Want to boost your sales 24% and add $106,000 per year to your bottom line? Well, here’s the deal: It’s all about the customer experience.

A lot has been written about how industry disrupters are currently threatening market share. These online auto buying sites provide consumers with an easier, friendlier way to buy a car. This isn’t, however, something proprietary to them. The simple fact that they leverage technology to facilitate these transactions is nothing new. AutoNation, itself, has spent millions of dollars to provide customers with a similar buying process. But what, exactly, is truly being sold here? It’s the customer experience. Think of Amazon, Apple, Disney and Nordstroms. In fact, most businesses in other industries have jumped on this phenomenon in a big way – so much so that consumers now expect this top-of-the line customer experience in every business transaction.

A recent article on Loyalty360.org provides some very interesting data on this, including the 2015 DrivingSales Consumer Experience Study, which estimates that dealerships could sell 24% more vehicles simply by improving the car buying experience. And, a study by MaritzCX went a step farther and actually quantified the additional revenue a dealership would see at $106,000; simply by focusing on the customer experience. I highly doubt there is any dealer that wouldn’t enjoy a 24% lift in unit sales and an extra $106,000 per year added to their bottom line.

The customer experience is all encompassing. In many cases, whether or not that customer returns, is simply determined by how the customer feels at the end of the sales transaction. You see, it’s not all about crossing the “T’s” and dotting the “I’s.” But, more about how the customer FEELS at the end of the transaction. Your process could be smooth as silk, negotiations handled smoothly, the customer in and out of finance, with the salesperson doing a complete delivery on a pristinely detailed car, and yet the customer could still leave the dealership feeling they had a less then great experience. The fact is that the customer experience in your dealership needs to encompass anything that affects a customer -- from ensuring that your website has all the information they are searching for, to providing good, fresh coffee, to making sure the showroom is clean and that you have adequate staffing to ensure an efficient and attentive experience for each and every customer, every time.

Of course, if your dealership is stuck using outdated computers, sharpies on foursquares and skimps on amenities for customers, it will be extremely difficult to achieve the experience that most consumers desire.

A great way to begin to transform and improve the experience for your customer is simple – invest in new technology! I know. The thought of outfitting your sales staff with iPads may not seem like it would provide any ROI. That being said, would it surprise you to learn that in the J.D. Power 2015 U.S. Sales Satisfaction Index Study, it was revealed that consumers reported a higher customer satisfaction rate when tablets were used in the sales process?

Today’s consumers are digitally savvy and expect the same from businesses. Whether we’re talking about providing information online so the consumer to get a head start on their vehicle purchase prior to coming into your dealership, or ensuring that your receptionist provides a good welcome over the phone and in person, it’s time to embrace any technology that enhances the buying experience for customers – both in the dealership or online. Don’t be afraid of these changes, or balk at the investment. An additional $106,000 per year in revenue should quickly return any initial investment and deliver dividends for years to come. Of course, you could continue to do things the same way as you always have -- then watch while your customers start gravitating to either these disrupters or, perhaps even worse, your competitors.

Want to boost your sales 24% and add $106,000 per year to your bottom line? Well, here’s the deal: It’s all about the customer experience.

A lot has been written about how industry disrupters are currently threatening market share. These online auto buying sites provide consumers with an easier, friendlier way to buy a car. This isn’t, however, something proprietary to them. The simple fact that they leverage technology to facilitate these transactions is nothing new. AutoNation, itself, has spent millions of dollars to provide customers with a similar buying process. But what, exactly, is truly being sold here? It’s the customer experience. Think of Amazon, Apple, Disney and Nordstroms. In fact, most businesses in other industries have jumped on this phenomenon in a big way – so much so that consumers now expect this top-of-the line customer experience in every business transaction.

A recent article on Loyalty360.org provides some very interesting data on this, including the 2015 DrivingSales Consumer Experience Study, which estimates that dealerships could sell 24% more vehicles simply by improving the car buying experience. And, a study by MaritzCX went a step farther and actually quantified the additional revenue a dealership would see at $106,000; simply by focusing on the customer experience. I highly doubt there is any dealer that wouldn’t enjoy a 24% lift in unit sales and an extra $106,000 per year added to their bottom line.

