It’s Not a New OR Used Vehicle, It’s a Vehicle!

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Thanks to the internet, vehicle quality, off-lease vehicles, ride sharing and more, the used car “selling” process has been turned on its head. People used to have the mindset that used vehicles were a cheap alternative to new vehicles. “I want a new vehicle but I can’t afford one” or “I’ll just get a cheap car to get back and forth to work” used to be the mantras. Now, U.S. motorists are holding onto their cars for longer than ever. According to IHS Automotive, the average new-car ownership period stands at 6.5 years, which is up from 4.3 years in 2006. Likewise, used-vehicle owners are keeping their rides for an average of 5.3 years, which is around two years longer than in 2016, pushing up the trade-in value.

Because of this, people are reconsidering buying a new car when they can trade for a less expensive used car with great reliability. Recent research from IHS indicates that only 1 in 3 car buyers know the exact vehicle they want to purchase when they start shopping. Now, many buyers are open to both new and used vehicles.

  • 40% of new car buyers considered used and new
  • 55% of used car buyers considered used and new
  • 92% of people that bought a vehicle consider buying again
  • 70% of people that leased a vehicle considered leasing again

You need to approach the customer as a “sale.” Not a new or used vehicle, but any vehicle. Vehicle owners have drifted from “I want a new vehicle” to “I need a new vehicle.” Two in three state they need, rather than want, a different vehicle. This is a reflection of the older used car market with buyers holding onto their cars longer.

Because of the length of time in the market, don’t think of it as a one-and-done marketing proposition, but rather an ongoing, sustained communication. People still spend 108 days (3.5 months) in the market prior to the purchase of a new or used vehicle. Even though shoppers are spending a total of four fewer days in the market for a car than last year, this is still a long time. Customers in equity positions need constant contact. Half of all car buyers do not contact the dealership prior to their first visit. Dealers need to direct market toward customers who provide the highest chance for hand-raising.

Fifty-three percent of car buyers look for monthly payment information while researching a vehicle, and 47 percent of buyers said that the total price of the vehicle is more important than the monthly payment. That said, more than one-third of buyers feel the total and monthly price are equally important, highlighting the need for dealers to provide both options in their merchandising.

Prospect Vision recommends equity marketing with a “go shopping price (GSP).” The GSP allows customers to buy new or used vehicles on their terms, increasing the chance of a sale. Don’t assume that equity customers are excited to jump into another new vehicle. They may want to upgrade to a larger used SUV or pick-up for at or near the same price or payment.

It’s hard enough selling a vehicle of any kind in today’s competitive environment. Take the path of least resistance, create a happy customer and improve your gross along the way by giving the customer a choice of a new or used vehicle.

Equity Mine Older Vehicles in Your Service Lane

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Americans Are Keeping Their Cars Longer and Longer

Americans’ concern about the state of the U.S. economy is at its lowest level on record, according to a new survey that’s been tracking the issue for decades. Gallup research this month found just 12 percent of Americans said an issue related to the economy is the most important problem facing the country. In August, the figure was 17 percent.

Despite a robust economy, increased consumer spending, and three consecutive years in which annual auto sales topped 17 million, Americans are continuing to keep decade-old vehicles running–and they’re only getting older.

What does this mean at your dealership?

Equity Mine Older Service Lane Vehicles

The age of light-duty vehicles in the United States rose 13 percent to an average of 10.5 years, according to a 2017 survey by the U.S. Department of Transportation. While this number is off the average of 11.6 years cited by research firm IHS in 2016, all signs point to America’s fleet – and its population of more than 223 million licensed drivers – growing older.

Pickup trucks, in particular, are staying on for longer. The average pickup was 13.6 years old in 2017 as compared to 11.2 in 2009. Vans jumped to 10.9 years (up 24 percent), SUVs rose to 8.5 years (up 20 percent), and cars’ average age increased to 10.3 years (up 8 percent).

