Most people are resistant to change, especially when foisted up on them. And a lot of change in a very short period of time is even more stressful. All businesses are feeling the strain of this global pandemic, and the automotive industry has not been exempt. Automakers shut down their plants and states have varied in their approaches to whether dealers can even be open to sell and service cars. This change was not something we wanted, but nonetheless we have to deal with it if we are to chart our course for the future.
This disruption was unseen and has been very harmful to a lot of people and businesses. However, when looked at through a different lens, could this be the opportunity to fundamentally, radically shift your business? Are you willing to ask yourself the hard questions as to the future of auto retailing and how you can fit into this new paradigm? Here are some thought starters:
- Do customers even need to come to you? Why can’t they do business with you without leaving their home or office? Can you do pick up and drop off for all aspects of your business? Do you have the ability to let customers test-drive vehicles offsite? Can you appraise their trade virtually or offsite? Do you have a secure online credit application and approval process? Can you do their paperwork (we have to come up with a new phrase here!) virtually and electronically?
- How do you sell and service cars while keeping employees and customers safe? If this taught us anything, it’s probably centered around us not being mindful of cleaning/sanitizing our stores and recognizing that sick people don’t need to be around us!
- How many people do you need in the store? Can you become more efficient with fewer employees? How can you redefine job categories and responsibilities?
- Can you redefine the roles of a salesperson? First of all, do they need to be “cradle to grave” or could you get more productivity in making teams and rotating them around to the different jobs? For example, one team could be in charge of inbound phone calls, another team in charge of test drives/appraisals/deliveries, and a third in charge of working/closing deals.
- What companies/vendors could you partner with to improve your business? Now is the time to find those that have been thinking way outside the box and try something different. Maybe the way you’ve been marketing in the past wasn’t working (or you had no idea if it was) and you’d like to try something new. There are people out there right now innovating and finding new ways to succeed.
- Are you taking the time to train yourself and your staff? If they didn’t know how to use a particular piece of software (like that CRM you spend thousands on every month), can you make them at least competent before you unleash them on the world? If you don’t train them now, you’ll have no excuse later.
- Can you “out-Carvana” Carvana? If you put your mind to it and spent the time, there is nothing that they do that your store couldn’t. Plus you have a service and parts department, so you can actually take care of the customer after the sale. Pretty nice, huh?
The point of this exercise is to get you to stretch your thinking. All those crazy ideas you’ve had in the past, the ones you’d never try under “normal” business circumstances? Yeah, those are the ones to get out into the open and discuss with your team. What will work? What won’t? You’ll never find out unless you’re willing to put some of them into motion.
So what have you put into motion while this is going on? I’d love to have your feedback and hear how you’re changing your business for the future.
Make it a great day!
Dan