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Jared Hamilton
From: Jared Hamilton
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Ujj Nath

Ujj Nath Founder & CEO

Exclusive Blog Posts

Staff Turnover: The Most Important KPI for Management

Staff Turnover: The Most Important KPI for Management

I know you’re thinking, “Great, another article on employee retention.” It’s a topic that has been quite popular since NADA’s…

Walk-Ins to Web-Leads

Walk-Ins to Web-Leads

  It’s true, internet leads aren’t what they used to be. But that doesn’t mean we need to throw out the baby with the bath water …

How One-on-One Coaching Sessions Will Help You Motivate Your Team – Part 2

How One-on-One Coaching Sessions Will Help You Motivate Your Team – Part 2

written by Jonathan Dawson, Founder & President at Sellchology Sales Training   Are you a manager? Do you feel frustrated that you keep asking…

How Does Your Brand Affect Your Customers’ Personal Experiences?

How Does Your Brand Affect Your Customers’ Personal Experiences?

Have you ever wondered how Coke became so synonymous with cola, Hoover with vacuuming, or Google with searching the internet? “Emotional connectiv…

Best Times to Post on Social Media and When to Text, Call, and Email Clients

Best Times to Post on Social Media and When to Text, Call, and Email Clients

Recently, we sent an email to our ReThink clients with Key Times to post on Social Media, as well as when the optimal times are to send Emails, Text, and P…

The Costco Effect and Customer Loyalty

Costco has certainly built a loyal following over the years, even though it literally charges consumers for the privilege of buying goods from them – and many consumers happily do so. In fact, 85 million consumers who, in 2016 alone, spent a collective $16 billion.  
 
Why do 85 million people pony up $55 and more per year (depending on the type of membership) simply to purchase items from Costco? Good prices and a great customer experience are two key things that have helped the company grow through strong customer loyalty.  
 
And, talking of a great customer experience, did you know about their incredible no-questions asked return policy? I was refunded the full amount for a gift I ordered for a friend because it did not reach them in time. One would think that this no-questions asked policy would be pretty risky. However, while there are some who may abuse it, the loyalty it engenders amongst the vast majority more than makes up for any losses it may incur.  
 
In our industry, most dealers certainly don’t have the same sort of policy, (although some do have limited return periods) and I’m not suggesting that dealers should. I’m merely pointing out the power that catering to customers can have in creating customer loyalty -- even if it costs a little money. It helps transition repeat customers into brand advocates.  
 
When issues arise between customers and dealerships, decisions are often made from a financial viewpoint, rather than with customer service and the overall customer experience in mind. The dealership employee or manager often factors in the dollar cost of pleasing the customer when making their decision. If that cost is too high, they may lean towards declining or offering a token gesture, but not one that completely rectifies the bad experience as far as the customer is concerned. 
 
Nothing will cost you more money over time than the loss of a loyal customer. A customer’s lifetime value to your dealership across sales and service can easily climb into the hundreds of thousands of dollars range. Yet many dealers end up with an unhappy customer by concentrating on the dollars and cents of a single transaction. 
 
Consider whether you would rather have hundreds of thousands of dollars in revenue in the future, or lose a customer so you don’t take a one off $200 hit in service or sales. 
 
I know how much I would rather have.

Maddy Low

This is SUCH a good comparison to make, Costco is amazing at this! What do you think dealers could start doing today to be more like Costco?

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