CULTURAL TRANSFORMATION – FROM HARD SELL TO CONSULTATIVE CUSTOMER EXPERIENCES
The automotive industry is currently experiencing a profound shift, with the purchasing habits of customers evolving at a rapid pace. Technological advancements and shifting customer expectations are rendering traditional hard-sell techniques ineffective, potentially resulting in subpar customer experiences. In this era of cultural transformation, automotive companies must adopt a consultative approach that places customer-led interactions at the forefront. This article delves into the dynamic changes taking place within the automotive market and outlines crucial steps businesses should take to thrive in this new landscape.
Evolving Customer Behaviour
Customer engagement with dealerships is changing. Showroom visits are declining as customers prefer omnichannel experiences, seeking flexibility in their interactions. They are well-informed, conducting online research before visiting physical dealerships.
The rise of electric vehicles (EVs) requires a revised sales approach. Sales success comes from confident, knowledgeable, reassuring, honest, and supportive sales executives who help customers in their transition to EVs.
EV buyers prioritise technology and features over brand loyalty. Subscription services are gaining popularity, providing new revenue streams. To capitalise on these changes, businesses should effectively communicate the benefits of subscription services and align them with customer preferences.
Shifting from Sales Volume to Customer Experience
The, once dominant, effectiveness of aggressive sales tactics is diminishing, and customers increasingly express their disapproval of such approaches. It’s essential therefore that OEMs and dealers recognise the need to move away from these methods. To successfully transition, a top-down approach is crucial, with leaders promoting customer-centric strategies. While profitability and sales volume remain important, bonuses and objectives should also be aligned with customer experience (CX) metrics. Leaders should make a point to emphasise customer-centric values in conversations, meetings, and incentives to reinforce this shift in focus.
At PHM, we recommend the following actions to ensure a successful transformation:
Know your employee motivations: It's crucial to consider the motivations of the sales team when driving cultural transformation. Are they solely focused on closing deals and negotiating, or do they genuinely prioritise understanding and addressing customer needs? Some individuals may need to be taken on a journey to reshape their core motivations, while others may struggle with this transition. A mix of recruitment, training, and ongoing motivation strategies can help foster a customer-centric mindset among employees.
Rethink Employee Strategy: Embracing a consultative approach may require you to consider a different type of employee. A key challenge lies in identifying the underlying motivation of individuals who are not driven solely by the number of vehicles sold in a given week. Other factors can contribute to ensuring an engaged workforce: Training that enables them to continually enhance their skills and better support the customer, contributing to their job satisfaction. Receiving recognition and rewards for their dedication to customer support can also serve as strong incentives to remain engaged. Additionally, some employees may be motivated by the prospect of career progression within the organisation.
Spread the skills net wide: Shifting from a sales-driven workforce to one that prioritises service and customer experience may involve recruiting individuals from industries with experience-focused backgrounds, such as hospitality. These employees often possess the necessary skills to provide personalised, consultative experiences and can work with longer-term objectives that align with improving customer experience. Remember, when recruiting individuals from non-automotive backgrounds, it becomes imperative to adapt and evolve management practices to effectively harness their unique motivations and ensure their success within the automotive industry.
The cultural transformation from hard sell to consultative customer experiences is a critical step for the automotive industry. Success in this new landscape will be reflected in conversations that shift from sales-oriented metrics to the positive feedback received from satisfied customers. By embracing a consultative approach, businesses can thrive and build lasting customer relationships in the evolving marketplace.