Great minds think alike
Is there a secret to selling more cars? Yes.
Last year, 65 million cars were manufactured; 55 million were sold. Deloitte estimates that automakers and dealers could achieve a 20-percent increase in sales without fancy marketing programs or yet another new niche model. What would have to change? The way they think about their businesses.
A new point-of-view from Deloitte’s global automotive practice, "Great minds think alike," pulls together best practices among automakers and dealers to define five principles of business that enable more effective global retailing. According to the point-of-view, "a better buying experience means more sales. And a better buying experience will come only when automakers and dealers start working together in new ways." Here’s how:
1. Find the common ground to create an environment of true, productive collaboration. Automakers and dealers begin to do this by appreciating each other’s strengths and skills, using that mutual regard to find ways to work together better.
2. Be your brand. Worldwide. Everyday. At every customer touch-point. The "promise" of your brand has to be fulfilled in every product, every process and every transaction. How would you like your brand to "be?" It all comes down to this: Practice what you preach.
3. Create a better customer experience. This means managing inventory better (so the right vehicles are at the dealers), motivating sales and simplifying the financing process. Today's car buyers are knowledgeable. Begin by listening: What does each customer want?
4. Execute the right programs. Automaker and dealers should ask, together: Which programs are working? If one is not working, can it be fixed? How do our customers feel about the car buying experience? Then, you can segment customers, putting the right programs (and autos) in the right stores, at the right times, to appeal to the right buyers.
5. Measure the effectiveness of your actions. Again and again. Suppose you could know anything. What would it be? Automakers and dealers need to share a few, core metrics; deciding on these requires a common language, proof of the value of a program or process and a fact-based understanding of what really sells cars.
The point-of-view includes real examples of success from the field, schematics of collaborative process flows and key performance indicators and pragmatic action steps. Learn more from the complete report, available as a PDF file attachment in the link below:
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