Posted on: 20 Nov 2023 | Post By: CitNOW Group
Mind the gap: sales-driven strategies to identify revenue and performance wins
Balancing stock pricing and lead management effectively are important parts of building a successful dealership.
A recent study, conducted by CitNOW Group, has underlined the importance of this. Some 91% of retailers feel that a clear pricing strategy is crucial, and 81% feel they’re keeping up with an evolving industry and adjusting prices accordingly. However, a deeper analysis using data from REALinsights, found that 40% needed a change of more than 2% either up or down based on the current market rate.
In a fast-changing marketplace, fine-tuning pricing and managing leads successfully can make a real difference to speed of sale, customer satisfaction and ultimately your bottom line. This blog explores the key to defining a successful pricing and lead management strategy and highlights four tools for making the most of it.
Defining your stock strategy
Evaluating the impact of your stock strategy, and making sure inventory has the broadest possible appeal to customers, involves considering factors such as vehicle age, mileage, desirability, demand, make, model, fuel type, and how long each vehicle has been in stock. All of this information, alongside changing market conditions, helps define the ideal pricing for each vehicle – but taking care of all of this manually can be extremely time-consuming and inefficient.
This is where automated business intelligence tools, like REALinsights from CitNOW Group, are indispensable in streamlining the stock strategy process. As an example of what is possible, one of our customers who used REALinsights over a six-month period boosted average Gross Profit Per Unit (GPPU) by £250, and reduced average days to sell by up to 25 days per vehicle. The same intelligence has also helped them boost overall sales volume, increase upselling success with products like GAP insurance and paint protection, and gain more repeat aftersales and servicing business.
At the same time, good pricing should come hand-in-hand with effective lead management, so that customers feel they’re getting a quality experience as well as a fair price. Our research has found that 24% of customers make enquiries outside regular working hours, and yet customers generally still expect rapid responses: a quarter expect an answer within 30 minutes through the same platform they enquired on. Technology can help with this, either through tools like React for lead management, or through innovative means of communication such as CitNOW Conversations, powered by Web1on1, for online messaging.
Four tools for maximising your stock online
We know that your ideal scenario is to have plenty of leads coming in all the time, which convert into high volumes of sales, so that your stock continually refreshes and recycles. Many retailers are actively investing in technology to enhance and support their sales processes, and we recommend tools that cover these four areas:
- Visually appealing assets: high-quality images on listing pages that display both interior and exterior features are vital for engaging customer interest and informing them on key details. Enhanced imagery tools like Auto Imaging can ensure you create the best possible content, and drive excellent first impressions and more compelling online retail experiences.
- Engaging sales videos: these form a powerful tool in giving potential customers answers to their specific queries, as well as a personalised showroom experience from the comfort of their own homes. CitNOW Sales can be used to create personalised connections with customers through tailored communications which build rapport and foster trusted relationships whilst increasing appointment show rates.
- Effective digital communications: responding promptly to customer enquiries with personalised, informative content is crucial to maintaining customer interest at every stage of the sales journey. A combination of video tools like CitNOW Sales and messaging management through CitNOW Conversations can help achieve this.
- Seamless customer experiences: delivering a smooth customer journey from first contact to conversion can put the customer at ease. An all-in-one sales management system like Dealerweb Showroom comes into play once an efficient stock strategy is in place and leads come in. It enables seamless sales operations through smooth integrations into third-party systems for better customer experiences.
A customised, adaptable stock strategy is essential for success in the modern automotive retail landscape. This means ensuring that vehicles are presented in the best possible light with high-quality content, and delivering timely and effective communication throughout the sales journey. Tools like Auto Imaging, CitNOW Sales, REALinsights and Dealerweb come together to deliver on these expectations, and help make your bottom line as healthy as it possibly can be.
CitNOW Group’s range of solutions can make it easier for you to manage your stock strategy, maintain quality presentation and stay connected with customers. Take a closer look at how we can help you. Find out more here.