Myril Shaw: Nabbing Stealth Shoppers
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Stealth shoppers now make up over half of new car buyers. These buyers research online anonymously and never submit their contact information through dealership websites or forms. To regain influence over customers, dealerships need to embrace a 21st century internet experience by being available wherever and however customers want to communicate, including anonymously, and by responding helpfully without asking for personal information first. This will require changes to staffing, processes, and company culture, but can significantly increase sales by engaging the majority of today's car buyers.
Myril Shaw: Nabbing Stealth Shoppers
- 2. Nabbing Stealth Shoppers Creating a 21st Century Internet Experience
- 3. About Nabthat • The Mission: To provide the best online car buying and selling experience through our outstanding products and dealer partners • Two customers at all times • Consumers (who pay your bills) • Dealers (who pay our bills) – Unique in the industry • E-Commerce excellence occurs when the needs of both customers are met
- 4. My Goals For Today You are entertained, or at least not bored stupid. You learn at least one new thing. You are provoked into thinking differently. No one falls asleep! You leave with directly and immediately actionable information.
- 5. The New Digital Divide The Digital Divide used to be those who had access to the internet and those who did not! Not anymore! Here is the challenge! Left Of The Divide – The Old • A Traditonal Internet Department – Moved From Snail Mail To Email • Plus an Auto-Responder – Desk Phones and Answering Machines to Cell Phones and Voicemail – One Mission: Set an Appointment to “Come on in.” – “Your online and overall car buying experience is dictated by us.” The New – Right Of The Divide • The 21st Century Internet Experience – Online means chat, text, email – Requests asked are responded to, at no charge • Prompt, professional, complete – One Mission: Engage the buyer by building trust. – “Your online and overall car buying experience is dictated by you.”
- 6. 8,000,000
- 9. 8,000,000 What did new car buyers in 2012 consuming $240,000,000,000 worth of vehicles have in common?
- 10. HintAccording to JD Power, all these buyers had two things in common.
- 11. # 1 They all shopped online. They were all AIUs (Automotive Internet Users).
- 12. # 2 They never submitted a Lead Form. These buyers were stealth until they showed up.
- 13. The Stealth Shoppers • 8,000,000 real buyers equates to 55% of all new cars sold – 8,000,000 stealth shoppers • 18% of all new cars sold were bought by non Automotive Internet Users – Old school, traditional buyers who simply go to the closest dealership and/or are influenced by traditional media • Internet Departments and BDCs gained access to 27% of new car buyers 18% 27% 55% 2012 New Car Buyers Non-AIU AIU-Submitter AIU-Non- Submitter
- 14. And More Stealth • The average dealership website gets 5,000 unique visitors per month • The average dealership website generates 100 leads per month • Online shoppers on your site are not taking action 2% 98% Dealership Website Actions On-site Consumers Taking Action On-site Consumers, No Action Web Site Actions Visitors Taking Action Visitors Leaving Without Action
- 15. What Keeps People Stealthy
- 16. So What – They Bought From you? How do you know? How did you influence them? By the way, so did all your competitors… You have lost your personal influence! $$$ $$$
- 17. How Did It Come To This? When did you lose direct influence over many more than half of your customers? How did your customers get so educated when you have told them nothing? Is this an inevitable reality going forward?
- 18. It Is Not You Fewer people gave members of Congress high “honesty and ethical standards” ratings than almost any other profession surveyed in a new Gallup poll released Monday. In ranking 22 occupations, respondents put only car salespeople lower than members of Congress. And while a slightly greater percentage of representatives got a “very high/high” honesty rating (10 percent) than did salespeople (8 percent), five percent more respondents scored Congress very low/low (54 percent) on the honesty scale than they did salespeople (49 percent). - The Washington Post, Dec. 3, 2012 You are victimized by an arcane, outdated and fractured process “…the characteristics that supposedly set young consumers apart may seem awfully familiar. Consumers of all ages, after all, think car shopping is torture, or at least unnecessarily painful. Lots of shoppers would be happy if the classic car sale transaction – involving stressful negotiations, hours of waiting around, and a general lack of trust all around was transformed along the lines of Gen Y’s preferences.” Brad Tuttle, Time-Business and Money, Aug. 9, 2012
- 19. There Is Much Good News You can regain influence! You can, once again, be your customer’s ally! This situation can be changed! It is NOT your fault! (At least, it did not start that way!) But you have allowed some bad behavior!
- 20. Your Second QUIZ! Note: This one is not really fair!
- 21. 8,000,000 Who is the single individual most responsible for stealth shoppers in 2012?
- 22. Hint It is not Al Gore and his invention of the internet.
- 23. Hint, hint The company he founded changed a lot of things.
