How to leverage ‘nudging’ in your daily auto dealership operations

On the latest episode of Kain and Co., host David Kain discusses the influence of nudging. Kain recommends the audience to read the book Nudge: Improving Decisions About Health, Wealth, and Happiness written by Richard H. Thaler. The book dives deeper into the concept of nudging and gives dealers the opportunity to apply it to their daily operations.

Nudging can be used for leveraging different aspects of a business. Kain opens the show by talking about how dealers can use nudging to help customers make a purchase. Far too often, sales associates only provide information without making a true connection with potential car buyers. Some of the best nudges can be found on travel websites. Hotel and airplane companies will show how many people are filling up rooms or seats to nudge customers to quickly make a purchasing decision.

Kain then discusses other types of nudges that are seen across the web. Some nudges are very direct and can come across as overwhelming to customers, turning them off from making a purchase. Kain says that dealers must use subtle nudges like encouraging phrases to find the best pricing or to speak with a live agent. 

Nudging should also be used through text messaging or email. Sales associates in contact with customers should remind customers about the popularity of the vehicle they are interested in and tell them when other potential customers are looking to buy the same vehicle. Subtle nudging will push the customer over the wall of hesitation they create for themselves. 

Kain concludes the episode by reminding dealers to always be closing. Sales associates should always be looking for opportunities to close the sale through proper nudging. Kain suggests avoiding repetitive nudges like, “Are you still interested?” or “When can you come in?” These nudges are too aggressive and should be replaced by ‘Either / Or’ nudges.

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