MARKET INSIGHT
AMONGST TODAY’S CHALLENGES THERE ARE OPPORTUNITIES
By Alex Watt, Regional Manager MotoNovo Finance
Alex Watt
C
OVID-19’s impact has been unprecedented. In our automotive world, there are immediate operational and cashflow issues and
alongside these is a need to address what some commentators reflect has been five years’ worth of change condensed into the last three months.
It is impossible for dealers to return to the pre-lock-down state; seeking out positive change is the way forward. Looking positively: • New Customers - to support social distancing, public transport capacity could be reduced by up to 90% the UK Government has suggested. Many people will choose to switch to cars/motorcycles/scooters. To put this in context, 30% of Edinburgh residents use a bus every day.
• Trust-building & Reassurance - “battered and bruised” is the latest summary from the GfK consumer confidence index. Taking the time to provide and promote the essential ‘COVID-Secure’ requirement detailed by the Health and Safety Executive can create extra value in the personal service that dealers pride themselves on delivering.
• Getting Leaner - it’s time to have a hard look at costs and the value they deliver and assess the options.
• Getting digital - this has to be a priority and a
“It is impossible for dealers to return to the pre-lock-down state; seeking out positive change is the way forward.”
simple website shop window is unlikely to be enough now. For ease of understanding, websites need to support transparency and customer engagement in areas such as finance ‘selling’ cars and the dealer. Promoting your culture, values, heritage, added-value products (aiding customer reassurance), news, reviews, testimonials, buying methods such as Click and Collect and delivery, aftersales and of course your stock and re-assess the cost/ value of all of your online marketing channels.
• Collaborate & Engage - doing everything at once may be tough. Working with suppliers collaboratively can help accelerate your change; guidance, support and expertise in areas such as digitisation and distance-selling
are often available. Engage with trade bodies, webinars and media platforms; it is often free help!
And finally, finance On 9 June,
Moneyfacts.co.uk reported that: “Not only is it becoming more expensive for consumers to take out personal loans, but many are finding that their loan applications are being declined or held up for long periods of time.” Dealer finance can be even more important, especially as a marketing tool with people commonly looking to a monthly budget when assessing their next car.
The immediate opportunity for finance must recognise that regulatory change is still on the agenda, it will mean further change. The FCA’s imperative that we focus on delivering fair customer outcomes is a mantra for all parts of motor retailing and reflects the changed landscape. At MotoNovo, we stand ready to help and collaborate in delivering such outcomes. We have developed a fresh new approach to help dealers and their customers, MotoRate. A pilot test, concluded ahead of lock-down, of over 100 dealers provided highly impressive results and we look forward to speaking with the dealer community about just how it can help.
For more information:
www.motonovofinance.com
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WWW.SMTA.CO.UK
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