As the race to electric vehicles heats up, dealerships must rethink their entire business models or risk stalling at the starting line, say retailing experts.
Dan Broderick, CEO of western Canada-based Capital Auto Group of dealerships, said it’s critical for dealerships and the industry to move beyond the monthly sales model to a long-term play focused on tomorrow’s sales as much as today’s. That requires changing how sales staff are compensated, he said, since commissions are likely to be fewer and farther between. He noted in Europe, where countries have shifted far more towards EVs than North America, sales processes to conquest customers — those coming from another brand — take on average 4.6 visits to the dealership, compared with two visits for customers staying within the brand.
Omira Janmohamed, GM Canada’s manager of EV readiness, said communicating with customers throughout a lengthy order delay is critical, as customers may have more than one vehicle reserved, opting to see which vehicle arrives first.