you time and money we can begin the process one to two ways…” You can provide me a bit of detailed information so I can begin exploring financing options for you. The benefit to you is it will save you more time in selecting the right vehicle within your budget. Or We can set aside a time for a personal visit. I’ll be waiting for you with specific options and our time together will provide all the answers so you can decide how you might like to proceed. (Name), how would you prefer to move forward?
36. Overcoming Customer Concerns
37. Concern: What If You Don’t Give Me What I Want or Need Response: My job is to do whatever possible allowing us to earn your business Certainly prefer to sell two cars (new and trade in) than none, so I have a vested interest to help get you top dollar. We may even have a buyer now. Always have option of selling yourself- but let’s not worry about that… Let us do what we’ve done for so many other satisfied customers, and shop for a car to get top dollar for you. You’ll make an educated decision without having to do the legwork. I have an opening at _______ or ________. What works better for you to start working towards enjoying your new car?
38. Concern: Not Enough For My Trade Response: So I can better understand and help , could you tell me more… Discuss vehicle condition in detail (rate the Condition Report) We check 4-5 resources to get top dollar, willing to buy vehicle right now Couple that with possible tax savings you’ll see, we would have to find buyer for that much more just to break even We’d love to have business with or without trade, so you always have option to sell it yourself(paint verbal picture of what is involved) ______, you have the best of both worlds and did a great job for yourself. Nothing left to do except start enjoying your new car vehicle . Congratulations!
39. Concern: Other Dealer Offered More Response: When did they evaluate your car in person? Unfortunately sometimes information is presented in a way that leads you to believe one thing, but when it gets down to it, things change Are you looking at a comparable vehicle to the one you like here in stock? Which vehicle would you prefer to own? (If customer responds “other car”) take a step back and get on right car Customer has one opportunity to earn business - best trade price up front Don’t have luxury of negotiating We have right car, right price, nothing left to do but enjoy your new car
40. Concern: What If You See My Car and Tell Me It’s Worth Less Than on the Phone Easiest and fairest way is to see it Without seeing it, we may sell it short if yours is nicer than average On the other hand, I don’t want to tell you something and not be able to live up to it Walk through “Rate the Condition“ report on KBB.com together May have a buyer for your car Is there anything you can tell me that would help get the best value? Acknowledge that you’re both working towards same goal - vehicle sale and happy customer! Knowing you have the best of all worlds, we have an opening either _____or ______. What works better for you?
41. Questions?Rob LangeNational Sales Training Director, Kelley Blue BookTo receive information after the session please email Rob at:rlange@kbb.com