An associate of mine recently told me an interesting story about their 75-year-old father, who purchased an import, rather than a domestic vehicle, for the first time in over 60 years. This was sometime around 2010.

When it was time to replace his domestic minivan, the first thing my associate’s father did was to check the Sunday paper to see in any big sales were happening. His preferred domestic dealer had an ad that mentioned vehicles listed online. He then got on his computer to see their inventory. However, while online, the import dealer managed to conquest his business away from the domestic dealer, offering more detailed inventory and transparent pricing information.

While online he saw several detailed photos of new vehicles on the import site, but just a red-X-in-a-box next to most of the domestic dealer’s new inventory -- the same domestic dealer that had drawn his attention to their website by bragging about their HUGE online inventory in their newspaper ad. He was impressed with the basic price break down on the import site, compared to the words: “CALL FOR PRICE” on the domestic dealer’s website. He chose to contact both dealers, and ended up at the import dealership in a matter of hours. By the time the domestic dealership called him, there was a brand-new crossover sitting in his drive way.

I’m not sure exactly what the import dealer did to get on his radar, but once they got him, they blew him away with such an impressive shopping, purchase, and follow up experience, that he never looked back.

He continued to be impressed with the import dealership during the two years he owned his first import model, due to the consistent level of contact, service and ownership guidance they provided. Once he acquired a bit of equity in his vehicle, he was even more impressed when offered a new model, at a comparable, if not lower, monthly payment. In fact, he ended up purchasing two more vehicles from that same import dealership.

He left the domestic dealer he had loyally conducted business with for decades, and is now fully and continuously engaged with the import dealer. He even managed to convert a few of his friends from die-hard domestic shoppers to at least visit the import dealer that treats him so well.

My associate was shocked the first time he saw his father behind the wheel of an import vehicle, so different to what he had been loyal to for his entire life. He had thought that his father would never in a million years even consider a “foreign” car, let alone transition from a minivan to a crossover. 

That experience was a real wake up call for my associate. It taught him a valuable lesson about the importance of transparency when it comes to retention, not just for millennials, but also for non-millennial generations. Millennials, Generation X, and Baby Boomers all research purchases, and have the same appreciation for transparency.

The ease my friend’s father enjoyed with this import dealer is enjoyed just as much by every generation, just as every generation shops and researches online. Transparency is an important part of every generation’s decision making. It is in fact no more a marketing fad than the internet itself!

Consider this story the next time your dealership votes against advertising price, or chooses to do the whole “Get ‘em in” routine. Consumers know that game and simply choose not to play it any longer. Ignoring consumer demands erodes trust and could easily push loyal brand – or dealership – customers towards your brand competitors.

In dealing with the customer experience, all too often the conversation centers on the customer’s buying path from initial contact through the sale. What many businesses don’t think about, however, is that the sale is only the start of the relationship. Customer loyalty is built through a consistent customer-centric experience. In the retail automotive space, this is more important than ever when dealing with customers in the service drive, as potential revenue in service outweighs sales by far. One way dealerships can begin to foster a relationship and lead the customer down the path to customer loyalty is through new car owner clinics.

Vehicles today contain more technology than ever before, with manufacturers increasingly installing many of these technologies even on base model vehicles. By the time the customer has finished paperwork in financing, oftentimes they are simply ready to leave. They then tend to get rushed through the delivery process and the features of their new vehicle are not covered in enough detail for the customer to truly understand and appreciate their use.  And have you seen the average user’s manual? They are huge! Few customers have the time to really go through and learn all the ins and outs to get the best out of all the new vehicle’s features. This can be frustrating to new car owners, especially those that aren’t technologically savvy.

New car owner clinics offer many benefits for both dealerships and their customers. First, it gets the customer back into the store with fresh eyes and ears. Dealers can then spend the needed time reviewing the car’s features and assisting the customer in setting up things they have found challenging. In addition, it provides the dealership the opportunity to introduce the customer in a more formal setting to the management team and service advisors. This allows for a more comprehensive introduction than perhaps existed during the delivery process, when a brief introduction may have occurred.

Facilitating these clinics on a normal schedule can provide increased opportunity to bond with these new customers when they are not worn down from the sales process. In addition, it allows management and service personnel dedicated time to focus solely on these new owner’s needs, wants and questions, when they are not distracted with their daily tasks or duties.

Some dealerships make these formal affairs, offer catered food and beverages, but that is not a necessity. Dealers that simply set aside the time to spend with customers will find that these new owners appreciate it. It demonstrates that the dealership is still there to assist them after the sale. Simply extending the offer to customers, making them aware that these clinics are available and that they are welcome to attend, shows your customers that you care, regardless of whether they choose to attend.

