Category: EFG Companies

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EFG Companies

New Customers. Same Dealership?

On the other end of a harsh economic recession, it’s become very clear that the Americans of today are drastically different from Americans in 2008. People not only tightened their belts over the past four years, they also completely changed their relationship with retail. From iPods to Cadillacs, Americans research online for the products that provide the most for their money and quality customer service.

Poring over blogs, engaging with friends on Facebook and Twitter, reading review sites, Americans are more knowledgeable about the products they purchase than ever before. And, as Generation Y continues to increase their purchasing power, they are leading the movement in the digital retail space.

Considering that consumers are making decisions online before even hitting a dealership floor or credit union office, how adept is your dealership or lending institution at directing the conversation? When asking your team to promote online reviews do you often hear the following?

  • Bad reviews will hurt my reputation.
  • My boss will see the negative feedback and I’ll be in trouble.
  • I’ve already asked them to do SO MUCH, I don’t want to ask for something else.
  • My customers aren’t online.

Training your team to overcome these common myths and ask for the review is essential in directing more and more customer traffic. One of the best ways to create an environment that fosters positive reviews is to choose a team member with a good foundation on review sites and use them as a spokesperson. As they reap the benefits of positive reviews, have them share their experiences and teach team-members the different ways they ask for reviews.

In addition, you can use your team’s competitive nature to increase reviews by posting weekly scorecards in the back office or break room, where everyone can see who received the most reviews and who received the least. It is also a learning opportunity as to what customers are more sensitive to or interested in.

You teach your sales people every day to ask for the sale. Asking for an online review should be a no brainer.

With over 35 years of consumer insights, EFG Companies and The Transcend Group know how to train your team to foster growth, innovation and transformation both online and off.  Learn how we can help you take control of your reputation today.

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Economy EFG Companies

Good Economy? Bad Economy? It Doesn’t Matter!

Contributing Author: John StephensWith all the news about the government shutdown, national default, government furloughs, finger pointing and crisis talk; everyone is avidly watching Wall Street to gauge how badly the economy will be affected.

Consumers are concerned with keeping their savings intact while dealerships are concerned with fortifying their business to survive a potential economic plunge. Isn’t it time to get off the rollercoaster and stop being thrown for a loop?

So, let’s stop and think about the retail automotive industry for a second.

Whether the economy is good or bad, consumers will still be in the market for a car. Their needs for said vehicle may change depending on the economy. For example, with the latest recession, we saw the trend of consumers purchasing cars that last longer with better gas mileage. They didn’t stop buying, they just changed what they bought and how often they bought it. They also became less brand-loyal.

On any given day, your dealership is competing with at least two other businesses to close a sale. It doesn’t matter whether that day falls in a good or bad economy. The difference between a good and bad economy, is that sale means more in a down economy. So, how do you fortify your business for a more volatile economy?

You go back to basics:

  • Hire Top Performers that consistently deliver results on the sales floor and in the F&I office.
  • Place those Top Performers in roles where they will thrive and train them to maximize their strengths.
  • Focus on customer service, not just the sale. The best sales people see themselves as advisors. They listen to the customer and address their needs with courtesy and respect.
  • Position your dealership as providing value beyond low interest rates. This ties back into customer service and bridges into the F&I office. Consumers are paying more attention to their return on investment just like businesses. Provide products and service that reflect their need to keep their savings intact.

With over 36 years working with dealerships to develop their people and their products to achieve the best results, EFG Companies knows how to take your business off the rollercoaster and chart a course for success. Find out how our recruiting, training and product development will enable you to not only survive in a volatile economy, but also thrive!

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EFG Companies

KISS IT!

Contributing Author: Eric FifieldHow 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?