It would be safe to say that everyone in the retail automotive space lost some weight following 2008, figuratively speaking. But, it would be surprising to find a dealer who didn’t tighten-up his or her business operations during the Great Recession, both in terms of people and in terms of demanding greater ROI in money spent. We saw the number of personnel in dealerships become laser-focused on only those who were necessary, and then only those who could perform to hit certain standards. We saw dealers begin to take advantage of technology as a less expensive means to drive traffic and branding, as well as a more sophisticated means of measuring and tracking business operations. In essence, dealers came out of the Great Recession as lean and analytical business athletes with the ability to run a marathon.
Fast forward to today. Life is good – this year’s car sales are leaving last year’s records in the dust! Consumers are actively looking for protection products, the economy is looking better with unemployment numbers gradually dropping, and each deal doesn’t take nearly as much work as it did from 2009 – 2012. Let’s live a little!
The key is to live a little – don’t hit the all you can eat buffet.
While the Great Recession was incredibly painful for all aspects of the industry, from materials sourcing all the way through to the customer driving away in their new vehicle, it did correct significant operational issues that had long needed to be addressed in the retail automotive space. And, it did so in a condensed period of time. The new operating model requires a whole different level of analytics: diligence in compliance; proactive management and capture of online car shoppers without forcing them into the showroom right away; and, individualized training programs for personnel along with key staff retention strategies – in short, much closer and empirical daily management. Call it “daily cardio” for the business.
Now that things are rolling, dealers are tempted to skip their proverbial workout. You stop hearing as much about how every deal counts. You see less training in exchange for more people on the floor, less career path planning and higher turnover, as well as less urgency around online customer reviews. And the pounds start showing up around the waist and on the hips of the business.
Resist the urge to splurge and stay focused on your goals by focusing on customer service. You cultivated a strong reputation of providing quality customer service during the recession. Keep that up and watch your reputation soar both online and off.
Beyond servicing customers at the dealership, it is also important to service them online. It’s time to come to terms with the fact that online reviews and online shopping is here to stay. Car buyers today actively research both car reviews and dealership reviews, and they trust these more than any advertising tactic.
So, how can dealerships manage reviews?
How about asking for them? Sales professionals are trained to ask for the sale. It’s time to motivate them to ask for the review. Remind your team that consumers often choose who they want to work with before they even enter your store by looking at reviews. Therefore, more reviews correlates with increased opportunity for sales for both the team members and the dealership.
So, can we pay for reviews?
No. Yelp, Google +, Cars.com, DealerRater, etc. all have strict policies against paying for reviews and they have sophisticated algorithms to track and penalize companies using this practice.
Can I have them write a review before they leave?
No. Online review sites treat that in the same way as paying for reviews.
What about negative reviews?
Negative reviews aren’t necessarily a bad thing. Instead of seeing them as detrimental to your image, treat negative reviews as an opportunity to demonstrate customer service. This does not mean “give in to their demands,” but rather work to take the conversation offline and discuss the situation either on the phone or in-person. It’s much easier to understand and diffuse a customer complaint offline. Then, when it’s resolved, ask the customer to either update their review or post a new one. If they don’t, then you go out and post the resolution and how pleased you were to address their issue.
If your dealership at least demonstrates an attempt to resolve a negative review, online shoppers will see that as positive information that you take their experiences seriously and will treat them with respect.
Stay focused and healthy, and set your dealership up for future success. Focus on providing excellent customer service both in the dealership and online. With more than three decades of delivering dealership profitability solutions, EFG Companies gives its clients the edge in the market. With training from our AFIP certified professionals and unmatched partner engagement, we know how to ensure your future success. Contact us today to find out how.
