Page 30 - GIADA Nov-Dec 2020

FEATURE

Finish Strong: Your 2020 End-of-Year

Strategy

By Billy Reynolds, Regional Vice President, Elead

2020 has been an unexpectedly challenging
year for dealers. The Coronavirus continues
to affect nearly every facet of our business.

But whatever the timeframe, at some point
we will return to a sense of normalcy.
Finishing the year strong is key to ensuring
your dealership will be able to hit the
ground running, no matter what 2021
brings.

The following strategies will help you
navigate changing market conditions and set
your dealership up for success, not just in the
immediate future but for years to come.

Remain alert and nimble. The irony of the
pandemic is that it’s actually been good for
most stores from a profitability standpoint.

High vehicle demand and low inventory channel marketing to educate customers So, how do you establish a hybrid sales
puts dealers in a power position. In this about how their safety is top of mind at model? First, identify the need. Are your
market, the window sticker is king and your dealership. Explain the cleaning customers demonstrating that they want a
profit margins are strong. To add to that, procedures at your store and elaborate on hybrid approach? Second, identify what you
marketing is also on the back burner. your touchless sales and service options. are currently doing to support this need.
Many dealers have scaled back marketing Third, assess if you have the right people
budgets to as little as 15 percent of normal Talk about safety, but still encourage with the right training and the right tools to
spend. This all equates to a very profitable customers to come in. Messaging example: meet this need. If not, hire the people and
semester. invest in the tools. Finally, determine what
Don’t put your family, your vehicle or you need to do to ensure your customers
However, stores are not bulletproof and your re-sale value at risk. We have taken know that you offer this hybrid approach.
the tide rises all boats. Coronavirus factors all the necessary steps, including touchless
will eventually fade away and complacent options, to keep you safe while still getting Traditionally, dealers want to have one
dealers will have a rude awakening. To stay the quality vehicle service you need and process that is followed by every sales
ahead of the curve, remain alert to changing deserve. associate every time. The truth is, the
market conditions. Create practical future must be more flexible than that.
contingency plans so you can act quickly Develop a hybrid sales model. During Create a fully digital process, an in-
when used vehicle supply, new vehicle the pandemic we’ve seen consumers use store experience and a hybrid approach.
allocations and competitive marketing digital retailing tools at unprecedented Communicate that you have options and
factors return to pre-pandemic levels. levels. What’s interesting is that online customers will be more receptive to doing
closing rates don’t correspond to lead business with you.
Re-think holiday promotions. Traditionally, volume.
now is the time to create and push out tried Be open to new employee roles. Consumers
and true holiday promotions. This year is Turns out, the majority of customers still who research vehicles online don’t want a
a bit different. Customers are primarily want to come into the dealership to finish hard sell when they eventually reach out
concerned about health and safety. the buying process. Marry an alternative to your dealership. They just want their
shopping experience with the traditional questions answered by an expert. This
Focus on value branding messaging, not buying route and you have a new hybrid change in customer shopping behavior is
a hard sell of service. Make use of multi- sales model that is likely here to stay. beginning to be reflected in the dealership.

28 | GIADA Independent Auto Dealer NOV/DEC 2020