In its latest Highlight on Customer Experience and Retention, AM’s Tom Seymour finds a few of the methods and tools dealers’ sales teams should use to develop ICE owners’ curiosity about EVs.
The retail electric vehicle (EV) market within the UK is changing. Early adopters and environmental evangelists are already in EVs. For dealers it’s now about helping further support and educate the remaining customers that haven’t yet made the switch.
Dealers are up against it. There’s a continuing barrage of negative press and misinformation against EVs and so retailers are able where they should do some myth-busting and change into trusted advisors who can cut through the noise.
This is especially necessary as a result of the actual fact the UK Government is moving ahead with the ban of petrol and diesel vehicles in the long run (albeit at a later date than before) and introducing EV sales targets and fines for automotive manufacturers that aren’t getting that sales mix right.
Baroness Parminter, the House of Lords’ Environment and Climate Change Committee chair, tells AM that dealerships have a “hugely necessary role as trusted voices of their local communities to clear up any misinformation around EVs and explain the advantages”.
She says: “That doesn’t mean sugar-coating, but having some honest conversations.”
Changing Conversations
Fraser Brown, managing director at MotorVise, is working directly with AM100 dealer groups and automotive brands on how these EV conversations with customers are changing.
The sales mix for the highest performing dealerships is at 30%. Brown says retailers ought to be between 15% and 30% of the brand new automotive sales mix immediately in the event that they represent manufacturers with a broad range of EVs.
Anything below 15% would suggest a review is required on how sales executives are talking about EVs at the purpose of sale.
Importantly, this isn’t about just in search of customers which are inquisitive about EVs, but inserting zero emissions technology right into a sales conversation as a gorgeous option that is sensible from a complete cost of ownership perspective.
One in every of the most important advantages for EVs is how much they cost to run. So, while an EV could also be dearer up front compared with a petroleum equivalent, the running costs are where side-by-side comparisons look rather a lot more interesting.
A straightforward example of this may be that a customer charging their EV off-peak at home could possibly be paying £6 for a “tank” of energy compared with £50 for diesel. That’s nearly a 90% reduction in fuel costs.
Fuel Savings
EVs may cost more on a brand new automotive PCP deal every month, but factoring within the fuel savings could change the conversation for patrons the figures.
MotorVise has created its own calculator that might help salespeople show the running costs between internal combustion engine (ICE) and EV at compare.motorvise.com on a pence per mile basis.
Specialist home charge point installer Smart Home Charge has also developed a “cost to charge” tool that may show the differences in home energy costs specific to every EV, across a variety of tariffs, in addition to comparisons with home energy, rapid charging and destination charging.
That is one in every of the most important questions for patrons when factoring whether an EV could possibly be right for them.Access to a domestic charger unlocks the flexibility for patrons to significantly slash their vehicle running costs with an EV, particularly in the event that they’re capable of use EV specific home energy tariffs from the likes of Octopus, OVO and more.
Which means sales executives have to get way more comfortable talking about home energy,which is potentially a brand new territory for them.
Charging Access
Brown says its research estimates that greater than 65% of drivers have access to a domestic charger and of those drivers, in excess of half are completely satisfied to interact in conversations about an EV.
He says: “You’ve to ascertain where they park their automotive, whether or not they have a wise meter, who they’re with for energy and what’s the utmost variety of miles they do on a typical day. “It’s then about selling them the fitting automotive for the range they’ll be doing.”
Richard Norris, founding father of south west-based EV specialist automotive retailer Drive Green, says the sales consultation for a possible EV customer can be completely different for somebody that may’t charge from home.
He says: “The truth is that, now all of the early adopters and enthusiasts have jumped in, the number of consumers we see without access to a house charger is miniscule. Customers which are latest to EV are charging their vehicles at home.”
Nightime Hurdle
MotorVise’s own survey data shows that 90%-plus of sales people don’t have access to overnight charging at home. Brown says: “It’s one in every of the most important hurdles we have now with EV sales because we have now a set of individuals
which are speculated to be our advocates that aren’t living with this technology.”
It’s not as easy, immediately, as sending every sales executive home with an EV and putting a house charger in place. Some may not have access to off-street parking. Depending on their situation, the sales executive may not even be acquainted with their household energy bills.
Also, dealer groups may not want sales executives putting miles on EVs as a result of the depreciation.
Brown says: “In the event you ask a sales director at a dealer group how much it costs to charge an EV overnight at home, can they let you know?
“What’s the difference between a kilowatt and a kilowatt hour? Now we have to alter the language and simplify things. Salespeople need deep knowledge in order that they will simplify it for patrons. You’ve to show all that technological speak and put it into plain English for sales people and customers alike.”
