Loyalty, Retention and Key Insights in Forward Thinking Auto Retailing

A recent study from Vanderbilt University’s Owen Graduate School of Management suggests that simply training good employees is not necessarily enough to keep them around. In fact, sometimes training (on its own) lead employees to leave companies as they become more valuable in the marketplace. All is not lost, however.

The study finds that employees who feel empowered are far more likely to stay with a company. When employees have a measure of autonomy and decision making power, they “buy in” or commit more fully to a company. Empowerment also includes reward or bonuses directly proportional to performance. Incentives and rewards help to keep employees motivated and on top of their game.

It’s important to strike a balance. Investing in employees without their return investment in your company will generate little reward. However, hiring good people, investing in them and empowering them fosters their commitment to you.

Technorati Tags: employees, hiring, Rentention, turnover

Just as the dawning of the “Internet Age” redefined the consumers ability to access information and become a more knowledgeable and confident shopper, another phenomenon is occurring 15 years later. Those same consumers, some of whom were not yet talking, let alone walking are writing about your products on blogs, editing your commercials on YouTube, defining who you are on Wikipedia and building groups of influence about you on social networking sites like FaceBook.

These are all elements of a social phenomenon, a groundswell that has created a permanent shift in the way the world works, some see it as a threat, others as an opportunity. Either way it is here now, and it it here to stay. It is a spontaneous movement of people using online tools to connect, take charge of their own experience, and get what they need…..information, support, ideas, products, and bargaining power - from each other. Its global, and its unstoppable! In my opinion is a tremendous opportunity to differentiate yourself from your competitors, build deep connectivity to your customers and build a positive image of your brand, be it a dealership, an OEM, or you as an individual.

The social networking profile of this community takes the form of for groups. Creators - they maintain a blog, a web page, or upload videos and represent approximately 20% of the online community. Critics - these people respond to blogs, post comments, edit wikis, they react rather than create, around 25% of the online community. Collectors - this group collects information, they bookmark websites, they represent a small percentage of the online community, approximately 10%. Joiners participate in or maintain profiles in the social networking sites such as MySpace and FaceBook, and has reached over 25% of the online community. These groups will continue grow in size and their reach into all facets of both our personal and business lives will continue to impact how we communicate, connect to and respond to each other.

The questions we must all ask ourselves is, where do we fit into the groundswell?  Its happening with or without us, so we can either a) sit back and watch this tremendous opportunity pass us up or we can b) get involved, grow our brands and use it to our advantage.  For me there is no question, Im in.  I hope you join me.

Technorati Tags: blogs, growing your brand, online communities, online groups, social networking

We’ve already established the importance of employee retention. Now let’s look at some practical ways to keep your best and brightest on board.

Giving good employees a measure of autonomy lets them know you trust them. When success is in large part an individual responsibility, individuals tend to step up to the plate. Although mentoring and training are important for all employees, letting competent individuals have ownership over their work is a great motivator. Help them create a plan of action based on their strengths, then step back and let them flourish. And ALWAYS reward a job well done.

Also make sure you regularly solicit feedback from employees. You should be informed on the overall feeling and culture at your dealership, and not just what management thinks. It’s also very important to find ways to incorporate that feedback into the culture. If employees feel they have voiced their opinions and their opinions are being ignored, they will be less motivated and are much more likely to look elsewhere for gainful employment. Take the time get feedback and use it to improve your dealership culture.

Technorati Tags: employee feedback, employee responsibility, employee retention tips

It’s obvious that dealers need to spend time cultivating customer relationships. We’velearned a lot about how to make customers happy and develop emotional buy in. We know the steps to creating lasting relationships between dealerships and consumers, but the piece of the puzzle that we talk about here is too often overlooked ;

Happy, long-term employees help create happy customers. Let’s look in more depth at a couple of ways to retain employees and consequently save your dealership money.

Offer relevant training from the start One of the most effective ways to develop relationships with consumers is offering value. Offer value to your employees as well! If they see your dealership as a place to grow and learn, and are offered compensation for their progress, they’ll begin to “buy in.” If they see your dealership as their dealership, they will be much more convincing sales people and in a better position to develop relationships with customers.

Allow job expansion Even if you’re not thinking about your employees next steps, they are. Unfortunately, when employees feel underappreciated or bored, their next steps will often be out your front door. And, if they’re good at what they do, they may very well take several customers with them. Offering rewards for hard work and showing that you care will help your employees invest emotionally in your company. Ultimately, their investment will bring you more loyal employees and customers alike.

Technorati Tags: cutting costs, employee relationships