(As published in Fixed Op's Magazine July/August edition) I am going to call it now, and you read it here first: we have reached the accessories “tipping point!” June 2010 is the beginning of an overwhelming adoption and acceptance of accessories processes in dealerships. YES! I have been waiting for this day since 2002. In the last several months, I have seen more industry coverage and interest in accessories sales processes than ever before. It shows that the market is past the point of “whether” to sell accessories and is now onto “how”. If your dealership is still at the “whether” stage, go back to last month’s issue and read my column for the Parts Department. However, if you are one that has made it past the tipping point and are now asking the “how” question, this article is for you. There are many ways to get into the business. I and others have written many “how to’s,” but always with the intent to drive those still deciding “whether to,” to get into the business. For many years, we have been arguing the virtues of accessories, trying to entice you with profits and success. But we need to move on to Accessories 2.0 and the concept of “Customer Life Cycle Accessories Selling.” I know, that’s a mouthful and totally sounds like consultant speak. However, it does convey the idea that dealerships, which are successful at integrating a lasting accessories process and PROFIT center, must consider that selling accessories spans the life cycle of the customer – from prospect, to purchaser, to service customer, to repeat customer. Customer Life Cycle Accessories Selling is THE complete accessories picture, not just one or a few tactical aspects. It’s the concept that marketing accessories throughout the customer life cycle is as important and profitable as marketing the car buying and servicing cycles. In order for accessories to achieve its maximum potential, it must be integrated and supported in all the places that it impacts and can impact. Specifically, accessories can have an impact on the dealership’s web site; during the vehicle sale and finance; during the vehicle’s service life; and finally during repeat vehicle sales and financing. Typically, the driving force behind a good accessories program is still the Fixed Operations side of a dealership. I don’t see this changing even with the dawning reality of Accessories 2.0. Therefore, here is check list to see where you are in the spectrum of maximizing the complete accessories opportunity. Prospecting: For most fixed operations departments, the dealership’s main web site leaves much to be desired. For fun, I still ask parts managers every now and then the last time they got one of those “parts request forms” in their email. It’s good for a chuckle. Unfortunately, many times even if the dealer does have an online accessories tool, the link to it is buried three clicks deep. This isn’t going to help a prospective car buyer consider personalizing their future vehicle. So here are the first two check boxes: 1. Online accessories presence on the dealership’s web site. 2. Link/access is prominent on the home page or at least in the new vehicle section. Of course there are many other tactical things that can be done to increase the prospecting of accessories, but adding the accessories to your dealership site and making it prominent also allows you to ‘pre-sell,” thereby making your accessories offering during the purchase process not at all surprising or - even more importantly - unfamiliar. The customer says in their mind, “Yeah, I saw they offered accessories when I was hunting around on the dealer’s site.” This gives your sales people or F&I folks confidence that they are not going to lose money on a deal but, instead, are set up to make money. Vehicle Sales and Financing Process The next couple of check boxes involve your process in the vehicle buying process – new and used. The new reality of Customer Life Cycle Accessories Selling means you have one of four processes in the showroom: 1. Sales person presentation prior to F&I 2. Accessories department and accessories management 3. Presentation during F&I 4. Post F&I presentation as part of a service department introduction All four are valid times to present accessories during the vehicle purchase process – all with various strengths and weaknesses. Usually, I find that the one that your dealership has selected is dictated by management’s “perception” of (or in some cases reality of) the dealership’s overall strengths and weaknesses. From the fixed ops perspective, what you can do to better the cause is to make sure to take advantage of the customer’s life cycle and use the same accessories sales tool that the customer used to research your dealership. This is the next check box: 1. Consistent presentation from prospecting to vehicle purchase process. (Writer’s note: while on the surface this point may seem self-serving, I believe we have reached the point of acceptance that the dealership’s web site and overall online presence is a major component of the dealership’s marketing. If we accept the idea that we need to market accessories through the dealership’s web site, why then would we not use the same tool in the showroom?) Using the same web-based tool does two very important things: 1. You are showing the customer something familiar: both your dealership web site and the accessories selling tool. Therefore, it isn’t something new and “scary.” As you know, buying a car is emotional and the last thing you want to do is turn those emotions negative by creating apprehension. 2. You are RE-INTRODUCING your own web site! It is a subtle way to tell the customer, “If you decide not to buy accessories from me today, please visit this site.” It also gives your dealership the opportunity to market other services through the Service Department. Vehicle Service Customer retention from Variable to Fixed Operations is a perennial issue. As you know, entire training classes and programs are devoted to this one subject. Using your dealership’s web site as the starting point for presenting accessories (as noted above), provides an easy way for the sales department to introduce the idea of returning to the dealership for service. (Service managers: why not start a spiff program that pays sales people if the customer returns to the dealership for their first oil change?) Beyond what could be a subtle and effective first introduction, installation of accessories is also a huge exposure to the service department and repeat business. There are a couple of ways I have seen most dealers handle the accessory installs: 1. Prior to delivery 2. Post delivery, scheduling of appointment Again, the primary factor in deciding which route you take will depend more on product availability, technician, or installation availability. However, the point here is that accessories become the natural introduction to long-term service and repeat customers. Another major opportunity in fixed ops is simply marketing accessories to current service customers (non-vehicle buyers.) You know how many cars and trucks pull through your service lane every day. These are customers with vehicles two years and older and prime targets for “upgrades” or a “refresh” of their vehicle. Check list for these customers include: 1. Printed wish lists for their vehicles 2. Digital accessories area in the service lane or waiting lounge 3. Reminder for when they leave to review the dealership’s offering for the next service visit Repeat Vehicle Sale The sweet cherry on the top of all this is that customer who either refers a family member, or decides to buy another car in the future and is already primed to be a great accessories prospect. Customer Life-Cycle Accessory Sales Selling accessories has to go from something one dimensional –only in the showroom, only through the parts department, or only online – to something that “lives” throughout the customer’s experience with your dealership. It can be used to tie many things together: customer satisfaction, repeat business, advertising for other departments, etc. That’s Accessories 2.0. Bring it on! -David Copp Stringer President
