Ever popular transportation service Uber is coming under fire for what some say is an exploitative business practice. Uber tends to be a convenient and economical way to get around town – especially for inner city dwellers that don’t own vehicles and travelers who don’t necessarily need a rental car.

In an effort to encourage drivers to work during busy times to ensure that Uber customers don’t receive a “No cars available” notice, Uber instituted surge pricing. In essence, surge pricing is a multiplying factor based on demand. Let’s say you need a ride home from downtown New York City on New Year’s Eve, after watching the ball drop. Chances are great that with 2 million people trying to get home, there won’t be many taxis or Ubers available. In these cases, Uber surge pricing has been known to grow upwards of 9 times the normal fare. Revelers found this out this past New Year’s Eve when they woke up to find they had paid $205 for an 8 mile ride. Or, in one man’s case, $1,100 for a trip that would normally cost $125.

While these fare increases typically only occur during really busy times, in an effort to entice drivers to work, these price increases are irritating customers worldwide. Uber may be a giant that has arisen quickly. However, the company must ask itself what would cause a customer to discontinue using its service faster – lack of available cars or the perception of price gouging?

Uber has enjoyed a rise in popularity due to the simple fact that consumers have embraced it’s convenience and lowered transportation costs. Uber drivers are held to certain standard for the type and age of the vehicle they drive. And many users state that Uber vehicles are much nicer than many of the aging taxis that exist. However, while taxis are regulated, along with the fares they can charge so as to avoid price gouging, Uber is not.

There was also the Australian hostage crisis which saw an armed gunman take hostages in downtown Sydney forcing evacuations. Well …. Uber’s surge pricing took effect causing fares to rise to a minimum of $100 for people to evacuate. Enraged Australians quickly took to social media denouncing Uber’s actions as exploitive. To their credit, Uber quickly refunded everyone that had paid for a ride and made additional rides available free for anyone else fleeing downtown.

While Uber’s surge pricing makes sense from a business standpoint, in our supply and demand driven market, every consumer forced to pay hundreds of dollars for five minute rides that should in fact cost just $10, is a customer who is at-risk to discontinue use of the service. That customer could also be a megaphone for bad publicity through social media and word of mouth. This could backfire on Uber and the company may find that users forgo using their services on nights when they estimate it to be busy. They could then end up with drivers that have no customers.

Customer loyalty is a fragile creature. Uber has enjoyed success by creating an excellent customer experience. And the customer experience is usually king. In today's economy, consumers have more options than ever--and they know it. With the growth of the Internet, they can get almost anything they want, whenever they want it. As a result, they increasingly value excellent experiences.

This is a different game, with different rules. Companies win or lose because of the feeling they give customers, not necessarily because of features or prices.

Ever popular transportation service Uber is coming under fire for what some say is an exploitative business practice. Uber tends to be a convenient and economical way to get around town – especially for inner city dwellers that don’t own vehicles and travelers who don’t necessarily need a rental car.

In an effort to encourage drivers to work during busy times to ensure that Uber customers don’t receive a “No cars available” notice, Uber instituted surge pricing. In essence, surge pricing is a multiplying factor based on demand. Let’s say you need a ride home from downtown New York City on New Year’s Eve, after watching the ball drop. Chances are great that with 2 million people trying to get home, there won’t be many taxis or Ubers available. In these cases, Uber surge pricing has been known to grow upwards of 9 times the normal fare. Revelers found this out this past New Year’s Eve when they woke up to find they had paid $205 for an 8 mile ride. Or, in one man’s case, $1,100 for a trip that would normally cost $125.

While these fare increases typically only occur during really busy times, in an effort to entice drivers to work, these price increases are irritating customers worldwide. Uber may be a giant that has arisen quickly. However, the company must ask itself what would cause a customer to discontinue using its service faster – lack of available cars or the perception of price gouging?

