Dealership Corridor

What is synonymous with General Motors and Toyota? Recall, right?

Four years ago, Toyota underwent a recall crisis on par with General Motors today. Now, Chrysler is also under investigation for faulty ignition switches. Are these the only car manufacturers who’ve felt the strain of a recall crisis? No.

In the 70s, Ford issued a staggering 21 million vehicle recall for its infamous “park-to-reverse” automatic transmission defect. In the 80s, Audi dealt with its own unintended acceleration defect with a series of car recalls for its 5000 model that nearly drove it out of the American market.

Do consumers still buy these cars? Yes.

In fact, according to General Motors, the ignition switch recalls have had no significant impact on new model sales. What does this mean for dealerships? Opportunity!

No matter their reason for visiting the service drive, when consumers bring their vehicles back to the dealership, there is an opportunity to convert those customers to a new car buyer. In fact, the more times a customer returns to a dealership for service, the more likely they are to make their next vehicle purchase with that dealership. Between 2010 and 2012, the percent of customers who were converted from used cars to new cars increased from 17 percent to 19.3 percent. As consumer income continues to increase, this rising trend can also be expected to increase.

In order to truly maximize this opportunity, dealerships can make small adjustments that create a big difference in capturing a greater share of wallet from this lucrative audience:

• First, address your waiting area to ensure cleanliness and its appeal to both men and women. Remember that at least 50 percent of your service drive business is women, so double-check to ensure that available amenities are appealing to both audiences. In addition, outfit the waiting area with information on F&I products and monitors tuned to dealership and OEM videos.
• Focus on making a good and lasting impression on new service drive customers by ensuring the service managers are adequately trained. Do they have a courteous and professional demeanor while providing efficient service?
• Keep returning customers coming back by focusing on providing a positive experience each time they return to fortify the relationship.
• Lastly, keep customer records accurate and up-to-date. Either the service manager can verify the information when first approaching customers, or the receptionist can when processing payments.

It’s that simple. Yet, many dealerships overlook this significant opportunity. With OEMs focusing on customer retention, dealerships need to fortify their service strategies both in sales and in their service drive. But, the customer experience doesn’t have to end when they leave. With accurate information in their CRM, dealerships can establish a contact campaign based on several different criteria including:

• whether the customer is a recall customer or a regular service customer;
• whether the customer is new to the dealership or returning; and,
• if returning, how often they return and the age of their vehicle.

Rather than relying solely on the sales force approaching customers waiting for service, dealers can capitalize on customer retention by focusing on customer service and implementing a communication campaign designed to turn service drive customers into sales prospects.

In today’s market, the road to the sale is rarely a straight line. With almost 40 years of insight into the consumer mindset, EFG Companies knows how to turn your team into Top Performers. Along with our intense training curriculum and client engagement, our expert trainers can provide a full service-drive analysis, focusing on the efficiency of the department and their sales volume. EFG’s consultative approach to marketing equips dealerships with the consumer insights and marketing tools needed to increase store traffic, drive customer loyalty, and differentiate their business. Contact EFG to get started today.