I’m sure that you’ve all heard the tale of the princess and the frog. In the beginning, the princess despises the frog and doesn’t want to interact with it – especially not to kiss it – but through personal interaction and a little time, the frog wins her over, gets that kiss and transforms into the prince he actually was all along.  

In the past, big brands have sort of been the princesses of the retail world. They had all the money, spent it to get attention and this worked well for them. However, as the Internet has evolved and greatly improved ease of communication, the world has shrunk. Today’s consumers expect brands to interact with them on a more personal level. 

And that’s exactly what many brands have decided to do. 

A recent blog by Chris Brogan breaks down exactly how and why big brands have decided to think smaller. Rather than reaching out to mass audiences, they have realized that a single person at a time may be a better strategy.  

The fact that the Internet – and, more specifically social media – has allowed consumers to interact with brands instantaneously and on a personal level has changed the game and levelled the playing field. No longer is it all about “Buy our things because we’re popular!” Today it is more about, “Do business with us because we care about you – and we’re talking just to you… at the moment.” And that’s what creates brand advocates. People love the individual experience, tell their friends and continue to interact.  

When consumers display the desired behavior, brands reward them with social media interaction – thus encouraging the behavior and increasing the likelihood of repetition and loyalty. The more the behavior is rewarded, the more often the consumer repeats it.  

As Chris Brogan states, the future lies in using all your tools to let your buyers feel as seen and heard and loved and personally tended to as humanly possible. You’ve “gotta take all the sentiment and heart and caring and dedication to the satisfaction of the buyer and deliver on this at a many-to-one scale.” 

Consider trying this approach with your operations wherever you can by simply communicating via your various channels on a more personal level. Step up your social media game. Make sure you are monitoring and replying to your customer comments and questions. Thank them for any positive reviews and reach out to them if their review is less than great. You don’t need to spend millions of dollars on a Super Bowl commercial to gain brand advocates… in today’s world, all it takes is some personal attention and recognition.

As automotive tech vendors increasingly push the importance of bringing the car buying experience online to combat companies threatening disruption, it appears that a couple of world-leading companies may be showing us the future.  
 
An article in Marketing Dive theorizes that the trend towards a better online experience is slowly being overshadowed by a push for traditional in-store customer experiences. This could explain the curious move by the world’s largest digital retailer, Amazon, to open physical bookstores, along with its recent acquisition of the grocery chain Whole Foods. In addition, the world’s largest traditional retailer, Wal-Mart, is aggressively acquiring online retailers. It does seem counter-intuitive but, in reality, it’s actually pretty logical.   

If you recall, way back in 2001, while everyone was predicting the death of brick-and-mortar stores, Apple’s Steve Jobs introduced the Apple Store - which many predicted to fail. We all know how that worked out as Apple Stores have succeeded beyond everyone’s expectations. Have you tried to visit one lately? 1) They are always packed with people; 2) Apple does a great job of servicing their customers; and 3) Apple is able to showcase its latest products and educate consumers on them. These three KEY elements apply to any customer-focused business, be it Apple, or an auto dealership. 

While I realize most dealers will not have the same success as Apple, Amazon and Wal-Mart, the point is that the way to grow, and at least approach that type of success, is to realize that today’s consumers demand the experience THEY want on THEIR terms. For some consumers, that experience may be completely online, others may desire a completely traditional buying experience, while others may want a combination of the two.  
 
For the future, those businesses in the forefront will be the ones that ensure their customers can have the experience they want, rather than being forced to endure the experience the business wants them to have, especially when it does not meet the customer’s desires. 
 
In the end, what will determine your dealership’s success is how you adapt to your customers preferred ways to interact with you and whether or not you provide that experience to them, be it traditional, digital, or a mixture of both. 

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.

In every company, at some point in time, customer service mistakes happen. And, they are often magnified by the fact that the customer-facing employee cannot handle the situation on the spot. The upset customer is kept waiting while the employee checks with management, or worse, the customer leaves disgruntled!  
 
Well, rather than have an irritated customer on their hands, many companies now empower their front-line employees to defuse situations and make decisions on their own to quickly handle the upset customer. For example, the Ritz-Carlton hotel chain empowers its employees to fix problems by allowing each employee a discretionary budget of $2,000 per guest per day. That may sound like a lot – and it is – but the hotel chain trusts its employees to make the customer happy without going overboard. This discretionary fund allows employees to fix problems instantly, immediately returning the customer to a great experience and, perhaps, even further impressing and building loyalty.  
 