The customer experience is all encompassing. In many cases, whether or not that customer returns, is simply determined by how the customer feels at the end of the sales transaction. You see, it’s not all about crossing the “T’s” and dotting the “I’s.” But, more about how the customer FEELS at the end of the transaction. Your process could be smooth as silk, negotiations handled smoothly, the customer in and out of finance, with the salesperson doing a complete delivery on a pristinely detailed car, and yet the customer could still leave the dealership feeling they had a less then great experience. The fact is that the customer experience in your dealership needs to encompass anything that affects a customer -- from ensuring that your website has all the information they are searching for, to providing good, fresh coffee, to making sure the showroom is clean and that you have adequate staffing to ensure an efficient and attentive experience for each and every customer, every time.

Of course, if your dealership is stuck using outdated computers, sharpies on foursquares and skimps on amenities for customers, it will be extremely difficult to achieve the experience that most consumers desire.

A great way to begin to transform and improve the experience for your customer is simple – invest in new technology! I know. The thought of outfitting your sales staff with iPads may not seem like it would provide any ROI. That being said, would it surprise you to learn that in the J.D. Power 2015 U.S. Sales Satisfaction Index Study, it was revealed that consumers reported a higher customer satisfaction rate when tablets were used in the sales process?

Today’s consumers are digitally savvy and expect the same from businesses. Whether we’re talking about providing information online so the consumer to get a head start on their vehicle purchase prior to coming into your dealership, or ensuring that your receptionist provides a good welcome over the phone and in person, it’s time to embrace any technology that enhances the buying experience for customers – both in the dealership or online. Don’t be afraid of these changes, or balk at the investment. An additional $106,000 per year in revenue should quickly return any initial investment and deliver dividends for years to come. Of course, you could continue to do things the same way as you always have -- then watch while your customers start gravitating to either these disrupters or, perhaps even worse, your competitors.

It’s getting more difficult to earn and keep loyal customers. Consumers these days have so many choices for their shopping needs that it only takes that deep discount, or shiny bauble, to lure them to your competition.

As businesses scramble to create positive customer experiences by ensuring superior customer service, consumers increasingly realize they are in control of that shopping experience. And, they aren’t afraid to flex that decision making control and take their business elsewhere.

So, what then do consumers want from businesses in exchange for their loyalty?

A recent article on Business2Community shed some light on that subject with a list of the 8 things that greatly influence what consumers want in exchange for their loyalty, based on a compilation of results from several studies. They are:

1. 77% of customers want a great product.
2. 73% of customers want kind customer support.
3. 69% of customers want to be recognized by brands.
4. 69% of customers would stay with a brand for loyalty rewards and points.
5. 64% of customers want shared values with brands.
6. 62% of customers want online content from brands.
7. 48% of customers say that their first purchase is what determines their loyalty.
8. 41% of customers want personalized emails based on their browsing and purchasing history.

Almost half of consumers surveyed stated that their first purchase experience will dictate whether they stay a customer. After their experience, they must feel that they received a great product, feel appreciated, get rewarded for their loyalty and feel that the brand shares their values. In continuing and strengthening the relationship, consumers want to see online content and receive personalized and relevant communications based on their purchasing history.

This customer lifecycle is no different regardless of if that business is a restaurant, or a car dealership. The fact is that we can get so focused on the next sale, or customer, that we forget about the one that we just purchased or serviced their vehicle. These customers can easily feel abandoned by the business if that attention is redirected away from them.

According to the article, 20% of your loyal customer base will comprise 80% of your revenue. Of course, if you aren’t actively trying to retain your customers, you’ll be continuously spending money in order to acquire new ones -- who may or may not become loyal to your business. If there was a clear definitive report that showed that 80 percent of your revenue was coming from existing customers, and only 20 percent from new ones, wouldn’t it be unwise to just focus on the small piece of the pie?

It’s getting more difficult to earn and keep loyal customers. Consumers these days have so many choices for their shopping needs that it only takes that deep discount, or shiny bauble, to lure them to your competition.

As businesses scramble to create positive customer experiences by ensuring superior customer service, consumers increasingly realize they are in control of that shopping experience. And, they aren’t afraid to flex that decision making control and take their business elsewhere.

So, what then do consumers want from businesses in exchange for their loyalty?

A recent article on Business2Community shed some light on that subject with a list of the 8 things that greatly influence what consumers want in exchange for their loyalty, based on a compilation of results from several studies. They are:

1. 77% of customers want a great product.
2. 73% of customers want kind customer support.
3. 69% of customers want to be recognized by brands.
4. 69% of customers would stay with a brand for loyalty rewards and points.
5. 64% of customers want shared values with brands.
6. 62% of customers want online content from brands.
7. 48% of customers say that their first purchase is what determines their loyalty.
8. 41% of customers want personalized emails based on their browsing and purchasing history.

