Mike Gorun

Company: Performance Loyalty Group, Inc

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Mike Gorun

Performance Loyalty Group, Inc

Dec 12, 2016

Surprise and Delight EVERYONE, Customer or Not!

What would you do if a customer was injured at your dealership and you were at fault? I don’t mean serious injury or anything like that. Perhaps just a bump or scrape? Most businesses would apologize or, at the very least acknowledge the mishap to the customer. Perhaps send some flowers or a gift card. You certainly wouldn’t want to ignore it, right?

Well, that’s what happened to an American Airlines customer who was injured when an unsecured drink cart barreled down the aisle and crashed into the passenger. No apology from the airlines was ever received (although it is a tad hard to believe that the stewardesses didn’t at least apologize). The customer wasn’t trying to shake down the airlines at all. He just thought that an apology phone call or card would be an appropriate response for American Airlines to make to a customer injured on one of their flights. Even if only for the sake of customer retention.

The passenger did receive flowers and an apology… but not from American Airlines. The geniuses over at Virgin Atlantic heard of the incident and sent the passenger flowers along with a card that read:

“We might not be who you expected these to be from, but we heard what happened and everyone at Virgin Atlantic wishes you a speedy recovery. And in case you ever fly AA (American) again, we’ve got you covered. Get well soon.” The Virgin Atlantic Team

 When he opened the box that came with the flowers and card, inside were a pair of kneepads, elbow pads and some other protective equipment. Of course, this passenger couldn’t refrain from sharing what was certainly a humorous outreach from a competing airline. Naturally, the story quickly spread around the Internet.

Being in the car business, chances are that you hear stories like this all the time. Not necessarily someone getting injured at a competitor’s dealership, but perhaps simply someone upset at how they were treated or some other such complaint. Whether you see these stories on the news, the Internet, or via social media, there is a good chance of one underlying fact: that customer will probably NOT be patronizing that dealership any longer. Which means they will need someplace else to do business.

Customer loyalty and retention are fickle things, especially in this world of high-maintenance customers who want everything on demand. Owning and acknowledging your mistakes and making appropriate apologies can rectify most accidents or poor experiences with your customers. Failing to do so can leave a wide-open opportunity for that customer to defect to a competitor.

So, whether it was your customer who had a mishap or your competitors, opportunity exists. If it’s your customer, you have an opportunity to make things right and keep them. If it’s your competition’s customer, this very well could lead to a low-cost customer acquisition and some word-of-mouth marketing – or both. Regardless of which end of the situation you find yourself on, reaching out to the customer when the opportunity arises could pay off exponentially.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Dec 12, 2016

Feedback Is Important; if Interpreted Correctly

Customer feedback is important to any business’ growth. That’s why many send out customer satisfaction surveys and managers pay attention to that feedback.

However, sometimes the feedback system is faulty or gets misinterpreted to the point of being useless. Take the feedback system Uber used to have. At the end of each trip riders were prompted to leave feedback in the form of a star rating from 1 to 5. As Uber drivers are contractors, the corporation wanted to ensure customers received good service and a great customer experience from any given Uber driver. Any driver that fell below a certain star rating was disciplined by the company with a suspension or, in some cases, contract cancellation.

An article in Wired magazine details how Uber came to realize that the star system was faulty. It failed to truly reflect a customer’s experience and was vague to the point of being meaningless. Some people gave 5-stars to a driver even though they didn’t have the best ride, simply because they felt bad doing otherwise. Other customers gave drivers low star ratings for reasons that were beyond a driver’s control, including traffic, or how long it took to get picked up.

Uber also realized that its star system didn’t provide the drivers themselves with any useful feedback on what their customers liked or didn’t like about a trip. Therefore, drivers had no opportunity to improve or correct something as they had no way to know what was bothering their passengers if it was not stated during the trip. Uber has now revamped its system so that it includes the star rating while also allowing customers to give feedback in the form of virtual stickers and, if the passenger desires, they can leave personalized feedback via a note. This provides Uber with a better assessment of the driver and can also instill a sense of pride or fulfillment in the driver for a job well done.

In the auto industry we face a similar dilemma. Manufacturers survey customers and assign CSI scores to each survey. These scores can mean the difference between a dealer making or losing a substantial amount of money. However the surveys are formatted similar to Uber’s old 5-star rating system. Each question is either scored on a 1-10 scale or a Yes/No answer. This provides little clarification to the manufacturer or the dealer as to how the customer experience actually went. In addition, manufacturers assign different weights to the questions so a dealer can receive a failing grade on a survey even if every question is answered perfectly except one. Many manufacturers even consider anything less than perfect (100%) as a failing grade. There is nothing wrong with demanding perfection, but it is tough when the grading system is not itself perfect.

