RECOMMENDATIONS
After completing our analysis of Morris Ave Auto Sales (MAAS) we uncovered following problems the business faces. As a group we came up with a number of solutions that will solve the company’s deficiencies and ensure future profits.
SOCIAL MEDIA
One of the biggest problems the business faces has to deal with their social media. Social media is important for businesses because it gives them the opportunity to connect with customers and business partners. To go along with the website the business has a Facebook and YouTube account. While it's a good thing the business created these accounts this is still an area the business needs to improve in. The current Facebook page of the business has few likes, very little posts, and is not regularly updated. The YouTube channel also is not regularly updated with the last upload being a year ago. We see this as a problem because we are in a time where more and more communication is being done through social media.
- One of the recommendations we would make to the business is to update existing social media accounts. We would like for the business to update all of their social media once a week at minimum. This can be accomplished in two ways:
- The owner, Hesham Shahine, can designate one employee to update all the social media.
- Second option would be to outsource this service through the Carsforsale.com, which already manages the company website. MAAS could post upcoming deals, promotions, and answer car questions a potential customer may have. Another recommendation we would make is to create a company Instagram account. We believe Instagram would be a good social media platform for MAAS to use. Instagram is a photo and video sharing site with millions of users. MAAS could posts their inventory regularly on Instagram for potential customers to view.
II. Second recommendation regarding social media is adding Instagram account.
III. Third recommendation is for MAAS to optimize and integrate their social media with building the customer relationship. Many car dealers, including Morris Avenue Auto Sales, focus more on making the sale instead of building a relationship with customers. A person who buys a car may tell their family and friends about the business and that may lead to another sale. Our second recommendation to the business would be to set up a referral program through social media. The business would offer a small incentives to the customers who would post a picture of themselves in their new car or just a picture of the car with a comment about purchasing it at MAAS on MAAS’s Facebook page or Instagram. The MAAS can offer to take a picture and with their permission post it on MAAS’s social media sites. The incentive could be: floor mat for the car, car air freshener, keychain, or pen; all with the company name on it.
ADVERTISING
Another problem we’ve identified deals with advertising. Advertising is vital to the business, since it's what brings in the customers. It also helps build brand awareness and retain existing customers. At the present moment MAAS’s advertising is limited to the dealership’s convenient and visible location, and to the website Carsforsale.com. Our recommendation to the business would be for them to increase their advertising using information systems.
- We suggest that the business starts posting their vehicles on Craigslist. This type of advertising will make MAAS inventory visible to wider range of general public. A potential customer will find the vehicle he or she wants on the Cragslist and would be redirected to the company website. Craigslist allows the average consumer become an auto dealer, so the dealership needs adjust to current trends and act as a average consumer selling a car. All a person has to simply do is take pictures of their car and post them to Craigslist. The business could reach millions of potential customers if they advertised on Craigslist. Craigslist is the first place many people go to when searching for a new car. The business would have an advantage over the private seller by having solid reputation and verifiable location, because most people are weary about meeting a total stranger to purchase a vehicle. Another recommendation would be to sign up with the some of the top ranked car search engine webistes such as cars.com, caregurus.com, ebaymotors.com. This would allow Morris Ave Autos Sales to increase their visibility in a virtual world and speed up the inventory turnover.
- Another thing we would recommend to the business is to follow up with customers visiting the dealership. Most people will not buy a car the first time they are on the lot. It is crucial to close the sale the first time the customer walks in. However, the MAAS can get a second chance to sell a car by following up with the customers after they walk off the lot. The company could simply ask for a contact information, email or phone, and reach potential customers as they continue their car search. The MAAS could also follow up with those who bought a car from them. A simple follow up call will help the business establish goodwill with customers, find out if they are in need of a new car, and offer the customer a $500 certificate if they purchase their next car from MAAS again. This will give the customer the incentive to check out company’s inventory as a first resort next time they’re car shopping.
- The MAAS could also give or a $100 gift card to anybody who refers a new customer to us. A new customer must purchase a car from MAAS in order for the referring customer to receive $100 gift card. The referral program will motivate people to post on social media about their newly purchased cars purchased at the MAAS dealership. Then they can send their friends, who are looking and interested in buying a used car, to the MAAS.
To implement the last two recommendation, the company would use the CRM systems described in the following paragraphs.
Customer Relationship Management (CRM)
One of the most important recommendations we could make to the business is to implement a CRM system. At the present moment the business does not use a system to manage customer relationships. Creating such a system would make the business run more efficiently and generate more profits. The business could use the CRM to reach out to new customers which would lead to more sales. The business could also use information gathered from the system to improve the relationships with existing customers. The business also could use this system to deal with customer problems as they arise. If a customer has a question or concern the business could quickly solve the problem using the CRM.
As a group we looked at a number of different CRM systems to recommend to MAAS. After careful consideration we chose following CRMs:
- Salesforce.com would be the best CRM for the business to use. Salesforce.com is a cloud based CRM system with headquarters located in San Francisco, California. They currently provide CRM services to approximately 100,000 businesses. They provide a number of services for businesses to use that include Sales Cloud, Data Cloud, and Analytics Cloud. Salesforce would be great for the business to use since it is so affordable. A basic edition costs $ 25 per month for up to 5 users. This is just a small price to pay when you look at how efficiently the business would run.
- The alternative option would be Microsoft Dynamics. The MS Dynamics CRM Online Professional version starts at $60 per user per month and offer following applications: Social listening, Social media analytics, Workflows and approvals, Sales automation, Customer service automation, Unified Service Desk, Sales campaigns, Reports and personal dashboards, Integration via web services, Mobile access, Access to customizations and extensions.
DATA BACKUP
Data backup is very important for small businesses. If a business were to lose all of its business related information, it could take a long time to recover. With technology always evolving it's easy to backup data. Today we have flash drives, external hard drives and cloud services that allows us to backup our important information. At the present moment the business does not backup their data. All of their data and information is stored on company laptops and mobile devices. A suggestion we would make to the business would be to use one of the many cloud services available today. Some of these services include Google Drive, Microsoft OneDrive and Apple iCloud. These services are available for little to no cost. The business also could look into getting an external hard drive. An external hard drive is a portable device that has a large storage capacity. External hard drives are very affordable. Some retail for as low as $50. This is a small price to pay considering the many benefits it will provide to the business.
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