Peter Cooke discovers personal contact is low on the
agenda for used-car salespeople in today’s age of electronic
communication
It has long been claimed that at least part of the
financial services crisis was caused by too many executives not
fully understanding the structure or risks of the financial
products they were selling to their clients, and not explaining
those products clearly.
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Are there any parallels with motor finance? While
the whole sector is tightly regulated, how much of that regulation,
the cynic might claim, is, in reality, ‘tick box’ regulation, how
much is ‘back to basics’ and how much needs explaining to the
prospect?
“We have an audit trail to show we did everything
we had to and told the client everything” is not the same as “we
have an audit trail with our client and both parties are satisfied
they understand the client’s needs – and how the offering is our
most suitable product/solution to fulfil these needs”.
In these days of tight credit availability, it is important
the best arrangement is struck for finance provider and client, not
only to ensure credit is effectively used, but also to ensure
clients understand and know what they are taking on – and will come
back again even if they do not buy this time.
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By GlobalDataThe prospect may only seek vehicle finance once in
a blue moon – so it is critical that available finance options are
explained clearly and simply, at the level required by the
prospect. An exercise in communication – not selling.
Futile shopping
Sad as it may be, but during November and
December last year I undertook some ‘mystery shopping’ for a
replacement used car ‘for me’. Quite simply, I wanted a used car to
replace the current vehicle – my wife’s – so I was looking for an
estate car that was a few years old, low mileage and in good
condition, with a full service record.
Telephoned to make appointments with several
dealers; yes they had something suitable as a possible replacement;
fine – so far.
Well yes, I left one showroom because the sales
staff were totally engrossed in Bob the Builder on daytime
television. Five minutes – timed – in the middle of a showroom
looking helpless and in need of attention is more than long
enough.
Elsewhere I was offered lukewarm, over-boiled
coffee. Questions regarding used cars were answered, and restricted
finance was available if I needed it, although that was secondary:
“That’s taken care of by another department.”
“How did you find us?” “Did you see us on the web?”
“Are you on our email list?” “Have we Twittered you?” seemed to
take precedent over showing me suitable used cars. That augured
well for early communication if nothing in stock was suitable.
Nobody actually offered to telephone me if the
preferred model was not available – although a couple had checked
if a suitable model was available elsewhere in the group. Yes, they
would all follow up with a call, they assured me. None has –
yet.
I am bombarded with electronic contacts, in the
form of blanket generic promotions, but, despite having my email
addresses and a specific requirement, I have been sent nothing I
could identify as being ‘me specific’.
Have we, as an industry, lost touch with the
basics? A real prospect needs to be contacted, but the attitude
even in a competitive market seems to be that the customer has to
buy, not that the dealer has to sell.
Has human contact disappeared – or is it a last
resort?
Some people salivate at the receipt of an email
listing today’s amazing offerings. Others get excited at receiving
a pre-recorded voice mail. But many more don’t. And what about the
still-significant part of the market, particularly the middle-aged
and older generation who come from a bygone age and expect to be
sold to, and not to have to buy – even in the case of a used
car?
Social contact and personal contact would appear to
be low on many salespeople’s agenda even when the market is weak.
It is electronic communication – or nothing. Are we growing a
nation of sales executives who don’t, or can’t talk to
prospects?
While leading edge advocates may dismiss the
electronically disenfranchised as irrelevant – are they? The
over-55s currently have the bulk of disposable private income and
savings in the UK. That’s why the Bank of Mum and Dad has never
been so popular.
My sample is very small and totally
unrepresentative, but it could be a harbinger of inadvertent market
exclusion – and I have barely commented on the finance pitch.
The message is quite simple – don’t forget the
electronically disenfranchised or those who want to be treated as
human beings. When did you last go out to investigate buying a used
car – with finance? Sorry to grumble again.
Professor Peter NC Cooke, KPMG Professor of
Automotive Management, University of Buckingham; Editor, BCA Used
Car Market Report