- 24. Answer Jeff Bezos! Amazon changed the way people used the internet. Amazon transformed consumer e-commerce.
- 25. What Consumer E-commerce Has Come To Mean Privacy (anonymous till Point-of-Sale) No questions asked Fact: 77% of the Stealth Shoppers specifically stated that they wanted anonymity Speed Information right now Fact: Sub 2 hour response times improved close rates 25% Visibility “I don’t just know about you, I know about your competition.” Fact: The Stealth Shoppers shopped 4.2 stores Convenience Answers - Any time, anywhere Fact: Over 60% of the Stealth Shoppers were online between 6PM and 10PM Transparent and Helpful Communications Full disclosure, honest data, “all in” Fact: Helpful communications improved close rates 10x
- 26. Consumer E-commerce Is Pervasive In The 21st Century Clothes and shoes Vitamins and medicines Jewelry (even very expensive jewelry) Books (for those remembering George Carlin - Real Estate does not belong on the list) Food and wine Appliances Travel Property rental And everything except cars, boats, heavy equipment and Real Estate Companionship (amateur and professional)
- 27. The Consumer E-commerce Mentality Has Created A Market Where The Majority Of Car Buyers Operate In Stealth!
- 28. The Times – They Are A Changing Consumer Dealer Consumer Dealer Consumer Dealer The Good Old Days The Internet Age The E-Commerce Era The balance of knowledge and expectation, and so, the balance of power, has shifted.
- 29. Why Are There Stealth Shoppers? • Pervasive consumer e-commerce has taught your shoppers to refuse to “pay” for information with their Name, Email and Phone
- 30. Okay, Some Of It Is You No one in this room would support or endorse what you are about to hear No GM or Owner would knowingly allow this Buckle up! Brian, what is going on brother? Why don’t you answer your phone dude? Are you scared? I mean, you know you don’t have to be scared Brian. That is kind of silly… to be scared to answer your phone. This is _________ with _________. I was just wondering if you are a man of your word or not - and what was going on - because you did not come back - and you have not answered your phone, like a scared little kid. I was just curious though. I figured you probably went and bought the Ford and you are scared to tell us, tell me. That is okay man. Tell you what, I am a white man and I’m old enough to have stuff like that happen. Yeah, you are not going to hurt my feelings. Yeah, you can just say Mark I bought a car somewhere else. That is fine. It is okay. Really, it’s okay. You don’t have to be scared. Okay, bye.
- 31. Stealth Buyers Are Unique Buyers Unique to Stealth, 94% Dealer Website Honda Website Google Edmunds Costco TrueCar Other Other Anonymous Audience Overlap With Traditional Lead Sources, California import brand
- 32. Stealth Craves Privacy Anonymity Dealer Ratings From Other Buyers Communicating with Dealers Online Most valuable features expressed by CarWoo! users Least Valuable Most Valuable Privacy Most valuable features expressed by Anonymous users
- 33. You Can Regain Your Influence This guy! But…you can’t be… The very picture of insanity Repeating the same behavior and expecting different results
- 34. The Solution Requires Change, Effort and Commitment The three key elements of success People PracticeProcess
- 35. Not For The Faint Of Heart Step 2: Shut down your BDC Step 3: Create your 21st century Internet experience Step 4: Get to work finding the right people, implementing the right processes, instituting the right practice Step 1: Close your internet department Step 5: Attract and sell to stealth shoppers
- 36. This Is About Change News ways of communicating with customers New ways of tracking, monitoring and managing Failure to embrace change means changing to embrace failure New ways of hiring and scheduling
- 37. The Right People What Is Not A Requirement Knowledgeable About Cars Or Dealership Operations As long as they care, this can all be taught Experience Training and practice will trump experience, and there are no bad habits to unlearn Currently In Sales Look for a background where customer satisfaction is important
- 38. The Right People Where To Look Starbucks (And Other Customer Facing Jobs) Learning how to interact effectively with people is the single most important skill In Your Store Continually look for the diamond in the rough Recent Graduates College, Jr. College, possibly even High School Moms With Teens and College Students They know the technology and language; embrace the scheduling challenges
- 39. The Right People How Do You Know? Do They Have A Smart Phone? How frequently do they text friends or loved ones? Are they active on Facebook, Twitter or others? The Writing Test Get a writing sample on the spot (this is not about penmanship). For each scenario the rule is 400 characters or less in 3 minutes. Scenario 1-Have them select an object in the room, describe it, explain why it would be good for you and ask a question designed to continue the conversation. Scenario 2-Have them describe in writing what makes them different than anyone else applying for the position. What is their online profile? How do they represent themselves on LinkedIn, Facebook, etc.? What do their friends say?
- 40. Your Third QUIZ!
