Pub. 7 2017 Issue 2

19 T echnology has changed the way people buy cars. Although some experts have recommended that sales people focus on the millennial generation because of that generation’s understanding of (and reliance on) technology, the truth is that other generations have embraced the internet and their smart phones, too. That’s why dealerships should focus on how technology has affected the sales process for all potential customers, not just the ones born between the approximate be- ginning of the millennial age in 1976 and its end some 28 years later in 2004. Some parts of the selling process have changed: • Customers have access to all kinds of automotive information. They use it to research vehicles and have probably already determined what a fair price would be. As a result, they expect your pricing to be transparent. Negotiation still occurs, but the new trend is toward fixed pricing without any negotiation. That scheme is only effective if the fixed price is either better than a negotiated price or the customer wants the car so much that he is willing to pay more in order to get it. How does the dealership make money if that’s the case? You have to win loyalty by providing excellent customer service. • Your website should provide plenty of visuals. People like to see pictures of whatever it is they are thinking of buying; the better the pictures, the happier they will be about it. • Customers will probably have a smart phone or tablet with them and will probably use one or both at some point while talking with the salesperson. They are likely to check up on what they are told and to comparison shop. Understanding How Technology Impacts Customer Sales By Susan Morgan, The newsLINK Group • Make sure the wireless networks can handle enough bandwidth for the demand from sales people and customers. You want sales people to be able to effectively review inventory with customers on a tablet; you want potential customers to get the information they need as promptly as possible. • Since customers have already put in so much time determining what it is they want before they even walk into a dealership, that means they want to spend less time choosing a vehicle than used to be the case. Selecting the specific car to buy is not a long-drawn-out process anymore. • The entire buying process can be done online, and it doesn’t need to involve a dealership at all. Customers who use vroom.com, for example, can buy a car online and can return it if they don’t like the car after it has been delivered. The website (at www.vroom.com ) promises free delivery, average savings of eight percent, and free seven-day returns. Someone will even come and get the rejected car. • Dealerships, like customers, are benefiting from new technology. Dealerships can gather (and use) contact information for customers. Sales people can access and manage inventory on a mobile device. Finance departments can make processes interactive so that what a customer sees depends on what that same customer needs and is most likely to buy. A dealership can send potential customers messages that are based on where the potential customer is relative to the dealership and even whether the potential customer is in a competitor’s lot. The messages can reflect demographic information and information that is based on behavioral profiles. 