Mimicking customer behavior is one of the oldest sales techniques in the business. So is finding common interests and building rapport. However, with three generations of car buyers in and out of dealerships daily - Boomers, Gen X and Gen Y - it’s harder than ever for salespeople to accomplish this convincingly, let alone understand what type of experience each demographic is looking for. A recent article in Wards Auto, describes a dealer that provides generational training to his employees in an effort to assist them in better handling customers. The dealership first tries to match up salespeople with customers to optimize the experience – such as a Hispanic salesperson to assist a Hispanic customer. And, when that’s not possible, the training enables the employees to better understand what type of experience each generation is most likely seeking, and to then provide that. The dealer explained that every customer is different and that salespeople shouldn’t feel as if they need to provide the same experience to everyone, as not everyone wants the same thing. In his opinion, Boomers are more inclined to want to negotiate, while Millennials want something thrown in. Older customers aren’t necessarily seeking a fast buying experience, (as has been the hot topic of late) but Millennials are much more time conscious.

What does all of this have to do with customer loyalty?

In today’s automotive marketplace, OEMs and dealers are increasingly shifting the retail battlefield to customer experience. While that may be an excellent strategy, how do you create the perfect customer experience, and deliver it consistently, if all of your customers want different experiences? If your dealership decided that a one-hour sales process is the optimal customer experience, how will that Boomer, who wants to take his or her time shopping and negotiating, feel about the experience? They will probably rushed through the process, which will either run them off, or leave them dissatisfied. On the other hand, if a Millennial is forced to sit in your dealership for 6 hours, they’ll probably feel very unhappy too.

The customer’s perception of their buying experience affects a lot of things: the likelihood that they will recommend your dealership; the type of review they share, either online or with their family and friends; and whether or not they choose to continue to patronize your dealership. As consumers are holding onto their vehicles for much longer these days, customer retention heightens in importance and these points become ever more relevant.

If you recognize that there isn’t necessarily a single “best” customer experience, but, that the customer experience must be tailored for every customer, you may find it easier to retain customers of all demographics. By training salespeople on the types of experiences different generations would like. And, by giving them the flexibility to provide that experience on an individual basis, you will have happier customers across all generations.

Mimicking customer behavior is one of the oldest sales techniques in the business. So is finding common interests and building rapport. However, with three generations of car buyers in and out of dealerships daily - Boomers, Gen X and Gen Y - it’s harder than ever for salespeople to accomplish this convincingly, let alone understand what type of experience each demographic is looking for. A recent article in Wards Auto, describes a dealer that provides generational training to his employees in an effort to assist them in better handling customers. The dealership first tries to match up salespeople with customers to optimize the experience – such as a Hispanic salesperson to assist a Hispanic customer. And, when that’s not possible, the training enables the employees to better understand what type of experience each generation is most likely seeking, and to then provide that. The dealer explained that every customer is different and that salespeople shouldn’t feel as if they need to provide the same experience to everyone, as not everyone wants the same thing. In his opinion, Boomers are more inclined to want to negotiate, while Millennials want something thrown in. Older customers aren’t necessarily seeking a fast buying experience, (as has been the hot topic of late) but Millennials are much more time conscious.

What does all of this have to do with customer loyalty?

In today’s automotive marketplace, OEMs and dealers are increasingly shifting the retail battlefield to customer experience. While that may be an excellent strategy, how do you create the perfect customer experience, and deliver it consistently, if all of your customers want different experiences? If your dealership decided that a one-hour sales process is the optimal customer experience, how will that Boomer, who wants to take his or her time shopping and negotiating, feel about the experience? They will probably rushed through the process, which will either run them off, or leave them dissatisfied. On the other hand, if a Millennial is forced to sit in your dealership for 6 hours, they’ll probably feel very unhappy too.

The customer’s perception of their buying experience affects a lot of things: the likelihood that they will recommend your dealership; the type of review they share, either online or with their family and friends; and whether or not they choose to continue to patronize your dealership. As consumers are holding onto their vehicles for much longer these days, customer retention heightens in importance and these points become ever more relevant.

If you recognize that there isn’t necessarily a single “best” customer experience, but, that the customer experience must be tailored for every customer, you may find it easier to retain customers of all demographics. By training salespeople on the types of experiences different generations would like. And, by giving them the flexibility to provide that experience on an individual basis, you will have happier customers across all generations.

