An avid auto enthusiast with a fondness for American muscle cars, Steve literally grew up in and around his family's auto service business in Massachusetts. Today, he is the CEO and Trainer of Champions of Sale Away LLC. Steve has over 30 years of successful sales, sales management and sales training experience. He has been a featured speaker for numerous tire and automotive industry events across North America. As producer and host of Pinnacle Performance Training, “The Best Reviewed Sales/Customer Service Training Program in the Tire/Auto Service Industry,” Steve has received national acclaim for teaching independent tire and auto service businesses how to improve customer relations, produce greater sales results and build a "winning team" corporate culture. To learn more about the program, http://pinnacleperformancetraining.biz. Ferrante can be reached directly at 603-681-0787 or via e-mail at [email protected].
Published:
Tire and auto service businesses lose substantial dollars in revenues and profits each year because their sales and service people do not effectively sell the value of their product and service offerings.
If you have employees regularly interfacing with customers in a sales capacity, it’s a safe bet your business is not immune to this situation.
Ask yourself: Have you ever had a prospective customer request a discount, postpone an order, or worse, cancel purchasing from you? Well, then it’s a good bet they don’t understand the true value of our offerings.
Wait a minute, you say, no one wins them all. You’re right, but those who effectively sell value win more often, and make customers feel better about their purchases in the process.
Any coach will tell you that a strong defense is the best solution against a good offense. That was certainly the case in this year’s Super Bowl. The reality for most tire and auto service organizations is that their customers have a better system (defense) than they do of selling them on their value (offense).
In every industry, a business offers a product or service for sale.
So what separates one business from another and makes a customer choose to do business with one company as opposed to that company’s competitor?
In some instances, the deciding factor may be price, that is, one company offers the same product at a lower price than another. Yet, in the majority of cases, the factor that will ultimately influence a customer to choose to do business with one company over another is the level of service that company provides.
This level of service is the quality of the overall experience delivered to the customer. Understanding how to consistently deliver an extraordinary customer experience separates world-class companies from the rest.
According to Harris Interactive, a market research firm, 86% of consumers will pay more for a better customer experience. That’s a very compelling statistic, but for that to materialize in your business, customers must see, feel and experience the added value.
Perception Is Your Reality
In the case of selling anything, it is the customer’s perceived value that matters, is essential and vital – not the sellers’ perception.
The value equation is clear-cut: If your business and the service you provide are perceived to be extraordinary, then the customer will be willing to pay a premium. If your business and service are perceived to be ordinary, the customer will want the lowest price.
The customer’s perception of your employees and how your employees then execute business can add or decrease the value of your customer relationships and success. JetBlue Airways, who was recently named Customer Service Champions by J.D. Power, has figured out the value equation. From the beginning they understood that, to the average consumer, airfare is airfare is airfare (much like a tire is a tire is a tire). Without a clear, positive differentiation between themselves and competitors, they would default to commoditizing their services with customers, focusing on getting the lowest price.
“We knew if people liked the experience of air travel more, if the whole experience of interacting with our company was better, then we could levitate above a commodity business,” said David Neeleman, founder of JetBlue Airways.
To sell value, JetBlue focuses on the customer experience and makes sure customers simply like doing business with them better than the competition. When one flies with JetBlue, a few of these clear, positive differentiators include:
1) More leg space in coach-class.
2) Satellite TV monitors on the rear of each chair for in-flight entertainment.
3) Friendly and emotionally intelligent staff.
The satellite TV monitor improves the customer experience by personalizing entertainment for each individual, as they can choose from a wider range of channels. A one-size-fits-all movie could not accomplish that. And of course, more leg space is better for passenger comfort.
Last, it’s not that other airlines do not have friendly employees, but JetBlue trains its employees to convey friendliness, whereas most other airline employees just go through the motions without any extra effort.
Consider this value scenario: Let’s say it costs $625 to travel on JetBlue from Boston to Dallas and the same $625 to travel from Boston to Dallas on United Airlines. On JetBlue, you receive the aforementioned benefits of more leg space, a friendly staff and your choice of television entertainment on the flight. On United, you receive less leg space, no television and an indifferent staff. Which one is worth more to you? This is a no-brainer, as one would naturally opt for JetBlue. They might even be willing to pay a bit more in price for the added values.
