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A well-run, vibrant Used Vehicle (UV) department can form the backbone of a dealership’s entire operation. The UV department of 2021 is a far cry from the traditional model and is becoming more scientific and complex by the day.
Below are three actionable steps across the whole UV sales journey that will help to improve the customer purchase experience, help boost sales and go a long way to improving dealership profitability.
Get Creative with Targets
Traditional metrics that focus strictly on units sold can often cause a drop in sales team motivation once monthly targets are met.
Instead of incentivising salespeople on units alone, consider restructuring compensation packages to create focus on selling aftermarket accessories, extended warranty and other add-ons.
Finetuning the UV commission structure to help improve salesperson motivation and cut down on the customer ‘pinballing’ between multiple people within the dealership. This should ultimately support a more enjoyable and seamless customer purchase journey.
Consider Hiring a Dedicated Online Co-Ordinator
In the tech-driven world we live in, a business’s website is its second shopfront - a sleek and well-designed web page is just as important as a clean, well-presented showroom. The importance of this is often forgotten in the UV department, particularly when it comes to the online photography and presentation of UV stock listings.
Consider hiring an Online Co-Ordinator who would be responsible for taking and editing sleek photos and comprehensive walkaround videos of all UV’s.
The creation of this role should help boost UV leads, with customers wanting to purchase a UV having the ability to perform their research without the need to come into the dealership.
One of the most effective changes we have noticed is a shift away from the idea of hiring salespeople with traditional automotive sales experience. While it can be difficult to eliminate this natural bias, thinking outside the box when it comes to recruitment could have a substantial impact on sales.
Consider opening the pool of candidates to tap into other industries such as hospitality and retail. These workers sometimes possess strong people skills and an emotional intelligence that can bring an energised and relentless customer-focused approach to your UV department.
Basic business foundations and dealership specific learnings can be learnt on the job.
Do your experiences reflect these points? If so, we would love to hear from you to unpack the day to day operations of your UV department.
Oliver is an Analyst within Deloitte's Business Assurance practice, working across a range of Strategy and Operations projects unique to the Automotive industry.