The sign of a healthy business or industry is one that happily looks outside of its own sphere(??), and to the wider market-place for new trends or ideas.

If I am being totally honest that’s probably not a common trait within the motor-trade. Instead we often look too closely at our own businesses and those of our peers and competitors for new ideas or services.

So that being the case, what can we learn if we do look at organisations that are “kicking goals” in other retail arenas’, and what can we carry over into our own businesses?

Three companies that spring to mind as being “stand-out” performers in their own (very competitive) retail categories are:

Apple, Starbucks and Tiffany’s. Obviously all extremely well known brands, but what can we learn if we look at them purely as retailers? What are some of the fundamental reasons that they continue to thrive and grow year after year when many of their competitors fail to do so?

Most – if not all – of us have been into these company’s retail outlets, and there are certain intangibles that most definitely exist, and are a living, breathing part of their DNA.

Firstly with Apple – most of us would have witnessed the reaction when someone purchases a computer from one of their “Apple stores”? If not it truly is an unusual experience to behold!

Once the new owner has his bag in hand and is walking out of the shop, ALL of the – many – Apple employees start loudly clapping, cheering, and generally going a bit crazy!

This, to many is all a bit embarrassing and cringe-worthy, but you only have to look at the smiles – and often shocked expressions – on the faces of the other shoppers to see something quite powerful is happening. They are turning retail into “theatre”!

It is merely a unique and quirky way of Apple saying “thank you” and “welcome to our club”, but it works. Instead of putting potential consumers off, it actually pulls people into the stores and, ultimately into the cash-registers.

The ever-increasing sales of apple products is well documented, but why is this growth primarily from Apple’s own stores where this retail reaction happens, rather than at other outlets where it doesn’t – but you can buy the exact product at the same price?

Simply, consumers WANT to shop there and feel like they ‘belong”, are appreciated and have a sense of fun!

Secondly, Tiffany’s stores (anywhere) have a great feel and prestige about them. Maybe they even come across a little elitist and intimidating, but they have also created a little bit of brand-magic and mystique.

They are probably the polar opposite of the Apple stores, as they have a feel and an aura that is un-doubtedly quite cool, restrained and very low-key – you even have to get past the security officers (or “greeters”) to get in!

However, they again have created a “different” shopping experience to their competitors and it works.

The shops are pristine, well-staffed, classy and well laid-out with attractive and un-cluttered displays of the products.

Their staff are well-presented, pleasant, obliging and knowledgeable. They are aware that shopping at Tiffany’s is an event, not just a transaction.

Interestingly you can only buy Tiffany’s products from a Tiffany’s store. They do not, and will not let their product be retailed by any other company. They have obviously realised that the retail experience is as important as the product itself.

If you could simply buy a piece of Tiffany’s jewellery at a “normal” high street store at a discounted price, would that “little blue box” still have the same pull and allure? I very much doubt it, and Tiffany’s obviously know it!

Lastly, let’s have a look at Starbucks. I was recently in New York City, and was amazed that they have so many stores, and many of them very close together. Yet all of them are full and vibrant, with queues of people waiting for their caffeine fix.

However, on each occasion there is almost always another one or two “boutique” coffee shops within a “stones-throw” – often with only one or two people in them.

Many would argue that Starbuck doesn’t sell the best coffee, so why do people flock to their stores, and walk past other coffee outlets who can arguably deliver a better product, at the same price in a more timely manner?

If it’s not about the coffee or the price then it has to be the experience. It’s the feel, the vibe, the energy, the passion of the place that people buy into and want to be a part of.

They also have lots of staff, all running around franticly and quite noisily – they look busy and help to create a buzz, and again a little bit of drama and excitement.

Funnily enough though, the people waiting in the (often quite long) queues don’t seem to mind the wait. In fact that seems to be part of the expected experience. Interestingly enough, many of the people are seemingly regulars, and their names and orders known by the serving staff. This seems to spell out to the consumer that “whilst we are busy, I still know you and recognise you”. This again, creates a sense of belonging, and allows the customer to be part of the experience.

