Posts tagged statistics
Originally posted 9/7/2010 on DrivingSales.com
I bought a book a short time ago, and at the top it said: “Ignore this book at your own peril.” The quote is from the best selling author, entrepreneur, and Marvel Superhero Candidate, Seth Godin. Having read most of Godin’s books, I immediately bought the book he was endorsing.
While I won’t bore you with the details of the book (it’s an awesome read), it’s a prime example of buyer motivation. Although I had no intention of buying a book that day, I physically walked into a book store, browsed through the business books (yes I’m a nerd), saw the quote by Godin, grabbed the book, and promptly paid for it. The bookstore didn’t sell the book. The authors didn’t sell the book. The publisher didn’t sell the book. Seth Godin sold the book.
How often are you asking your customers how they heard about your store? How they decided what products to consider?
What prompted them to start shopping online? How they heard to ask for you? In fact, how often are you asking questions?
I’ve been actively mystery shopping dealers for the better part of the last five years, and it’s not very often that I’m asked personal questions. I’ve seen plenty of volunteered information about the dealership’s history, the General Manager’s name, and the MSRP of the vehicle requested. It’s not very often that I’m asked if it’s better to communicate via email or phone. I’m rarely asked if I’m considering comparable vehicles. There have been solar eclipses since I was asked how I chose their store.
Why is this question so critical? It’s simple: it gives you instant feedback about how well your customer acquisition/retention methods are functioning. The answers could range from “I was searching the Internet for good deals on Chevys” (that SEO is paying off), to “One of my friends mentioned your name on Twitter “(high-five to the social media gal; get the bird-dog check in the mail), to “I saw your ad in the newspaper” (people DO still read those), to “I’ve bought my last four cars from you! You don’t remember?” (it’s officially time for a new CRM). Asking this one simple question gives you the pulse on what methods of outreach are working in real-time. As an added bonus, it gives you insight into how your customers make a decision.
If a customer’s cruising Google for good deals, it’s more likely that they are value conscious and not too dealer-loyal. If a customer reacts to a Facebook post from a friend, it’s likely that they are influenced by third parties and that they are looking for objectivity/credibility. If a customer is responding to a newspaper advertisement, they’re more likely to be reactionary and more of a “traditional” shopper. Is it not easier to respond with valuable information when you know which hat to put on? Is it not easier to make investments if you know it’s already paying off?
Although I’m pretty sure I’d turn elsewhere for car purchasing advice, Seth made it easy for me to spend $22. Your customers are following various sources of advice everyday to get that same guidance. These sources of influence are selling your product, selling your process, and selling your dealership. The good news is that it’s much easier to find out who or what these sources of influence are than you think. All you have to do is ask!
Hey, by the way…what made you click on this post?
A page full of numbers is not information. Without the proper context, it can be difficult to measure your performance. We constantly monitor our clients metrics to make sure they remain on the path to success. As we like to say, “the truth is in results.”