What is a Business Development Center?

A business development center is a term used for the people who are often following up on prospects from the sales floor, the internet, and also prospect the service department for appointments.

Typically, BDC workers are good on the phone and with a computer. They scour through activities in your customer relationship manager software and have a pleasant, and possibly assertive personality to get people in, AND make them happy!

So how do I pick between in-house, outsourced, and letting my people do it?

I’ve worked with all three, so I’ll offer a glimpse of what I know:

Do your salespeople regularly stay on top of follow-ups and document them? Are they closing more than a few percent of new internet leads that aren’t previous customers? Do they respond to new leads within a few minutes, especially if they aren’t busy with a customer?

In this case, we suggest either hiring an in-house BDC or outsourcing one. And there are a few key differences, some of which are more business-related than anything else.

In-house BDC

An in-house BDC can be fairly flexible. If you can find a person who previously sold or did customer service over the phone, you’ll be in good shape. You’ll also have to keep in mind that you’ll likely want to train an in-house BDC person on best practices, which to be honest, can be a challenge if you don’t know what those best practices are. Another business decision to make here, you might not have the best luck locally. Keep in mind that if you do offer health insurance and other benefits, you’ll be paying a bit more, just like any other employee.

Outsourced BDC

Consider this: You won’t have to train an outsourced BDC on much of anything minus a few specifics about what you want to say and what you don’t want to say. An outsourced BDC might have a monthly rate plus a cost per lead. The good news here is that most outsourced BDCs will follow whatever list of activities you want them to do. 

To me, an outsourced BDC is great for dealerships that want to get started as soon as possible without having to deal with an actual hiring process. The downside is that they can be fairly expensive.

What improvements does a BDC offer?

Regardless of which method you choose, having people dedicated to following up with your customers will almost certainly lead to an increase in sales, especially if you feel like you were significantly lacking in Internet deals being closed before.

With either method of hiring an in-house BDC or outsourcing it, you’ll probably start to see a more serious return on investment within the first couple of months, depending on how much training you have to do.

How would I switch?

Once you scope out the right service, you should do a couple of things:

Inform your salespeople

If your salespeople won’t be doing their own follow-up anymore, let them know! Some might like it, some might not. Also, detail whether or not the BDC will have any impact on what they are paid for selling a car. In our honest opinion, the salesperson shouldn’t have to split any part of a deal with the BDC.

Set up your CRM properly

This is actually even more important if you are starting an in-house BDC. You need to have a place where either your phone people or phone workers from the outside are going to see how often they should contact people and record or document it. We suggest contacting your CRM provider to set this up.

Make a system

This concept is wide open. If you dig deep enough into your CRM and previous leads, you are going to start having to decide how to distribute appointments for people who aren’t there anymore. I’ve seen this set up in multiple ways, ranging from keeping close track of monthly close ratios and deciding who gets what from there to being more equal and following a round-robin system.

Conclusion

Managing your existing BDC can be a tall order, but it is worth exploring to find out if you can improve sales and service. by getting more outreach. If you are thinking about changing your existing system, evaluate your hiring practices and keep good track of how things are performing to see which investments are worth making.

The post In-house vs external BDC: How and why to make a switch appeared first on CBT News.

Understanding the Buyer’s Needs

A crucial aspect of having a successful sales conversation is understanding the needs of the buye­r. By actively listening and demonstrating e­mpathy, you can establish a connection that dee­ply resonates with the buye­r.

• Listen Actively: Pay close attention to what the buyer is saying. Ask open-ended questions to understand their needs and preferences.
• Empathize: Show empathy by acknowledging their concerns and feelings. This helps in building trust and connection.

Creating a Personal Connection

Establishing a personal connection with someone improves conversation and makes it more engaging. Addressing the buye­r by their name and finding shared interests helps to establish a ge­nuine connection.

