Aubrey Hankins

Company: CRMSuite Corporation

Aubrey Hankins

CRMSuite Corporation

Jul 7, 2016

Why Customer Ownership & Customer Abandonment Are Tied Hand in Hand

When you think of customer ownership and customer abandonment both seem drastically different, but in the dealership marketplace they are all to often tied together. Take customer ownership: Bob gets a lead, and will forever own that lead, that lead is tattoo'd with Bob's name. Then we have customer abandonment: Bob takes a lead, but then Bob takes a vacation and the customer comes in. Bob's not there and the customer hears “I’m sorry, we can’t do your paperwork because Bob isn’t here, but he’ll be back on Friday. Come back then." The customer's information falls through the cracks when Bob leaves, so the dealership is a man down and a sale lost. Thanks for nothing, Bob.

So, why are we still working with the old format of customer ownership when it leads to abandonment? Let's look at why both of these are highly connected, and why they don't have to be a hindrance any longer.

This concept of customer ownership has long been Gospel, after all, 71% of customers say they bought their vehicle because they liked, trusted or respected their salesperson. But it’s the outliers of this concept that have become phased out, and in turn a shift has happened. This is due to three key reasons; lifetime employment is a thing of the past, OEM and BDC Programs ensure MANY hands are touching the customer before and after the sale, and then there’s the Internet. Yes, the Internet. The ability to trove through models, pricing, warranties, and rebates has given the consumer the upper hand and forced the salesman to become more knowledgable than ever about the product.

In many cases these factors have led to the high turnover that has run rampant in the automotive industry. NADA reports that salesperson turnover is 72% for the year 2015, with this number unlikely to change much for 2016. While this number is staggering, it really shouldn't come as the biggest surprise. What should is the amount of abandoned customers it creates. Customers no longer need to rely on the same salespeople to walk them through the entire process. As we remember with Bob, while he may have left,the customer is fine to work with another salesperson, perhaps Tom. The customer has already done their research, they know what they want, and for the most part they'll know what they're going to pay. The question that remains for most dealerships is if they have the right setup to accommodate this customer before they become abandoned.

So what can be done about this issue? Plenty, but not all can ensure a positive and sustainable outcome. You CAN hire a firm that helps dealerships make better hiring decisions using data and process. You CAN hire a trainer to come in and work with your salespeople for a week. But these techniques are not guaranteed, and we have to remember that not everyone can work in the dealer marketplace and you will always end up with personalities that aren't fit for this industry. Basically, you'll be right back to square one.

Every dealership can benefit by using/changing one thing to better themselves on both of these problems: their CRM.

 

 

Using a CRM properly and advantageously WILL ensure better sales and create a better customer experience. That is by far the greatest goal every store should have. With a proper CRM solution, dealerships will have the ability to create a better lead pool, keep existing leads, close more deals, and extract more long term customers. In the current fast-paced marketplace, taking advantage of a system such as this offers dealerships the ability to close more leads while never having to worry about losing a customer due to customer abandonment.

As with any possibility of change, it takes time and can scare some away. But the days of complete customer ownership are fading faster and faster, and to prevent losing leads, it's a simple change. You'll be creating a more stable environment for your employees and close those deals that once fell through the cracks when Bob went on vacation.

Aubrey Hankins

CRMSuite Corporation

Director of Dealer Communication

1759

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