If you’re not already holding new owner clinics, think about trying this. You’ll be surprised at who shows up, and how much they appreciate your efforts.

In dealing with the customer experience, all too often the conversation centers on the customer’s buying path from initial contact through the sale. What many businesses don’t think about, however, is that the sale is only the start of the relationship. Customer loyalty is built through a consistent customer-centric experience. In the retail automotive space, this is more important than ever when dealing with customers in the service drive, as potential revenue in service outweighs sales by far. One way dealerships can begin to foster a relationship and lead the customer down the path to customer loyalty is through new car owner clinics.

Vehicles today contain more technology than ever before, with manufacturers increasingly installing many of these technologies even on base model vehicles. By the time the customer has finished paperwork in financing, oftentimes they are simply ready to leave. They then tend to get rushed through the delivery process and the features of their new vehicle are not covered in enough detail for the customer to truly understand and appreciate their use.  And have you seen the average user’s manual? They are huge! Few customers have the time to really go through and learn all the ins and outs to get the best out of all the new vehicle’s features. This can be frustrating to new car owners, especially those that aren’t technologically savvy.

New car owner clinics offer many benefits for both dealerships and their customers. First, it gets the customer back into the store with fresh eyes and ears. Dealers can then spend the needed time reviewing the car’s features and assisting the customer in setting up things they have found challenging. In addition, it provides the dealership the opportunity to introduce the customer in a more formal setting to the management team and service advisors. This allows for a more comprehensive introduction than perhaps existed during the delivery process, when a brief introduction may have occurred.

Facilitating these clinics on a normal schedule can provide increased opportunity to bond with these new customers when they are not worn down from the sales process. In addition, it allows management and service personnel dedicated time to focus solely on these new owner’s needs, wants and questions, when they are not distracted with their daily tasks or duties.

Some dealerships make these formal affairs, offer catered food and beverages, but that is not a necessity. Dealers that simply set aside the time to spend with customers will find that these new owners appreciate it. It demonstrates that the dealership is still there to assist them after the sale. Simply extending the offer to customers, making them aware that these clinics are available and that they are welcome to attend, shows your customers that you care, regardless of whether they choose to attend.

If you’re not already holding new owner clinics, think about trying this. You’ll be surprised at who shows up, and how much they appreciate your efforts.

A hot topic of much discussion today is the decrease in the sales process. There are many opinions on whether shortening the time it takes consumers to buy a vehicle is the answer to providing a better customer experience. There’s no doubt that it can be arduous and exhausting for a consumer to buy a car - from finding the right one, to filling out paperwork, negotiating price, spending time in finance and then, ultimately, sitting through a lengthy presentation as the salesperson explains all of the vehicle’s features during the delivery process.

A recent story in Automotive News details how one dealership chose to take a different tactic.  Instead of making a buyer endure a lengthy but necessary tutorial on a new car at the time of sale, Jaguar Land Rover of Fort Myers delivers the lesson later, at the owner's home or business. And when it's time for repairs or maintenance, an owner can get a loaner car delivered to him or her and avoid the hassle of driving to the dealership for service.  As a result, the dealership’s CSI scores have “skyrocketed,” according to General Manager Brian Del Negro.

For the most part, customers already do their car shopping in phases, if you think about it. They start by researching or reading vehicle reviews and, according to some studies, will spend upwards of 10 hours or more online doing so. They key here is that it is highly unlikely they are doing this research all in one sitting. Then, after taking their time preparing themselves and narrowing down vehicles, they visit 1-2 dealerships. Then, in almost every case, they are pressured to make an instant buying decision (i.e. “What would it take for you to take this vehicle home today?) This, of course, is certainly understandable from the dealership’s side -- it doesn’t want to risk losing the sale to a competitor. But, what if the customer simply isn’t ready to buy right then?

Whether the customer experience proves to be a great one for the consumer certainly hinges on numerous things. For some it could be the lack of pressure. Others may want an expedited buying process. While some may want to take their time. While Jaguar Land Rover of Fort Myers offers the encore delivery service, it’s certainly not mandatory for those customers who are fine with going through the delivery process on the spot. That being said, it certainly helps differentiate them from their competitors and allows customers options that they don’t get at other dealerships. One intriguing dealership-centric benefit of encore delivery is that it allows the dealership a second opportunity to build on that relationship, rather than just have the customer feel really important during the sales process, then forgotten about the next day.