• Use Their Name: Using the buye­r’s name when addressing the­m adds a personal touch and makes the conve­rsation more engaging.
• Share Common Interests: When engaging with a potential buyer, it can be helpful to establish common interests or hobbie­s. This connection helps to foster rapport and build a stronger relationship.

Effective Communication

The key to keeping the buye­r engaged and well-informe­d is clear and effective communication. Using straightforward language and maintaining a positive tone can make a significant impact.

• Clear and Concise Language: Use straightforward and e­asy-to-understand language to describe the car’s features. Avoid using technical jargon that might confuse potential buye­rs.
• Positive Tone: It’s important to maintain a positive and enthusiastic tone when communicating with buyers to keep them interested and engaged.

Guiding Buyers Toward the Right Purchase

Helping the buyer make the right purchase involves presenting different options and showcasing any special offers. This way, the buyer can make an informed decision that aligns with their needs and budget.

• Provide Options: Show the buyer a range of car options that align with their preference­s and budget. Then, provide a compre­hensive overvie­w of the pros and cons of each choice.
• Highlight Special Offers: If there are any special promotions or discounts available, make sure to emphasize them to enhance the appeal of the deal.

Handling Objections

By carefully addressing objections and providing viable­ solutions, you can transform a hesitant buyer into a more confide­nt and decisive one. It is crucial to acknowledge their concerns and provide opportunities for test drives to alle­viate any uncertainties they may have.

To help potential buye­rs feel more at ease and alleviate any concerns, it’s a good idea to suggest test-driving the car. This gives them the opportunity to experience the vehicle firsthand.

Closing the Deal

Successfully closing a deal involves summarizing the offer and confide­ntly asking for the sale. Communicating clearly in this stage is crucial for achieving a positive outcome.

Follow-Up

A thoughtful follow-up can leave a lasting impression and foster long-term relationships. Sending a thank-you note and staying in touch shows that you value the buyer’s interest.

Conclusion

Establishing a connection with potential car buyers through phone conversations involves multiple elements. Active listening, empathy, cle­ar communication, and strategic guidance are key components of this process. By incorporating these strategies, sales professionals can ensure a positive and me­morable experience for the buyer, ultimately resulting in successful sales and foste­ring long-lasting relationships.

The post Building rapport with prospective car buyers over the phone appeared first on CBT News.

For a dealership to remain competitive, it must recognize and adapt to the changing marketplace. Keep reading to learn more. 

Impacts on car pricing

Undoubtedly, the most significant impact has been on car prices. Inventory shortages stemming from supply chain turmoil and the spillover effects have led to major price inflation. KBB reports that the average new car sold for $48,334 last month. That compares to $38,948 in December 2019. 

Demand was further taxed as buyers emerged from lockdown eager to make big-ticket purchases. Low interest rates at the time also incentivized buyers. And while the supply chain picture is brightening, it’s dimmed by higher interest rates. At the same time, inflationary pressures across all household spending have made car shoppers more cautious and value-focused. 

The need for messaging value 

In today’s market, this no longer means race-to-the-bottom offers. Instead, dealers should promote transparent pricing, including “no-haggle” policies.

In response to this economic uncertainty, dealers need to focus on a value-based approach with assurances of pricing integrity. A shopper wants to be confident that they’re getting a competitive deal. Highlighting bundled offerings (with accessories, a service package, or extra warranty coverage) can also heighten the appeal for buyers concentrated on value. 

Recognizing vehicle preferences

While SUVs and light trucks remain popular, dealers need to realize that some buyers are gravitating to smaller, more economical vehicles. This is one way of offsetting higher retail prices and increased borrowing costs. With this in mind, dealers need to work on an inventory mix with adequate options for shoppers concerned about every dollar. 

Flexible and individualized buying experiences

Car shoppers today want a flexible buying experience that can accommodate preferences for online or in-store purchases (or a combination of both). The pandemic required an almost complete migration to digital channels for car research, shopping, and buying. So, now in a post-pandemic era, buyers expect a seamless integration between online activity and showroom interactions. Virtual vehicle tours, home test drives, and online transactions with e-contracts and remote signing being part of these modern fundamentals.

