Study: Initial customer phone call to tire dealer is key driver for closing the sale
Most people don’t have a particular type of tire in mind when they begin the shopping process, which presents a crucial competitive edge for tire outlets that are able to competently handle that initial telephone call, according to a market study by J.D. Power and Associates.
“Telephone shopping is a critical element of success for both tire manufacturers and retailers. From information gathered over the phone, a large proportion of shoppers not only decide which store they will purchase from but also choose the specific tire brand they will purchase prior to visiting a retail location,” reports Vice President Chris Denove.
“Prior to contacting a retailer, most customers view tires as a commodity and have not decided on a specific brand or model,” he explains. “Accordingly, the sales staff at the tire retailer has a unique opportunity to influence brand choice in a way unlike salespeople in other industries. Therefore, for tire manufacturers, improving recommendation rates among retail salespeople is one of the most effective means of increasing market share.”
The J.D. Power and Associates Retail Tire Experience Report compiles the findings of more than 4,000 anonymous mystery-shopper calls to 2,100 different retail tire locations during 2008 and 2009. The study examines which tire brands are recommended by salespeople at major tire retailers and how effectively they deal with telephone shoppers.
The reasons that salespeople recommend a particular tire vary considerably by brand and manufacturer. For example, says Denove, staffers who recommend either Goodyear or Michelin most frequently focus on performance and handling. However, compared to Goodyear, Michelin recommenders are nearly twice as likely to stress attributes related to quiet ride and gas mileage. Goodyear boosters tend to talk more about price, value and special sales or promotions compared to those recommending Michelins.
The study found that a manufacturer-flagged independently owned outlet does not necessarily glean a recommendation for that particular tire maker’s product line. Firestone salespeople recommended Firestone just 49 percent of the time, while Bridgestone netted a mere 28 percent referral rate.
“At independent retailers, salespeople often direct customers towards the brand that is their personal preference,” Denove says. “This results in no single brand dominating the recommendation rates at most independents. Increasing the recommendation rates at the independent tire retailers is a key metric for manufacturers desiring to increase market share,” he advises.
He goes on to note that “each retailer’s price quote is influenced by the tire being recommended; it does not necessarily mean that the retailer charges a higher price when the model of tire is held constant. But, this subtle distinction is often lost on consumers who frequently look at tires as a commodity purchase and are calling stores to compare prices.”
For more information, visit www.jdpower.com.