Loyalty programs surround us. We live in a world filled with keychains on which multiple little plastic mini loyalty cards dangle. There aren’t many places where we spend our money that don’t offer a rewards program or, at the very least, track our purchases via a quasi-rewards program that only allows us to purchase items at the “loyalty” price, versus the normal price (think grocery stores). While adding a loyalty program into your offerings is certainly something you should consider, keep in mind that not all customers are created equal. Blanket offers to everyone enrolled in your loyalty program could actually cost your dealership some business. Let me explain.

Almost every business has their own version of a “best customer.” These customers typically continuously visit the business and generate most of the revenue. They may not be the most frequent visitors, but bring the most profit with their visits. In all marketing, segmentation is key. It is certainly not the best move to spam your entire DMS with the same offer. That would be a waste of time.

Is that customer that only visits your dealership to take advantage of an oil change coupon worth the same reward as the customer who regularly services and accepts service upsells?

Identifying who your best customers are in terms of profitability can reap benefits in two ways.

1)    It allows any rewards and/or specials to be precisely targeted to those customers who deserve it most and who bring the most promise in terms of upset opportunities. It’s fairly common to throw out a $20 oil change coupon in the hopes that some additional service business is earned when that coupon is redeemed. That being the case, what percentage of those redemptions are accompanied by service upsells? By blanketing your customers with discounts and coupons, you simply attract those customers who only patronize you if they have a coupon and, in most cases, decline any service recommendations you may present to them.

2)    Identifying that group of your “best” customers will allow you to find patterns, characteristics and behaviors that exist within the group. Once you know what qualities your “best” customers have, you can start identifying customers who have similar qualities or behaviors that aren’t quite at that “best” status yet. Then, you can tailor your marketing or rewards to that second tier of customers in an attempt to elevate them into that “best” customer category.

Rewards programs are dynamic. Members should be segmented and marketed to in a personal way designed to maximize the outcome. Any marketing should either encourage existing behaviors or nurture customers into adopting the attributes of your “best” customers. Don’t use a set-it-and-forget-it blanket reward for members. If you do, you’ll find that your reward program could actually cost you money as all those loss-leader oil changes come into service with no upsells.

Identify your most profitable group of customers. Then leverage your loyalty program to instill in that second tier of customers the qualities from your most profitable customers. In this way, the base of customers that are generating the most income for you will grow and help to create a more solid foundation for your dealership’s future.

Loyalty programs surround us. We live in a world filled with keychains on which multiple little plastic mini loyalty cards dangle. There aren’t many places where we spend our money that don’t offer a rewards program or, at the very least, track our purchases via a quasi-rewards program that only allows us to purchase items at the “loyalty” price, versus the normal price (think grocery stores). While adding a loyalty program into your offerings is certainly something you should consider, keep in mind that not all customers are created equal. Blanket offers to everyone enrolled in your loyalty program could actually cost your dealership some business. Let me explain.

Almost every business has their own version of a “best customer.” These customers typically continuously visit the business and generate most of the revenue. They may not be the most frequent visitors, but bring the most profit with their visits. In all marketing, segmentation is key. It is certainly not the best move to spam your entire DMS with the same offer. That would be a waste of time.

Is that customer that only visits your dealership to take advantage of an oil change coupon worth the same reward as the customer who regularly services and accepts service upsells?

Identifying who your best customers are in terms of profitability can reap benefits in two ways.

1)    It allows any rewards and/or specials to be precisely targeted to those customers who deserve it most and who bring the most promise in terms of upset opportunities. It’s fairly common to throw out a $20 oil change coupon in the hopes that some additional service business is earned when that coupon is redeemed. That being the case, what percentage of those redemptions are accompanied by service upsells? By blanketing your customers with discounts and coupons, you simply attract those customers who only patronize you if they have a coupon and, in most cases, decline any service recommendations you may present to them.

2)    Identifying that group of your “best” customers will allow you to find patterns, characteristics and behaviors that exist within the group. Once you know what qualities your “best” customers have, you can start identifying customers who have similar qualities or behaviors that aren’t quite at that “best” status yet. Then, you can tailor your marketing or rewards to that second tier of customers in an attempt to elevate them into that “best” customer category.

Rewards programs are dynamic. Members should be segmented and marketed to in a personal way designed to maximize the outcome. Any marketing should either encourage existing behaviors or nurture customers into adopting the attributes of your “best” customers. Don’t use a set-it-and-forget-it blanket reward for members. If you do, you’ll find that your reward program could actually cost you money as all those loss-leader oil changes come into service with no upsells.

