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.

Cymark Newsletter. 

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.

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.

Emails struggling but telephone contact is really working at the moment.

There is light at the end of the tunnel, but it seems a long way off at the moment. I don’t think any of us are expecting a quick return for car sales.

We have found a couple of things that really seem to help –

Email contact is still slow to bring in results. The emails are reaching their target, but unfortunately, they are mixed in with a whole host of emails / junk mail as every company fights for attention.

But telephone contact seems to be really working, the conversations are much longer as people like to talk to someone new and customers have concerns about coming into dealerships that need explaining individually.

We have found over the last few weeks a couple of things that really seem to help. It’s obvious but the answer is communication. Let the potential customer have full details of how they ‘should’ behave when they visit you. There seems to be just as much concern about arriving on site and doing the right thing as there is about visiting in the first place. Customers don’t seem to like the idea of having to ask, ‘what do I do now?”.

• Tell them in advance where they should go and how they will be met in all email and marketing material. Don’t just leave it up to showroom signage.
• Tell them about your one-way system, one way in and one way out.
• Tell them about your screens and the small steps you have taken for their safety at each point of contact with a member of your team.
• Are you providing face masks, or do they have to bring their own?
• If its aftersales, are you putting their keys in a sanitised bag?
• How will they pay? – they don’t like pressing card machines. Do they know you are taking card payments over the phone?

I appreciate that all this sounds pretty common sense. But this is the feedback we are getting while making service booking calls for retailers that decided to keep staff on furlough.

The really good news is that the conversion ratio for bookings is higher than normal!

It will be a number of months before the world starts to look normal again, but from the conversations we have had, customers are looking (sounding) positive. They just need to be told exactly what the dealership is going to do and what they need to do should they visit your showroom.

As one retailer put it, “we are safer than going to Sainsbury’s”.

You just need to make sure your customers, both Aftersales and Sales, know this.