Venture back to your school days. Imagine getting a 90% on a math test. In the real world, that would be an “A” and if you or your child brought home straight “A’s”, you would be proud. Yet a dealer who receives a 90% on a survey could be punished monetarily and, unless the customer actually bothers to write feedback, does not know or have any way to change a process or hold someone accountable. In addition, the manufacturer, just like in Uber’s case, has no true idea of just how the customer’s experience went at the franchisee’s dealership.

This isn’t anything new. Dealers have long complained about the unfairness of survey grading and losing money as a result of the weighted questions which don’t really reflect how their customers are treated.

Perhaps the industry can take a page out of Uber’s playbook. True feedback should be in-depth and judged on an individual experience basis. Only in this way can a dealership be judged accordingly, change any needed processes, truly improve and be fairly rewarded.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Dec 12, 2016

Customers Are “Hooked On a Feeling”

In their new book, The Intuitive Customer, authors Colin Shaw and Ryan Hamilton contend that companies that try to fight declining customer satisfaction by lowering prices are going about customer satisfaction the wrong way. Instead, they state that the magic to winning customer loyalty is based on understanding what the customer will do next.

An article in MediaPost, recently shared some of the basic precepts in the book, including the fact that roughly half of a customer’s buying decisions are based on how they FEEL about a company and that understanding the psychology behind why they choose a business is key to tweaking processes and services that cater to those feelings.

Sadly, many consumers don’t like going to car dealerships and if roughly half of customer choice is based on how the customer “feels” about a business, there is a long trail to get there. An interesting point shared in the book is that the most irrelevant aspects of customer experience are often the most important. Some dealers spend a lot of time, money and effort attempting to create an excellent customer experience through increased efficiency, improved technology and dealership premises. What they may not consider are the things that are seemingly irrelevant because… well… they’re seemingly irrelevant.

While a recent trend has dealers installing movie theaters, coffee bars and other amenities, perhaps what really influences the customer experience are the “seemingly irrelevant” actions. Those small actions that go towards improving the customer experience, such as cleaning and vacuuming the customer’s vehicle after it is serviced. Many dealerships wash vehicles but not as many vacuum them. If the vehicle looks great on the outside but not so much on the inside, that could perhaps leave the customer with a less than great customer experience. That’s just one small example to provide food for thought.

The last point the author’s make is how do customers REMEMBER their experience? Do they remember inconvenience, dirty bathrooms, inconsiderate or apathetic employees? What a customer remembers is a completely individual experience.

Everyone is different and there is no way to design an experience that is perfect for everyone. Just as in sales, we tailor how we sell and the tactics we use to each and every customer. Perhaps the customer experience should be viewed in the same way. How about making an effort to establish what provides your customers with the best possible customer experience so that they leave happy, with a memorable experience which they will share with their friends and which keeps them loyal to your dealership.

If you get to know your customers, listen to their needs and wants while paying attention to how they respond to you, the chances of identifying the seemingly irrelevant and making it relevant increases. Customers will then leave with positive feelings and memories. And that means increased customer retention and profitability. In fact, according to authors Shaw and Hamilton, this practice “has translated into a 10% year-over-year sales increase for the past 10 years, reduced customer churn and increased market share.” And that’s definitely something worth striving for.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2016

Using Marketing to Hire an Engaged Staff

The automotive industry has a sales department staffing problem – and a big one. In fact, NADA has placed the yearly turnover rate as high as 70 percent. Dealerships are in constant hiring mode to keep their sales floor staffed with enough employees to provide coverage for their floor traffic and to follow up with customers and prospects.

Since customer experience and loyalty depend upon employee loyalty, what can dealerships do to increase the chances of hiring the right person that transforms into a long-term employee and successful brand advocate?

For decades, dealerships have recruited new employees through the same old advertising messages and promises. $2,000/month guarantee, unlimited earning potential… blah, blah. Does this sounds familiar? The problem is that this kind of ad can easily attract exactly the type of prospects with the highest likelihood of NOT sticking around long… namely, those that are simply looking for a job to do while they look for one they actually want. Even in the rare circumstances that someone comes along with the ambition and goal of becoming a car salesperson (c’mon, how often does that really happen?), once they start and experience the long hours, grueling work, boring and repetitive tasks and constant rejection by customers as they follow up, they realize that they don’t really like selling cars and, ultimately, leave.

