Good afternoon Dealer Elite Members
Change is one of the only constants in the universe. The automotive world as you all know is overdue for this change as is a number of other retail environments. I was forwarded a very interesting article from a friend today that i think everyone in the automotive retail business should read. BMW who is one of the largest high end car companies in the world is taking the first steps in changing the way they sell and promote cars.
BMW, and others are starting the realize that retailers like Apple Computer and others are leading the pack in retail and they are trying to adapt some of the "best practices" from these retailers to change the buying process in the automotive industry. This is something that I know has be overdue in the automotive sector for many years.
Customers don't buy cars they buy an experience. The retailers who improve the customer experience and make it FUN and enjoyable to BUY or SERVICE their vehicle will not only command more business, but more revenue as well.
Customers are happy to pay more for a "GREAT EXPERIENCE", they won't however pay more for a car.
I will use this story that I heard years ago as an example of what will eventually happen in the automotive space. I was told this story in training years ago when I worked for Honda. The industry that is used is coffee, but it can be applied to any industry of course.
My Great Grandfather used to buy coffee beans, roast them, grind them and then brew his coffee. He had no loyalty to a specific brand of coffee, he would just buy the most affordable beans every few weeks.
My Grandfather was not like his dad, he would buy the beans already roasted and then grind them and make coffee. He was not loyal to any brand either, but he felt it made sense to pay more to save himself some time.
My Father would buy the beans already roasted and ground and then just brew the coffee. It was easier and faster and still affordable.
I just buy the coffee directly from the coffee shop for $1.50 a cup. I am busy and don't have time to roast, grind, or brew coffee anyways. I also buy Latte's for my wife for $5.00 a cup because it makes here happy and I enjoy the service at Starbucks anyway.
At the end of the story the trainer said the following thing which still sticks with me today.
"The person who changes the car buying process from it's current form into entertainment like Starbucks will be a very wealthy man or woman".
This is so true, coffee at Starbucks is all about the experience. They have turned coffee into a desert like experience and have been able to charge a higher price as well.
Stop just selling cars and start selling a top shelf car buying experience, or what I like to call Car Happiness. This is where the car business becomes fun and clients become happy customers. It is never about the money anyways.
I hope this helped you, please feel free to send me feedback and comments, I appreciate it!
Performance Coach and Car Happiness Expert
Proactive Dealer Solutions