Almost half of consumers surveyed stated that their first purchase experience will dictate whether they stay a customer. After their experience, they must feel that they received a great product, feel appreciated, get rewarded for their loyalty and feel that the brand shares their values. In continuing and strengthening the relationship, consumers want to see online content and receive personalized and relevant communications based on their purchasing history.

This customer lifecycle is no different regardless of if that business is a restaurant, or a car dealership. The fact is that we can get so focused on the next sale, or customer, that we forget about the one that we just purchased or serviced their vehicle. These customers can easily feel abandoned by the business if that attention is redirected away from them.

According to the article, 20% of your loyal customer base will comprise 80% of your revenue. Of course, if you aren’t actively trying to retain your customers, you’ll be continuously spending money in order to acquire new ones -- who may or may not become loyal to your business. If there was a clear definitive report that showed that 80 percent of your revenue was coming from existing customers, and only 20 percent from new ones, wouldn’t it be unwise to just focus on the small piece of the pie?

Competition for air travel is fierce. Especially when it comes to wooing business travelers. An interesting fact that recently came to light is that the most desirable customers are not necessarily those that have flown the most miles. Airlines have realized this and have changed how rewards and statuses are earned. You see, flying longer distances doesn’t necessarily equate to more revenue. The airlines want to capture those lucrative business travelers that book last minute and end up paying full fare, rather than those that book months in advance and capture sale-priced fares. These last minute bookers bring the most revenue.

In the past, status was rewarded by miles travelled. However, this has now changed. In fact, American Airlines just became the last of the three major airlines to revise the way status and perks are awarded. It is now based on how much money is spent, rather than miles flown.

This recent article on Yahoo Travel relays a viewpoint that airlines have inadvertently created an elitist group of travelers. The thought process is that this is due to loyalty program promises that the airlines sometimes cannot quite live up to. Despite all of the red carpet treatment – Luxury Porsches to shuttle fliers to connecting flights; swanky exclusive airport clubs; etc., there are times when there just isn’t an open first class seat available for a customer upgrade. When that situation happens, airlines have found that this sub-group of elitist travelers attacks with their loyalty cards. They try to out trump each other with status level or threats. The article is quite interesting in how it explains the mentality that the airline’s loyalty programs have created, simply based on how it has been structured and presented to customers. There are certainly a few loyalty program inspired horror stories contained in it.

Loyalty programs have become an expected norm by consumers due to their mass adoption by most major retailers. As such, in many cases they have lost the very essence with which they were intended – to make that loyal customer feel special and appreciated. If we’re to take a lesson from the airline’s faux pas, what is the answer then? How, through our loyalty programs, do we show our customers that they matter to us, that they are important and that we value their loyalty?

Well, one thing that always works is to keep in those basics of customer service. I hear more and more these days about the importance of the customer experience. Show them that they matter by offering exceptional service. Offer meaningful and relevant rewards. And go the extra mile when you know it can transform someone’s experience into one that’s truly exceptional.

Competition for air travel is fierce. Especially when it comes to wooing business travelers. An interesting fact that recently came to light is that the most desirable customers are not necessarily those that have flown the most miles. Airlines have realized this and have changed how rewards and statuses are earned. You see, flying longer distances doesn’t necessarily equate to more revenue. The airlines want to capture those lucrative business travelers that book last minute and end up paying full fare, rather than those that book months in advance and capture sale-priced fares. These last minute bookers bring the most revenue.

In the past, status was rewarded by miles travelled. However, this has now changed. In fact, American Airlines just became the last of the three major airlines to revise the way status and perks are awarded. It is now based on how much money is spent, rather than miles flown.

This recent article on Yahoo Travel relays a viewpoint that airlines have inadvertently created an elitist group of travelers. The thought process is that this is due to loyalty program promises that the airlines sometimes cannot quite live up to. Despite all of the red carpet treatment – Luxury Porsches to shuttle fliers to connecting flights; swanky exclusive airport clubs; etc., there are times when there just isn’t an open first class seat available for a customer upgrade. When that situation happens, airlines have found that this sub-group of elitist travelers attacks with their loyalty cards. They try to out trump each other with status level or threats. The article is quite interesting in how it explains the mentality that the airline’s loyalty programs have created, simply based on how it has been structured and presented to customers. There are certainly a few loyalty program inspired horror stories contained in it.

