Don’t Worry About What You Can’t Control - AutoSuccessOnline

Don’t Worry About What You Can’t Control

This is an ideal time to dive into your database and uncover prospects for your certified pre-owned vehicle inventory.

Use Your CRM to Help Overcome Temporary Disruptions in the Supply Chain

Semiconductor chips are about the size and weight of a small coin. Yet this little mouse has made a big roar throughout the retail automotive industry recently, crippling the production of elephant-sized vehicles and stopping dealership car sales in its track. 

Global consulting firm AlixPartners forecasts that supply chain problems will inhibit the production of new vehicles, resulting in automakers building 7.7 million fewer vehicles globally than they would have otherwise. 

The impact so far has rattled industry expectations. General Motors reported sales fell a third from a year ago last quarter, and they were off 40% from the same quarter of 2019 before the pandemic roiled the car market. GM CEO Mary Barra said the shortage could cost GM up to $2 billion in lost earnings this year. 

With so many supply problems outside of a dealership’s control, what can you do? You can make smarter decisions by utilizing your most powerful decision-making weapon: your CRM. 

Don’t Worry, Take Action 

Inventory is stuck. Dealer lots are close to empty. And OEM plants are unable to finish their new products. Under such conditions, inventory will continue to sell as soon as it hits the lot, because demand remains high. Understandably, dealers across the country are worried.

Here are five inventory worries and how dealers can turn to their CRM for solutions.

Worry: New inventory doesn’t exist.
Action: This is an ideal time to dive into your database and uncover prospects for your certified pre-owned vehicle inventory. Find those customers who are looking for a new car but may accept a pre-owned substitute, especially for newer cars still under warranty. Along with a shortage of new cars, used cars are in great demand and commanding higher prices. In all, a used car in 2021 will be about 22% more expensive than it was either in 2020 or 2019. In other words, your used inventory is more profitable than ever. Make it count.

Worry: Customers are still asking about vehicles that are not available.
Action: The key will be keeping those customers engaged with your dealership until your new inventory arrives. Your CRM can enable you to find other sales opportunities, to help offset your delayed new inventory. Let customers know you have similar vehicles still on your lot. Plus, keep them informed about the expected arrival of your new vehicle inventory. On-going communication will be critical. 

Worry: Trade-ins are as good as gold, but how can I find them? 
Action: Identify customers in your database who are in a strong position to trade in their current vehicle for a new one — with little or no increase in payment. Also, check your CRM for vehicle service records for leases to find customers who might be ready to trade in their current vehicle or upgrade to a new lease. Desk deals from your CRM. One way is to structure deals that identify multipayment offers for finance and lease or both side by side.

Worry: Inventory will become a surplus on the lot after the chips are installed.
Action: You’ll want to make room for the new vehicles, once the OEM releases them to your lot. Adjust your pricing, as needed, to maximize profit on current inventory. Promote deals via your CRM in advance of the new inventory, reminding customers when the new products will arrive. By that time, it is likely the red-hot used vehicle market will have cooled. Be sure you have a strategy in place for refilling your sales pipeline. 

Worry: The supply channel problem is not going away.
Action: Most dealers are in the same supply chain holding pattern. And it’s not just automotive retail that’s suffering from a product shortage. According to business analysts, the commercial pipeline responsible for bringing $1 trillion worth of toys is clogged, with no signs of getting unclogged, heading into the Christmas season. Dealers should create an omnichannel marketing strategy across various touchpoints and create a frictionless sales experience. 

We live in worrisome times, to be sure. Even with outside forces making life harder for car dealerships and their customers, there is much dealers can still control. Best of all, it’s right there in their own CRM database. 

Singer Bobby McFerrin said, “Don’t Worry, Be Happy.” For today’s dealer, the refrain should be, “Don’t Worry, Be Data Mining.”

You May Also Like

Connect to What You Expect

Recon workflow software is designed to bring accountability and organization to this chaotic part of your business.

If you practice management-by-number in your stores and yet don’t know with 100% certainty what your reconditioning times, costs and opportunities are, you’re not connecting to what you expect. 

What we mean by connecting to what you expect is reconditioning driven by a time-to-line (T2L) strategy that takes the uncertainty out of this vital business function. 

The Most Powerful Skill in Selling

If you can’t listen to what your customer is saying, how do you really know that you’re solving their needs?

Are You Ready to ROCK in 2023?

It’s time to meet today’s Vehicle Care RockStars, and we are asking you to help get us backstage.

The End is NOT Nigh

Car buyers abandon digital tools when the process gets too complex — easy-to-use ecommerce capabilities are essential.

Is the Sky Falling, Chicken Little?

Don’t let anyone fool you into settling for mediocrity in the showroom or online. 

Other Posts

DealerPeak Welcomes DealerBuilt as a DMS Integration Partner

DealerPeak welcomed DealerBuilt as its latest direct DMS integration partner leveraging the DealerPeak open API.

DealerPeak Peak Insight Report Shows Changing Buyer Behaviors Affecting Conversion

DealerPeak has released the third quarter findings from their Peak Insight Report.

Podcast: CRMs: Data Management of Customer Engagement Tool?

Steve Roessler from DriveCentric discusses how dealerships should be utilizing CRMs in a modern business world.

Merchandising Strategies from Online Disruptors

Your online merchandising needs to rival Carvana’s. Here’s how to generate that emotional attachment.