Taking a consultative sales approach 

A volatile economy means buyers spend more time researching and deliberating before pulling the trigger. Adopting a consultative sales approach is the best way to accommodate an expanded sales cycle. Providing personalized information and guiding customers through the car-buying path is well-suited for shoppers looking to take their time. This investment in customer relationships is essential throughout the prolonged decision-making process. Going for a quick close will turn off buyers and make them go elsewhere. 

Customer retention steps

Customer retention initiatives have become even more crucial. Adaptive dealers need to reach buyers with surveys, maintenance reminders, loyalty discounts, and special offers to foster satisfaction and build brand identity. These efforts encourage repeat purchases, services, visits, and referrals—all supporting future revenue. 

Opportunities amidst the challenges

Today’s challenging selling environment can create opportunities for innovation. This requires dealers to make strategic investments and modify their business models to meet ever-evolving customer expectations. But, when properly implemented, these changes can strengthen your company’s competitive positioning. The key element is thinking about thriving, not just surviving. This approach will put your dealership in the best position when more stable economic conditions return. 

Final thoughts

Dealers and the auto industry as a whole have adapted to the disruptions of the past few years. The car business won’t be returning to the old days. Now’s the time for dealerships to reinvent themselves for this new reality while finding success during economic uncertainty.

The post Selling cars despite the current economic uncertainty appeared first on CBT News.

What is a video lead response?

Let’s step back a few years: At least a decade ago, most responses to Internet inquiries were phone calls, texts, and emails. A smartphone could handle some rich content like a video, but not everyone had a data plan or WiFi everywhere to readily access video in an email.

A video response to an Internet lead often involves making a short video of the salesperson, car, or both and sending it to a customer. The videos are often uploaded through software paired to a CRM or with an embedding YouTube link so that the user doesn’t have to download a video and wait for it to play- and there are no attachments.

Getting to the point: Why a video lead response?

People watch videos quite a bit. Offering the information they want in a video format gives you the opportunity to answer a question in a potentially visual and auditory way, and it comes in the form of a video, which your customers tend to watch at some point nearly every day.

We can’t say that a video is “more” personal than a well-thought-out email response, but the customer might remember that you greeted and acknowledged them by name in their video, and answered their question.

A video is meant to make you stand out to a customer who might be shopping other dealers and wants to know who will give them the time and attention needed for a great sales process.

A few tips on making a decent video

1. Keep it short

While the length of the video depends a lot on what the customer is seeking, we wouldn’t suggest going any longer than you need to introduce yourself, give a greeting to your customer, introduce the vehicle, and offer a call to action about how to get a hold of you.

In today’s market, this no longer means race-to-the-bottom offers. Instead, dealers should promote transparent pricing, including “no-haggle” policies.

2. Include the vehicle if possible

If the customer asks questions about the vehicle, give them a visual and record the video on your lot or in a quiet place inside where you can be heard. Actually seeing a vehicle – even after viewing a gallery of images, will probably raise the standard and make you stand out.

3. Be heard

Whether you are recording videos at your desk on the showroom floor or outside, do your best to ensure your customer can actually hear you. We don’t suggest recording on an open lot during a windy day.

A video recorded at your desk with a webcam or your phone camera is fine. If the customer isn’t on a specific vehicle yet, this might be your best start.

4. Practice a little bit

Making a good video of just you talking about a vehicle is a similar art form to leaving a voicemail. Thankfully the video allows you to try numerous times – though you don’t have to be perfect. Try not to talk too fast and make it personable – but avoid reading off a script.

5. Find a place to upload

Using Youtube or another social video site is fine. Some dealerships subscribe to apps that make the video right off their phone and send it to a website where you can import the video into your email or CRM. Either way, don’t just attach a video to an email.

6. Vehicle Walkaround Videos

These are a part of the initial lead response, though at most dealerships you are going to have to dig a little more into what the customer wants in order to even choose the right vehicle to present.

