We configured a Seat and a BMW on their respective websites and headed to two dealerships so as to discover the live product and get the best price conditions. Get to know an experience that shows how the auto retail can perish and another one that shows how it can survive! Not even if we had intended so, could we have picked better examples… Once again, World Shopper tells you what it was like, always focusing on showing new ways and solutions to the purchasing experience at a dealership.

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Nothing but ambiance...

Brussels, January 16th, 2010 – The “world Shopper – Reinventing Car Buying Experience” team was in Brussels while the respective Motor Show took place. On the hoardings, Kia apologised Toyota for starting to offer a 7 year guarantee for all their models marketed in Europe. Peugeot, Renault and almost all the manufacturers were offering special promotions for this event. Let’s see how all this eagerness to sell cars reflected on the buying experience at a dealership. Come along!

Seat

Poor Ibiza

That Saturday morning, at 9:35 a.m., the D’Ieteren Anderlecht Dealership stand from the industrial area of Brussels, was all prepped up: three salesmen and the Receptionist were hosting the Customers. We went in without anyone noticing us – at least that’s what it feels like when nobody greets us – and waited 10 minutes until we were actually attended. With a pleasant (though introductions and badge-free) approach, the Salesman asked which model we were interested in and what was the annual average mileage. We said we wanted a Seat Ibiza SC (3 doors), with a 1.4 TDI engine and that we drove between 10.000 and 15.000 km per year, mostly in the city. The Consultant said it was an adequate choice to our profile, without ever exploring the possibility of interest in a gasoline version. From the start, he started explaining, in a quite clear and detailed way, what the promotion policy was in terms of equipment packages associated to the Ibiza class.

Since this conversation took place right next to an exhibited Ibiza SC that even had the door open, we would expect that after the poor needs assessment and an extemporaneous approach regarding the promotional conditions, we would move on to a static presentation of the product…
Surprisingly, the Consultant turned his back to the poor Ibiza and invited us to walk with him to his office. When passing by reception, where there were two trays with croissants, he thoughtfully asked us if we cared for some refreshment.

“I’ve explained it all.”

In the untidy room, we were entitled to two chairs and to follow the configuration the Consultant was carefree doing on his computer. Apart from the exterior colour, the seats and wheel trims (about which the Customer’s opinion was requested), all the configuration was basically about integrating the promotional equipment (Pack “Tonic+”) in an Ecomotive version. The Consultant did not explore the Customer’s interest in other versions of the Ibiza SC or in any of the optional equipments. The explanations were always centred in financial arguments without a single reference to the product-advantages. Both name and phone number were asked from the Customer, but the e-mail was ignored. At a certain point, the Consultant opted for passing us on to another Consultant, saying: “I’ve already explained everything to these gentlemen – you only have to make the proposal”. Everything? What do you mean “everything”?

WS remark

Nowadays, Consultants’ online configurators are a temptation – a dangerous one! They allow a comfortable definition of the intended model, on the desk, with the Customer sitting down and with all the information available. Everything is OK, except that this procedure draws away both the Consultant and the Customer from the metal made product – one of the main appealing factors on a dealership buying experience. Configuring on a computer should always be seen as a complement to the product static presentation and never as a replacement of the latter.

Speaking of online configuration... The time is ripe to start studying a more ergonomic and effective solution than a screen shared by two people peeking on opposite sides of a desk. Pictures are not clearly visible and, especially, text and numbers can be practically unreadable. A simple data-show would be a better solution, at least for the options assessment, leaving the final prices screens to be exclusively visualised by the Consultant.

The second Consultant, also nice and available, delivered a proposal, a very well presented one, containing the famous cut off inherent to the equipment campaign, as well as a spontaneous discount of €770.75. This proposal was handed in, practically with no explanations, but inside a good quality binder, along with a catalogue of this class promotions, a price list for all the versions and options of the 5 door Ibiza (not the SC), a leaflet regarding an option for leather seats at that Dealership and, impossible to miss, a copy concerning the equipment campaign for the “Tonic+ Pack”!