Loyalty programs have become an expected norm by consumers due to their mass adoption by most major retailers. As such, in many cases they have lost the very essence with which they were intended – to make that loyal customer feel special and appreciated. If we’re to take a lesson from the airline’s faux pas, what is the answer then? How, through our loyalty programs, do we show our customers that they matter to us, that they are important and that we value their loyalty?

Well, one thing that always works is to keep in those basics of customer service. I hear more and more these days about the importance of the customer experience. Show them that they matter by offering exceptional service. Offer meaningful and relevant rewards. And go the extra mile when you know it can transform someone’s experience into one that’s truly exceptional.

The reason that consumers don’t trust us is simple… the messages we send them aren’t believable.

Point in case: Doug Demiro, a former manager of Porsche Cars North America, and now author of a popular column on automotive website Jalopnik, answered a reader’s question in his column that illustrates this point very clearly.

The question essentially boiled down to this: “Do those letters and e-mails from dealers saying they really want your trade-in actually mean anything? Do dealers really want your trade-in? Are they going to pay top dollar for your vehicle because they have some customer who desperately wants it?”

His answer: NO

Go ahead and read the article. It’s pretty much how consumers perceive these offers. The comments are also rather entertaining. It’s all consumers sharing experiences in which they received a similar offer and actually wanted to take the dealership up on it -- until they found out the dealer couldn’t deliver, or that the offer was unobtainable. And now, in general, they assume ALL offers are simply ploys and conspiratorial plots to entice the customer into the dealership.

Are they right? Is that what we’re doing?

Well, that all depends on how responsible a dealership is in handling their marketing. Dealerships who turn over their entire DMS to outsourced BDCs, direct mail companies, extended warranty companies, or any other vendor without first segmenting out and vetting that database to ensure that it is correct for that targeted message; that the recipients of the message qualify for the offer; are in fact, for the most part, doing more harm than good.

All this type of poorly thought out, uncoordinated mass blanketing of promotion does is create an aura of mistrust with existing customers. By blasting them with irrelevant messages you make it more difficult for the customer to believe ANY message they receive - even if it does apply to them. This practice, which is still more widespread than many realize, in turn gets projected onto the retail auto industry as a whole.

That being said, smart dealers understand the importance of segmentation and relevant messaging. When a dealership realizes that “spray and pray” hurts more than it helps and takes the time to segment its database and send relevant messages to those customers most likely to be interested, the campaigns - no matter what form of marketing it is - will always perform better. Why? While you may be marketing to less people, those people are more likely to take you up on your offer. They’re more likely to convert when they come in, since they will actually qualify. And you’ll spend less money to achieve better results. The side effect of segmenting your marketing messages is that you will start to earn your customers’ trust. They still may not believe everything you send them (even if it’s true). But, when they come in and discover that you can actually fulfill the offer, not only will you win their business, but also their trust. And that’s something all dealerships and our industry certainly needs to do.

The reason that consumers don’t trust us is simple… the messages we send them aren’t believable.

Point in case: Doug Demiro, a former manager of Porsche Cars North America, and now author of a popular column on automotive website Jalopnik, answered a reader’s question in his column that illustrates this point very clearly.

The question essentially boiled down to this: “Do those letters and e-mails from dealers saying they really want your trade-in actually mean anything? Do dealers really want your trade-in? Are they going to pay top dollar for your vehicle because they have some customer who desperately wants it?”

His answer: NO

Go ahead and read the article. It’s pretty much how consumers perceive these offers. The comments are also rather entertaining. It’s all consumers sharing experiences in which they received a similar offer and actually wanted to take the dealership up on it -- until they found out the dealer couldn’t deliver, or that the offer was unobtainable. And now, in general, they assume ALL offers are simply ploys and conspiratorial plots to entice the customer into the dealership.

Are they right? Is that what we’re doing?

Well, that all depends on how responsible a dealership is in handling their marketing. Dealerships who turn over their entire DMS to outsourced BDCs, direct mail companies, extended warranty companies, or any other vendor without first segmenting out and vetting that database to ensure that it is correct for that targeted message; that the recipients of the message qualify for the offer; are in fact, for the most part, doing more harm than good.

All this type of poorly thought out, uncoordinated mass blanketing of promotion does is create an aura of mistrust with existing customers. By blasting them with irrelevant messages you make it more difficult for the customer to believe ANY message they receive - even if it does apply to them. This practice, which is still more widespread than many realize, in turn gets projected onto the retail auto industry as a whole.