7. Speed is a factor

Try to create your video quickly because speed is a factor in visiting a dealership. Very simple: Try to respond as soon as possible, preferably in less than 10 minutes. This timetable will put you well above the rest of the pack when it comes to dealers – and a video will stand out over a phone call.

Conclusion

Video lead responses can lead to more engagement, more sales, and overall better interaction with your customers. Making good video responses just requires some trial and error – and a little equipment and software training for your salespeople.

The post 7 essential video lead response tips for car dealerships appeared first on CBT News.

This article serve­s as your guide on a self-discovery journe­y to uncover these hidde­n strengths within yourself, empowe­ring you to enhance your performance­ in the dynamic car sales industry.

Uncovering Your Hidden Strengths

Every sale­s professional has unique strengths that can contribute­ to their success. These­ strengths encompass qualities like­ empathy, active listening, and proble­m solving skills. The first step in uncovering your hidden hidden is se­lf-awareness. Refle­ct on past customer interactions, pinpoint moments of e­ffectiveness and identify the specific skills utilized.

See­king feedback from colleague­s, superiors, and even custome­rs can provide a valuable broader pe­rspective on your strengths.

Leveraging Effective Communication

Effective­ communication plays a pivotal role in the field of car sale­s. It goes beyond simply re­laying information about the vehicle; it entails understanding and addressing the­ customer’s unique nee­ds, concerns, and desires. Active­ listening, clear articulation, and empathy stand as fundame­ntal pillars for successful communication within this context.

Active liste­ning involves fully focusing on the customer. It e­ntails understanding their message­ and responding thoughtfully. Additionally, clarity is essential to e­nsure that your own message is e­asily understood, eliminating any potential confusion. More­over, empathy plays a crucial role in foste­ring a deeper conne­ction with your customers as it allows you to understand and share the­ir feelings.

By refining the­se skills, individuals gain a deepe­r understanding of their customers and are­ better equippe­d to meet their ne­eds effective­ly. This ultimately leads to increase­d sales success.

Building Authentic Connections

In the world of automobile sales, establishing a conne­ction with customers is of the utmost importance.

In today’s market, this no longer means race-to-the-bottom offers. Instead, dealers should promote transparent pricing, including “no-haggle” policies.

By harnessing your innate qualities such as e­mpathy and patience, you can cultivate an atmosphe­re of comfort for customers, fostering the­ir confidence in you and ultimately le­ading them to make a purchase.

Customers te­nd to make purchases from individuals they ge­nuinely like and trust. By demonstrating ge­nuine interest in the­ir needs, showing integrity, and foste­ring authentic connections, you can effe­ctively enhance sale­s.

Closing More Deals

The hidde­n potential within yourself can be harne­ssed to achieve the­ ultimate objective of closing more­ deals. By enhancing your communication skills and establishing ge­nuine connections, you will gain a bette­r understanding of your customers’ require­ments and effective­ly showcase your automobiles in a manner that de­eply resonates with the­m.

Not only does incre­asing the likelihood of a sale be­nefit you, but it also helps build a positive re­putation for you and your dealership. This positive re­putation contributes to more potential sale­s in the future. It is important to reme­mber that every inte­raction presents an opportunity for learning and growth. By constantly re­fining your skills and uncovering your hidden strengths, you can e­nhance your success in sales.

Conclusion

Uncovering hidde­n strengths is a transformative journey of se­lf-discovery and personal growth. It involves re­flecting inward, honing skills through dedicated practice­, and stepping beyond the confine­s of comfort. However, the tre­mendous rewards that await make this e­ffort well worthwhile. 

By tapping into their pote­ntial, individuals can elevate the­ir sales acumen to new he­ights, achieving remarkable re­sults and thriving in the fiercely compe­titive world of car sales. It’s crucial to bear in mind that the­ key to success lies within one­self—it’s time to unlock it.

The post Car sales tips: discover your hidden strengths to unlock greater success appeared first on CBT News.

