Kelley Blue Book
With Covered Maintenance Programs, Skeptics Abound
In a recent KBB.com Quick Poll, we asked consumers whether they trusted a vehicle with covered/free maintenance programs would be maintained as rigorously as it should be. As you can see from the results below, a skeptical 56 percent thought that maintenance would only be done the least amount necessary, 30 percent trusted that the maintenance would be done as if it weren't free, and 14 percent had sadly never heard of covered maintenance programs.
In this industry we know that customers are frequently skeptical of dealerships - a perception that is unfair in many cases because it reflects a few bad apples instead of the broad majority of dealerships. We can also see from the poll results that there is still some room to build awareness of these programs among the 14 percent that don't know about them.
How Will You Use This Data?
If your dealership has a covered maintenance program, how will you go about educating these skeptical customers? How will you enlighten the consumers in your market who don't know about covered maintenance?
If your dealership doesn't have a covered maintenance program, will you leverage this skepticism to sell against your competition?
What Questions Do You Want to Ask Consumers?
We frequently run Quick Polls on KBB.com. Is there a question you want consumers to answer? Ask it below in the comments and we will evaluate it for a future Quick Poll.
Kelley Blue Book
With Covered Maintenance Programs, Skeptics Abound
In a recent KBB.com Quick Poll, we asked consumers whether they trusted a vehicle with covered/free maintenance programs would be maintained as rigorously as it should be. As you can see from the results below, a skeptical 56 percent thought that maintenance would only be done the least amount necessary, 30 percent trusted that the maintenance would be done as if it weren't free, and 14 percent had sadly never heard of covered maintenance programs.
In this industry we know that customers are frequently skeptical of dealerships - a perception that is unfair in many cases because it reflects a few bad apples instead of the broad majority of dealerships. We can also see from the poll results that there is still some room to build awareness of these programs among the 14 percent that don't know about them.
How Will You Use This Data?
If your dealership has a covered maintenance program, how will you go about educating these skeptical customers? How will you enlighten the consumers in your market who don't know about covered maintenance?
If your dealership doesn't have a covered maintenance program, will you leverage this skepticism to sell against your competition?
What Questions Do You Want to Ask Consumers?
We frequently run Quick Polls on KBB.com. Is there a question you want consumers to answer? Ask it below in the comments and we will evaluate it for a future Quick Poll.
4 Comments
DealerTeamwork LLC
Great stats Alex - understanding these perceptions can surely help. We're missing opportunities with the messages being shared for these departments. Trust & transparency should be a focus & a priority for these programs as well.
Dealer eTraining
I love this post. It makes me realize that a dealership that takes in lease returns and buys them out in order to sell them as a CPO vehicle need to invest more time into reconditioning and making sure the vehicle is in top shape. I also see that finance managers are missing the boat 14% of the time when selling certain products. This means they need to improve their presentation and offer the real benefits. This way they will 7% more. A business managers that delivers 100 cars per month will sell 7 more and increase gross, penetration, as well as provide value to the guest. From a consumer standpoint, I get a new vehicle every three years. This makes me more weary of buying a pre owned vehicle because I know that 56% of the time it probably was not serviced. But from a retail perspective I would use that 56% figure to make sure the my used inventory is properly reconditioned.
Kelley Blue Book
Hey Stan - thanks. The data indicates that 56% of consumers think that maintenance performed under covered/free maintenance programs (similar to BMW's) will be performed the least amount necessary regardless of what the dealership actually does. The data is not indicative of whether or not actual vehicles are serviced on schedule over time or fully reconditioned for pre-owned sale. These Quick Polls ask consumers questions, so all we're getting out of this is consumer perception. To me, the way consumers answered this question means exactly what you said about finance managers needing to do a better job selling covered warranty programs. It also means, in my opinion, that both OEMs and dealers need to do a much better job evangelizing the value of covered warranty programs to consumers so that consumers understand the value of covered warranty programs when they're still researching their next purchase, making them more likely to choose a brand or dealer that offers one. We didn't ask consumers a similar question about CPO inventory, but I think that's a good idea and I'll add it to our queue of survey questions.
Kelley Blue Book
Old School Sales Tactics That Still Work
Today I received an email from Kourtney, my group and suite salesperson for the Dallas Stars, which is an NHL team for those of you who aren’t hockey-inclined. Reading that first sentence, you’re probably thinking I spend a lot of money going to Stars games, but I don’t. I can’t. I live out of state. I spent under $300 with the Stars last season and even less the season before, both times to take friends and family to a game when I was in town for the holidays. As far as group and suite purchases, this probably falls in the bottom five percent of her sales.
