Monday, February 11, 2008

Misdirected Process Can Miss an Opportunity

Saturday I went over to Carmax to get a "buy" figure for my car. I thought it would be a relatively simple process, since all their advertising boasts this fact. It seemed a reasonable assumption that I could drive in, get my car looked at, get their figure and decide whether or not I wanted to sell it to them. After all, their website says "Although CarMax will buy any car, only about half will ever make it to one of our stores for sale to the public. Only cars that pass our rigorous inspection get reconditioned and sold on our lots. Cars that don't meet our high-quality standards are sold at major wholesale auctions."

I drove to the Carmax location ON THE OTHER SIDE OF TOWN to get my vehicle appraised. I walked into the showroom, and asked a staff member, seated at a central podium, how to go about the appraisal process. He directed me to a young lady sitting at a computer terminal, who would take my information and begin the process. Before I had walked two steps towards her, I was intercepted by a sales associated, who said he could get me started. I gave him my keys and then he proceeded to launch into his standard sales presentation. I explained that:

1. I just wanted an appraisal on my vehicle
2.I was not in the market to purchase a vehicle
3.I was familiar with Carmax since I was in the auto business

When I asked if I could simply get my vehicle appraised without having to go through their entire presentation, I was empathically told “NO!” Needless to say, I grabbed my keys and left.

What happened here was typical of what occurs every day, in not only auto dealerships, but most retail businesses. The staff failed to access the customer they had. By following set of misdirected procedures, they assumed I was willing to go through the whole, long-winded presentation, despite the fact that I told them the specific purpose of my visit, which was not to buy a car! The result of this misdirection is that I left, and will more than likely never go back, nor will I ever recommend anyone to go to Carmax.

Customer service begins when the customer enters your establishment, not when they buy your product. Many auto dealerships fail to recognize this fact. Sales forces are drilled to fulfill a single objective, which is to sell a car. But, more often than not, while this objective is a possibility, you have to earn the right to earn the business. Learning to understand how this business must be transacted is critical to earning that right. Treating every customer the same, regardless of the buying situation of that customer, can be business suicide! Embracing practices and procedures simply because “that’s how it’s always been done” fails to recognize that subprime customers must be worked in a different manner than customers with good credit. A business practice that embraces one or the other, without understanding how to determine which customer you have, will fail to produce the desired results. Asking non-offensive, non-confrontational questions can help determine what kind of customer you have. A question as simple as “Are you looking for a particular type of vehicle, or just good, dependable transportation?” can tell you what you’ve got right up front. This allows you to determine what process to follow. Misdirected processes often lead to missed sales.