Not a word.

We wondered if behind all these promotions and financial advantages there would actually be a car? Facing the inexistence of a static presentation or any invitation to try out the intended model until negotiation was over, we opted for taking the initiative and ask if it were possible to run a Test-Drive. “Right away”, said the Consultant showing us to Reception. After signing a Liability Agreement, the nice lady handed us the key for a 5 door Ibiza 1.4 TDI, pointing to the car outside and telling us that the reverse gear “had to be pushed down and backwards”. Nobody came with us for the trial and all we were told about the new Ibiza generation was how to reverse! The trial was so short that the Receptionist even asked us if there had been any problems with the car… We said there hadn’t been any, while the second Consultant walked past us without any reaction whatsoever. Did you like it? What did you think of the dynamic behaviour? It was a 5 door version, but it is mechanically identical to the 3 door version. Nothing – the Consultant said nothing.

WS remark

Among the Customers truly interested in getting to know the product, some actually would rather take the Test-Drive on their own. However, this only happens because their expectations about the Consultant’s performance are low. A Consultant that is able to make a simple Test-Drive become a “driving experience” session is able to overcome the Customer’s expectations and to make him/her prefer to have an accompanied Test-Drive rather than alone. Last, the Customer’s follow-up throughout the Test-Drive opens a window of opportunities for the Consultant: possibility of getting to know the Customer better, of showing the Customer how the product satisfies his/her needs, of guaranteeing that the Customer realizes the vehicle dynamic performance, and of solving possible objections, among others.

At the end, we asked the Receptionist for a model’s catalogue, who handed us an Ibiza’s… with 5 doors! D’Ieteren Anderlecht doesn’t really like the Ibiza SC... We left an hour after stepping in.

Conclusion

Price, price and price! The obsession about proposing to the Customer as many promotions as possible made this team lose perspective on the fact that they were selling something, in this case an Ibiza SC. We did not see the product, we did not hear about its advantages and there was nobody there to answer the objections when they came up. We had access to much less information than what we would have gathered simply after googling it. We entered the D’Ieteren Dealership interested in an Ibiza SC 1.4 TDI and we left thinking about how much of a discount we could get in any other Seat Dealership; or we left thinking there must be something wrong with Ibiza since it is being so strongly promoted; or we left thinking about any other Ibiza’s competitor.

BMW

Passion

Jean-Michel Martin had outstanding results on the Belgian National Tourism Championship between late 70s and 90s and one could tell the love for cars when it came to the details at the Dealership: M versions on exhibition, all units very well presented and an impeccably recovered Isetta.

After checking that it wasn’t closing for lunch, we went in the Dealership located in Brussels industrial area at 12:35. Once again, it looks like we weren’t seen by the Consultants that were attending to other people. Anyway, 7 minutes later we were already in the company of a badge-free Consultant.

Asking for a “budget” can’t hurt.

In a friendly and calm tone, the Consultant started by identifying the Customer’s basic needs, both regarding the intended model and annual mileage as well as the type of route. This aspect could have been explored further, considering the versatility featured by BMW X1 sDrive 1.8d – the model we were interested in. As a pro, one should highlight the question regarding the total and monthly budget that the Customer was willing to allocate for this purchase. BMW has some competitive financing solutions and exploring the monthly budget right from the beginning while identifying the Customer’s needs, can provide the Consultants with some important assets for the optional configuration moments, for refuting against competition and when it comes to defining the final prices.

Invisible quality

The Consultant invited the Customer to step into an exhibited X1, asking him to sit comfortably and clearly explaining (though touch- or demo-free) the main comfort equipment. The only exception was the length adjustment on the driver’s seat, when the Consultant activated its control and explained the positive influence of this equipment concerning comfort during the longest trips. In a model which features quality material and a high manufacturing accuracy, there was never a touch on a pleasant plastic surface or a highlight on a perfectly adjusted gap. References to technological arguments, consumption and environmental impact were also missing.

