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Dorset-based Ocean Automotive is one of the latest recruits to the growing Volvo network with its decision to represent the brand in Poole neatly coinciding with the brand rolling out its plush new Swedish-style corporate identity.
The result is a brand-new 5,500 sq ft Volvo centre, with showroom space for six new cars and a display area for over 25 used cars, which opened in May in a prime waterfront location on the main road into Poole.
Nigel Hayes, centre general manager, is an industry veteran with over 20 years in the trade, although he returned to car retailing to take up the new position after running a training company.
What brought you back into the motor trade?
My business was at a stage where I’d have to go to the next level by recruiting more staff. Or I could take a phenomenal opportunity, relocating 200 miles to the south coast and opening a new business, in new premises, for a new franchise. It was a fresh challenge.
As an early adopter of Volvo’s new CI, what kind of feedback have you had?
Lots of customers have commented on the lounge area, saying it doesn’t feel like they are waiting in a car dealership, it feels much more relaxed and informal, which is probably the Swedish influence.
A neat touch is that at a touch of a button you can electronically raise or lower the reception and service reception desks. This is a great feature if you are dealing with a customer who is taller, shorter or indeed in a wheelchair. From the receptionist’s point of view it’s nicer when a customer comes in to be stood at the desk rather than sat at it – it feels more relaxed.
How are you going about building a brand new customer base?
The brand’s previous representation in the area was minimal. So helped by our public relations consultant we’ve undertaken lots of product awareness opportunities, such as the Christchurch Food & Wine Festival and the New Forest Festival.
It is important to make customers aware of what Volvo is. It became paramount to me at the food festival that people’s perception of Volvo was dated; they were surprised at how sporty the brand is.
We’ve allocated a substantial marketing budget and are heavily targeting social media through Facebook. Social media is hugely important, a core communication source throughout the group – customers have been specifically referring to it.
We are also using local radio, both through airtime and sponsorships, and traditional marketing too with outside poster boards and newspapers. It’s a multimedia mix to start and then we will pick out the most aggressive tools.
Your recent background in training must have given you a clear vision on how customers should be treated.
Absolutely, we need to remember that we are not doing the customer a favour by serving them, they are favouring us by giving us the opportunity.
Staff go through a proper sales process that makes sure customers believe that their needs are at the forefront of what we do. It is a very clear process.
What steps has your business taken to adapt to the new regulatory framework for F&I and what impact do you think this will have on your profit model in the future?
We are not afraid to invest in something to help the business progress – we’ve made a substantial investment in employing a group commercial manager. She comes from a banking background
and one of her tasks is to pull together all areas of F&I, add-ons and finance to ensure that we completely comply with them while also ensuring that that there is no impact on the ability to keep that important revenue stream open.
What focus is being given to the sale of added value products such as GAP/RTI insurance?
Before we opened all staff underwent extensive training in add-on products so we could maximise the financial opportunity that they present and just as importantly to be completely compliant with the FCA regulations. We paid a lot of attention to that.
How important are such products to your business both in terms of profit and the impact on CSI and retention?
They are immensely important, they contribute to that overall retained margin, which on some occasions can be squeezed by savvy internet shoppers, but they also offer a non-pressured approach to educating customers as to what products are available. This has a positive impact on customer satisfaction and on retention, in the brand and our business. Taking that kind of approach instils confidence in the brand.
How do you plan to build aftersales?
I’m pleasantly surprised at the throughput through the service department in these early days. People have bought Volvos but the lack of presence in the area saw them go outside for service.
We will absolutely be looking to drivers of older cars. We are running Volvo’s All Systems Go programme that offers a free vehicle health check, free upgrade of any updated electrical software, and a valet of the car. Hopefully customers who take up the offer will see the level of service they receive is second to none while our pricing structure is relatively competitive to what they have been paying.
How confident are you that Volvo can start to build its UK sales?
From the Volvo brand perspective yes, the brand is going to accelerate rapidly. Within four years the new XC90 will be the oldest car in the showroom, with the new platforms under development. More people will become aware of this best kept secret in the industry – when we get across messages such as you can get into a sporty-looking V40 R Design for £269 deposit and £269 a month, we can only continue the growth pattern that Volvo is on. I’m absolutely confident going forward.
Volvo Cars Poole
Established: May 2015 (part of Ocean Automotive)
Location: Poole
Brand: Volvo
Employees: 14
Service ramps: 3
Andrew Charman
