Five advantages of a single point of contact for dealerships

A single-point-of-contact (SPOC) sales model transition is one of the few situations in the company where increasing efficiency does not detract from the pleasure of customers or employees. Actually, the reverse is true.


Single-point-of-contact selling benefits both customers and workers. Dealerships that want to save money and maximize their returns find SPOC to be more and more appealing. The link between SPOC selling and higher dealer profitability is technology.


Adopting new technology makes sense given that the only generations seeing year-over-year growth in the automobile sector are Millennials and Gen Z, two of the most technologically savvy generations in America. According to an Experian analysis, there was an 8.34% rise in Millennial new car registrations from Q3 2019 to Q3 2020, or from 26.4% to 28.6%. In the same time frame, Gen Z new vehicle registrations climbed by 40%, from 3% to 4.2%.


Dealerships may appeal to these tech-savvy consumer segments in other ways besides just providing automobiles with the newest linked technologies. A single-point-of-contact sales strategy reduces major friction and annoyance experienced throughout the car-buying process by utilizing technology.


Single Point of Contact (SPOC): What Is It?


It makes sense for someone to want to deal with the same individual from beginning to end when making a significant purchase. Customers begin, proceed through, and complete significant transactions with one primary point of contact in almost every business. The single-point-of-contact strategy is rare at conventional auto dealerships.


It may seem unrealistic, if not impossible, for a dealership to have one person guide a customer through every step of buying a new or used automobile. One person may be trained to assist clients with vehicle selection, test drives, F&I, signatures, and deliveries thanks to technology and the businesses advancing it. Most auto purchasers really prefer this option.


Dealerships will gain both in the short and long run if they provide their staff with the digital tools required to succeed with SPOC.


Five advantages of SPOC for dealers


You could be thinking to yourself as a dealer, “What’s in it for me and my store?” or “Why should I change something that’s working?” There are many advantages to using the SPOC sales approach, but I’ve distilled them down to the top five:


One. Increases profitability


SPOC adds cost-saving improvements while streamlining dealer operations.


This well-known Midwest dealership now ranks first in growth when compared to the top 10 Toyota stores in the area after switching to a SPOC sales strategy and automating a large portion of its sales process. The parent company of the dealership has also noticed a general improvement, increasing its market share by roughly 5% and automating its sales procedure during a 24-month period. Over the same period, 23 out of 27 of its stores in three states experienced growth in market share.


This is but one of many instances that show how switching to a SPOC sales strategy may aid dealerships in increasing profitability.


Study Case: How Walser Toyota Won the! 1 spot for Automated Financing of Passenger Car Sales in 2022


2. Promotes client loyalty and trust


Most automobile buyers express dissatisfaction with their experiences at a dealership.


Even if we detest the reminder, it’s important to remember that dealers have choices to go past this number. While there are several methods to alter consumer perception, switching to a SPOC sales strategy facilitates trust-building.


Using Twitter memes Liam Neeson is seen in a dialogue-overlaid picture with the following words: “I don’t know who you are, but would you like to buy a car?” asked the salesperson.


People are more inclined to purchase from someone they trust, according to studies. Trust may be difficult to find when a consumer needs to interact with numerous persons to buy a new car. Maintaining a customer’s attention on only one employee gives the room needed to develop a connection and establish a relationship.


Making an impression that sticks with a consumer can result in continued loyalty and revenue in the future. Establishing a SPOC sales procedure is the dealerships’ most efficient means of accomplishing this.


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3. Allows for quicker, smoother transactions


Both the consumer and the sales staff at the dealership may find the car-buying process to be drawn-out and frustrating. Transferring work from one person to another during the sales process is the largest offender.


Traditional dealership sales include a back-and-forth dance that often lasts three to six hours. Before entering a dealership, today’s sophisticated, well-informed automobile buyer already knows what they want to buy and how much it should cost. Getting in and out of their new vehicle purchase as fast as possible is their ideal experience.


Customers who buy at a SPOC dealership will have to wait less: The average transaction time may be cut in half with the help of SPOC tech solutions like SimpSocial.


Modern automobile customers expect a quicker, more seamless buying experience, which single-point-of-contact dealerships can provide by removing the need to go back and forth between departments.


Working with the same individual from beginning to end is advantageous for car purchasers as well. When buying from a standard dealership, customers will interact with three or more persons (such as the salesman, the F&I representative, the manager, etc.), which makes the process feel confusing and frustrating.


Modern automobile customers expect a quicker, more seamless buying experience, which single-point-of-contact dealerships can provide by removing the need to go back and forth between departments.


4. Brings in and keeps top talent


The attitudes of those who work there are changing along with the automobile industry. Dealerships will inevitably draw more qualified individuals to their locations if they are successful in making the switch to a single-point-of-contact sales approach.


In addition to being at the forefront of industry advancements, exceptional personnel is drawn to SPOC dealerships for financial reasons as well. Sharing commissions and fostering conflict among team members are the foundation of the conventional selling paradigm. Salespeople tend to be more satisfied with their jobs when they can control their customer interactions and keep all of the commissions. Additionally, a SPOC sales team is incentivized to deliver outstanding customer experiences while being in a better position to upsell auto F&I and protection packages, leading to happier shoppers and increased profits.


5. Produces outstanding client experiences


Businesses spend an average of five to 25 times more to acquire new customers than they do to retain current ones. Dealerships should be attentive to client retention if they want to optimize earnings. This entails developing an exceptional car-buying experience that clients want to brag about.


59% of automobile purchasers rely their decision on a dealership’s reputation. This means, delivering a superior customer experience creates a positive online reputation and increased profits.


This is important as a recent study found that 59% of car buyers choose a dealership based on reputation alone. Delivering a superior customer experience means more than a positive online reputation — it translates to increased profits. The same study reported that a third of participants would be willing to spend more money for higher quality service at a dealership. At the same time, 47.6% said they go out of their way to shop at a dealership with “helpful and friendly” salespeople. In the end, it costs far less to keep a satisfied customer than to acquire a new one.


Dealerships that complement SPOC with automation tools further empower their teams to improve response times and deliver a consistently great customer experience.


Is SPOC Right for My Dealership?


Single-point-of-contact selling isn’t just a cost-cutting exercise or an easy way to improve operational efficiency — it’s a solid strategy for maintaining and increasing profitability.


Dealerships that want to differentiate their stores from the competition and create superior customer experiences will benefit significantly from the SPOC sales model.

No leads were lost. reduced overhead.
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