Automotive Tech and Trends for Q4 2018

by automotiveMastermind

Automotive Tech and Trends Round Up: Getting Ready for Q4

Labor Day’s long gone, kids are back in school and the days are getting decidedly shorter. It all adds up to the end of the year, the start of Q4 and the question on everyone’s mind:

Are you on track to meet your sales or revenue targets?

Given how volatile this year has been, chances are pretty good that the answer is no – or at least a resoundingly shaky, “not yet.” Most automotive retail professionals will be working hard to make the most out of the next few months, whether you’re selling, servicing, or managing.

As we head into October, we’ve spotted a few automotive trends and stories that might help as you plan for the final push toward a successful year.

August Auto Sales Weren’t Great. Is it Time to Adjust?

What: Just like in July, the sales story for August was about shifting consumer preferences versus actual sales volume. By now, it’s familiar: sales are slightly down and sedans are slumping while SUVs and crossovers continue to grab more share of the market. Still, with a robust U.S. economy and strong employment, sales remain resilient despite increasing interest rates and waning demand. Analysts do warn, however, that a down August is likely to make for a slower Q4. If you haven’t done so already, read the sales report here.

Why: With an anticipated slower Q4 on the horizon, now is a good time to review and optimize your sales approach. Are you building strong customer relationships at the service drive by leveraging both the vehicle and personal data you already have – with a smart and consultative approach? The coming months may be a perfect opportunity to do so and lower the cost of acquiring new business and boost your customer retention program. Look it this way: would you rather buy that cold lead from a third-party provider or generate it yourself at the service drive where there is an existing customer relationship?

Why Apple’s $1,099 iPhone is Kind of Like New Car Sales

What: On Sept. 12, Apple announced three new iPhones – all of which are larger and more expensive, but without much in terms of software and technical upgrades. Experts call it a sign of the times: the market for mobile phone sales is stalling, so Apple has to increase the price while sales volume decreases. That won’t be enough, according to Forrester analyst Thomas Husson. “Apple has to build a more frequent, deeper, emotion-rich, digital lifestyle relationship with consumers,” he concludes.

Why: Consider this: According to Forbes, the iPhone X was world’s best selling smartphone in Q1 – but the iPhone 7 is the world’s most used iPhone. It’s interesting how much of the same can be said for auto retail: New vehicles are getting bigger and more expensive, sales are stalling a little and consumers are increasingly asking for a personal and emotionally-connected experience from their car – and throughout the sales process. With the average new car sales price well over $30,000, what are you doing to create that type of personal experience for your customers?

When Times Get Tough, the Tough Get Focused and Creative

What: A great series of stories are being published on Automotive News that covers dealer success stories during the Great Recession. titled, “Ingenuity Unleashed: Surviving the Great Recession,” it’s an inspiring look into how a few car dealers made it through tough times and what they did to survive – and thrive. In one story, Ohio dealer Rhett Ricart put his staff first, teaching them to look around for opportunities. Other dealers focused on creating a better customer experience so that they’d return.

Why: Tough times are always a good opportunity to focus on customer retention and the overall customer experience. Is the dealership sales process informed by intelligence, so the dealership experience is personal and proactive? How are you leveraging technology to create unforgettable customer touchpoints? Dealer owners who invest in technology or double down on advertising during slow sales cycles can often optimize their lead-to-sale conversion and prepare themselves for the next upswing in vehicle sales.

Fewer Sales or Lower Demand? Increase Your Auto Sales

What: Porsche is expanding their test of “on-demand” or subscription vehicle services, launching a short-term rental program named Porsche Drive. The program is just another way to get people into a car and engaged with not only the drive, but the process. No fees were listed, but the original Porsche Passport subscription model charges $2,000 a month. Read more about it here.

Why: You have to love new ideas that drive profitability. Here, the automaker is actively testing programs to help sell more cars. In this case, maybe the type of transaction is less important than the simple act of putting happy drivers behind the wheel of a Porsche – whether it’s via loan, lease or subscription model. What new and creative ways can your team think of to improve customer service?

How Can automotiveMastermind Help?

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