online reputation management - Dealership Corridor

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.

With 2014 looking up, many dealership groups are moving beyond survival to focus on expansion. While some are building new rooftops, others are actively looking to acquire existing stores. Acquisition may seem like a better fiscal option for your assets, but it does pose certain risks. Beyond traditional research, how deep do you look into a potential acquisition’s reputation?

A good market and a good financial statement can often hide underlying problems within a dealership. It’s very easy to keep sales up for a window of time while neglecting customer relationships. When conducting your research, and mystery shopping their store, evaluate their responsiveness to online inquiries. One of the most important take-aways with mystery shopping is determining whether the customer’s questions are ever directly answered. If not, the dealership is putting itself in a questionable light with the customer from the outset, making it an uphill battle to ensure a positive experience, much less a sale.

In addition, according to a 2014 DealerTrack study, consumers now visit 1.2 showrooms before making a decision. This represents a paradigm shift in the way today’s consumers shop for a vehicle. Gone are the days of consumers spending their weekends visiting one dealership after another before a final decision is made. Now, the majority of that research is conducted online.

A “2013 Online Customer Review Study” from Maritz Research stated that Edmunds.com and Yelp are in the top five most trusted sites by consumers. Google +, Four Square, City Search and Dealer Rater also made the top twelve list. With the majority of customers browsing dealership websites and customer review sites before walking into a showroom, it’s vital that any dealership you acquire has a healthy reputation. When evaluating their online reputation, ask yourself:

Do these reviews look fake or real?
Does the dealership respond to positive reviews thanking the reviewer for their time?
Does the dealership respond to negative reviews and if so, do their responses work to resolve the situation or displace blame?

A good online reputation relies on the active management of customer review sites. While gaining positive reviews is the immediate goal with these sites, the second most important aspect is responding to negative reviews. Negative reviews don’t necessarily have to give dealerships a negative image. By addressing the customer’s concern and taking the conversation offline, dealerships have a great opportunity to turn that negative review into a positive experience. Customers expect to see negative reviews on these sites, but what they pay the most attention to is how the dealership handles them.

Beyond customer review sites, it is also important to review their social media assets. Facebook and Twitter have become two of the biggest platforms for consumers to directly interact with companies. Big or small, companies from all industries utilize these sites to inform the public about new products, receive feedback, conduct product promotions, etc. If you’re looking into a dealership with a social media presence, pay attention to their interaction with their fans:

Do they simply push out information?
Do they encourage comments?
Do they respond to comments to further engage the audience?
Is their content focused solely on the dealership or they post about community involvement or engaging questions?

A well-developed social media presence is much more than creating a page and posting content. It involves engaging the audience with content that’s relevant to them, encouraging discussions, and responding to their inquiries or concerns.

It can be very difficult to overcome a negative image. And, you would be surprised how much a negative online presence can affect sales volume. When researching potential acquisitions, pay attention to their online presence and consider whether you want their image associated with your dealership group. Once the deal is done, their reputation will forever color yours.

With over 36 years of experience in the dealership space, EFG Companies knows how to equip you with consumer insights and marketing analytics to complete your due diligence when bringing on a new rooftop. Contact us today to find out how to take your business to the next level.