Car shopping should be e­njoyable, not intimidating. As a dealership owne­r, your job goes be­yond simply selling a car. It includes providing helpful advice­ and fostering an environment whe­re customers fee­l at ease and in charge of the­ir purchases. 

When it come­s to pricing, being transparent and open to ne­gotiation can make all the differe­nce. It can turn an overwhelming experience into an empowering one. The result? Happy customers and a successful sale.

Making car shopping enjoyable again

In today’s market, this no longer means race-to-the-bottom offers. Instead, dealers should promote transparent pricing, including “no-haggle” policies.

Consider doing the following: 

1. Empower customers with knowledge

Prior to ente­ring your dealership, it is good that you encourage customers to conduct re­search beforehand. By offe­ring informative resources and tools on your we­bsite, buyers can make informe­d decisions and feel e­mpowered with knowledge­. This not only boosts their confide­nce but also leads to more fruitful discussions be­tween them and sale­speople during the car buying proce­ss. Ultimately leading to an enjoyable purchase e­xperience.

2. Go on a test drive

Test drive­s are crucial when it comes to buying a car. It’s not just about driving around the­ block; customers need to e­xperience the­ vehicle firsthand. A test drive­ allows them to evaluate the­ car’s condition, how smooth it drives, and comfort leve­ls for themselves – insights that can significantly influe­nce their buying decision. As such, te­st-driving should be an essential part of the­ overall car-shopping process.

3. Discuss financing options

Financing a car can be complicate­d, especially for first-time buyers. To make the­ process easier, it’s important to e­ducate customers about the significance­ of knowing their credit score prior to visiting the­ dealership. Doing so will give them a bette­r idea of what they can afford and how much they’ll ne­ed to pay for the car. By active­ly being transparent and assisting in this area, de­alerships can create an e­ven more satisfying buying expe­rience for customers.

4. Encourage verification

For those looking to buy a used car, it’s always recomme­nded that you extend the­ option of allowing customers to have their me­chanic inspect the vehicle­. By providing this option, potential buyers can be at e­ase with its overall condition while de­monstrating your confidence in your inventory. This practice­ builds trust and encourages customer loyalty due­ to the transparency and willingness to me­et customer nee­ds.

5. Create an engaging experience

Auto shows hosted at de­alerships can provide an enjoyable­ and informative car shopping experie­nce. With the opportunity to explore­ various models, engage with e­xperts, and make educate­d decisions in a relaxed e­nvironment, customers can get a positive impression of the de­alership and improve the­ir car-buying journey.

6. Prioritize customer service

Investing in e­mployee customer se­rvice training is critical for enhancing the customer experience at your dealership. One­ practical solution for employee training is through asynchronous e­Learning courses since it allows the­m to learn at their own pace and improve­ customer service skills. By inve­sting in training employees, the­ dealership will ensure­ better interactions with custome­rs which will lead to a more pleasant ove­rall experience­.

7. Embrace a ‘YES’ culture

An environme­nt should be created whe­re saying “yes” to a customer’s re­quest is the default re­sponse. However, agre­eing to every de­mand is not necessary. When it is impossible to fulfill their exact wants and nee­ds, providing innovative alternatives showcase­s proactive thinking. Effective communication channe­ls keep open inte­raction and encourage an amiable atmosphe­re.

8. Reduce customer wait time

Customers today value­ their time in this fast-paced world, and the­y expect quick and efficie­nt service. Long wait times can cause­ dissatisfaction leading to a loss of business. Thus, businesse­s should prioritize reducing wait times whe­rever possible. Howe­ver, if waiting is unavoidable, dealerships should aim to make­ the waiting experie­nce enjoyable by offe­ring amenities such as Wi-Fi connectivity and exciting service­s that can brighten up their day.

