Posts Tagged ‘SMMT’

Does the motor trade want to sell cars?

Thursday, December 3rd, 2009 by Jon Clements

 

Are you in the market for a new car?

Good luck - you may have trouble finding a dealership wanting to sell you one.  Bear with me - this isn’t a post about cars, but about customer service.

This year, the UK’s retail motor industry welcomed, with outstretched arms, a new word into its lexicon - “scrappage”. In the middle of a thumping recession, the Government-funded scheme has helped the car business boost sales with a £2k sweetener for buyers agreeing to scrap their 10-year-old vehicle when buying a new one. Without it, the world of the motor trader in 2009 would have been a very different one.

A world without scrappage was depicted in a recent speech by Joe Greenwell, Ford’s UK chairman and president of the Society of Manufacturers and Motor Traders at its recent annual dinner. He said: “Without scrappage, this year’s total registrations would have been less than 1.7m. Against a high of nearly 2.6 million units in 2003, current expectations are for car registrations to fall to 1.8m in 2010. There is no doubt that..underlying demand remains weak.”

And this is the point. At a time like now, every customer counts.

It was Chris Brogan’s recent blog post on frustration with bricks and mortar retail that came to mind on a weekend trip to several high end car dealerships from which I came away convinced that some dealerships don’t want to sell cars.

First up - VW: we entered an empty showroom where the only person keen to talk was the receptionist. A salesman just about managed to grab some brochures but the car we wanted to see was “being used by a colleague over the weekend”. That’s fine, but did he want to arrange a viewing? No.

Next, BMW: we were sitting ducks, asking to be sold the benefits of a particular model. The salesman - not looking terribly busy - said: “I’ll get you a brochure. It’s all in there.” What about the boot space? The car battery was flat so the boot wouldn’t open. Now there was a veritable crowd of customers awaiting the grand boot opening. Eventually the lid was lifted and off the salesman skipped: “Leave it up, won’t you,” he chirped.

Lastly, Mercedes: best of the lot, but not great. We did get invited to sit down, but for a rather lacklustre chat about the car in question and promises about the great vehicles coming out of that manufacturer in the next couple of years.

For an industry facing a steep incline next year with a spluttering engine, it’s a worrying picture of customer interaction.

One man who knows a bit about car sales is one Derek Clements (disclosure: my father) who spent more than 50 years in the car business and ended his career training dealership staff in customer care. He said: “Getting new customer enquiries is expensive and dealers have to make the most of every one. It’s vital that sales staff make people truly welcome, comfortable and unthreatened before talking to them about what the customer wants or needs and matching that with the features and benefits of a car.

“In other words, make the customer feel important, listen to what they’re saying and start to build their confidence in dealing with you.”

With all this in mind, I asked Letty - a woman of advancing years and 10 years on the local Tesco checkout - what she felt customer service was all about and she said: “It’s just about being friendly. People seem so detached from each other these days and it costs nothing to smile.”

Listen to Letty - you could do much worse.

Creative motor marketing

Sunday, November 9th, 2008 by Jon Clements

 

More than a nation of dog lovers, the British love their cars. Third largest car in the EU, 2.4m new cars registered in 2007 and 850,000 employed by the industry. But more even than cars, I’d say we love a bargain.And what a bargain online car dealer, Broadspeed.com, was offering this week: £20 grand worth of Dodge Avenger, but not just one - “buy one, get one free”.  Company MD, Simon Empson, speaking in The Guardian, couldn’t have been more understated when he said: “It’s the power of marketing, I suppose.” Amen, came the holy choir of marketeers across the UK.

Serious times call for serious measures. And those measures now include the motor industry calling directly on the Government to orchestrate a funding package to resuscitate the retail motor trade. The Society for Motor Manufacturers and Traders (SMMT) signalled the depth of the problem back in August, when reporting that month’s sales as the worst since 1966. At the time the SMMT caught some flak from the trade for “talking down the market”, and the messages seemed confusing, as with a bi-annual registration change the old focus on comparing August sales seemed misplaced.

But the industry’s lobbyists could clearly see the stark words written in the grime of the car market’s chassis. Yet it was probably David Smith, head of major - and iconic - motor manufacturer Jaguar Land Rover, going on the Today programme that added the true weight of the motor business to helping shift interest rates south by 1.5% at the end of last week. So, with potentially more cash slushing around people’s wallets and the prospect of another publicly-funded bail out package, the car industry should be quids in. But, as the BOGOF dealer offer showed, it’s time to be innovative in marketing, with a combination of tactics to drive people through showroom doors as well as giving them a good deal. It’s also an opportunity to test drivers’ brand loyalty - if someone will try a new marque at the right price, that brand might win a new customer for life.

Talking about the situation with my father - a motor business veteran of 50 years - he was remarkably sanguine. Having seen and sold his way out of economic lows across the decades - when even some UK car makers were not just helped by the state, but owned by it - the industry, he said, would get back in gear again.