Uber has enjoyed a rise in popularity due to the simple fact that consumers have embraced it’s convenience and lowered transportation costs. Uber drivers are held to certain standard for the type and age of the vehicle they drive. And many users state that Uber vehicles are much nicer than many of the aging taxis that exist. However, while taxis are regulated, along with the fares they can charge so as to avoid price gouging, Uber is not.

There was also the Australian hostage crisis which saw an armed gunman take hostages in downtown Sydney forcing evacuations. Well …. Uber’s surge pricing took effect causing fares to rise to a minimum of $100 for people to evacuate. Enraged Australians quickly took to social media denouncing Uber’s actions as exploitive. To their credit, Uber quickly refunded everyone that had paid for a ride and made additional rides available free for anyone else fleeing downtown.

While Uber’s surge pricing makes sense from a business standpoint, in our supply and demand driven market, every consumer forced to pay hundreds of dollars for five minute rides that should in fact cost just $10, is a customer who is at-risk to discontinue use of the service. That customer could also be a megaphone for bad publicity through social media and word of mouth. This could backfire on Uber and the company may find that users forgo using their services on nights when they estimate it to be busy. They could then end up with drivers that have no customers.

Customer loyalty is a fragile creature. Uber has enjoyed success by creating an excellent customer experience. And the customer experience is usually king. In today's economy, consumers have more options than ever--and they know it. With the growth of the Internet, they can get almost anything they want, whenever they want it. As a result, they increasingly value excellent experiences.

This is a different game, with different rules. Companies win or lose because of the feeling they give customers, not necessarily because of features or prices.

Earning customer loyalty in today’s society is especially tricky. As almost every retailer now has a loyalty program, it’s difficult to stand out and make your customer truly feel special and appreciated. Earning loyalty isn’t simply about giving something away. It’s about creating and nurturing a relationship that builds a brand advocate who will continue to patronize your business and also help with your acquisition efforts through recommendations and word-of-mouth. For the customer, the true test of how much a business values their patronage – and typically the moment when most businesses fail – is when a problem arises and they need assistance.

Nowadays, most consumers are used to getting trapped in an automated phone system’s multiple layers, offering every option except the one they want – a REAL LIVE person. Most customers don’t expect businesses today to greet them by name, or have instant knowledge of their past transactions. They simply want to know that the business is there for them and that it will help them. Unfortunately, frequently customers instead feel frustrated. They get bounced from rep to rep, or department to department, without that rep having the power to help them. And, even more frustrating, each step of the way they have to explain their problem again to the new person.

One of the easiest and cheapest ways to show your customers that your business truly cares is to treat each one as a VIP. There are countless stories of customers defecting to the competition simply because someone didn’t pick up their extension, and they went straight to voicemail. Train your staff to take ownership of each call that comes into your dealership. If the customer has questions, they should check that the person the customer needs to reach is available. And that they are the correct person to answer the question before transferring the call. Don’t shoot the customer off into phone limbo. Train your staff to brief any employee they transfer the call to about the customer’s issue. Then the customer no longer has to constantly repeat themselves. It’s very easy in a busy showroom to transfer calls around, page salespeople, then place customers on hold. But that’s exactly what will send those customers elsewhere.

Stores with BDCs are in an incredible position to create a concierge-like VIP service for customers. To create a relationship with a customer, you have to become a resource for them. If your customer’s vehicle is broken down, you could simply tell them to call AAA and have the car towed in, and/or give them the number for the manufacturer’s roadside assistance program. Another option is to offer to place that call for the customer -- stay with them until the service answers, offering any information (like the dealership’s address) that the operator may need. Which do you think the customer will be more impressed with? Which do you think would result in that customer’s vehicle at your shop, versus your competitor? I realize that not all of this is realistic at each dealership, it’s the general idea of customer care that I am trying to relay.

Instead of answering the phone with a question of “This is Mike, How can I help you?” try a simple change to “This is Mike, I can help you.” Take ownership of that customer until their need has been fulfilled. You’d be surprised just how appreciative and impressed your customers will be. That is how you differentiate yourself and earn a customer’s loyalty.