Identify your most profitable group of customers. Then leverage your loyalty program to instill in that second tier of customers the qualities from your most profitable customers. In this way, the base of customers that are generating the most income for you will grow and help to create a more solid foundation for your dealership’s future.

In life, not everything goes our way. Things happen. Planes get delayed. It rains during a wedding. Life intervenes. In business, the same holds true. If a situation is handled improperly, or is unaddressed, customers are likely to get ignored. With proper attention, however, customers can be forgiving.

Take for example, the story relayed in this article on Business2Community. The author explains how he was a loyal customer of a hotel. On one occasion, he booked the hotel as he had previously had excellent experiences there. However, upon arrival, he found the hotel was under construction. Many of the qualities that he had come to love – such as the contemporary bar - were not completed. He had planned to have some colleagues over at the hotel. However, after seeing it under construction, was displeased. He wished he had been given notice by the hotel about the on-going construction. He may have changed to a different hotel. But, to the hotel’s credit, the one thing that was the same - and ultimately what kept him there - was the hotel staff. Their customer service attitude and familiarity with him as a customer kept his business.

Another example is airlines. Flight delays. Cancellations. Most of the time, these major customer inconveniences are beyond their control. They certainly cannot control the weather. And, it is probably a smart decision on their part to delay a plane that isn’t in tip top shape. Yes, it’s annoying. But, I would argue that HOW they handle it is more important than the situation itself. By being empathetic, accepting responsibility for the situation and apologizing, many customers will understand and continue to patronize the airline. But, I don’t care how many award miles you have with an airline, if they fail to deliver too many times, you will probably find another airline.

I’m fairly certain that situations occur at your dealerships that are beyond your control. Sometimes, things go wrong. And, regardless of how sorry you are, or how bad you feel, you just can’t fix them immediately, no matter how much you want to.

Your customers are, for the most part, willing to give you a second chance. Perhaps even a third. Mistakes happen and how you handle them could be the determining factor in whether that customer stays, or defects to the competition. Take a deep breath, be calm and put yourself in your customer’s shoes. While you perhaps can’t fully solve the problem, would you feel better with the solution you are offering? Once you know the answer to that, chances are that you’ll be able to defuse the situation, calm the customer down and show them that they matter. And that’s all most people want.

In life, not everything goes our way. Things happen. Planes get delayed. It rains during a wedding. Life intervenes. In business, the same holds true. If a situation is handled improperly, or is unaddressed, customers are likely to get ignored. With proper attention, however, customers can be forgiving.

Take for example, the story relayed in this article on Business2Community. The author explains how he was a loyal customer of a hotel. On one occasion, he booked the hotel as he had previously had excellent experiences there. However, upon arrival, he found the hotel was under construction. Many of the qualities that he had come to love – such as the contemporary bar - were not completed. He had planned to have some colleagues over at the hotel. However, after seeing it under construction, was displeased. He wished he had been given notice by the hotel about the on-going construction. He may have changed to a different hotel. But, to the hotel’s credit, the one thing that was the same - and ultimately what kept him there - was the hotel staff. Their customer service attitude and familiarity with him as a customer kept his business.

Another example is airlines. Flight delays. Cancellations. Most of the time, these major customer inconveniences are beyond their control. They certainly cannot control the weather. And, it is probably a smart decision on their part to delay a plane that isn’t in tip top shape. Yes, it’s annoying. But, I would argue that HOW they handle it is more important than the situation itself. By being empathetic, accepting responsibility for the situation and apologizing, many customers will understand and continue to patronize the airline. But, I don’t care how many award miles you have with an airline, if they fail to deliver too many times, you will probably find another airline.

I’m fairly certain that situations occur at your dealerships that are beyond your control. Sometimes, things go wrong. And, regardless of how sorry you are, or how bad you feel, you just can’t fix them immediately, no matter how much you want to.

Your customers are, for the most part, willing to give you a second chance. Perhaps even a third. Mistakes happen and how you handle them could be the determining factor in whether that customer stays, or defects to the competition. Take a deep breath, be calm and put yourself in your customer’s shoes. While you perhaps can’t fully solve the problem, would you feel better with the solution you are offering? Once you know the answer to that, chances are that you’ll be able to defuse the situation, calm the customer down and show them that they matter. And that’s all most people want.

The other day, a friend of mine was in the market for a new tech toy. As he researched the different available brands, he noticed a huge difference in pricing - from $325 all the way up to $1800 -- but was unable to tell the difference between any of the brand offerings. The features seemed the same. They all looked the same. He read reviews, even those were similar -- consumers were generally happy, regardless of brand.