That being said, smart dealers understand the importance of segmentation and relevant messaging. When a dealership realizes that “spray and pray” hurts more than it helps and takes the time to segment its database and send relevant messages to those customers most likely to be interested, the campaigns - no matter what form of marketing it is - will always perform better. Why? While you may be marketing to less people, those people are more likely to take you up on your offer. They’re more likely to convert when they come in, since they will actually qualify. And you’ll spend less money to achieve better results. The side effect of segmenting your marketing messages is that you will start to earn your customers’ trust. They still may not believe everything you send them (even if it’s true). But, when they come in and discover that you can actually fulfill the offer, not only will you win their business, but also their trust. And that’s something all dealerships and our industry certainly needs to do.

In our industry, one universal sales practice is to tailor your techniques to the wants and needs of the customer in front of you. If you have a young male drooling over that sports car, you’ll probably be talking about performance specs, 0-60 times and horsepower. If you have a young family, you’re probably going to be reviewing all of the safety features of the vehicle. To anybody that’s been in sales for a while, this is old news. Now, however, we have a whole new group of consumers that are slowly, but surely, entering into their prime spending years - Millennials. The question is, are we really engaging them in a way that earns their business and encourages customer loyalty?

These will be the customers that your service department will try to retain, while also being repeat customers in sales for many years to come. While they still need cars and will buy them, the question is whether or not we know enough about the factors that contribute to creating a brand advocate out of a Millennial. Do they have the same types of loyalty traits that we’ve pursued in the past? A glimpse into this finicky group of young people published on Business Insider, may cause you to change your sales techniques.

In a study run by the “America@250,” it was found that sustainability is one of the most important factors to Millennials.

• 34% of Millennials find it important that the vehicle they purchase uses little to no fuel, versus 26% of Baby Boomers.
• Only 24% responded that the fact that the vehicle was made in America was important, as compared to 42% of Baby Boomers.
• 16% of Millennials said that whether the manufacturer takes care of the environment is important and matters to them, versus 6% of Baby Boomers.

Apparently, fuel economy is not only an important consideration in vehicle choice, but also an important attribute in whether or not the brand can earn their loyalty.

If sustainability and social responsibility are important to Millennials when it comes to brand loyalty, perhaps it makes sense at your dealership to consider adopting - or highlighting - ways in which you can fulfill these expectations. Items as small as clean waste disposal in service, recycling, community service and outreach, may go far into convincing a Millennial to buy a vehicle from you and to earn their loyalty. Next time you find a Millennial standing in front of you (whether that’s physically or virtually) thinking about purchasing a vehicle, you might want to include these details in your “why buy from us” pitch. It might just tip that prospect towards your dealership, versus your competition.

In our industry, one universal sales practice is to tailor your techniques to the wants and needs of the customer in front of you. If you have a young male drooling over that sports car, you’ll probably be talking about performance specs, 0-60 times and horsepower. If you have a young family, you’re probably going to be reviewing all of the safety features of the vehicle. To anybody that’s been in sales for a while, this is old news. Now, however, we have a whole new group of consumers that are slowly, but surely, entering into their prime spending years - Millennials. The question is, are we really engaging them in a way that earns their business and encourages customer loyalty?

These will be the customers that your service department will try to retain, while also being repeat customers in sales for many years to come. While they still need cars and will buy them, the question is whether or not we know enough about the factors that contribute to creating a brand advocate out of a Millennial. Do they have the same types of loyalty traits that we’ve pursued in the past? A glimpse into this finicky group of young people published on Business Insider, may cause you to change your sales techniques.

In a study run by the “America@250,” it was found that sustainability is one of the most important factors to Millennials.

• 34% of Millennials find it important that the vehicle they purchase uses little to no fuel, versus 26% of Baby Boomers.
• Only 24% responded that the fact that the vehicle was made in America was important, as compared to 42% of Baby Boomers.
• 16% of Millennials said that whether the manufacturer takes care of the environment is important and matters to them, versus 6% of Baby Boomers.

Apparently, fuel economy is not only an important consideration in vehicle choice, but also an important attribute in whether or not the brand can earn their loyalty.

If sustainability and social responsibility are important to Millennials when it comes to brand loyalty, perhaps it makes sense at your dealership to consider adopting - or highlighting - ways in which you can fulfill these expectations. Items as small as clean waste disposal in service, recycling, community service and outreach, may go far into convincing a Millennial to buy a vehicle from you and to earn their loyalty. Next time you find a Millennial standing in front of you (whether that’s physically or virtually) thinking about purchasing a vehicle, you might want to include these details in your “why buy from us” pitch. It might just tip that prospect towards your dealership, versus your competition.