Earning customer loyalty in today’s society is especially tricky. As almost every retailer now has a loyalty program, it’s difficult to stand out and make your customer truly feel special and appreciated. Earning loyalty isn’t simply about giving something away. It’s about creating and nurturing a relationship that builds a brand advocate who will continue to patronize your business and also help with your acquisition efforts through recommendations and word-of-mouth. For the customer, the true test of how much a business values their patronage – and typically the moment when most businesses fail – is when a problem arises and they need assistance.

Nowadays, most consumers are used to getting trapped in an automated phone system’s multiple layers, offering every option except the one they want – a REAL LIVE person. Most customers don’t expect businesses today to greet them by name, or have instant knowledge of their past transactions. They simply want to know that the business is there for them and that it will help them. Unfortunately, frequently customers instead feel frustrated. They get bounced from rep to rep, or department to department, without that rep having the power to help them. And, even more frustrating, each step of the way they have to explain their problem again to the new person.

One of the easiest and cheapest ways to show your customers that your business truly cares is to treat each one as a VIP. There are countless stories of customers defecting to the competition simply because someone didn’t pick up their extension, and they went straight to voicemail. Train your staff to take ownership of each call that comes into your dealership. If the customer has questions, they should check that the person the customer needs to reach is available. And that they are the correct person to answer the question before transferring the call. Don’t shoot the customer off into phone limbo. Train your staff to brief any employee they transfer the call to about the customer’s issue. Then the customer no longer has to constantly repeat themselves. It’s very easy in a busy showroom to transfer calls around, page salespeople, then place customers on hold. But that’s exactly what will send those customers elsewhere.

Stores with BDCs are in an incredible position to create a concierge-like VIP service for customers. To create a relationship with a customer, you have to become a resource for them. If your customer’s vehicle is broken down, you could simply tell them to call AAA and have the car towed in, and/or give them the number for the manufacturer’s roadside assistance program. Another option is to offer to place that call for the customer -- stay with them until the service answers, offering any information (like the dealership’s address) that the operator may need. Which do you think the customer will be more impressed with? Which do you think would result in that customer’s vehicle at your shop, versus your competitor? I realize that not all of this is realistic at each dealership, it’s the general idea of customer care that I am trying to relay.

Instead of answering the phone with a question of “This is Mike, How can I help you?” try a simple change to “This is Mike, I can help you.” Take ownership of that customer until their need has been fulfilled. You’d be surprised just how appreciative and impressed your customers will be. That is how you differentiate yourself and earn a customer’s loyalty.

Yes.

Now let me explain.

In our industry – as well as life – we continuously talk about transparency. Let’s be brutally honest here. Sometimes honesty isn’t the best policy. Is it always that way in real life? If your wife asks you whether she looks fat, you know you’re always going to say “No.” How about those times you go to a friend’s house for dinner and, well, it’s not exactly great. Do you tell him or her? Of course not. You politely say it is good, make a valiant effort to clean you plate and then pick something up to eat on your way home. We like to call these instances of non truth “white lies” and justify them with the knowledge that, in some cases, it’s better to tell a lie than to upset someone by being honest.

Are there parallels in the business world? Of course there are. I’m certainly not talking about deceiving a customer in a transaction, or lying about something of substance. What I’m talking about are those instances where a lie actually preserves a relationship – similar to the goal of the white lies I previously described. When you’re interacting with people, just because they’re customers doesn’t change the fact that they’re human beings. That customer that comes in and needs a lot of help getting financing because their credit is horrible doesn’t need to be beat up and embarrassed. You never know if there’s a co-signer waiting in the wings. You may know for a fact that they aren’t going to get approved anywhere. But you tell them you’ll try. Perhaps you present their file to some of your sub-prime lenders. But ultimately you call the customer and let them know you can’t help them. Think about this though… Some of the most loyal customers began as special finance customers. When one comes through your doors that you can help and they leave with a car, they will just about kiss you. Not only will they be forever grateful, they’ll send every person they know to you. It’s no different with people with excellent credit. It’s all about treating them with respect and providing an excellent buying experience.