My friend was most interested in the premium-priced brand, because an associate had purchased and recommended it. However, this associate stated that this premium brand was probably the same as the less expensive $325 brand. In an effort to find out why the brand he wanted was priced so high, my friend turned to the brand’s Twitter account.  He found daily posts offering a discount if retweeted, so he did. Minutes later, he was messaged with a coupon code offering 10 percent off the purchase. Not swayed, he engaged the brand asking what made their product more expensive. He was given the following reasons:

1. It was a better quality than the less expensive brands.
2. The other brands were made and shipped from China. Therefore, it would be very difficult to obtain any customer service or warranty work should something happen. One the other hand, their product was made in the United States and came with a one year warranty.
3. It offered some additional features that the other brands did not.

These value propositions swayed my friend and he purchased the more expensive model. So, why would someone - all things being equal - choose a more expensive brand, at more than twice the price? For him, it was these unique selling propositions. Not the discount.

In our industry, consumers are constantly barraged with messages about low prices, coupons for service and many other similar offers. Dealerships tend to neglect to ensure that their primary message always reinforce any unique selling propositions. In many cases, consumers are willing to pay more if they feel that the additional cost benefits them. I recall seeing a dealership that had a chalkboard in its service department that listed their service pricing as well as all of their competitors - both franchise and independent. This same chalkboard also listed the reasons why they weren’t always the lower price and the benefits of choosing them over their competitors. They weren’t always the lowest price. However, their thought process was that the information made customers feel more comfortable to make on-the-spot decisions. The customer was no longer left to “think about it,” which is really code for “let me do some research, price shop and get opinions from my friends and family.”

With all the information and resources available to consumers, dealers feel they are in a race to the bottom. It has certainly become more challenging.

Consider perhaps focusing messaging on why customers should do business with YOUR dealership - even if you aren’t the lowest price. You may well find that customers are willing to pay more if they see the benefit of doing business with you versus the competition.

Find your unique selling proposition and make sure that it is broadcast in all of your messaging. As a result, consumers may well get more interested in doing business with you, rather than your price. When that happens, you’ll see your customers explaining to their networks the reason they chose you -- just like my friend did to me.

The other day, a friend of mine was in the market for a new tech toy. As he researched the different available brands, he noticed a huge difference in pricing - from $325 all the way up to $1800 -- but was unable to tell the difference between any of the brand offerings. The features seemed the same. They all looked the same. He read reviews, even those were similar -- consumers were generally happy, regardless of brand.

My friend was most interested in the premium-priced brand, because an associate had purchased and recommended it. However, this associate stated that this premium brand was probably the same as the less expensive $325 brand. In an effort to find out why the brand he wanted was priced so high, my friend turned to the brand’s Twitter account.  He found daily posts offering a discount if retweeted, so he did. Minutes later, he was messaged with a coupon code offering 10 percent off the purchase. Not swayed, he engaged the brand asking what made their product more expensive. He was given the following reasons:

1. It was a better quality than the less expensive brands.
2. The other brands were made and shipped from China. Therefore, it would be very difficult to obtain any customer service or warranty work should something happen. One the other hand, their product was made in the United States and came with a one year warranty.
3. It offered some additional features that the other brands did not.

These value propositions swayed my friend and he purchased the more expensive model. So, why would someone - all things being equal - choose a more expensive brand, at more than twice the price? For him, it was these unique selling propositions. Not the discount.

In our industry, consumers are constantly barraged with messages about low prices, coupons for service and many other similar offers. Dealerships tend to neglect to ensure that their primary message always reinforce any unique selling propositions. In many cases, consumers are willing to pay more if they feel that the additional cost benefits them. I recall seeing a dealership that had a chalkboard in its service department that listed their service pricing as well as all of their competitors - both franchise and independent. This same chalkboard also listed the reasons why they weren’t always the lower price and the benefits of choosing them over their competitors. They weren’t always the lowest price. However, their thought process was that the information made customers feel more comfortable to make on-the-spot decisions. The customer was no longer left to “think about it,” which is really code for “let me do some research, price shop and get opinions from my friends and family.”

With all the information and resources available to consumers, dealers feel they are in a race to the bottom. It has certainly become more challenging.

Consider perhaps focusing messaging on why customers should do business with YOUR dealership - even if you aren’t the lowest price. You may well find that customers are willing to pay more if they see the benefit of doing business with you versus the competition.

