As we close out the first quarter of 2022, powersports dealers are seeing some positive signals, mixed with some areas of concern. According to CDK Lightspeed DMS, revenue from new and used units grew 3.4 percent in January 2022, versus January 2021. Service saw a 1.4 percent decline as compared to a 13.2 percent increase in December. Overall, average dealer revenue was up 3.0 percent for the month. While this is down notably from the high-flying days at the beginning of the pandemic, it’s still a positive.
Areas of concern continue to be available inventory for both new and used units as well as the rate of inflation. Speaking of inflation, a new wrinkle popped up this month as the Federal Reserve raised their interest rate a quarter of a point and signaled six more increases planned for 2022. While these moves are made to tame the rise of inflation, the impact the average consumer can expect to see includes increases in the interest charged on credit card revolving debt, higher mortgage rates, as well as auto and powersports loans.
This monetary tightening may not affect powersports customers immediately. But there is one area that dealers can boost right away….and it might even be free. Dealers can ensure that the entire ownership experience for their customers is one filled with excellence. This intangible, anecdotal attribute will lock in the sale today and for every repeat interaction. It can even bring new customers to the store in the form of referrals and stellar reviews. All it takes is the commitment from every team member and business partner to ensure that each customer engagement is performed with excellence!
EFG Companies has a bit of experience with this concept of excellence. Each year, the American Business Awards recognizes companies from around the world for sales and customer service excellence with the Stevie® Awards. Representing a wide variety of industries, companies such as GoDaddy, Cisco, DHL, IBM, Acer Inc., Apple, BASF, BT, Ford Motor Company, ING, Procter & Gamble, Roche Group, Samsung, and Delta Vacations compete in over 170 categories. The award entries are judged by more than 1,000 of the world’s most respected executives, entrepreneurs, innovators, and business educators.
This year, EFG received five Stevie Awards for sales and customer service excellence in 2021. In the span of 8 years, EFG has received 31 of these coveted statues – and its tenth Gold Award! The awards spanned several areas of EFG’s business operations. The contact center received a Gold Award for the third time – and the second year in a row. The claims team also received a Silver Award, recognizing their efforts to incentivize and reward performance and engagement. Other groups received a:
- Bronze Award in Business Development Achievement of the Year – Financial Services Industries for achieving banner growth in a globally challenging year.
- Bronze Award in Best Use of Thought Leadership in Business Development through the company’s marketing communications efforts.
- Bronze Award in Incentive, Rewards, or Recognition Provider of the Year category for EFG’s dedicated efforts to drive results and support its clients, resulting in an increase in average client profit per unit to $2,051, helping clients of all sizes remain profitable and maintain their competitive edge against the largest public retailers in the country.
What does all this have to do with your dealership? It all goes back to providing your customers with an excellent ownership experience after the sale. Take, for example, a customer who purchased a vehicle service contract (VSC) on their new UTV. A couple years go by and the UTV experiences a breakdown not covered by the manufacturer’s warranty. Because that customer purchased the VSC through your dealership, their claims experience will reflect on you.
Good experience with an F&I product goes beyond claims paid to the customer service provided to both your customers and your service center. Think on your own experience with call centers. The ones you hate are the ones that keep you on hold too long, don’t address your questions, or transfer you between departments. Good customer service includes answering phone calls immediately, listening to customer concerns, and answering all questions politely. This experience is often more important than monetary matters.
Recognition from entities like the Stevie Awards demonstrates EFG’s commitment to providing superior service to your customers, creating an excellent ownership experience, and increasing the likelihood of those customers returning to your dealership for repeat purchases.
What makes these awards even more significant were the business conditions under which they were achieved. Last year, the pandemic had a tremendous impact on customer support functions. Yet EFG’s team members maintained an exceptionally high level of customer service while operating in an 80 percent remote environment. Through the many challenges they faced, over 90 percent of team members felt engaged, motivated and empowered, based on internal survey results. Excellence can be achieved – regardless of the circumstances!
Want to know how your team can ensure excellence at every encounter? Our proven team of advisors can assist you with the tools and resources needed for your powersports dealership. We’re more than an F&I provider, we’re your business partner with years of expertise in the powersports industry. Contact us today to learn more about winning with excellence and boost your success for 2022.
