These days low inventory is a well-recognized phenomenon with car dealers on both sides of the Atlantic Pond. Dealers have sometimes been known to address this kind of disruption in panic mode.
Some time ago, in the midst of the ongoing low-inventory crisis, David Steinberg wrote an inspiring Foureyes blogpost about Low Inventory Strategies to Transform Dealership for the Long-Term.
He emphasizes that disruption, whether internal or external, actually provides excellent opportunities for business improvements (that are often long overdue in the automotive distribution sector). “… because people are more receptive to try new things when change is already forced on them”.
BRING MARKETING STRATEGIES UP TO DATE
Today, many car retailers have established advanced IT solutions with easy access to both vehicle and customer data. The challenge is to make the most of these data, both in everyday Sales and Strategic Marketing.
The lack of inventory certainly provides a well-timed opportunity for change, but Mr. Steinberg warns dealers not to rush in with simplistic quick-fix solutions, only mirroring the shortcomings of the old ways.
When you have more leads than inventory, you might rather grab the opportunity to bring the business up to date, turning the temporary imbalance between supply and demand into strategic advantages. According to Mr. Steinberg, this should be done in four successive steps:
- Personalize your communications. Adapting to the situation, many buyers will pause their purchases and sometimes adjust their search criteria. Enable your sales staff to adapt to each buyer’s most recent searches and behaviors.
- Make sure your entire team is listening hard to what the buyers are interested in, rather than what you currently want to sell. Arm them (and other staff) with relevant and updated information and suggested talking points.
- Provide your team with the tools and routines required to ensure that all leads are logged to your CRM for proper follow-up.
- Embrace that a longer-term view calls for effective management of customer data.
GET A BETTER GRIP
In other words: Listen, adapt, shape up, and get a better grip on your customer base. Sounds like a great formula – regardless of supply and demand.