There are also other common denominators with these three “stand-out” retailers;

None of them are selling on price (in fact its’ not even a point of discussion). They are not pushing product out the door. Instead they invoke a feeling that they happily allow people to buy. None of them are the cheapest in their field. Many would argue not even the best.., but they give the customer what they want – a sense of experience, excitement, engagement and belonging. And all are extremely profitable because of it.

They also have other common traits:

Their staff are always in uniform – so are easily identifiable as staff. Their staff are all very knowledgeable and passionate about the product and brand. They offer advice without being pushy or seemingly too “hungry” for the sale. . They also always seem to have lots of staff – looking and acting busy.

In short they are all nice, fun and vibrant places to be!

So having looked at the achievers in other fields how does the experience of a consumer compare with the vast majority of automotive outlets?

By design and necessity we are often big and in busy areas – often with insufficient car parks. So commonly before someone even walks in the door there may well have been some inconvenience or hassle in getting to us and finding a parking space.

We rarely have external greeters who point them in the right direction. So eventually they find their way into a showroom – with some pre-conceived (or learnt..) fear that we they will be put under pressure to buy a car today!

You would hope now days that most dealers try hard to soften this “1st impressions” stage and have nice lighting, easy-listening background music, the comforting aroma of fresh coffee and a friendly receptionist to welcome them to the showroom.

Hopefully they will promptly be introduced to a friendly, knowledgeable salesperson that quickly puts them at ease.

Assuming that all of the above has happened in a timely and pleasant manner – which as we are all aware, despite our best intentions and desires isn’t always the case – then the next stage is where the experience for many consumers often becomes uncomfortable and unpleasant.

We take control – which by default means that the customer loses control!

We make the customer follow our (often well practiced and documented) processes.

We qualify what their “wants and needs” are. We want to know when they are looking to buy, and how much they want to spend. We push to find out how they are going to pay for their next car and what they plan to do with their current one. We quiz them on what other brands or dealers they have looked at – and in short often get so focussed on our processes that we forget that the customer has their own agenda and needs.

We do a “walk around” presentation of the car that we believe best suits their requirements. Then get them into a demo’ for a test drive – all the time seeking positive feedback (throw in a few “trial-close” questions) and commitment.

We than get them back to dealership and try and “close them” on a specific car and then address the trade-in. How much is your pay-out figure? What were you hoping to get for it?

If they ask about discounts or think the trade-in price is too low, switch them to a “change-over” figure instead, or try and close them on monthly payments.

If this doesn’t work, get the sales-manager and see if we can “double-close” them!

If they buy great, If they don’t they were probably just “tyre-kickers” anyway……!

Now I know the above all sounds very negative and a bit flippant, but if we are being honest with ourselves that’s how the car-buying experience looks and feels for many potential consumers.

Most of the above steps have to be addressed and covered, and many dealers handle this with tact and a degree of sensitivity and polish. But that isn’t always the case, and it’s very easy to see how the whole process of buying a car can starkly contrast with the aforementioned experiences at an Apple, Tiffany’s or Starbucks store!

Unfortunately we all too often develop “one-size-fits-all” processes and procedures that we demand our customers follow – in a time when the consumer is more in touch with what they want and feel when buying a product. They also have more options than ever before in terms of sourcing products.

It is however fortunate that currently the consumer’s options are somewhat limited when buying a car – or unless we change and adapt quickly potential buyers will vote with their feet and find another way!

So what is a “better way’ and how can we give our customers a more pleasant car-buying experience?

Obviously that’s not an easy question to answer, but we can certainly learn from the better retailers out there and make it “fun” and enjoyable!

We also need to ask our customers what they want from us.

Truthfully, when was the last time that you had target groups of clients and asked them what they liked or disliked about your business, and what they would want from you?

How often do we actually check what our staff are saying to our clients, and more importantly what our clients are saying to our staff?

It is safe to assume not very often.

The good news however is that the successes of retailers like Apple, Tiffany’s, Starbucks (and many others) are proving that customers still like the interaction of going to a store and dealing with a person – as long as it’s an enjoyable, pleasant and rewarding experience.

So the future of retail outlets is safe and not going to be replaced anytime soon by a complete “virtual retail world”.

We just need to make customers WANT to come, and come back to our dealerships!!

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