These services certainly add expenses to the bottom line of the dealership. But, ultimately, are paying off with increased service business and higher CSI scores. The relationship building phase also gets extended, which allows the customer to feel more important and appreciated. And, that is the beginning of customer loyalty and, ultimately, a brand advocate.

A hot topic of much discussion today is the decrease in the sales process. There are many opinions on whether shortening the time it takes consumers to buy a vehicle is the answer to providing a better customer experience. There’s no doubt that it can be arduous and exhausting for a consumer to buy a car - from finding the right one, to filling out paperwork, negotiating price, spending time in finance and then, ultimately, sitting through a lengthy presentation as the salesperson explains all of the vehicle’s features during the delivery process.

A recent story in Automotive News details how one dealership chose to take a different tactic.  Instead of making a buyer endure a lengthy but necessary tutorial on a new car at the time of sale, Jaguar Land Rover of Fort Myers delivers the lesson later, at the owner's home or business. And when it's time for repairs or maintenance, an owner can get a loaner car delivered to him or her and avoid the hassle of driving to the dealership for service.  As a result, the dealership’s CSI scores have “skyrocketed,” according to General Manager Brian Del Negro.

For the most part, customers already do their car shopping in phases, if you think about it. They start by researching or reading vehicle reviews and, according to some studies, will spend upwards of 10 hours or more online doing so. They key here is that it is highly unlikely they are doing this research all in one sitting. Then, after taking their time preparing themselves and narrowing down vehicles, they visit 1-2 dealerships. Then, in almost every case, they are pressured to make an instant buying decision (i.e. “What would it take for you to take this vehicle home today?) This, of course, is certainly understandable from the dealership’s side -- it doesn’t want to risk losing the sale to a competitor. But, what if the customer simply isn’t ready to buy right then?

Whether the customer experience proves to be a great one for the consumer certainly hinges on numerous things. For some it could be the lack of pressure. Others may want an expedited buying process. While some may want to take their time. While Jaguar Land Rover of Fort Myers offers the encore delivery service, it’s certainly not mandatory for those customers who are fine with going through the delivery process on the spot. That being said, it certainly helps differentiate them from their competitors and allows customers options that they don’t get at other dealerships. One intriguing dealership-centric benefit of encore delivery is that it allows the dealership a second opportunity to build on that relationship, rather than just have the customer feel really important during the sales process, then forgotten about the next day.

These services certainly add expenses to the bottom line of the dealership. But, ultimately, are paying off with increased service business and higher CSI scores. The relationship building phase also gets extended, which allows the customer to feel more important and appreciated. And, that is the beginning of customer loyalty and, ultimately, a brand advocate.

A recent article on the Huffington Post asked why consumers are still buying GM vehicles despite all of the recent recalls. There’s no question that there are many concerned owners of GM vehicles. According to the article, GM has “issued 44 recalls in North American this year, stemming from problems that have been tied to 50 crashes and 13 dealers, [yet] the company recently said its sales for the month of May were up 13 percent from the month before, the biggest May gain in seven years.” Common sense might lead a person to believe that consumers would become more hesitant to purchase a GM vehicle with all of the problems that are occurring. But the numbers indicate quite the opposite.

Loyalty doesn’t always follow reason. As the article indicates, there are many points that make consumers remain loyal in times of turmoil. One reason the article cites is ignorance of the recalls themselves. “Experts say about one-third of people with a vehicle affected by automaker recalls never bring their car in for repair.” Another reason is that people may perceive that these recalls are for vehicles made in the past and don’t apply to recent vehicles (which is untrue).

The last reason cited in the article is the one most likely to be the case: that GM has been successful at creating emotional bonds with consumers over time. Consumers are quick to back companies that have supported them in times of crisis, especially if the situation is handled properly. GM CEO, Mary Barra, has been running damage control well during her tenure. Her public commitment to identify any issues with GM cars and solve the problems seems zealous in nature at times. Many consumers are willing to forgive companies – especially companies of which they are already brand loyalists – if the company is willing to back heir product quality and rectify the issues.

Think of your favorite store. You may love shopping at that store and patronize it frequently. Perhaps one day you have a problem with a product or a bad experience. If handled properly and made whole, your opinion of the business may even increase. People understand that nobody is perfect. All they want is to know that the business cares about them as a customer and values their business enough to fix the problem.

GM has certainly experienced very trying times over the last 6 years going through bankruptcy and requiring the government’s assistance. It will certainly be an uphill battle to regain consumer confidence in the quality of their vehicles. As a society, however, we tend to have short memories. While GM will be forced to be more vigilant in vehicle quality and customer retention efforts, those efforts may prove to reinforce the emotional attachment its current brand loyalists possess and also earn it some new ones.