Overall, the aging of the vehicle fleet suggests many households have delayed purchasing a new vehicle or have instead purchased a used vehicle. Lower-income households were most likely to hold on to older cars. On average, those reporting annual incomes of less than $25,000 drove 13-year-old cars, while those with incomes above $100,000 had nine-year-old cars.

Older vehicles, especially those bought new and driven by the Baby Boomer generation, are usually better-taken care of, have fewer miles and are more prone to visit your service department over local repair shops.

The great thing about older vehicles as equity targets is that the owner knows it’s not going to run forever. Plus, with the massive industry shift to SUV’s, you now have an opportunity to offer customers a real change from their current vehicle.

If a customer has chosen to hang on to their current vehicle, then they probably do it for cost saving, or they really like the vehicle.  Either way, getting them physically into a new vehicle with all its features and benefits is the first step to a sale.

Leasing may be an option for these customers. Leasing avoids the sticker shock, and the vehicle trade-in could cover all of the upfront transactional costs.

How PV Mines Older Vehicles

Prospect Vision has the capability to search back 15 years.  This can help the dealer source pre-owned vehicles. Plus, even if the person owned the car for 10 years, we can still show the old loan payment. This historical data can be used to show estimate trade and estimate terms for a newer vehicle based on the previous payment range. Most people are comfortable in a certain payment range.

So, there you go. Yes, customers are keeping their cars longer, but the good news is that they’re keeping the cars they bought from you longer. Sooner than later, they are going to need a new vehicle, and by maintaining diligence in the service lane you’ll be there when they do.

Keeping Millennial Customers Coming Back

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Attracting millennial customers to your dealership is critical to your continued business success. The increasing purchasing power of this generation, plus their life stage as young adults and young parents, will make them just as valuable a demographic as Baby Boomers have already been to your business. But once you’ve got those millennial shoppers in the door, how can you keep them coming back?

Be consistent

Millennials are expecting a seamless transition. They switch from looking at your website on a smartphone or tablet to looking at it on a desktop to eventually walking into your dealership. If your store is having an Independence Day sale, you better make sure that message is conveyed on your website. And it goes both ways: If your website says you have a particular vehicle, you better make sure that vehicle is shown prominently when they show up at your store. Disappointing or frustrating millennial customers is the surest way to lose their business. Plus, millennials aren’t going to be as forgiving if it’s not an easy transition from digital to in-person. With the power and savviness they possess with social media, you can bet they’ll be telling their friends and the rest of the world.

Offer expertise

How many times has a customer walked into your store and you quickly ascertained they know more about the vehicle than your salespeople? You can count on millennial shoppers showing up with a world of information at their fingertips. When they visit your store, they expect your sales team to be just as knowledgeable. Here’s a sobering number: 40 percent of millennials say that “deep product knowledge” is important to them when visiting a store, according to PricewaterhouseCoopers reports. That means you and your staff need to be ready for them. Your employees should be able to answer in-depth questions about products, provide recommendations and suggest complementary upgrades.

Reward followers

Millennials won’t follow your store on social media just because they think you’re cool. Just like you when you go shopping, they expect to get something out of the relationship. Exclusive access to deals, discounts or information are key reasons millennials follow dealers on social media. When millennial shoppers manage to find their way to your dealership, that’s when you can tell them by word of mouth or signage to follow you on social media by explaining the rewards they’ll get. Millennials may be different from past generations when it comes to shopping habits, but one thing still holds true no matter the shopper. We all want to feel wanted and rewarded for our loyalty!

Related reading: Higher Customer Retention Means Higher Profits!

Use mail

If you want millennials to become loyal retail customers, you’ve got to offer those personalized, targeted promotions and discounts. That means offers sent by email or mailed to their homes can often be the most effective promotional tool for this age group. In this age of fast-is-better technology, sometimes the best way to grab the attention of millennials is to drop an offer in the mail.

Text them

Why should a dealership’s service advisor, salesperson or your BDC text? A dealership must put themselves in their client’s shoes. A doctor can text between patients, a plumber can text while on a job, and a lawyer can text while in a meeting. The data supports this as texts are replied to, on average, within 4 minutes. The expectation for a return call to a voicemail is the same day and the expectation for an email is 24 hours. Millennials don’t talk … they text!

