How many times have you been told that one product that was going to revolutionize the industry? Only to see it fizzle out. The characteristics of such items in the beginning are usually described as:
- “It’s going to be HUGE!”
- “It will change the way we do business!”
- Or my personal favorite, “it’s a game changer!”
Yes, there have been some pretty good products and processes that have been implemented into the automotive industry over the last forty years that have certainly enhanced growth and capitalized on market trends. However, most of these tools have been evolutionary not necessarily revolutionary as they may have seemed in the beginning.
Certainly the onslaught of the internet may have changed certain processes within dealerships’ marketing efforts and inventory management. For instance, according to the NADA, the Internet accounted for almost a quarter of all advertising spending in 2012. Additionally, 1 in 2 auto industry marketers say they are using QR codes to encourage consumers to interact with their brand. The finance and insurance regulations have also spawned a wide variety of solutions ranging from compliance tools to menu selling processes.
There have been hundreds of new concepts and tools introduced to dealerships over the years in the effort to provide efficiency or capitalize on opportunity within these processes. You’ll notice most, if not all, of these concepts have one thing in common: the end-user effectively utilizing them. Let me be more accurate, many end-users effectively utilizing them.
At the risk of stating the obvious, revolutionary implies the industry has been changed, forever. Attaining such a tremendous accomplishment also implies the majority of the targeted audience has adopted the concept or tool.
Let’s review the case of the iPhone.
Since its release in 2007, Apple has sold more than 200 million iPhones, which has generated over $140 billion in revenue. Why so many users? Because a 3 year-old can actually use it (and look cool doing it).
The target audience was massive. Therefore the mission was to create a device that not only can do all sorts of cool things like play movies and turn your home lights on while pulling into your driveway; but, more importantly, make it easy enough that a 3 year-old could do it. Keep in mind that the technology behind it is incredibly complicated, while the device usability is incredibly simple. It’s not that we can’t use complicated tools or execute complicated processes – it’s the fact that we don’t want to. This rings true with our customer as well.
A solution is typically born out of a need of many. Auto retail is at a tipping point as the need of the masses is now changing based on advances in technology. As the manufacturing of cars changes to more connectivity-based features and electric or streamlined motors, everything from the sales presentation to F&I product development and even the walk-around will need to drastically change. As customers continue on the trend of researching and purchasing online, traditional brick-and-mortar stores will need to change the game to compete digitally, as well.
All the while, if the objective is to provide a product or solution that will be used by most of the targeted audience, then the fundamental truth exists, it needs to be easy to use by all. We have all seen many great concepts out there that have unfortunately not done as well as hoped due to some complication in the process. As we are constantly evolving our solutions, products and processes we should always ask the question: will this work for our customers and everyone involved in the process and is it simple to use?