Today, in our highly competitive automotive industry, it’s all about the customer experience. How about empowering your employees in the same manner? I’m certainly not suggesting that you give your employees $2,000 worth of discretionary budget. But what about $50 to fix a mistake, or right an inconvenience? It costs a heck of a lot more than $50 to acquire a new customer, should you lose one due to some upset that was left unhandled. 
 
Consider starting a “Customer Love” program at your dealership. Every time a customer is inconvenienced, do something small for them to show that you care. Train your employees in the best way to do this and then trust that they won’t abuse this system. You’ll find that they don’t. In fact, the employees will feel more engaged and less helpless when confronted with an upset customer. In the end, everybody wins! 
 
In no way should this program supplant top-notch service. It is simply another tool to make your service better should a process fail, or a mistake happen that negatively impacts one or more customers. Customers will appreciate the gesture and most will forgive the mistake. Rather than leaving the dealership upset, they will leave with a positive perception of their visit, despite any inconvenience.  
 
It’s great to always aim for “Wow!” But, when you fail, as long as the customer believes you’re genuinely sorry, and is shown that through an apology and a token gesture – perhaps a free oil change, a refund for service they just received, or a complimentary detail – the customer will more often than not forgive.  
 
You won’t always execute perfectly -- but when you don’t, you simply need to be willing to show your customers some love and say you’re sorry in a meaningful way.

It’s the goal of every service department to enjoy excellent customer retention and loyalty. Other than tempting them with coupons and incentives, what can you do to keep bringing those customers back in? 

Here are 5 things I have seen successful service departments do over the years that bring their customers back for service: 

1. Assign Each Customer a Service Advisor – By assigning each customer their own service advisor you have a better chance to build rapport and trust. The sales department assigns a customer to a salesperson for this exact reason, so why wouldn’t the same philosophy apply to service? This practice allows customers and service advisors to build a relationship which then extends to the dealership. When customers deal with the same person for each service visit, they no longer have to explain past repairs to the service advisor, have more familiarity and are more at ease with the entire service process. 

2. Notify Customers of ETA Changes in Real-Time – There’s nothing more frustrating to a customer than planning their day around a repair based on the estimated time their vehicle is supposed to be ready, then an hour or two later, when they expect the service to be done, they find out it’s going to be MUCH longer. Text, email or call your customer (depending on their preference) with regular vehicle status updates. If Domino’s Pizza can do this, why not your service department? Real-time notifications keep customers informed and lessen the chances that they will be irritated and will lower the # of inbound phone calls to your service department. 

3. Provide Direct Lines to Service Advisors – Nobody likes phone trees when calling into any business. Especially if it makes it difficult to talk to a live person. Lessen friction by simply giving direct phone numbers to the customer for their assigned service advisor. Customers will no longer be upset by being unable to reach a live person; the service advisor they speak to will be familiar to them; and the customers should get their questions answered faster. This makes for a better customer experience and more efficient service department. 

4. Allow Customers to Review Invoices in Advance – Being surprised by a bill larger than expected is not something most people react well to. If you can email or text the final invoice to the customer, they can then review and approve it -- and with today’s technology even pay the invoice before coming into the dealership. This also gives the customer the opportunity to ask any questions up front and removes the possibility of confrontation and aggravation at the dealership. 

5. Follow Up After Service – Of course, for a customer to feel special and cared about, they shouldn’t be forgotten once they leave. A simple call by their assigned service advisor to verify they are happy with the service they received, to check if they have any questions and to inform the customer that they look forward to their next visit, makes a far greater impact than most people realize. In addition, it allows the service advisor to hear, address and correct any problems before the customer either fills out a survey or decides to go somewhere else. 

Consider copying these best practices from other successful service departments. As a result you should enjoy happier customers, less friction, increased customer retention and profitability.

While the automotive industry has seen massive technology changes in the last 5 years, there is a continuing trend where some OEMs partner with specific vendors and then take away the freedom of choice for forward-thinking dealers. Mandates are enforced where franchised dealers must choose between 2-3 vendors for a particular solution.