In conclusion, car shopping doesn’t have to be stressful. With the right approach, you can turn it into a fun, engaging, and empowering experience for your customers. By prioritizing transparency, customer service, and authenticity, you can create a car shopping experience that your customers will appreciate and remember. And remember, a happy customer is likely to return, refer others, and become a loyal patron of your dealership.

The post How to make car shopping more fun for your customers appeared first on CBT News.

Randy Barone, Vice President of Business Development at ACV, and Doug Hadden, ACV Vice President, further discuss leveraging seasonal trends and utilizing data-driven insights to optimize sales and inventory practices in an interview with CBT News.

CBT News: How important are seasonal trends in the automotive landscape?

Randy Barone and Doug Hadden: Timing is critical to both dealers and car buyers and seasonal sales are once again playing a big role. Traditionally, the automotive industry has definitive seasonal trends, with peak demand in the spring and fall in comparison to the winter months. Many dealers offered aggressive discounts at the end of the year in an effort to move inventory off their lots to make room for new vehicles ahead of the new year. However, the pandemic and consequential inventory shortages meant that dealers no longer offered incentives and end-of-year sales like before as inventory levels were already at an all-time low. However, with inventory improving overall, incentives and other seasonal sales are starting to return. Plus, dealers have more reason than they did throughout the pandemic to negotiate with buyers because they don’t want cars sitting on their lots.

Given the current landscape and residual pandemic-related impacts, dealers should consider not only what time of year is best to offer incentives, but on which vehicles. Generally, most vehicle shortages are easing, but looking ahead, the story will change based on factors like manufacturing challenges and will ultimately lead to certain automakers gaining market share over others. Dealers need to be dialed in on this and offer incentives for OEMs that are taking more overall market share and adjust incentives accordingly.

CBT: Why should dealers refocus on seasonality?

RB and DH: With inventory levels starting to stabilize, it’s important for dealers to reintroduce seasonal incentives in order to stay competitive in the current landscape. Pay attention to inventory turn rate, especially during peak buying periods. Have a thirty-day supply plan and understand what that supply will look like based on what is selling. Fill your lot with the right cars based on the data.

Every dealership is different even if they are right across the street from each other. They all have their own DNA of vehicles that do well for their particular business. Many stores aren’t utilizing this valuable information outside of the simple and obvious observations, like convertibles selling the best during winter. If you leave this up to gut decisions, you could miss real opportunities.

We have shown dealers in certain hot-weather markets that convertibles sell well in the winter because the temperatures aren’t nearly as extreme as they are in cold-weather markets. Or even the fact that minivan sales peak a few months before school starts. Many trends can be found by simply looking at the data captured by the dealers’ DMS, and they can provide incredible insights regarding which vehicles to stock based on seasonality.

CBT: How can car dealerships capitalize on tax return season sales?

RB and DH: Tax season presents dealers an opportunity to take advantage of a time of year when potential car buyers are receiving a tax refund and are therefore more receptive and able to make major purchases. It is an opportunity to increase overall sales, which means filling your lot accordingly. With more people looking to buy vehicles during this time, you want to make sure you’ve adjusted your inventory levels to accommodate. 

CBT: How should dealerships manage seasonal ebbs and flows?

RB and DH: It is critical for dealers to be aware of which cars are moving quickly off their lots versus those which may take a bit longer to move. Traditionally, when a vehicle isn’t selling, dealers will lower the price to entice customers to purchase and often rely on gut instinct when making inventory decisions. As the automotive landscape evolves, so should the dealer’s approach to managing inventory and sales.

Dealers have tech-driven inventory management tools at their disposal to support navigating these ebbs and flows, like ACV’s Private Marketplace MAX Digital Inventory Management. This does the leg work upfront to analyze what makes and models sell best, which are left on the lots, and how to maximize inventory efficiencies for faster turnover.

The post Q&A | How auto dealers can leverage the return of seasonal sales appeared first on CBT News.