Conclusion

Adjusting your customer retention methods to focus on millennials is smart. Not only is this generation growing in influence, they’re influencing how their parents shop as well.

Higher Customer Retention Means Higher Profits!

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We’ve all heard it a hundred times: “Acquiring a new customer can cost 6 to 7 times more than retaining an existing customer.” And yet, we still can’t seem to find a few dollars each month to spend on customer relationship marketing.

Customer Retention Figures

Let’s set the stage for the cost of customer acquisition versus customer retention.

  • The cost of customer acquisition versus customer retention could reach as high as 700 percent*
  • Over a 5-year period, customer natural attrition rates could reach as high as 50 percent
  • Businesses which boosted customer retention rates by as little as 5 percent saw increases in their profits ranging from 5 percent to a whopping 95 percent

Benefits of Marketing to Current Customers

Now I think we can all agree there’s some opportunity here to refocus more on our existing customers, rather than chasing down new ones. By simply automating the process of service lane marketing, content marketing, email marketing and social media marketing, you’ll have huge success:

  • Staying in touch with your current customer base
  • Reminding your customers of upcoming events and seasonal tips
  • Maintaining a professional appearance all the way to the inbox
  • Taking advantage of opportunities to reach out to clients you have not talked to in years; you have new makes and new models to offer them
  • Get a few more referrals sent your way

You might also like: 4 Unique Skills Your Employees Possess that Can Help You Sell More Cars

Making Equity Mining Seamless

This is why service lane marketing is vital. Think about your regular service customers. They are more profitable, more loyal and of greater lifetime value to the dealership. Service lane marketing attracts the richest mix of loyal customers. Many dealers are wasting marketing dollars on disloyal customers who will never stick around long enough to pay back their acquisition investment.

Many dealers have been turned off to equity mining because they may have had inadequate training, didn’t use it or had improper processes in place at the dealership. Others have invested in poor software where the numbers didn’t add up and lost confidence with their staff. Either way, having an easy-to-use software solution installed is essential. Partner up with a vendor that is committed to your success. Being able to serve up customer information that is accessible at a moment’s notice is crucial. Your staff needs to have a seamless process that encourages them to use the software. Once they have bought in, it becomes part of their daily routine.

 

*Source: Frederick Reichheld of Bain & Company.

Meet Prospect Vision’s New Digital Press: The Xerox® Versant® 3100 Press

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Prospect Vision is proud to announce the newest addition to the office – The Xerox® Versant® 3100 Press. Equipped with groundbreaking technology, this state-of-the-art printing press allows for maximum efficiency while delivering unmatched quality. As one of the most powerful, advanced, and innovative presses on the market today, the possibilities are endless when it comes to providing our customers with the high-quality materials they desire.

What Does This Mean for Our Customers?

With the new Xerox® Versant® 3100 Press, our customers can now expect even higher efficiency when working with Prospect Vision. With the ability to print from such a powerful production press, we’re now able to do even more in less time. Ultimately, this means we can provide you with even quicker turnaround times, getting you the materials you need as soon as you need them. This doesn’t mean we’re sacrificing quality, though. Far from it. With technology like the exclusive Xerox® Ultra HD Resolution and Production Accurate Registration, we guarantee you’ll be stunned by the quality of your materials with each delivering jaw-dropping detail. From banners to envelopes, we can handle any job you need with a minimal turnaround time.

Details on the Xerox® Versant® 3100 Press

For those who are curious to learn exactly how efficient this press is, take a look at some of the impressive stats below.