There are times when little white lies can actually improve your customer’s experience. For example, imagine a customer calls a week after trading a vehicle in and says they believe they left something valuable in their vehicle. Perhaps this vehicle has already been detailed and cleaned, or even wholesaled out. The fact is that YOU know there is nothing in the vehicle. You could tell the customer you won’t (or can’t) check for them. In which case they’ll be upset, OR, you could tell them you’ll check and call them if you find anything. Which path do you think will be more conducive to maintaining the customer’s satisfaction?

Our world would probably become chaos if everyone could do nothing but tell the literal truth. Customer loyalty and experience sometimes requires telling the customer what they want to hear simply to let them save face, spare their feelings, or satisfy their needs. Keep in mind that there is a fine line but, for the most part, if you treat people right and use your conscience to make decisions -- just as you would if your wife asked you a question that it would be unwise to answer honestly -- you’ll find yourself making more friends and keeping more customers.

Yes.

Now let me explain.

In our industry – as well as life – we continuously talk about transparency. Let’s be brutally honest here. Sometimes honesty isn’t the best policy. Is it always that way in real life? If your wife asks you whether she looks fat, you know you’re always going to say “No.” How about those times you go to a friend’s house for dinner and, well, it’s not exactly great. Do you tell him or her? Of course not. You politely say it is good, make a valiant effort to clean you plate and then pick something up to eat on your way home. We like to call these instances of non truth “white lies” and justify them with the knowledge that, in some cases, it’s better to tell a lie than to upset someone by being honest.

Are there parallels in the business world? Of course there are. I’m certainly not talking about deceiving a customer in a transaction, or lying about something of substance. What I’m talking about are those instances where a lie actually preserves a relationship – similar to the goal of the white lies I previously described. When you’re interacting with people, just because they’re customers doesn’t change the fact that they’re human beings. That customer that comes in and needs a lot of help getting financing because their credit is horrible doesn’t need to be beat up and embarrassed. You never know if there’s a co-signer waiting in the wings. You may know for a fact that they aren’t going to get approved anywhere. But you tell them you’ll try. Perhaps you present their file to some of your sub-prime lenders. But ultimately you call the customer and let them know you can’t help them. Think about this though… Some of the most loyal customers began as special finance customers. When one comes through your doors that you can help and they leave with a car, they will just about kiss you. Not only will they be forever grateful, they’ll send every person they know to you. It’s no different with people with excellent credit. It’s all about treating them with respect and providing an excellent buying experience.

There are times when little white lies can actually improve your customer’s experience. For example, imagine a customer calls a week after trading a vehicle in and says they believe they left something valuable in their vehicle. Perhaps this vehicle has already been detailed and cleaned, or even wholesaled out. The fact is that YOU know there is nothing in the vehicle. You could tell the customer you won’t (or can’t) check for them. In which case they’ll be upset, OR, you could tell them you’ll check and call them if you find anything. Which path do you think will be more conducive to maintaining the customer’s satisfaction?

Our world would probably become chaos if everyone could do nothing but tell the literal truth. Customer loyalty and experience sometimes requires telling the customer what they want to hear simply to let them save face, spare their feelings, or satisfy their needs. Keep in mind that there is a fine line but, for the most part, if you treat people right and use your conscience to make decisions -- just as you would if your wife asked you a question that it would be unwise to answer honestly -- you’ll find yourself making more friends and keeping more customers.

