For many of us, 2022 represents a new year‚ new opportunities, new goals, and new chances for excellence. For dealers, this optimism means being ready for what lies ahead as we continue to navigate industry shortages and the pandemic. So, what does the road ahead hold for the automotive industry?
The Road Ahead: What Dealers Can Expect in 2022
For many of us, 2022 represents a new year‚ new opportunities, new goals, and new chances for excellence. For dealers, this optimism means being ready for what lies ahead as we continue to navigate industry shortages and the pandemic. So, what does the road ahead hold for the automotive industry?
Dealers Need New Strategies to Manage the Persistent Chip Shortage
It’s no great secret that the chip shortage isn’t going away. In fact, Bloomberg predicts the shortage will continue to impact manufacturers and dealers far beyond 2022. Needless to say, the lack of new vehicles is no longer a bump in the road, but may actually be more akin to long-term construction and dealers need to be ready to identify an alternate commute.
New vehicle sales is a great revenue source for dealers, but it isn’t the only one. To weather the new vehicle shortage, dealers should focus on selling the benefits of fixedops and used vehicle sales. Optimize the service lane to provide only the top in customer service. People still need cars that run which means cars will need maintenance and customers are willing to pay for the best. Used vehicles provide another area of revenue. Make sure used cars are well maintained and ready for the showroom. But before you can wow them in the service lane and showroom, you have to get them to your dealership.
Make sure your phones are ready to handle inquiries about inventory and options. Also, it’s important to train your phone reps to discuss shortages and push alternatives. Getting them to make an appointment is the first part of winning your customer.
Electric Vehicles Keep on Rising
Electric vehicle popularity continues to surge. EV sales were up 88% in 2021, compared to 2020. Most manufacturers are ramping up with some kind of electric option in almost every vehicle category. Even Ford is set to release their F-150 Lightning, the first electric truck to make it to market‚ one that already boasts 200,000 reservations. With the rise in popularity, dealers will get more traction with customers if they offer EV options.
A determining factor in your success will be your ability to market to your audience and manage customer inquiries into your inventory. Make sure your phones are in good working order and you have notifications enabled to follow up into any inquiries regarding electric vehicles.
SUVs Will Continue to Dominate
As a leading sales category for 2021, SUVs are hot commodities in the vehicle market. With new vehicles in short supply, dealers can proactively stock their lots with used options. Also, Americans are going for these roomier options to accommodate growing families and the space needed for travel. Given that space is a requirement, dealers can pivot when talking with prospects and easily offer alternatives. Make sure your phone reps are familiar with your inventory and can speak to the benefits of different options.
Customer Service Reigns Supreme
More than ever before, customer experience is leading the charge. Even Forbes has cited the customer experience as key to survival in the modern automotive market. While inventory matters, ultimately it is your service that makes the difference. New online-only retailers have simplified the buying process and even removed humans for a contactless purchasing experience. Customers can find what they want without interacting with others‚ but most often, customers actually want to be wowed with customer service. Prepare your dealership for customer service and you’ll be on the right track.
Your Phones Will Be a Deciding Factor in Sales
Most appointments or showroom visits start with a phone call. Your first step in a stellar customer experience is that touchpoint. In 2022, your phone experience will be more important than ever. Dealers received more calls in 2021 than ever before. Getting callers to the right people and making sure your reps are prepped with the right information is essential for getting prospects into your store setting the tone for your customer relationship. The right phone software even comes equipped with AI technology to provide accurate call transcripts and notify dealers of missed opportunities.
The road ahead might look a little different than we’re used to, but bold dealers will emerge successful!