Selling Value
The big question on every prospective customer’s mind is this: What’s in it for me? They only want what they perceive and believe will help them. When we neglect to answer this, we move away from building value with potential customers.
This is particularly important to understand in tire and auto service transactions where potential customers are turned away by technical features and functions they don’t understand or perceive to be unnecessary.
All too often, salespeople leave it up to the customer to determine what they want, but it’s the salespeople who should be the experts, not the customer. This situation is especially apparent when the customer requests replacement tires that may not be the best choice for their driving style or ride comfort preferences, but they did a lot of research online.
To effectively sell value, salespeople need to engage the customer in a proper discovery process first to uncover what is important to them and why.
It is only with this understanding that the salesperson can effectively communicate value and tailor a presentation to fit the needs of each individual customer. By incorporating this consultative diagnostic approach, the buyer-seller relationship is strengthened by properly positioning the sales person as a consultant.
In addition, salespeople need to know their value-area advantages. This means they need to know the areas that your product, service or business is better than competition offerings to compare for the customer. When these value-area advantages are not incorporated into the sales process, salespeople focus only on the discussion of price.
It’s About Delivering More
This is one of the most important aspects of selling value: Always provide more, not the same (and certainly not less), than the competition.
You see this value proposition all the time in the marketing and advertising of products. You pay an additional 59 cents for that “value meal” at a fast food restaurant to upgrade a 12-ounce soda to a 36-ounce one and your fries are now super-sized.
Your business should be the same way. It’s OK for customers to pay a bit more for your services; you just need to ensure they always receive more service, care or value for their extra money.
This article appeared in the March 2014 edition of Tire Review. You can read the entire issue on your phone or tablet by downloading the Tire Review app.
Tire Industry Labor Shortage: Improve This to Keep Employees
I’ve spoken to many representatives from manufacturers, wholesalers and retailers who report that techs, counter people, drivers and even white-collar team members have walked off the job, failed to report, or given notice, and their businesses have been impacted by these departures. This isn’t just a tire industry issue—and goes beyond the tech shortage that
After beginning his career as a paperboy, Phillip Kane went on to spend more than 25 years in some of the best-known automotive, industrial, consumer durables, distribution and banking businesses in the world. Currently, Phillip is CEO and Managing Partner of Grace Ocean, LLC a boutique advisory firm located in northeast Ohio serving clients ranging from Fortune 500 corporations to mid-market private-equity-backed firms. Phillip also acts as a Senior Advisor to Stout Risius Ross and Rothschild & Co, where he brings operational expertise to their investment banking businesses. Previously he was the Chief Commercial Officer in Key Markets at Pirelli in Milan, Italy working in their commercial truck tire business. Prior to Pirelli, Phillip spent 11 years working for the Goodyear Tire & Rubber Company. Before that, Phillip held executive roles with Genuine Parts Company (NAPA) and Snap-On, Inc.
He is the author of the book, The Not So Subtle Art of Caring: Letters on Leadership from John Hunt Publishing, London. He is a contributor to Inc. Magazine and Tire Review writing on leadership issues and topics relevant to the trade and currently lives in Akron, Ohio, the rubber capital of the world.
Published:
I’ve spoken to many representatives from manufacturers, wholesalers and retailers who report that techs, counter people, drivers and even white-collar team members have walked off the job, failed to report, or given notice, and their businesses have been impacted by these departures. This isn’t just a tire industry issue—and goes beyond the tech shortage that has plagued the industry for decades.
Representatives from several software providers share how solutions drive efficiency and profitability, as well as what to look for when considering a system in your shop.
By collecting and analyzing data about a dealer’s sales history, inventory levels and market demand, data and analytics platforms can analyze the performance of each dealer’s store and recommend actionable improvement opportunities.
For many PPP loan recipients, it is time to start the repayment process—or file for PPP loan forgiveness. Read on to find out which portion of your loan may be forgivable and how to apply for forgiveness, as well as how to start the repayment process.