A recent article in Automotive News relayed the story of Obi Obeke and how he had sold 39 cars to world-famous boxer Floyd Mayweather. The article explains how Okeke has been willing to do whatever it takes for his client to keep him satisfied. There’s little doubt that Floyd Mayweather probably gets what he wants when he wants it. And Okeke has delivered. Okeke has received phone calls at 3am requesting a brand-new Bugatti delivered to his house within 12 hours – a feat in and of itself in the exotic car business. And he has always delivered, even when it meant jumping on a plane and driving it to the champ’s house himself. According to the article, Mayweather hasn’t been Okeke’s only famous client – his customers have included the likes of Arnold Scwarzenegger, Jessica Simpson, Ellen DeGeneres, and Chris Tucker – to name a few.

The volume of vehicles Mayweather has purchased from Okeke begs the question as to why Mayweather continues to purchase vehicles from Okeke when he could easily seek out the vehicle himself (or have an assistant do it for him.) He could quite easily carry out the transaction with the dealer who has the vehicle, rather than insist on doing business through Okeke. Bugatti Veyrons aren’t discounted. This means that, in order to make a profit, Okeke marks up the vehicle over the asking price of the dealer who has it in inventory. Mayweather could pay less and, more than likely, get the same result: a new Bugatti Veyron in his driveway in 12 hours. Especially if you consider the fact that Okeke’s dealership is in Chatsworth, CA, and Mayweather lives in Las Vegas – about a 4+ hour drive.

Certainly, dealing with celebrities has its benefits. They can purchase expensive cars that typically do not get discounted and can produce pretty good profit. That being said, how many typical car dealers (i.e.: non exotic) would go to these lengths to satisfy a normal customer? I’m not necessarily talking about taking calls at 3am, jumping a plane and driving the vehicle 4 hours to a customer’s house. But more about going above and beyond.

My guess is that Okeke sold a vehicle to one celebrity who then referred him onto another celebrity due to his excellent customer service and willingness to do whatever is needed. Then the referrals snowballed into the celebrity-selling machine he is today. Whether these high-profile clients originated with Mayweather, or whether he was simply a referral somewhere in the chain of celebrity referrals, isn’t really relevant. What’s relevant here is that Okeke built his business of selling to celebrities through 30-years of word-of-mouth.

There’s really no difference between a celebrity and a “normal” customer. Regular customers operate under the same natural principles. Namely, they appreciate great customer service. And, when appropriate, will share their experiences with their network of people and refer them to that dealership.
 

My advice, treat every customer you have like a celebrity.

A recent article in Automotive News relayed the story of Obi Obeke and how he had sold 39 cars to world-famous boxer Floyd Mayweather. The article explains how Okeke has been willing to do whatever it takes for his client to keep him satisfied. There’s little doubt that Floyd Mayweather probably gets what he wants when he wants it. And Okeke has delivered. Okeke has received phone calls at 3am requesting a brand-new Bugatti delivered to his house within 12 hours – a feat in and of itself in the exotic car business. And he has always delivered, even when it meant jumping on a plane and driving it to the champ’s house himself. According to the article, Mayweather hasn’t been Okeke’s only famous client – his customers have included the likes of Arnold Scwarzenegger, Jessica Simpson, Ellen DeGeneres, and Chris Tucker – to name a few.

The volume of vehicles Mayweather has purchased from Okeke begs the question as to why Mayweather continues to purchase vehicles from Okeke when he could easily seek out the vehicle himself (or have an assistant do it for him.) He could quite easily carry out the transaction with the dealer who has the vehicle, rather than insist on doing business through Okeke. Bugatti Veyrons aren’t discounted. This means that, in order to make a profit, Okeke marks up the vehicle over the asking price of the dealer who has it in inventory. Mayweather could pay less and, more than likely, get the same result: a new Bugatti Veyron in his driveway in 12 hours. Especially if you consider the fact that Okeke’s dealership is in Chatsworth, CA, and Mayweather lives in Las Vegas – about a 4+ hour drive.

Certainly, dealing with celebrities has its benefits. They can purchase expensive cars that typically do not get discounted and can produce pretty good profit. That being said, how many typical car dealers (i.e.: non exotic) would go to these lengths to satisfy a normal customer? I’m not necessarily talking about taking calls at 3am, jumping a plane and driving the vehicle 4 hours to a customer’s house. But more about going above and beyond.