If the old ways of getting employees isn’t working – and clearly it’s not – then what is a better way?

The one thing most car dealerships excel at is marketing. Dealerships are laser-focused on what brings traffic into the dealership, how to market themselves and their vehicles and, ultimately, get those customers in the door to purchase and drive away in a new car. Then, afterwards, they will market to those sold customers to attract them to the service drive with the end goal of turning them into a loyal customer and brand advocate. It looks like this:

Market Cars --> Attract Customers --> Sell a car --> Market Service --> Service --> Create Loyal Customer

Pretty simple, right?

What if we took the same flowchart of activities that dealerships are great at and applied it to recruiting and hiring?

Start thinking about your job opening as a product. You’re trying to sell that job to a customer. To sell it to them, you must attract them to your dealership. By figuring out what those job hunters are looking for in your product (job) and MARKETING your product to prospective employees (customers), you can send a message that is both compelling and attractive to your audience of prospective employees.

Once you attract the right prospects and hire them, then continue to convince them that they should stick around by showing them that they are valued. Be flexible and compassionate and ensure that they know there is room to grow in the organization.

Accomplish that and you’ve created a long-term employee. The only thing left is to continue to make them feel welcomed and part of your organization. You will more than likely find that this person turns into someone who cares about their job, your dealership and becomes a brand advocate for you. This should reduce turnover with engaged employees who are fully invested in the success of your company. Employees who are happy and much more productive. And this combination will result in a better customer experience.

While this is only the first step in creating a loyal customer base, many would argue that it’s the most important. Regardless, by identifying the attributes that prospective salespeople seek from their employees and in their careers, and by ensuring that your dealership is marketing those to the right people and fulfilling those promises when they get hired, you should be well on your way to a more productive and content salesforce.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2016

For Loyalty, All You Need Is Love

As technology has caused a significant shift in consumer interactions and desires, retailers have to follow suit in order to retain the consumers’ business. Customer loyalty is an increasingly fickle thing. And, as convenience has become so easily attainable for today’s consumers, some retailers believe that the only competitive arena left is price. However, this is not always the case at all.

An article on Loyalty360.org shared the results of a recent study conducted with the help of a University of Rochester professor. The study created a customer-brand relationship model based on a popular relationship theory – Sternberg’s Triangular Theory of Love. It used components of relationships and paralleled them to retail loyalty.

The study of 1,000 consumers shared that 86 percent would go to other retailers, rather than their favorite brand, if it were more convenient. However this can easily be handled by providing the right customer experience.

For the study, the repurposed Theory of Love focused on three components to determine consumer brand relationships – intimacy (willingness to share information with the retailer), passion (brand enthusiasm) and commitment (loyalty). And what is interesting it that it was found that the more of these attributes a consumer had towards a brand, the more likely they are to remain a loyal customer and become a brand advocate and recommend the retailer to others. In fact, 96 percent of devoted customers would recommend a retailer to others, demonstrating the importance of creating and maintaining devoted customer relationships.

All too often, customer loyalty is rewarded based on transactions, rather than a customer’s behavior. In fact, many of today’s consumers want a more personalized experience with “surprise and delight” type rewards and experiences, rather than simple discounts or free services.  And for that great customer experience they will pay with the best currency of all – their loyalty. Think about it this way: some salespeople are more motivated, give their loyalty faster and, in turn, work harder for a manager who is supportive and validates their efforts with a pat on the back. They prefer that over any cash weekend spiff. However, many managers assume that money is the most motivating thing. For some, I am sure it is. But what about those salespeople or employees for whom that is not the case? You could just be motivating and rewarding part of your staff while leaving the ones who merely want recognition out in the cold.

Customers are the same way. Some may want discounts and freebies, while others seek more of a high level customer experience and desire recognition from you in return for their business.

Running the dealership as if customers are on an assembly line – even when a loyalty program is in place – can alienate those customers who merely want to be recognized, appreciated and feel welcome.

The sad part is that this second group of customers wouldn’t cost you a penny – only a few minutes of your time to welcome them to the store and thank them for their business. In fact, the same study reported that 59 percent “would buy more if retailers understood their individual needs and requirements better.”

Take the time to get to know your customers through all necessary means. But mainly through personal interaction and attempt to understand what motivates each of them.

