Women Walking Out - What is it Costing Your Dealership?

Today’s Women’s Wednesday is a must-read as we focus on the cost to your dealership when women walk out.

In the Wall Street Journal last month, it was reported there are now more women drivers on the road than men. The last several years the auto industry has witnessed a big and not so surprising shift in the car buyer demographics particularly in terms of gender.

This leaves many dealerships shifting their paradigm in terms of how to re-strategize their business and marketing plan to truly optimize sales to women. And, it’s leaving other dealers unsure as to exactly how to do that!

Women Walkouts: A $4 Million Cost Analysis
Dealerships don’t even know that they can increase their sales another $4 million dollars a year. How? Most walk 10-15 women out their door each month and don’t even know it. By paying more attention to women and providing critical respect + trust the whole way through the sales engagement process; those browsers can be converted to buyers. Easily.

Did You Know?

Today, when a woman walks out your store dissatisfied without making a purchase, it’s a matter of concern, because:

If she isn’t buying from you then she IS going to buy from your competitor
If she isn’t buying from you then there is a good chance she will be writing a review on a car dealer review platform about that experience
If she isn’t buying from you, you not only lost the sale, you lost the RESIDUAL REVENUE
RESIDUAL REVENUE = Vehicle + (Service Drive Visits X 3-6 years)
+ Future Vehicle(s)
THIS is happening at your store EVERY DAY; It's what you DON’T KNOW THAT YOU DON’T KNOW

Double Check Your Automatic Response, “That Doesn’t Happen Here, We Treat Everyone the Same”
Women shop at 1.9 dealers before buying a vehicle, or the equivalent of 30% more dealerships than men. Why is that? They want to get it right, and avoid getting it wrong. Don’t be so quick to think she is not leaving your store. An unhappy potential car shopper walking out of your store costs you a fortune - literally. Here’s what is put on the line when this happens:

1. You Lose the Opportunity to Make a Quarter-of-a-Million Dollar Sale
Women buy or lease an average of 8 cars in their lifetime. At today’s average price of $32,500 that money adds up quickly. Plus service drive visits over the long haul; that is a huge chunk of gross profit and sales, too.

2. You Lose a Customer for Life, or at least a Long time
Lose the loyalty that this woman and family + friends bring. Not to mention, her many referrals. Huge miss!

3. You Lose More Potential Buyers
Women are influential. This can work in your favor or against you. So, whether she is just looking around and browsing, you need to offer the ultimate shopping experience so that she walks out your door feeling content. If that happens, she’ll spread the word and - return to buy. If it doesn’t, she will walk and talk. It’s a pretty simple formula. Which side of the $4 million will your dealership be on? In today’s hyper-competitive market, its time to pay much closer attention.

Want more information on this all-important topic? Click here to read

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Comment by David Ruggles on September 22, 2014 at 12:49am: The Toyota dealer owns about 100 stores, plus or minus. Its a large organization with about 600 sales people.

Comment by David Ruggles on September 22, 2014 at 12:48am: The initiative began about 15 years ago. The all female showroom was established about 7 years ago. The group now has many showroom managers who are women. We were also successful in hiring many middle aged women as sales people. They tend to be top performers. We hired them not so much because of gender, although that entered into the equation, but because of their personality profile and personal interests, attitudes, and values graph. When we hired women who demonstrated an appeciation for beautiful things and showed a tendency to be communicators, we ended up with winners. The group has been the better for it all!!!

Comment by Anne Fleming on September 21, 2014 at 2:16pm: David, that would be great! Beyond great. PR -- local, regional and for sure NATIONAL. Let alone a innovative business model. We hear from many men that they would like to have a saleswoman selling them the vehicle.

By the way, when was that done in Japan? Most curious about the Toyota dealer.

Comment by David Ruggles on September 20, 2014 at 8:33pm: Perhaps it might be considered "sexist" but I wonder why there hasn't been anyone do an all female staffed dealership yet? Imagine the pub. We did it in Nagano Japan with a Toyota dealer client and it worked out quite well. The group was owned by a family that was traditional male dominated UNTIL the only son got married and had 4 daughters, one after another. My recommendations for more women in the business now took on new meaning and many things were accomplished. The showroom downtown in the corporate office tower is staffed completely by women. Women work in EVERY department and are great techs too.

Comment by Anne Fleming on September 20, 2014 at 3:36pm: Steve -- progressive, really! Thank you so much for your comments.

Comment by steven chessin on September 20, 2014 at 3:19pm: Double Check Your Automatic Response, “That Doesn’t Happen Here, We Treat Everyone the Same”

Anne

You are right to suggest that the mistakes handling women customers occur higher in the sales funnel - to even before human response. I have seen dealerships with hair and nail salons - child care - and shops selling branded handbags and safety / convenience car items. I saw one that provided complimentary visits to the health spa nearby. Some provide preferential VIP treatment - not merely equal.

And by-the-way -- if a woman feels more comfortable working with a women - a store can easily mention that they can request that - if they have women sales people.