My guess is that Okeke sold a vehicle to one celebrity who then referred him onto another celebrity due to his excellent customer service and willingness to do whatever is needed. Then the referrals snowballed into the celebrity-selling machine he is today. Whether these high-profile clients originated with Mayweather, or whether he was simply a referral somewhere in the chain of celebrity referrals, isn’t really relevant. What’s relevant here is that Okeke built his business of selling to celebrities through 30-years of word-of-mouth.

There’s really no difference between a celebrity and a “normal” customer. Regular customers operate under the same natural principles. Namely, they appreciate great customer service. And, when appropriate, will share their experiences with their network of people and refer them to that dealership.
 

My advice, treat every customer you have like a celebrity.

The largest complaint that consumers have when considering a vehicle purchase is the fact that the process takes too long. Even with all the new technology processes that dealerships have employed over the past few years, the purchase process is still as long and cumbersome as it was twenty years ago.

AutoNation recently started to roll out a vehicle purchase program, transferring much of the buying process online. It promises consumers a 30-minute in-store automobile purchase transaction. It would seem that AutoNation listened to the auto buying public and may well transform how cars are purchased in the future. They certainly don’t have a shortage of locations available to consumers.

I’m sure the entire industry is watching to see whether they can accomplish this and if car shoppers will embrace it. If their program is successful, and consumers start to realize that they can buy a vehicle almost as swiftly as buying something on Amazon, AutoNation could hold a serious competitive advantage. Given the option to buy a vehicle in 30-minutes, or spend all day at a dealership, my guess is that many consumers would choose the former. They may, in fact, be willing to pay a small premium for the vehicle in exchange for the time they will have saved. If the process is successful and other dealerships are slow to adopt something similar, it could also result in an increase in customer loyalty to AutoNation.

When Henry Ford began building his automobiles, while cars existed, they were out of the reach of many consumer’s budgets.  At that point in history, consumers asked for faster horses because they never dreamed that they would actually be able to afford an automobile. His vision was to make vehicle transportation affordable to the masses. And he accomplished that.

Just as the public in Henry Ford’s time didn’t believe they would ever own a vehicle, consumers, in general, don’t believe that they can purchase a vehicle so efficiently. Henry Ford proved them wrong and AutoNation may just accomplish the same thing.

The largest complaint that consumers have when considering a vehicle purchase is the fact that the process takes too long. Even with all the new technology processes that dealerships have employed over the past few years, the purchase process is still as long and cumbersome as it was twenty years ago.

AutoNation recently started to roll out a vehicle purchase program, transferring much of the buying process online. It promises consumers a 30-minute in-store automobile purchase transaction. It would seem that AutoNation listened to the auto buying public and may well transform how cars are purchased in the future. They certainly don’t have a shortage of locations available to consumers.

I’m sure the entire industry is watching to see whether they can accomplish this and if car shoppers will embrace it. If their program is successful, and consumers start to realize that they can buy a vehicle almost as swiftly as buying something on Amazon, AutoNation could hold a serious competitive advantage. Given the option to buy a vehicle in 30-minutes, or spend all day at a dealership, my guess is that many consumers would choose the former. They may, in fact, be willing to pay a small premium for the vehicle in exchange for the time they will have saved. If the process is successful and other dealerships are slow to adopt something similar, it could also result in an increase in customer loyalty to AutoNation.

When Henry Ford began building his automobiles, while cars existed, they were out of the reach of many consumer’s budgets.  At that point in history, consumers asked for faster horses because they never dreamed that they would actually be able to afford an automobile. His vision was to make vehicle transportation affordable to the masses. And he accomplished that.

Just as the public in Henry Ford’s time didn’t believe they would ever own a vehicle, consumers, in general, don’t believe that they can purchase a vehicle so efficiently. Henry Ford proved them wrong and AutoNation may just accomplish the same thing.