Finalizing a vehicle’s title and registration has been streamlined as technology revolutionizes the industry. But with software from leading vendors, dealers today are able to conduct more of that process online, expanding their reach to customers beyond their state’s borders. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Kane McCord, chief executive officer of Automotive Titling Company, a market leader in processing interstate title and registration, to discuss how dealerships can expand their markets with out-of-state sales.

“Consumers today expect more, really across the board in all their purchase types,” begins McCord. Wherever one looks, buying products has gotten faster and less intrusive. However, in the car business, dealers are hampered by the extensive rules governing the title and registration process. These rules can become even more challenging when consumers buy a vehicle from out of state, a practice that is becoming more and more popular. In fact, Automotive Titling Company has seen out-of-state car purchases increase 80% year over year. “The challenge…for dealers is ‘How do I stay relevant not only in my local market but how do I expand my consumer base,’ because, make no bones about it, other online-only dealers and larger dealers from other states: they’re coming for your customers…”

So how can dealers begin branching out into new markets? One of the most complicated aspects of serving out-of-state customers is the title and registration process. Whereas local transactions can be handled by the area’s DMV office, this is not feasible for buyers across state lines, and regulations are constantly changing. “The challenge…for the dealers is that if that car is financed…if you don’t tax, title and register it properly, you as the dealer are potentially on the hook if and when there are problems with that loan.”

Working with vendors like Automotive Titling Company is one way dealers can ensure they remain in compliance with regulations across multiple states and deliver their vehicles quickly and with as little effort on the customer’s part as possible. McCord notes that paying for expert assistance in this area not only makes the process quicker but also saves retailers money. Fees and fines resulting from title and registration errors can cost as much as $79 to $299 on a monthly, weekly or even daily basis, and storefronts are far more likely to incur penalties when they sell out of state. Additionally, McCord explains that dealers are not able to access their cash from the sale until title, tax and registration are completely finalized. This means that stores that sell across state borders may be forced to wait for their income to deposit.

In conclusion, whether working with clients from out of state or simply searching for ways to speed up the overall title and registration process, dealers should be sure to consult with experts and vendors who can guarantee reliability, compliance and fast customer service.

The post Streamlining title and registration for out-of-state sales — Kane McCord | Automotive Titling Company appeared first on CBT News.

Dealerships are frequently faced with addressing common objections from consumers – range anxiety, concerns over charging infrastructure, perceived high upfront costs, and uncertainties around battery life. So, let’s investigate these objections and explore practical strategies your team can employ to satisfy and instill confidence in potential buyers.

Addressing Range Anxiety

Perhaps one of the most frequent concerns is range anxiety. The fear that an EV will run out of power before reaching its destination can significantly deter potential buyers. A recent Autolist survey showed range anxiety concerned 44% of the 1350 car shoppers. Dealerships can mitigate this concern by accurately informing customers about the realistic ranges of different EV models.

Discussing the average daily commute of drivers can help underline that most trips fall well within the range of the average EV. Additionally, highlighting advancements in EV technology that extend range can provide assurance to potential buyers.

Charging Infrastructure Concerns

The state of charging infrastructure is another critical concern for potential EV owners mentioned by 36% of the Autolist participants. Understandably, customers worry about the accessibility and availability of charging stations, especially for extended trips or in less urban areas.

Dealerships can alleviate these concerns by providing detailed information about the growing charging network, emphasizing home charging solutions, and explaining public charging options. Discussing partnerships between auto manufacturers and charging station providers may also provide reassurance.

Addressing Upfront Costs and Battery Life

As some KIA Ioniq 5 owners can attest, another roadblock on the path to EV adoption is the fear of potential battery issues and replacement expenses.

As for battery life, it’s vital to clarify that while EV batteries degrade over time, most manufacturers offer extensive warranties. Furthermore, technological advancements are continually extending the lifespan of EV batteries, which should be a crucial part of your dealership’s EV education.

And yes, 48% of surveyed potential EV buyers said EVs were too expensive. Here, dealerships can play a vital role in helping customers understand the long-term financial benefits of owning an EV, such as lower fuel and maintenance costs over an extended time. But even that economic benefit is quickly disappearing.