Everyone is different. While this may seem like a hard task to accomplish. With, in some cases, hundreds of customers visiting your dealership on a daily basis, the effort required can transform some of that 86 percent who would patronize your competition into loyal brand advocates. These loyal advocates tend to spend more money with you and bring their friends and families with them. And that’s a winning combination!

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2016

Creating Confidence in Consistency Is Key to Customer Loyalty

Great customer experiences can win customer loyalty. That’s why dealerships install restaurants, movie theatres and Starbucks. But while that customer experience is integral to keeping the customer’s business and loyalty, it doesn’t take much to shatter that loyalty and see that once loyal customer desert to a competitor.

Why? Because deep down, people don’t like surprises. Sure, we like them when they are gifts from friends, or spontaneous parties we weren’t aware of. But when a customer visits a business they like and are familiar with, they expect the same service that made them a fan in the beginning. And if they don’t get it, they may start rethinking their loyalty.

Take Hyatt as an example. Most big hotel chains acquire smaller non-branded hotels so as to extend the chain’s reach. Hyatt is no different EXCEPT with its Hyatt Place brand. The Hyatt Place chain was specifically designed to introduce consistency and confidence to its guests and potential guests. While other chains endure complaints from customers that their stay did not live up to the standards that were expected, Hyatt has created a chain that provides the exact same amenities and room layouts at every single location. This gives travelers (especially business travelers) confidence that they will get exactly what they expect and want.

Why is this important?

Because people do business with companies they know and like. The missing component in customer loyalty is that trust. It is the hardest component to earn. But it can be earned through consistency.

Customers come to your dealership for the first time on a gamble. Regardless of what others have experienced, ultimately the customer really only cares about their experience.

In today’s competitive market it’s not enough to provide a great customer experience UNLESS you do it every single time for every customer.

Of course, the longer the relationship continues, the more forgiving the customer will be. However, the same logic applies to how betrayed that loyal customer may feel should they experience too many bad experiences after patronizing – and advocating - your dealership for a long time. Then they can become more vocal and damaging than any first-time or short-term customer could ever be.

While a focus on likeability and brand are important, trust is the main ingredient in any loyalty potion. And to earn that, all three ingredients must be present each and every time your customer drinks – they like you, know you and their experience is consistent. Lose any one of those and you may find that your love potion no longer works and you lose a customer.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2016

Customers Expect the Impossible – So Give It to Them

As Henry Ford stated, “If I had asked people what they wanted, they would have said faster horses.”

Technology changes in our industry faster than many of us can keep up with. It seems like new services and innovations pop up weekly. Do we know which innovations consumers are sure to like or not? Of course we don’t. We can’t actually know until they end up liking them – or not. And they don’t know what they want until they see and experience it. Back when Henry Ford built cars, nobody even knew what a car was, or how this “thing” would improve their lives. Once cars started passing horses and became affordable through manufacturing -- only then did our society adopt and embrace automobiles.

Let’s look at a modern example of this. Prior to Uber, was anybody (aside from the founders) clamoring for a ride-sharing app? Nope. Well, today many companies provide this service and auto manufacturers are rushing to provide cars or partner with them. Customers didn’t know that Uber was something they wanted… until they did.

So how does this apply to car dealerships? If we don’t know what the customers will want next -- and they themselves don’t even know – then how are we supposed to make decisions on which technologies to embrace, services to offer and experiences to provide?

Five years ago, who would have thought that technology would develop to the point that we can complete the entire vehicle purchase process online, from beginning to end – customers can now purchase a vehicle without ever stepping foot in a dealership. Well, now they can and there are many companies – from industry disrupters to large mainstream automotive vendors – that offer this service directly to consumers, or through auto dealerships.

Will it take off and become the next consumer favorite? That verdict is still out. The point is that the only way to know what YOUR customers want is to see if they end up liking it. However, you can also try it out and ask yourself whether you’d want it if you were a customer. When testing new customer-facing technology how about doing a sort of secret shop. Become your own customer and experience it yourself for the first time. Is it something you’d like? Also have some other staff members of different age groups test it out. Any vendor trying to sell you a technology product should be happy to oblige. Then reconvene and discuss. It doesn’t matter how much it costs -- until you know it’s something that your customers will want. Figure that out first.

Many would tell you to ask your customers what they want and act on that. And that is also a great best practice -- in fact it can help identify customer pain points and process issues. However, in the same way Henry Ford didn’t listen to what customers wanted before producing his car – being open-minded to change, and always on the lookout for new technology that can enhance the customer experience and your business, could well keep your dealership ahead of the competition and provide a unique selling proposition.