Booster

The Consultant tried to show the boot but he couldn’t open it for not having enough power supply. He called for a mechanic with a booster that didn’t manage to solve the problem either. Meanwhile, he showed the engine compartment and, by the end of the visit, he showed the boot.

WS remark

For us, it was not a pleasant vision to see “our” brand new X1-to-be crammed with electric wires: exhibited vehicles can have power supply kits specially conceived to avoid these situations.
By the way (and using these kits) why not exhibiting vehicles with their daylights on thus taking advantage of the spectacular shapes on the LED headlights?

Optional equipment: the black sheep.

Seemingly more comfortable on the computer rather than with the product technicalities, the Consultant invited into his office where we configured the intended model and were given a value proposal. Despite explaining each equipment option reasonably well and providing examples of some practical cases, our nice spokesman did not sell those products: he rarely mentioned the cost of each one of the presented options, thus not giving the Client perspective about the choices he was making.

While gathering the Customer’s data, the e-mail address was missing although the Consultant was filling in a form that had that option.

WS remark

Especially regarding Premium models, optional equipment can have a significant impact when it comes to the product’s appeal and its final price. Options are often presented in an excessively synthetic manner, with no conviction or demos. Acknowledging that it is not possible to have all the available options on the exhibited models, it would be advisable that the Sales Teams would more frequently use the equipment practical demos that they are trying to sell or that they would be assisted by appealing information supports such as technical videos.

Product well defended, but at a distance.

Confronted with the possible Customer’s option for the VW Tiguan, the Consultant argued for his product in an effective and constructive way, without ever despising competition but mentioning the propelling advantages (when comparing both models on the 4x2 versions), the X1 current nature (“guarantee that it won’t be significantly altered during the chosen financing period”) and the respective residual values. Confrontation to the competitor took place in the Consultant’s office. Would this conversation have occurred by the exhibited model, additional arguments could have come up in an intuitive way, such as the more sophisticated aesthetics on the X1 when compared to Tiguan and even the different position of both models (Premium and generalist).

After all, After-Sales is a doable argument

The explanation regarding the financing product BMW Select was brilliant and the Consultant transmitted the notion that the product was very competitive, allowed low monthly payments and flexibility regarding solving the contract (residual value). The effectiveness of the Travel Assistance Service was quite well advertised too, mentioning practical cases and quoting satisfied Customers. The approach regarding the financing option was used by the Consultant to mention the after-sales structures that the Dealership offered in Brussels and to highlight the advantages of the Maintenance Contract, explaining what was included and excluded from such contract.

I wonder if it fits...

The test drive was spontaneously offered by the Consultant, though there was no available vehicle to perform it right away. The Consultant effectively promoted the test, saying that would be an opportunity for the Customer to try out the car under its own usage conditions, i.e., doing the usual travel, checking the parking possibilities in his garage, etc. Besides, he granted his own availability to perform the test, both during the week and at the weekend.

When saying goodbye, the Consultant reassured his utter availability to clear out any doubt the Customer might have, explaining he would always be reachable, both in and outside the company. The catalogue and the professional business card were spontaneously handed in, as well as the proposals for cash and BMW Select financed purchases.

Conclusion

This Consultant complied to his essential function throughout the first contact with a Customer: getting to know him, showing that the product satisfies his needs, highlight the product value, make it reachable for the Customer without slashing down its cost, creating an appeal during the visit plus the expectation of a stronger appeal for the next step of this business (test drive). Thus it is more likely that the Customer is looking forward to the next step, rather than start looking for more competitive values with other Consultants who might not be as for him as this one was.

by Ricardo Oliveira

Coming soon...

Reinventing the new car’s buying experience at a dealership to recover this business’s sustainability is really possible! We have prepared this out of the box event for professionals, where a Customer that buys cars on a daily basis, that thinks “CARish”, yet speaking “CLIENTish”, that knows the sector real world, yet moves according to the “Client-vision”, will do everything it takes to INSPIRE the audience with real examples, innovative ideas, clues and insight. You will take home the mightiest tool: the will to change!

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