According to the NADA, “Kelley Blue Book calculates the five-year cost to own a vehicle, which includes all vehicle-related costs a consumer will likely have within the first five years of ownership. The data pulled from the first week of February in 2023 shows that EVs cost consumers an average of $65,202 during this time period, while ICE vehicles cost $56,962.”

Adding to the cost is insurance. The NADA also said, “The average cost of collision and liability insurance for EVs is $6,824; ICE vehicles average to $5,707.”

Be Honest and Proactive

Successfully navigating these objections requires a clear understanding of customer concerns and an honest yet proactive approach to addressing them. Dealerships must position themselves as knowledgeable and trusted allies in the EV transition, ready to provide accurate and helpful information.

It’s okay to admit that, with some customers, an EV purchase may not be best for them. But as the EV market continues to grow, advancements in technology and infrastructure will help assuage many current concerns. However, dealerships’ guidance and commitment to education will make customers more comfortable switching and staying with EVs.

The post Navigating roadblocks: overcoming customer objections when selling EVs appeared first on CBT News.

As new car inventory across the country expands, so too has the number of calls placed to dealerships. The increase in volume has made it challenging for employees to keep up, resulting in cut corners and low conversion rates. With the number of unanswered or mishandled voicemails growing by the day, managers must ask themselves how much money they can afford to leave on the table. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Mike Hoyser, vice president of training at Phone Ninjas, to discuss how his team of coaches and assistants help maximize dealership profits and strengthen skillsets in sales and BDC teams.

One of the biggest challenges facing dealers in the new automotive marketplace is the uneven authority shared between clients and representatives. During a phone conversation, the customer’s objective is to gather information about the vehicle, such as pricing, availability and driving history. Salespersons feel obligated to let the caller control the discussion, which ultimately leaves them little time to pitch an in-person meeting. Hoyser explains that this dynamic is disastrous for businesses trying to maximize the efficiency of their sales operations. “What happens is we stay on [the client’s] agenda and they control what happens on the phone call,” he remarks.

Phone Ninjas gives power back to dealers and their BDC or sales teams through in-depth training and quality support. “I think what makes us different,” states Hoyser, “is a lot of times…phone-training companies out there are using transcription, alerting methods, all these types of things…what Phone Ninjas does is we bring back the human side.” When dealers join the program, sales representatives gain access to coaches who teach proven tactics that create more leads and convert more callers into customers. This helps dealers realize more profits from their business development initiatives and keeps them from leaving money on the table due to missed or poorly-handled calls.

Working with Phone Ninjas has other benefits. Dealers who choose to join the program typically do so with a 20% appointment-setting rate. “Our average customers are right about 60%,” reports Hoyser, “within 90 days you’re gonna see that.” Long-term partners, on the other hand, see rates as high as 80%. By working with the company’s coaches, sales teams not only improve their effectiveness but also learn to abandon bad habits. For Hoyser, this is the most rewarding part of the job. “When I do go out to a store that has a lot of tenured salespeople, and they come up to me afterward and say, ‘You what, I’ve been doing this a long time, and I did pick up a lot of different things, and you know what I need to polish up on this’…I kind of really like that.”

Another crucial advantage that comes from Phone Ninjas is consistency. Hoyser notes that he has spoken with many successful dealers during his career. “One of the things that does come up is they’re very disciplined…because disciplined people are very good about not cutting corners,” he states. “If they have a process, they cover the full process…” Since the company works so closely with the BDC or sales team, representatives have more accountability and oversight to make sure they stay in control of the conversation and handle each call with the same level of care.

The last benefit to be gained from a Phone Ninjas partnership is the speed with which dealerships can get their operations up and running. Hoyser notes that it only takes a week for most sales or BDC teams to gain certification and learn how to use Phone Ninja’s tools. This means that representatives can start improving their skills as fast as possible. “Let’s get back to selling and not just telling,” remarks Hoyser.

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