Staying ahead of the competition and up to date on technology that works well to give your customers a better experience is important. Customers see other industries adopting new ways of interacting with them and will either love the technology – or not. Pay attention to what consumers start to like OUTSIDE of the auto industry in terms of technology. This is one strategy that could help you find and adopt technologies that drive improved results in your dealership. At the same time, look for technologies other industries start to offer which YOU like because you, in the end, are also a consumer.

When companies anticipate consumer wants and needs before the consumer even realizes that need, they build loyalty. And that is the magic happening right there.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2016

The Rush to Automation Could Be Detrimental to Loyalty

Humans naturally crave interaction with other humans. However, as technology advances, there is an increasing push by companies to automate as much of their processes as possible. While this is understandable, as it saves on costs, the path technology is taking us down could prove to be a double-edged sword.

 

Think about all the automated technology that you DO like – for example people love Siri and Amazon Echo is a big hit. The technology that people like the most tends to be more personal in nature – such as speedy access to information, organizational utility and home automation -- to name a few. I don’t know many people who like wading through automated phone trees when calling a customer service line, do you? Have you received any phone calls from robots that sound really human? I bet it doesn’t take long for you to tell that it’s not a real human.

 

My point is that if human interaction is desired, there’s a real difference between do-it-yourself customer service-type tools and forced automation.

 

The big trend right now is towards chat bots. If you don’t know what a chat bot is it’s essentially customer service software driven by artificial intelligence. It’s designed to interact with customers using chat via the company’s website, via social media, or over the phone. The problem is that humans communicate in ways which a computer program can’t fully duplicate. And, sometimes, that software fails to answer a customer appropriately and cannot assist them with their need.

 

According to an article on Knowledge@Wharton, it is also difficult for artificial intelligence to correctly interpret what the customer means when they get frustrated if automation is unhelpful and does not offer them the correct options for their situation -- the computer simply doesn’t know what to do.

 

How does this affect customer loyalty? Companies that automate too much risk a break down in the customer bond which, in turn, decreases the emotional connection that customer may have with a company. Inappropriate or unhelpful automation, while it may seem cost-saving on the surface, could end up being more expensive as customers defect to competitors or stop caring who they deal with. The article gave a great example of how a company went from a customer engagement win without automation to a customer engagement fail due to adopting it.

 

When a political consultant got stuck in an Amtrak elevator at BWI Airport last February, she used the Amtrak Twitter account to get help, and help soon arrived. Seven months later, she received this Tweet from Amtrak: “We are sorry to hear that. Are you still in the elevator?”

 

Imagine how silly that made Amtrak look. It’s sad that this automated Tweet happened as in fact Amtrak quickly responded and helped the customer. How do you think the customer responded when she received that tweet seven months later? She had a field day with it on social media. According to Wharton marketing professor Americus Reed, “when non-human customer service works, it works extremely well; but when it works poorly, it works extremely poorly.”

 

Nobody is saying that automation can’t be useful to companies by enabling them to assist customers at all hours, or provide do-it-yourself type tools for them. However, businesses should analyze exactly what type of automation can help their company as well as how it will affect any connection to and engagement with their customers. In some cases, they may find that the negative effect in customer engagement outweighs the savings that the automation offers.

 

According to Wharton marketing professor Americus Reed, “We have a human side, and there is going to be a counter-punch by companies who choose to focus on connecting with customers in a more human way.”

 

So, while many may choose to save money and adopt technology that replaces humans, offering 24/7 customer service through automation, these companies may find their customers drifting away -- gravitating towards those companies that choose to make their unique value proposition the more personal, human touch.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1171

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Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2016

Digital Car Buyers Mean More Showroom Traffic, Not Less

There’s a big push in our industry right now to bring as much of the car buying process online as possible. Startups are entering the space believing that consumers want this ability and automotive vendors of all sizes are creating products to facilitate that.

However, some dealers are afraid to adopt these solutions for fear of loss of control and decreased profits. It’s certainly much easier to sell product – especially the increasingly important products in F&I – if the customer is sitting in front of you, rather than through some website widget.

Today’s car buyers visit numerous websites to gather information about vehicles and many arrive at the dealership knowing which vehicle they want and exactly what they want to pay for it. That’s not going to change. But what if I told you that the more “digital” car buyers get, the more they actually want to visit your showroom? Well, according to a recent study by Accenture, that’s exactly what’s happening.