The email informed me that she was moving on to another company and someone else from the team would be in touch soon about next season. She provided a number to call with any needs in the meantime and thanked me for my business. While reading her email, I reflected on my limited experiences with Kourtney and compared it to all the other sales experiences I could remember with cars, high-end electronics, furniture, bicycles, and anything else costing more than $100. Some memories were good, some bad, but most were ‘so-so’ transactions typically performed by a friendly salesperson that went for the close, got it, and immediately moved on to the next one without thinking about me ever again.
Not so with Kourtney. When I placed my ticket orders, she took the time to listen to my needs and handled them in a friendly, personable way, in addition to having an infectious smile I could hear through the phone. This alone put her above most of the salespeople I’ve interacted with. Where she truly went above and beyond were the personal touches she added after the sale was closed. I received a handwritten thank you card with my tickets in the mail in November, and another handwritten card at the end of the season thanking me for my business. When was the last time you received a handwritten thank you card from anyone, let alone two for the same transaction? I get thank you cards for giving wedding gifts to friends and family, but I almost never get them from salespeople. I can only remember one other.
Kourtney could have sat back after getting my phone order and let the organization’s marketing department do the work to pull in the next round of leads. She could have relaxed and only included a receipt in the envelope with my tickets. She could have taken it easy and skipped all those written thank you notes at the end of the season that probably gave her hand cramps… but she didn’t cut any corners, and it made a big difference.
I grew up with computers and email, but a personalized, handwritten thank you note still has a very strong impact on me and so does being remembered and appreciated after the sale is made. I recognize that Kourtney has a better opportunity for repeat business from me because the buying cycle for sports tickets is much shorter than that of a car, but that doesn’t make sending written thank you cards any less valuable in making your customers feel appreciated. In fact, it may make them more likely to come to your dealership for service instead of an independent shop or give you a positive recommendation on Google, Yelp or your CSI survey. If you maintain that relationship, the customer is more likely to buy their next car from you instead of someone else.
In my reflection while reading her email, I realized I was losing something special with Kourtney leaving the Stars, so I let her know how impressed I was with the way that she treated me, and that I was a few weeks away from getting a firm head count on another order for next season. Her response? She thanked me for the kind words, emphasized that she treated people the way she would like to be treated in their position, and offered to connect on LinkedIn in case my new rep didn’t take care of me. She still cares about my satisfaction as a customer - even after she leaves the company. I was blown away again, and apparently so were others because her LinkedIn profile is a good collection of recommendations from happy customers. I added one more.
Sending written thank you notes is viewed by some as “old school” in this day of emails, instant messages and texts, but it carries significantly more weight because it’s far more personal. What do you do to make your customers feel special and appreciated after delivery?
4 Comments
Kelley Blue Book
I agree, Mike. With sales and marketing technology changing at a breakneck pace, at least there are some things that take a lot longer to go out of style. I don't see thank you notes losing their value until mail service stops.
Maryann Keller & Associates
There are always going to be exceptions to every trend. I'm still amazed when I receive a sale from a free car buyer's magazine offered at a supermarket.
Dealer eTraining
When you provide a great experience you build a loyal following. When you leave to take another position the loyalty might just stay with you and you can continue to earn your client's business. This is also the difference between veteran sales professionals that sell 40 units per month over the average 10-12 unit sales person.
Kelley Blue Book
Old School Sales Tactics That Still Work
Today I received an email from Kourtney, my group and suite salesperson for the Dallas Stars, which is an NHL team for those of you who aren’t hockey-inclined. Reading that first sentence, you’re probably thinking I spend a lot of money going to Stars games, but I don’t. I can’t. I live out of state. I spent under $300 with the Stars last season and even less the season before, both times to take friends and family to a game when I was in town for the holidays. As far as group and suite purchases, this probably falls in the bottom five percent of her sales.
The email informed me that she was moving on to another company and someone else from the team would be in touch soon about next season. She provided a number to call with any needs in the meantime and thanked me for my business. While reading her email, I reflected on my limited experiences with Kourtney and compared it to all the other sales experiences I could remember with cars, high-end electronics, furniture, bicycles, and anything else costing more than $100. Some memories were good, some bad, but most were ‘so-so’ transactions typically performed by a friendly salesperson that went for the close, got it, and immediately moved on to the next one without thinking about me ever again.