  • Prints at 100 ppm on stocks, specialty media from 52-350 gsm, and auto-duplex up to 350 gms
  • Exclusive Xerox® Ultra HD 10 bit Resolution with four times more pixels than other presses
  • Average Monthly Printing Volume of up to 250,000 and maximum monthly duty cycle of 1.2 million
  • Fully automated color and production print optimization via Full-Width Array
  • Automated Color Calibration and Production Accurate Registration with tolerances to within a half millimeter
  • EA Toner, 2400 x 2400 dip with 10-bit RIP and an advance Compact Belt Fuser

You might also like: Why Direct Mail Still Matters in the Digital Age

Contact Prospect Vision Today

If you’re looking for a partner in printing, we are now, more than ever, your go-to source. From booklets, brochures, and catalogs, to reports and newsletters, and even wire-bound products, we can do it all. Get the materials you need with one of the shortest turnaround times in the industry, and ramp up your marketing today. Teaming up with Prospect Vision may just be the best business decision you’ve ever made. Contact us today to find out what we can do for you.

Trucks and SUVs – An Equity Mining Opportunity

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There are two kinds of vehicle owners in this country, those that drive a truck (SUVs included) and those that want a truck. In the latest 2018 May sales recap, trucks commanded 62 percent of new vehicle sales. This paradigm change in the market is so complete that Ford will quit producing cars in 2020.

This presents a tremendous opportunity for equity mining. Every “car” in the service lane presents an opportunity. It’s not that people just want trucks – they need trucks.

American culture, both young and old, is increasingly focusing on wellness. Trucks and SUV’s are now crucial for hauling gear. Paddleboards, kayaks, biking, hiking – you name it – are all facilitated by owning a truck. Previously, those who owned a pickup truck also had a car in the driveway. But now, that second vehicle is an SUV.

Equity mining

The desire for trucks and SUVs is an opportunity to create incremental sales, shorten the customer trading cycle, and to establish a significant profit center for a dealership. These opportunities turn into success when equity mining their database and equity mining the service lane are married to the right process and the right tools. Dealerships that set up a full-time department/team and have them focus on equity mining for service lane sales can convert from 2 percent to 4 percent of their total customer pay and warranty repair orders into new vehicle sales. Additionally, they can convert 3–5 percent of the eligible database equity mining contacts into sales monthly.

A little push

Make no mistake about it, a new vehicle purchase is still an impulse item. Very rarely does anyone have to have a new vehicle. A truck or SUV is an impulse buy for very rational reasons: “It’s so handy for chores around the house.” “It provides greater visibility and safety.” “It allows us to haul paddleboards and kayaks.” And so on.

Place an SUV or Crossover equipped with a bike rack, paddleboards, or kayak in the service drive next to the customer lounge entrance. Have artwork on the customer lounge walls featuring trucks, SUV, and crossovers in lifestyle settings. We have always said that two of the most influential factors in sales are social acceptability and a compelling reason to buy. Trucks and SUVs give you both.

Another tactic is to incentivize buying with YETI giveaways. Try displaying these coolers near the truck, and advertise that they come free with vehicle purchase. These coolers are known for their high quality and cool factor – pardon the pun. Leveraging the outdoor and adventure lifestyle associated with the YETI brand will help you connect this image with the purchase of a truck.

You might also like: 4 Unique Skills Your Employees Possess that Can Help You Sell More Cars

Prepare to win

Create an atmosphere for equity mining to be successful. We have all heard the quote, “The key is not the will to win… everybody has that. It is the will to prepare to win that is important.”

Taking time to stage the service lane can give an extra push to your equity mining and provide a leg up for your salespeople.

4 Unique Skills Your Employees Possess that Can Help You Sell More Cars

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All employees are different. They come from different backgrounds, have different past experiences, and possess different skill sets. While you probably already know about certain skills that make them great in their position, you may not know about others that are completely unrelated to their job titles.

By discovering the strengths your employees aren’t currently putting to use, you can find ways to utilize them around the dealership. Not only will this benefit the company as a whole, but letting them do something they’re good at can make them more engaged and happier in their day-to-day role.

While uncovering these unique skill sets can be extremely easy with some employees, it can be a little harder with others. The easy way is, of course, just asking the employee about their hobbies, interest, likes, and dislikes. On the other hand, it may take you watching them as they work to get a better idea of their strengths and unique skills.

So what type of skills should you be on the lookout for? We have a few unique skills below that one or more of your current employees is likely to possess, plus how you can utilize them to sell more cars.