Find your unique selling proposition and make sure that it is broadcast in all of your messaging. As a result, consumers may well get more interested in doing business with you, rather than your price. When that happens, you’ll see your customers explaining to their networks the reason they chose you -- just like my friend did to me.

Human beings do have a tendency to overcomplicate things. In our industry, there are so many things that we need to deal with on a daily basis - customers, co-workers, employees, bosses, technology - at times it gets overwhelming. I believe that most dealers understand the importance of customer loyalty and retention. There are plenty of ways to entice customers and gain their loyalty. However, no matter how good the effort, every one of us will see customers leave at some point. Sometimes it’s your fault, sometimes it has nothing to do with you. Regardless of which, sustaining and nurturing customer loyalty can, at times, seem a daunting task.

I came across this quote from an unknown author today and, as I reflected on it, it occurred to me that this was the perfect - and simple - roadmap to customer loyalty.

Respect is earned.

Honesty is appreciated.

Trust is gained.

Loyalty is returned.

Everyone wants to be respected. It doesn’t matter whether you’re a customer, the business owner or a porter. Respect in a business organization is the foundation for everything - company culture, employee loyalty, and customer experience – to name just a few. If managers don’t respect their subordinates, a hostile environment is created where nobody wants to work. This in turn stifles productivity and negates motivation. Disrespect will make that $20 spiff worthless. In fact, that disrespect could easily result in employees performing poorly on purpose so as to cause the manager to fail.

Sadly, the auto industry is perceived as one of the least trusted of all businesses. The stereotype of the used car salesperson has transcended time and become one that dealers have found difficult to overcome. A policy of treating both employees and customers with respect and honesty can help create stronger bonds and also improve customer perception. A customer may expect a salesperson to be deceitful, but can be won over through honesty. Don’t promise things you’re unable to deliver. Customers desire transparency and in today’s world of online research, there are many resources for the customer to easily find the information they desire. So, be up front in the transaction. Customers may not like the answers you give them. But, if they’re honest answers, they will respect you for it.

If your employees or customers don’t trust you, you will never earn their loyalty. Chances are that you’ll have to prove that you can be trusted and believe me when I say that customers will challenge that trust and look for third-party validation - whether that’s through a price confidence site, a CarFax report or simply an online payment calculator. If everything checks out, and the customer knows that you’ve been honest with them, you will begin to earn their trust and build loyalty.

Human beings do have a tendency to overcomplicate things. In our industry, there are so many things that we need to deal with on a daily basis - customers, co-workers, employees, bosses, technology - at times it gets overwhelming. I believe that most dealers understand the importance of customer loyalty and retention. There are plenty of ways to entice customers and gain their loyalty. However, no matter how good the effort, every one of us will see customers leave at some point. Sometimes it’s your fault, sometimes it has nothing to do with you. Regardless of which, sustaining and nurturing customer loyalty can, at times, seem a daunting task.

I came across this quote from an unknown author today and, as I reflected on it, it occurred to me that this was the perfect - and simple - roadmap to customer loyalty.

Respect is earned.

Honesty is appreciated.

Trust is gained.

Loyalty is returned.

Everyone wants to be respected. It doesn’t matter whether you’re a customer, the business owner or a porter. Respect in a business organization is the foundation for everything - company culture, employee loyalty, and customer experience – to name just a few. If managers don’t respect their subordinates, a hostile environment is created where nobody wants to work. This in turn stifles productivity and negates motivation. Disrespect will make that $20 spiff worthless. In fact, that disrespect could easily result in employees performing poorly on purpose so as to cause the manager to fail.

Sadly, the auto industry is perceived as one of the least trusted of all businesses. The stereotype of the used car salesperson has transcended time and become one that dealers have found difficult to overcome. A policy of treating both employees and customers with respect and honesty can help create stronger bonds and also improve customer perception. A customer may expect a salesperson to be deceitful, but can be won over through honesty. Don’t promise things you’re unable to deliver. Customers desire transparency and in today’s world of online research, there are many resources for the customer to easily find the information they desire. So, be up front in the transaction. Customers may not like the answers you give them. But, if they’re honest answers, they will respect you for it.

If your employees or customers don’t trust you, you will never earn their loyalty. Chances are that you’ll have to prove that you can be trusted and believe me when I say that customers will challenge that trust and look for third-party validation - whether that’s through a price confidence site, a CarFax report or simply an online payment calculator. If everything checks out, and the customer knows that you’ve been honest with them, you will begin to earn their trust and build loyalty.