Not so with Kourtney. When I placed my ticket orders, she took the time to listen to my needs and handled them in a friendly, personable way, in addition to having an infectious smile I could hear through the phone. This alone put her above most of the salespeople I’ve interacted with. Where she truly went above and beyond were the personal touches she added after the sale was closed. I received a handwritten thank you card with my tickets in the mail in November, and another handwritten card at the end of the season thanking me for my business. When was the last time you received a handwritten thank you card from anyone, let alone two for the same transaction? I get thank you cards for giving wedding gifts to friends and family, but I almost never get them from salespeople. I can only remember one other.
Kourtney could have sat back after getting my phone order and let the organization’s marketing department do the work to pull in the next round of leads. She could have relaxed and only included a receipt in the envelope with my tickets. She could have taken it easy and skipped all those written thank you notes at the end of the season that probably gave her hand cramps… but she didn’t cut any corners, and it made a big difference.
I grew up with computers and email, but a personalized, handwritten thank you note still has a very strong impact on me and so does being remembered and appreciated after the sale is made. I recognize that Kourtney has a better opportunity for repeat business from me because the buying cycle for sports tickets is much shorter than that of a car, but that doesn’t make sending written thank you cards any less valuable in making your customers feel appreciated. In fact, it may make them more likely to come to your dealership for service instead of an independent shop or give you a positive recommendation on Google, Yelp or your CSI survey. If you maintain that relationship, the customer is more likely to buy their next car from you instead of someone else.
In my reflection while reading her email, I realized I was losing something special with Kourtney leaving the Stars, so I let her know how impressed I was with the way that she treated me, and that I was a few weeks away from getting a firm head count on another order for next season. Her response? She thanked me for the kind words, emphasized that she treated people the way she would like to be treated in their position, and offered to connect on LinkedIn in case my new rep didn’t take care of me. She still cares about my satisfaction as a customer - even after she leaves the company. I was blown away again, and apparently so were others because her LinkedIn profile is a good collection of recommendations from happy customers. I added one more.
Sending written thank you notes is viewed by some as “old school” in this day of emails, instant messages and texts, but it carries significantly more weight because it’s far more personal. What do you do to make your customers feel special and appreciated after delivery?
4 Comments
Kelley Blue Book
I agree, Mike. With sales and marketing technology changing at a breakneck pace, at least there are some things that take a lot longer to go out of style. I don't see thank you notes losing their value until mail service stops.
Maryann Keller & Associates
There are always going to be exceptions to every trend. I'm still amazed when I receive a sale from a free car buyer's magazine offered at a supermarket.
Dealer eTraining
When you provide a great experience you build a loyal following. When you leave to take another position the loyalty might just stay with you and you can continue to earn your client's business. This is also the difference between veteran sales professionals that sell 40 units per month over the average 10-12 unit sales person.
4 Comments
Eric Miltsch
DealerTeamwork LLC
Great stats Alex - understanding these perceptions can surely help. We're missing opportunities with the messages being shared for these departments. Trust & transparency should be a focus & a priority for these programs as well.
Stan Sher
Dealer eTraining
I love this post. It makes me realize that a dealership that takes in lease returns and buys them out in order to sell them as a CPO vehicle need to invest more time into reconditioning and making sure the vehicle is in top shape. I also see that finance managers are missing the boat 14% of the time when selling certain products. This means they need to improve their presentation and offer the real benefits. This way they will 7% more. A business managers that delivers 100 cars per month will sell 7 more and increase gross, penetration, as well as provide value to the guest. From a consumer standpoint, I get a new vehicle every three years. This makes me more weary of buying a pre owned vehicle because I know that 56% of the time it probably was not serviced. But from a retail perspective I would use that 56% figure to make sure the my used inventory is properly reconditioned.
Alex Schoeneberger
Kelley Blue Book
Hey Stan - thanks. The data indicates that 56% of consumers think that maintenance performed under covered/free maintenance programs (similar to BMW's) will be performed the least amount necessary regardless of what the dealership actually does. The data is not indicative of whether or not actual vehicles are serviced on schedule over time or fully reconditioned for pre-owned sale. These Quick Polls ask consumers questions, so all we're getting out of this is consumer perception. To me, the way consumers answered this question means exactly what you said about finance managers needing to do a better job selling covered warranty programs. It also means, in my opinion, that both OEMs and dealers need to do a much better job evangelizing the value of covered warranty programs to consumers so that consumers understand the value of covered warranty programs when they're still researching their next purchase, making them more likely to choose a brand or dealer that offers one. We didn't ask consumers a similar question about CPO inventory, but I think that's a good idea and I'll add it to our queue of survey questions.
Stan Sher
Dealer eTraining
Yes I would love to see those results too. Thanks.