I bought a new car last week. I was very clear what I needed – a Toyota Camry Hybrid and knew the exact options I needed. I did all my research on the web in reading user generated reviews, dealer invoice prices and so on. After spending about 3 hours doing all this, I was ready to buy. I wanted the car in a day because my previous car was giving me trouble.
I started making phone calls to Toyota dealers. I told them right upfront:
1) Here is the exact car I need – color, options etc.
2) I don’t have time to haggle
3) I am shopping around calling dealers
4) I am looking to buy tomorrow.
The sales person at the three dealers I called listened and they told me their best price and they had the car – they asked me if I would like to come in to test drive the car – no pressure, here is what you need, here is what we want – none of the traditional pressure tactics that auto dealers are well known for.
I ended up buying the car from Bernardi Toyota because they not only had the lowest price but they also worked with me respecting my intelligence to come up with a win-win situation regarding my trade in. So what two lessons did I learn as a product manager from this personal experience?
1) Get real users to write reviews about your product. This is much more reliable than what you as a vendor can put out there. I went to the Toyota website only to look at the specs, colors, options etc. I did all my research on sites such as edmunds.com. Organizations always worry about user reviews because they fear bad things will be said about their products and that the competition will get hold off these reviews. Think about it, by promoting candid feedback from your user base, you are actually raising the bar for your competition. Everyone has skeletons in their closets – you are forcing the competition’s hand to do the same. My advice – forget about the competition – be more concerned about what your customers have to say – if they have bad things to say, you should be the first one to know because you are in a position to fix the problem. No matter what you put out, you cannot satisfy everyone – there will be someone who will say something bad about your product. If all you get are bad reviews about your product and you choose to ignore it, you are only buying time before the inevitable happens.
2) Teach your sales people to listen to the customer’s needs and to respect the customer as an intelligent human being. Help the customers buy what they want rather than trying to sell to them. We all love to buy and don’t want to be sold to.
Based on this very positive experience, I recommended Bernardi Toyota to my friend who was also looking to buy a new car and he is buying from them today. “Word of mouth” pays.