Carlo Vaccaro, Parts Sales Manager at Silverlake Automotive Recycling, based in Southhampton, discusses ways for vehicle recyclers to maximise their vehicle parts revenue stream.
The current sales landscape for recycled parts is booming. Historic barriers with the B2B audience have shifted, driven by the delays and costs associated with sourcing new parts. Bodyshops face a backlog and cashflow crisis as they wait for parts to become available to repair vehicles. Insurers face increased claims costs, with credit hire bills escalating due to the extended time policyholders need a replacement vehicle, whilst they wait for their own to be repaired. It is unsurprising, therefore, that recycled parts have gained heightened relevance. They have a distinct advantage – they are available now, and they typically represent savings of up to 70% of RRP on new parts. And, at the same time, quality grading and the VRA Certification scheme has served to increase confidence in the product at a time when it is most needed. Recycled parts have become a viable B2B solution.
For vehicle recyclers, now is the time to seize the opportunity, establish market share and reinforce their recycled parts revenue stream. Operationally, maintaining consistent product quality whilst investing in warehousing and software to house more stocks and streamline the ordering process, alongside professional packaging and delivery solutions, are all essential to achieve growth. So how can you make sure you are in the best position to realise a return on all this investment?
The vehicle recyclers who optimise their sales techniques and nurture their B2B customer relationships will have every chance to thrive in the current market. And that means developing a strategy that takes maximum advantage of customer touchpoints in the sales process.
The best way to build an ongoing relationship that equates to repeat orders, aside from delivering quality service and products, is to build a rapport with the customer. Create opportunities through your customer contact that allow you to take time to understand their business, their needs and their preferred way of doing things. Make them feel important to you and valued, offer a proactive service and work to move the customer to a position where you are their ‘go to’ supplier of choice.
Showcase your product & service post-delivery
A confirmed order is a great opportunity to showcase the best of your products, your proven sales and fulfilment process and overall customer service. It’s tempting to think that, in a short sales cycle, where you have met the customer’s recycled part requirement immediately, the order is confirmed, and the part is despatched and delivered; the job is done. But it’s a real missed opportunity if we do nothing more than what the customer expects. Once the order is confirmed by your despatch/shipping team as delivered, follow that sale up with a phone call. Confirm that the customer is satisfied with your service and whether they might need anything else. Highlighting to the customer that we have met our customer promise by checking in on them shines a spotlight on how good your service was and fosters the opportunity for an ongoing relationship. It’s far easier to sell to a customer who has had a good experience, especially one that has had that experience highlighted. Use the post-sales call to find out more about the customer’s business and parts needs. Log the details and plan a further follow-up call in a relevant time scale to see how things are going and if there are any more parts requirements on the horizon. Keep the connection going, and if your company has social media platforms, you can also invite the customer to follow you for details of deals and company updates.
They may be willing to take part in a joint social media post which would boost your profile and may attract sales from like-minded customers, and they can demonstrate their environmentally friendly approach by using recycled parts which reduce their carbon footprint. This kind of tactic can be used to grow your B2B customer base and form part of a wider marketing strategy.
Can’t fulfil their order? How to keep the lead alive
Open orders, where a part has been requested, but you are unable to fill that requirement immediately, represent a longer sales cycle. It is important to find a way to maintain dialogue with the customer and keep the lead alive. Establish a rhythm of contact with the customer which is seen as valuable and not irritating, e.g., as well as updating them on the status of their order, you can tell them about deals that are coming up or similar. Other parts needs might also arise during the longer sales cycle, which you can fulfil immediately, so remember to check at every touchpoint if they have any other requirements. If the customer manages to source the part elsewhere, make sure to tell them that you’re sorry you were unable to help them on this occasion. This suggests it’s unusual and demonstrates that their business matters to you.
And as previously, keep the connection going by checking in with them periodically to see if they have any parts requirements you could potentially satisfy.
Clinching the deal when the customer fails to bite
Responding to a sales enquiry with a quote but hearing nothing back can be so demotivating and frustrating too. You have the part, you have provided a quote for a great price, but the customer fails to bite. The best way to move the sales cycle forward towards conversion is to keep communication going with the customer. Make a call to establish whether their needs have changed; do they still need the part, or perhaps something else is preventing them from buying. Decide your strategy for the call beforehand; if price is the barrier, can you reduce your price to make the sale and if so, what is your best price? Think carefully how you will offer this to the customer without them questioning why this wasn’t the price offered in the first instance. You don’t want them to think you were overpricing in the first place, but more so keen to foster a good, long-term relationship with them.
Following up on unconverted quotes gives you great insights. You can learn a lot about the strengths and weaknesses of your own proposition and the sales techniques of your competition if the customer has gone elsewhere. Monitor your quote to conversion rate to know whether you need to make any adjustments to your overall offering; this may help you to win more business across all customers.
And finally, remember to review your customer touch points in the sales process to determine their effectiveness, whether they need improvements or whether there’s another touchpoint that could work better. Never take it as read that everything you do is fixed and not flexible. As the market changes, as customer needs and demands develop and change, be prepared to revise and reinvent your approach to achieve continuous improvement. By allowing your sales team and your business to adapt to market changes, you will ultimately ring fence and grow your share of the market; it’s all to play for, so go get ‘em!
Visit silverlake at www.silverlake.co.uk
