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The coming Apocalypse in the Car Business
Are you ready for the next recession? I’ve written about this topic in the past, and the reason some dealers won’t make the next recession, or didn’t survive the last one, is not because they don’t have a great product… it’s because they are not hyper focused on their current customers, or don’t have a plan to stay in front of them. In order to come out ahead and stay in front, you must focus on the following 2 things:
- Service Retention– what will happen during a recession is most customers will opt to stay in their current vehicles and look to maintain them instead of trading for a new one or keeping their monthly payments. You must have a plan to expand or refine your processes here to retain your current customers.
- Sales Retention – Other wise know as the long game. Let’s face it most customers don’t plan on getting out of their vehicle for at least 2-3 years. The buying cycle can be longer for others, but you have to be in front of them when they’re ready. It’s not enough just to talk to them when they’re in your service drive you must have a plan.
Retention will be how you survive the next recession. At the end of the day you must have a plan for 2 things:
- Current customers
- New customers
Review your playbook. Ensure your People are speaking the same language. Make sure you have a Process. The Product no matter how amazing -won’t sell itself. If you can apply these principles you will survive and thrive in the next recession. Remember in a down market the best always do good and in an up market the best do great.