An example sales executives could use could possibly be – an EV does 250 miles on a full charge and costs £7.50 to refill overnight at home. That’s 3p per mile. Nevertheless, the petrol version does 350 miles on a full tank and costs £80 to refill. That’s 22p per mile. So 12,000 miles a yr will cost you £2,640 for the petrol automotive and £360 for the electrical, saving you £2,280 in fuel per yr or £190 per 30 days.
Brown says: “These are the kind of examples and figures which are easy for patrons to grasp.”
EV Customer
Norris says the EV customer profile is changing, behaviours are evolving and the time spent with customers has probably halved.
He says: “Since used EV prices collapsed, we’re attracting a much wider collection of vehicles with greater zero emissions ranges, a lower cost point, an expansion of the client base and the questions that include them.
“Plenty of the chief issues people had before are less relevant now, comparable to range. Prior so far, it was about whether you may afford to get the range you needed.
“Now it’s less relevant because £12,000 on a used EV may need got you 100 miles of driving range 18 months ago. That very same money will get you 200 miles now.”
Norris says critical points to think about could be around addressing anything that may be unexpected about how the technology will perform. This includes things comparable to the variability in driving range, depending on the time of yr.
Norris says: “You’ve to grasp your products and the way they behave. If expectations aren’t managed accurately it could open you as much as problems.
“Just quoting WLTP figures just isn’t helpful. We mitigate these instances by realistically managing expectations. It’s really necessary customers understand these key facts and to make sure that they’re getting an EV that suits their needs.”
Toby Marshall, GWM Ora managing director, has been working with its retail network, which is around 30 locations, to get customers into prolonged test drives to get a deeper exposure into EV technology.
GWM Ora recently conducted its own consumer research within the UK market and located that of two,000 consumers surveyed, 79% of current EV drivers would ‘definitely’ purchase one other EV in the long run.
Marshall says: “Ultimately, we wish GWM ORA customers to feel confident and cozy of their decision to purchase an electrical vehicle and take advantage of the amazing advantages on offer. Our retail partners play a key role in helping with that.”
Hitting The Range
Norris says there’s really no such thing as an accurate range figure for EVs. While he believes nearly all of automotive manufacturer WLTP figures (the variety of miles it’s possible to get out of a single charge out of your EV) are achievable, there are an enormous variety of variables that may affect it.
He says: “I might say nearly all of WLTP figures are attainable, nevertheless it’s whether you’re going to drive in a way that’s going to get you to that.
“On the coldest days of the yr, are you going to do your longest drives of the yr?
“We give what we discuss with as a real-world range. It’s a figure based on our own experience that helps with explaining what customers can expect.”
Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, says that although complaints about EVs remain few in number, as a result of the relative infancy of the parc compared with ICE, nearly all of disputes are the results of the perceived shortfall in the extent of customer support received from a business, either at the purpose of purchase, or during ownership.
Fennell says areas for retailers to take into consideration addressing include how periods of colder weather and environmental conditions can affect range, or how components could be potentially subject to a distinct level of damage compared with that found on ICE vehicles.
This could possibly be differences in brake or tyre wear because of this of various driving styles, EV vehicle weight, acceleration and regenerative braking technology.
Fennell adds: “Hundreds of franchise automotive dealerships and independent retailers nationwide are committed to our vehicle sales and repair and repair codes, and to delivering high standards of labor and repair, beyond those required by law, throughout different touchpoints of a customer’s vehicle purchase and ownership journey.
“That is paramount to helping avert complaints, much more so within the EV market, where consumer understanding of latest technologies could be lower.”
Practical Advice
James Hosking, director of AA Cars, says most of the concerns drivers have about EVs are comprehensible though probably unfounded, in keeping with research.
Nearly half of drivers (45%) worry about EV battery lifespan, while 44% doubt their ability to evaluate a used model’s condition. Meanwhile, a 3rd (33%) fear second-hand EVs may offer less range than latest ones.
Hosking says: “Drivers are open to receiving advice from dealers. Almost half of drivers agree that receiving practical advice from a dealer would make the means of buying an EV easier. Essential information that customers weigh up through the buying process includes details on home charging, real-world EV range and the way it applies to their travel habits, and battery lifespan.
“Dealers must ensure all sales staff have the knowledge to speak confidently about EV charging, range, batteries and depreciation in the event that they want to capitalise on the interest in greener vehicles.”
AA Cars has launched its own free EV dealer guide to equip dealerships with essential knowledge, comparable to EV models, charging options, and terminology, that they will pass onto customers.
Hosking adds: “By providing comprehensive education on EV technology and offering personalised guidance tailored to individual needs, dealerships have the potential to speed up the switch to EVs.
This Article First Appeared At www.am-online.com