- 41. Who knows what BHAG stands for? (And for extra credit, where did it come from?)
- 42. Answer Big Hairy Audacious Goal A long-term goal that changes the very nature of a business’ existence. BHAGs are meant to shift how we do business, the way we are perceived in the industry and possibly even the industry itself.
- 43. The Right Processes The BHAG Fully Embrace the 21st Century Internet Experience For Automotive In all of its inconvenient dimensions Be There Where the customer is When the customer is Communicate Their Way Text – chat – email – phone – store Anonymous - private Give Before Ask First build trust Answer questions fully and disclose before asking for anything
- 44. Dealer Site Google 3rd Party Sites Yelp Twitter Facebook OnlinePhysical Against Where Your Customers Want To Find You Don’tDiscriminate The Right Processes - Be There
- 45. When your buyers are looking for you and you are not around-what do you tell them? Youmightshiftyour InternetDepartment hours The Right Processes - Be There The Internet does not close Consumers are always on
- 46. The Right Processes - Communicate Their Way Text (and don’t forget mobile) Chat – Email – Phone - Store Their preferred medium needs to be yours
- 47. The Right Processes Communicate Their Way Anonymous No matter what the medium – allow the consumer their privacy
- 48. The Right Processes The Myth Of The CRM The Traditional Process Lead (contact info) -> CRM -> Sales Process -> Sold (3% - 5%) The New Process – The Anonymous CRM Connect (anonymous request) -> Engage (Respond) -> Reveal -> Sold (80%) Stealth Shoppers Are NOT In Your CRM They will not be, unless they show up in your store.
- 49. The Right Processes - Give Before Ask Requests Are Awesome Respond without conditions Engagement Is The Key Rapid, transparent, honest responses engender engagement Once Engaged, Personal Information Follows 80% of people who have engaged in anonymous communication voluntarily gave up personal details The 21st Century Internet Respond, engage, sell
- 50. The Right Processes - The Outcome
- 51. Practice Being There Ensure prompt responses all the time Literate and Helpful Monitor the communications Continuous Improvement Track ratings and reviews to ensure upward trend Accept Anonymity Ensure communications are gives and not asks Provide a chance for anonymous exchanges The Old And Comfortable Way May Be Wrong “My team prefers to do things this way…” Your customers prefer to do things a different way
- 52. Embrace Consumer Anonymity Early Movers With Internet Leads Won – For A While Traditional leads are rapidly decreasing in value What You Do Today Works For Just 45% Of Your Buyers 18% of buyers don’t even pay much attention to the Internet Only 27% of buyers are completing forms 21st Century Means Stealth/Anonymous - 55% Of Your Buyers You can engage anonymous shoppers in a MarketPlace or on your Website (ask us how) Early movers in Automotive E-commerce win for the foreseeable future
- 53. 8,000,000
- 54. $240,000,000,000
- 55. What Happens When You Embrace A 21st Century Consumer Experience? You Influence and Engage 80% of the 55% And the 27% who come to your Internet Department are better served Today’s Internet Sales Is 21st Century Leap To The 21st Century Increase Sales Influence By 44%
- 56. The Nabthat 21st Century On Your Website
- 57. Process When a consumer tries to exit your site, our Widget will pop up and provide a brief description of your partnership with NabThat. The consumer will be taken to a NabThat page specific to your dealership, where they will be able to submit an offer or schedule a test drive. After submitting, the consumer will be taken to their NabThat dashboard, where they will be able to view your reply. You will receive the consumer’s request via your CRM, NabThat dashboard, text, and email. The consumer will remain exclusive to you. Connecting Buyers Customized NabThat Page NabThat Dashboard NabThat Customer Consumer Engagement
- 58. Widget Sample
- 59. Page Sample This is where the consumer is taken after clicking on the Widget.
- 60. Page Sample
- 61. Page Sample
- 62. My Goals For Today You are entertained, or at least not bored stupid. You learn at least one new thing. You are provoked into thinking differently. No one falls asleep! You leave with directly and immediately actionable information.
- 63. Any Questions?
Editor's Notes
- #28: Pervasive consumer e-commerce has changed the attitude of shoppers everywhere and in every retail market, including automotive. Consumer e-commerce means that shoppers never have to “pay” for information with their name, email address and phone number – at least not until the point of purchase. Consumer e-commerce has created the stealth shopper.
- #30: Where did these shoppers come from? Why are their stealth shoppers? They now expect automotive e-commerce to deliver like all other consumer e-commerce. Information is free and privacy is ensured until point of purchase.
- #33: CarWoo! users, the ones who refuse to give their contact information to you (but will give it up to us) value privacy by an overwhelming majority.
- #45: Don’t Discriminate Against Where You Customers Want To Find You