Article
Mazda makeover doubles showroom sales
As the auto giant approaches 100 "Retail Revolution" showrooms, rising profits validate the new self-service approach.
December 17, 2006 by James Bickers — Editor, Networld Alliance
For most of the history of the automobile, car salesmen have been a cliché — unfairly dismissed as smooth-talking hucksters in bad suits. In recent years, the amenities of luxury car dealers have trickled down to the rest of the industry; chains like CarMax and AutoNation offer concierge treatment previously found only in places that sell Jaguars, not Chevys and Fords.
Mazda's Retail Revolution concept, which began in 2003, adds self-service to the mix, coupling a relaxed and classy atmosphere with a high-end user experience and new methods of interaction between the shopper and the seller.
"We educated our people and actually changed the culture of the normal car dealership," said Michael MacDonald, president of Bountiful Mazda in Bountiful, Utah, the original pilot location for the program. "Selling cars is still a one-to-one, person-to-person transaction, but the tools that are used are different than they used to be."
Those new tools have moved more cars out the door, resulting in sales increases of 20 to 100 percent.
| |||||||||||||||
Reaching the Web-savvy shopper
Mazda was founded in 1920 and began selling in the U.S. 50 years later — but today, it is working to reach a target audience that is smarter and choosier.
"We've found through our research that Mazda owners have some of the highest Internet shopping rates of any of the carmakers," said David Falk, retail environment manager for Mazda Motor Corp., which serves 704 franchised dealerships in the United States. "Our customers are looking online to get information on our products. So they're computer savvy, they're Web savvy, and we wanted to make an effortless transition from the online world that they'd have in their home environment."
In addition to an utterly modern aesthetic, that transition involves Web-connected kiosks that let shoppers research cars, read reviews and check resale values.
At Bountiful Mazda, four kiosks surround a large raised platform; on top sits a featured vehicle, in front of a giant rotating fan. Plasma screens dot the walls, delivering Mazda Motorsports clips and branding content.
"It's a very different looking facility than your typical automobile dealership," Bountiful's MacDonald said.
According to the company that designed the software that powers the Retail Revolution concept, that kind of head-turning visual appeal isn't just impressive — it's essential.
"In order to grab the attention of people in today's world, you have to be in HD," said Bradley Walker, Nanonation president and CEO. "If your content looks like the Internet — well, that's what I look at when I'm at work. You'd better have an Xbox 360-level of interactivity and experience, because that's what people are used to at home."
The Retail Revolution isn't just flash, though. Falk said the new program is designed to change the car-buying process at a transactional level.
"What we're trying to achieve is to form a bond with a customer that is non-confrontational, non-adversarial," he said. "It's not the old-school relationship. We have open information at the kiosks … all of that information is available in the dealership, just as it is in their home."
The bottom line
Falk said the average cost for a Retail Revolution makeover is between $2 and $6 million. The company gives an incentive credit of $300,000 to any dealer making the upgrade.
The result, Falk said, has been greater sales in 100 percent of the remade stores, sometimes as much as 100 percent greater.
"It's proven out in our sales," MacDonald said. "We're one of the top performing stores in the country and in our customer satisfaction, we're a top performer. We are three times the national average for market penetration."
Mazda had hoped to have 100 Retail Revolution locations open by the end of 2006. The company missed that mark — Falk said there are currently 64 of the showrooms, but he has signed building orders for 60 more in the coming months, and tentative commitments for another 180.
Falk added that all import manufacturers have building programs, and they all aim to be distinctive; Mazda worked hard to leapfrog them.
About James Bickers
Related Media
Subscribe
Get the latest news and resources from Kiosk Marketplace.
