As we conclude our Retail Revolution series, we present the key takeaways for dealers.
Over the last year, the Retail Revolution series in Canadian auto dealer has focused on seven companies. But in a twist from you’d normally expect, none of them is directly related to vehicles or dealerships. Instead, we looked at restaurants Chick-fil-A and Panera Bread; clothing retailers Burberry and Nordstrom; retail giant Amazon; software company Shopify; and Disney.
We moved away from our readers’ core business to present “fresh eyes.” Back when cars had curburetors, the industry was simple. Customers didn’t know much about the new models. They took a test-drive, and you crunched the numbers. They ran those by a couple of nearby competitors, and then they made the deal.
Today, of course, they cross-shop a dozen models online before coming anywhere near your door. That’s not news, but how you handle it can be. Dealers focus on selling and servicing cars. But when you look beyond the showroom for inspiration, you can see how other industries handle challenges and apply that to yours.
Studies show that the number of real or perceived differences between auto brands is shrinking. Cars no longer sell themselves, and it’s up to you to provide the customer experience that does. Keeping up with technology is a major issue for any retailer, especially with the speed at which it’s evolving. Amazon founder Jeffrey Bezos saw potential in the Internet when it was still in its infancy, realizing he could use it to sell products.
He initially grew Amazon slowly, but once it was established, he surged ahead with new technologies. Your customers will also appreciate being able to use new methods such as phone payment apps, and to be contacted by their preferred method. Amazon also anticipates and suggests consumer purchases, and dealers with the right software tools may be able to do so as well.
Beyond maintenance reminders, sales staff could reach out at the earliest stages, assisting with vehicle research and capturing customers before they go to competitors’ stores. From British fashion house Burberry came a lesson about protecting one’s brand. The company’s signature is a unique check pattern, and it was originally used on high-end products.
But lured by the siren call of volume sales, Burberry licensed it for such inexpensive trinkets as pillows and cookie tins. It took a long time to re-establish its luxury status in customers’ eyes. You must protect not just your OEM’s brand, but that of your individual store. It’s a given that you keep up its curbside appeal, but you also have to guard its reputation. Some employees may not always understand the wall between work and social media.
It can be disastrous for your company if someone easily traced back to your store makes an inappropriate political or social comment on Twitter or Facebook, especially since it may “go viral” with breathtaking speed. Restaurant Chick-fil-A and Panera Bread became successful by serving chicken and fresh sandwiches, respectively, when most fast-food stores sold hamburgers.
Both knew they couldn’t go head-to-head with giants like Mcdonald’s, and so instead focused on winning a loyal audience willing to pay more for a quality product and personalized service. Chick-fil-A models its employee behavior on that of a hotel, treating patrons as guests and even assisting them in the parking lot if necessary.
Anytime you can outperform the big-box stores on service, you’ve made an impression on your customer that helps offset what those stores can beat you on price. Panera Bread also focuses on customers, getting them their food as quickly as possible. The restaurant is busiest at lunch, and many people left when long lineups cut into their limited meal breaks.
The company added in-store kiosks, online ordering, and a smartphone app to help them bypass the lines. Dealers who can offer appointments through a phone app may also find themselves at an advantage. Dealers can also look to fashion department store Nordstrom and its emphasis on satisfaction. It’s well-known for giving its employees the freedom to do almost anything required to make a customer happy, without the need to go up the ladder for permission.
They must also take responsibility for fixing problems, such as finding out why an online order hasn’t been delivered, rather than sending the customer to the courier. That level autonomy is built on a rock-solid base. Employees are carefully chosen and extensively trained, and must follow a pattern when greeting and serving customers.
Dealers may balk at the time and expense of such schooling, but it can pay off in customer retention and upselling. Employees who are allowed to make decisions may also be less likely to move that pricey training to a competitor’s store.
We looked at Shopify primarily because many people don’t even know this company exists. Based in Ottawa, Shopify provides everything a retailer needs to do business online, including websites, apps, cloud-based accounting, and card readers.
The company’s offerings aren’t unique, but its business model is. Founder Tobias Lutke knew he couldn’t do it alone. Shopify works with outside developers and lets them sell their apps directly to clients, boosting Shopify’s portfolio with minimal investment. Lutke also knew that many entrepreneurs are not computer wizards, and so everything is made as simple as possible. Dealers who leverage the talents of their employees, and who make every transaction as easy as it can be for customers, will also reap the benefits.
And we looked at Disney, the biggest of the big, which greets 20 million visitors each year at its Florida park. It has to take care of its customers, but seamlessly so as to maintain the “magic” for which it’s known. It started with a paper ticket system to reduce lines, and then an online version. It has since added a high-tech one that uses electronic wristbands, guiding visitors through the park while also capturing data on their destinations and buying habits.
It highlights the importance of investing in scalable technologies that can grow as your needs change, and to keep on top of emerging tools that will allow you to follow your customers online and help them through the buying process.
Overall, the most successful businesses are those who look at what they’re doing wrong as well as right; who sweat the details; who look at the future; and who examine themselves as a customer does. We hope we put that across, and we hope you enjoyed reading Retailer Revolution.