Social Media Skills

You know the guy or girl that checks their Facebook page at every possible chance and stays up-to-date on all the new social media trends? This is the employee you want helping with your social media. Whether or not you have an agency in charge of your social platforms, this employee has an inside look at the dealership and can provide valuable insight on what you should be sharing with your audience. While they can help write posts, they may also be great for creating interaction and engaging with potential customers on social media.

Photography Skills

In today’s online world, images are so important, and with just about everyone owning a smartphone with a quality camera, you don’t have to have an expensive photographer at all times. From snapping inventory shots of your new vehicles to capturing the fun at dealership events, there are a number of ways you can make use of an employee’s love of photography.

Organization Skills

You likely have some employees who can’t keep up with deadlines and often misplace important papers, but you probably have others with impeccable organization skills. These are the ones that would be great for helping you plan events or assisting you in other projects that you just can’t seem to keep your head above. Letting them take the lead on these tasks won’t only help you keep your sanity, but also get them more involved in the dealership.

Fundraising Skills

Being part of the community is something most dealerships strive to do. But often, it gets left to the wayside when things get busy. If you really want to get your dealership involved in charitable causes and fundraisers for various organizations in your area, leave it to the employees that genuinely enjoy helping others and have a knack for getting other people excited about charitable causes. While this will obviously benefit the dealership, this employee is sure to find even more fulfillment in their position.

It may sound tricky at first, but by simply taking the time to learn more about your employees and uncovering their unique skills, you can find countless ways to make them a more valuable employee, plus make your dealership more successful at the same time.

The Key to Managing Your Service Department’s Online Reputation

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Customers do their research online before deciding who they want to do business with, and even more than they tend to trust their friends and family, 84 percent put their trust in online reviews left by strangers. Low star ratings, bad reviews and even non-existent profiles, can all lead to a poor digital reputation – and a major problem for your dealership’s service department.

Don’t let a bad online reputation cause your customers to go elsewhere. Learn how you can effectively manage your service department’s digital reputation and win more customers by taking a few simple steps.

Establish ways to continually learn about your service department’s online reputation

Learning about your service department’s reputation isn’t a one-and-done type thing. It’s a continual process that never ends, but it can pay off big time when done correctly. As a dealership owner, your job is to employ ways to regularly get customer feedback. Fortunately, there are many ways you can go about doing this.

One of the best ways to elicit feedback is to email your customers a survey shortly after they’ve visited your service department. While you won’t get a 100 percent response rate, customers that are extremely happy or extremely unhappy are likely to respond. From here, you can encourage your happy customers to leave a review online.

Other than soliciting feedback, you should always be monitoring review sites and social media platforms. These include your Google Listing, Yelp Profile, and Facebook Page, to name a few of the most important. By simply watching these sites, you’ll be able to get a good grasp on your online reputation to see what areas are exceeding customer expectations, and which might need improvement.

Proactively respond to the good, and more importantly, the bad

While you should always thank your customers for taking the time to leave a positive review, those left by unhappy customers should be responded to just as promptly – and the quicker, the better. Waiting around hoping they’ll go away isn’t an option in today’s online world and will likely make the problem worse. Instead, look at the problem as an opportunity to one – show other potential customers that you truly care about their experience, and two – make improvements within your department.

In your response to the frustrated customer, first make sure you thoroughly understand the problem or situation. Then, focus on solving the problem and making the customer happy. Once you’ve done that, you can ask the customer to edit their review, and you’ll likely find that most are happy to do so.

Of course, your job doesn’t end there. Now that you’ve handled the complaint with the individual, it might now be time to correct the problem on an operational level, especially if this isn’t the first time the problem has occurred.

Online reviews and ratings can leave potential customers feeling like they’ve found the perfect place to service their vehicle – or they can make a customer want to steer clear. But if you actively monitor and manage your online reputation, you’ll know for a fact that it’s bringing customers in and not shooing them away.