According to the study, 60 percent of digital car buyers stop at the dealership more than twice before buying a vehicle, compared to 47 percent of those consumers less active online in the car buying process.

The ability to complete some of the car buying process online is simply a way for the digital customer to reduce the amount of time spent physically at the dealership completing the transaction. The report suggests that the reason the digital customer needs less time at the dealership is that they’ve already made their purchase decision online. But there seems to be a contradiction here – how can a digital customer visit the dealership more, yet need less time at the dealership? The reason is that by the point that they’re ready to buy they have already gathered the information they needed through digital sources AND have visited the dealership multiple times in order to collect physical information (view colors in person, ask questions, compare trim levels in person, test drive vehicles, have their trade-in appraised etc.). So, at the point they’re ready to buy, those widgets and online car buying facilitation tools simply help them get ahead in the process.

However, decreased time at your dealership means you have less time to create a relationship with the customer. If the industry transforms into a straight transaction-based business, then the customer could potentially have no more loyalty to your dealership than your competition.

How do you build a relationship with a customer who wants to spend less time buying a car? You begin to build that relationship from the moment the customer walks in the door. According to the study, it’s much more likely that the customer you just greeted is a digital car buyer than a conventional one. Yet, in many cases, our current road to the sale focuses on exactly that… the sale. Most manager introductions, service drive walks and other relationship-building opportunities for dealerships happen AFTER the sale. If you have a digital car buyer, you may not have as much of an opportunity to do these things.

Start building value in your dealership from the moment the customer walks in the door. Consider integrating service walks and manager introductions into the beginning of the sales process, not after the customer buys a vehicle.

Perhaps then you have a better chance of convincing the customer that they should buy from you and should also bring their vehicle back for service.

If they already know what they want, how much they want to pay for it; what their trade-in is worth; and every other piece of information; then why start the whole process trying to give them something they already have? How about selling the dealership first?

As online vehicle buying tools become more utilized, this simple tweak in the initial contact with a customer could mean the difference between seeing them again…

…or having them visit the most convenient competitor.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1113

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Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2016

Lack of Time Can Be Costlier Than You Think

Working retail in the auto industry can certainly be taxing. Salespeople work 60-70 hour weeks to make a paycheck. Sales managers do so while also having to manage the sales team, create multiple reports and handle a multitude of tasks -- and the service department is just as overloaded.

Not surprisingly, frequently the excuse, “there’s not enough time,” comes into play. However, it is important to remember that the entire existence of a car dealership – as a business – is to sell and service cars. Growth and profitability is dependent upon satisfying the needs of many customers which, at times, can be overwhelming. When the GM is breathing down a sales manager’s neck to have a report done by a specific time, all while trying to desk a deal and handle heat, it’s easy to lose track, or miscalculate priority. It’s almost like the chicken before the egg argument.

So what IS most important?

The most important thing is to make the customer first. There’s a great old saying by Henry Ford: “It is not the employer that pays the wages. Employers only handle the money. It is the customer that pays the wages.” This is absolute truth. Without customers, no business can last. It will fail and there won’t be any managers or salespeople any longer.

The existence of a car dealership is entirely dependent on ensuring that people buy and service their vehicles with them. If those things don’t happen because managers are overwhelmed or have higher priorities, business will drop. On the contrary, however, by putting the customer first, the customer feels appreciated, valued and is taken care of. This fosters loyalty, referrals and repeat business which, in turn, grows the business rather than seeing it falter.

Customer loyalty and advocacy will only be encouraged and developed by making the customer the priority. And I’m not just talking about handling heat, ensuring that there’s enough floor coverage or available service bays. Customers and their questions, care and problems, should be a priority.

If the customer doesn’t feel that spending $30,000+ on a vehicle is appreciated, they’ll go someplace where they feel appreciated. Treat the service customer like they’re a nuisance and schedule them 4 weeks out for an appointment and they will find someone who is willing to help them when it’s convenient for them, not for the business. Imagine going to McDonald’s and having them tell you that all of the employees are taking a break so you’ll just have to wait. Or that they’re simply too busy to assist you at the moment so come back later. Would YOU come back? Probably not. And neither will your customers.

I guarantee that if you take care of your customers first, those reports will look better each and every time you send them to the GM or dealer, and they’ll forgive the fact that you were tardy. Bottom line is that a report isn’t going to bring in revenue, leave reviews or service its car with you… but a customer will.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

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