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If a sales presentation hits a customer’s most compelling need, chances are the vehicle’s sold and frequently with a stronger gross profit than a typical sale. When the sales associate can find the prospect’s hot button and works the deal to meet that need, shoppers turn into profitable buyers.
A case in point is Draper Chevrolet and Draper Toyota, both of Saginaw, MI. These stores use of database analysis tools helps to identify existing customers whose situations present unique opportunities for Draper sales associates to meet unrecognized “buy” needs.
These stores report a 10 to 15 percent increase in gross from customers sold using this data analysis strategy or about $200 more per unit for the stores’ average. During one three-month period using this strategy to identify customers’ needs, the stores sold an extra 70 vehicles to existing customers for a total gross of nearly $104,000 – or $1,485 per unit.
Data analysis technology can provide deep analytical insight into existing customers’ current needs. The right technology not only helps identify these needs but show the dealer how to sell each prospect a new unit, perhaps that very day.
For instance, a thorough and correct study of the customer’s situation will help sales develop a buyer profile based on the customer’s finance or lease situation, the current OEM and dealer incentives, prevailing finance and lease rates, and local taxes. Using this information, a dealer can usually move a customer into a new model for about the same monthly payment as they currently pay for an older, existing model.
Here are some common needs existing customers typically have, and by contacting them about solving these concerns, you earn their trust, their loyalty, and their business.
Gross will never get any better than a client who is not shopping. By earning their trust and loyalty, you can also earn referrals, service business, and their continued business for decades.
Jeff Cotton is Vice President and Co-Founder of AutoAlert, Inc., a leading customer database analysis and sales strategies company. He is a former sales professional with Fletcher Jones Motor Cars.