4 Foolproof Ways to Use Your Dealership’s YouTube Videos to Sell More Cars

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Like many dealership owners, you already know the importance of search engine optimization and how digital ads can greatly increase your online leads. What countless dealerships aren’t already taking advantage of is the world’s second largest search engine – YouTube.

As consumers become more likely to prefer video over text, this platform has the ability to become one of your main sources of online lead generation. But, of course, without a well-thought-out video marketing strategy, you’re just taking a shot in the dark. Lucky for you, we’ve found what works, and below, we’re going to share with you exactly how to turn your videos into solid lead generators.

Here are four goals your YouTube videos should aim to achieve every time:

1. Build Trust

It’s nothing you haven’t heard before – people want to do business with companies they trust. But how exactly do you build trust with potential customers online? It’s simple – you let them get to know you, so by the time they come in, they feel like they’ve done business with you before. They know what to expect from your product, your team, and your dealership since they’ve already had an inside look.

Types of videos that build trust: Dealership walk-throughs, employee spotlights, customer reviews, and model reviews

2. Generate Excitement

What are you enthusiastic about at your dealership? The new models on the lot? The big sale coming up? Then show off all there is to be excited about in order to stir up enthusiasm and anticipation from your audience. Trust us, this excitement will show in the metrics with increased likes, shares, and comments, so you’ll know when you’ve accomplished your goal.

Types of videos that generate excitement: Model reviews, feature reviews, and sales/promotions

3. Solve Problems

While there are many reasons people decide it’s time for a new vehicle, it comes down to one issue – their current vehicle isn’t meeting their needs. Learn what your customers need, and find ways to solve their problems. Maybe they’re adding a new family member and the ease of installing a car seat is a huge factor. Or, maybe they’re about to have a teen driver and safety technology is at the top of their list. Demonstrate the features that may solve these problems. The same goes for your most frequently asked service questions.

Types of videos that solve problems: Model reviews, feature reviews, feature how-to’s, and service how-to’s

4. Encourage Action

No matter the feelings or emotions your video provokes, it should always contain a strong call-to-action, encouraging the user to take action on your website. Whether your goal for them is to view specific models, schedule a test drive, or apply for financing, make sure their next steps are clear and concise.

Types of videos that encourage action: All videos should, or you’re doing it wrong!

Each video you place on YouTube should serve a specific purpose, for a specific audience. It’s not about throwing something up just so you have a regularly-updated YouTube channel. When done right, YouTube has the ability to become one of your main sources of lead generation.

Why Direct Mail Still Matters in the Digital Age

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Why Direct Mail Still Matters in the Digital Age

Why do thousands of businesses all across the country still use direct mail marketing in the digital age? It’s simple. It still works.

The perception that direct mail is going the way of the dinosaur is contradicted by numerous studies showing that it remains a solid tool to reach prospects that delivers impressive return rates. We’re of the opinion that the internet has actually improved the effectiveness of direct mail marketing efforts for our clients.

Here’s how:

More Targeted Approach

The vast number of databases available online give direct marketers the information needed to provide targeted and, more importantly, personalized messaging to prospects. It’s no secret that personalization makes any marketing effort more effective, but when you combine personalization with a compelling offer that’s targeted to the right prospect – you get better response rates.

Scrub Those Lists So They Are Shiny & New

In the old days, scrubbing database lists was an arduous and tedious process. Now, with the new digital tools available, it’s easier, quicker, and can be done on an almost automated basis. It’s also still an essential piece of any potent direct mail campaign. After all, would you open a piece of mail that lists the wrong person, or a car that you haven’t owned in ten years?

Pinpoint Timing

With the online data mining tools available, you can determine who is currently seeking out a new vehicle, who is due for service or maintenance, or when a lease term is set to expire. This is real-time data that provides an opportunity to reach customers at the exact time when they are going to make a purchase decision.

The internet and traditional direct mail marketing aren’t mutually exclusive. When you combine the two, you’ve got an effective, low-cost marketing campaign at your disposal that generates true ROI for your business. We’re ready to help you grow your business with our direct marketing services. Just let us know how we can assist today!