A recent article on the Huffington Post asked why consumers are still buying GM vehicles despite all of the recent recalls. There’s no question that there are many concerned owners of GM vehicles. According to the article, GM has “issued 44 recalls in North American this year, stemming from problems that have been tied to 50 crashes and 13 dealers, [yet] the company recently said its sales for the month of May were up 13 percent from the month before, the biggest May gain in seven years.” Common sense might lead a person to believe that consumers would become more hesitant to purchase a GM vehicle with all of the problems that are occurring. But the numbers indicate quite the opposite.

Loyalty doesn’t always follow reason. As the article indicates, there are many points that make consumers remain loyal in times of turmoil. One reason the article cites is ignorance of the recalls themselves. “Experts say about one-third of people with a vehicle affected by automaker recalls never bring their car in for repair.” Another reason is that people may perceive that these recalls are for vehicles made in the past and don’t apply to recent vehicles (which is untrue).

The last reason cited in the article is the one most likely to be the case: that GM has been successful at creating emotional bonds with consumers over time. Consumers are quick to back companies that have supported them in times of crisis, especially if the situation is handled properly. GM CEO, Mary Barra, has been running damage control well during her tenure. Her public commitment to identify any issues with GM cars and solve the problems seems zealous in nature at times. Many consumers are willing to forgive companies – especially companies of which they are already brand loyalists – if the company is willing to back heir product quality and rectify the issues.

Think of your favorite store. You may love shopping at that store and patronize it frequently. Perhaps one day you have a problem with a product or a bad experience. If handled properly and made whole, your opinion of the business may even increase. People understand that nobody is perfect. All they want is to know that the business cares about them as a customer and values their business enough to fix the problem.

GM has certainly experienced very trying times over the last 6 years going through bankruptcy and requiring the government’s assistance. It will certainly be an uphill battle to regain consumer confidence in the quality of their vehicles. As a society, however, we tend to have short memories. While GM will be forced to be more vigilant in vehicle quality and customer retention efforts, those efforts may prove to reinforce the emotional attachment its current brand loyalists possess and also earn it some new ones.

Everyone knows Valentine’s Day celebrates the ladies. That’s why Bristol Toyota Scion in Bristol RI, recently used LoyaltyTrac, their service rewards program, to conduct an email campaign centered on Valentine’s Day being “Ladies’ Day”. Colorful, Valentine’s-themed emails were sent to all of their service reward members, with the Subject Line: Be Our Valentine - View Your Gift Inside. The email included an offer: Ladies Receive $15 Off Any Service of $35 or More. The campaign ran on 2/10/12, with available redemption being from 2/10-2/18.

This was the first LoyaltyTrac promotion Bristol Toyota Scion had ever done to its service reward members and it resulted in a very heartening open rate of 58.33%, far surpassing the Direct Marketing Association’s (DMS) average of 12-14% for opt-in lists.

Other LoyaltyTrac auto dealerships have achieved similar results with this Valentine Day-themed email campaign.  Howdy Honda in Austin, Texas, ran the same campaign and enjoyed an open rate of over 30%. The campaign also resulted in 41 service appointments scheduled and a nice profit too: estimated campaign revenue to date of more than $8,700.

Specially designed email campaigns themed around holidays and events can boost return business throughout the year. It's key to engage users with content that is informative, easy to digest and adds value. Good Luck!

Everyone knows Valentine’s Day celebrates the ladies. That’s why Bristol Toyota Scion in Bristol RI, recently used LoyaltyTrac, their service rewards program, to conduct an email campaign centered on Valentine’s Day being “Ladies’ Day”. Colorful, Valentine’s-themed emails were sent to all of their service reward members, with the Subject Line: Be Our Valentine - View Your Gift Inside. The email included an offer: Ladies Receive $15 Off Any Service of $35 or More. The campaign ran on 2/10/12, with available redemption being from 2/10-2/18.

This was the first LoyaltyTrac promotion Bristol Toyota Scion had ever done to its service reward members and it resulted in a very heartening open rate of 58.33%, far surpassing the Direct Marketing Association’s (DMS) average of 12-14% for opt-in lists.

Other LoyaltyTrac auto dealerships have achieved similar results with this Valentine Day-themed email campaign.  Howdy Honda in Austin, Texas, ran the same campaign and enjoyed an open rate of over 30%. The campaign also resulted in 41 service appointments scheduled and a nice profit too: estimated campaign revenue to date of more than $8,700.

Specially designed email campaigns themed around holidays and events can boost return business throughout the year. It's key to engage users with content that is informative, easy to digest and adds value. Good Luck!