This practice can be very frustrating for dealers – especially any that specifically wish to think outside-the-box, be innovative and try new things. I have heard of some dealers that have vendors they are forced to use as a packaged deal with multiple solutions, some of which they don’t wish to use. There are even dealers that pay twice. Once for the vendor solution they are forced to use, and once for another solution which they prefer for their individual dealership. This ties up their budgets and effectively handcuffs dealers to vendors, preventing them from trying new solutions.

In my opinion, things would work better if manufacturers would allow dealers to choose which solutions are the best fit within their marketplace and audience. I would rather OEMs set up benchmarks that need to be achieved with very simple measures, but with high standards.

Here’s a simple yet radical thought - get rid of the 15 questions you ask every customer in your surveys. How about just focusing on the Net Promoter Score (NPS) for the dealership? Set the bar high and ask one question, “Would you recommend the dealership to your friend or colleague based on your service experience?” I guarantee this would work better than the current situation where OEMs choose solutions which target different actions such as web-based appointments. Instead the focus should be on the NPS score.

This would avoid the “one solution fits all” model for dealers, and would allow forward-thinking dealers to customize their approaches. A case in point, every manufacturer is going after tablets in the lane. Well, I know of a franchise in Santa Monica where on Fridays a car rolls in every 2-3 minutes and they only have space for 6 cars in 2 lanes. They simply cannot check people in using a tablet and allow the customer stay in the car while that is happening. Instead, they have to use porters to whisk the car away and then walk the customer over to their office to check them in. If you jam this dealer with a tablet, and if it does not keep the cadence of a 1-2 minute check-in per car, you are going to create a backup on the already jammed streets of Santa Monica.

Technology changes so quickly that an impenetrable partnership which forces dealers to use one vendor over another can restrict progress, growth and sales. Freedom of choice and outside-the-box thinking is what fosters innovation and then true game-changing can begin.

What do you think, should dealers be given more autonomy to choose their own vendors?

Ujj Nath shares 3 things that dealers should pay attention to in order to ensure a successful future.

Some dealership personnel tend to do things that really boil down to just CYA stuff. A customer comes into the service drive and is made to wait while their vehicle is inspected for scratches, dents or dings, which can take a few minutes --- time a customer doesn’t have.

The most valuable currency on the planet is time. Everyone has too much to do with too little time. That’s why customers don’t want to come to get their vehicles serviced. What if you decreased the amount of time a customer had to wait for their car to be serviced? Even if you simply reduce the time in that check-in process, that initial impression of “fast” contributes to the overall customer experience.

Service advisors walk around the customer’s vehicle with an iPad, take pictures and notes to document vehicle condition while the customer stands there with arms crossed waiting impatiently. The longer a service advisor takes, the more a customer feels as if the dealer doesn’t trust them which, due to the general misconception of the industry by many consumers, contributes to the customer losing trust in the dealer. So what are you, as a dealer to do?

I get that it’s important to document any pre-existing vehicle damage. However, there are more efficient ways to do it – both technology and process-wise – than making the customer stand there for several minutes while the initial inspection takes place. Many luxury car manufacturers never make a customer wait because they want to provide an exceptional customer experience at every interaction. They recognize that the customer’s time is valuable, realize that building trust is a two-way street, and don’t want to plant any seeds of mistrust.

Take a page out of the customer service book used by leaders in the hospitality industry -- chains that offer superior service such as the Ritz-Carlton. They train their staff to put customer experience above and beyond everything. In the case of the Ritz-Carlton, each employee has the freedom to fix any guest issue to the tune of $2,000 per day per guest. And at the Mandarin hotel chain, if you ask a bellhop what distinguishes them, they will answer, “The answer is yes, what is the question?” This type of philosophy gives customers the confidence and experience that makes them want to stay and keep coming back.

Don’t use your customer’s time to optimize your operations at the dealership. It’s not yours and never will be. Optimize your operations and procedures to make it a great experience for each and every customer. Respect their time and make it as convenient and time-efficient as possible for them to do business with you. If you do, you will see them keep coming back.

Survey Question:

How long does it take your service advisors to do an initial inspection?

A) 2 minutes to 5 minutes

B)  5 minutes to 10 minutes

C)  I don’t know.

An Insight into Human-Centric Design

One click ordering. Buy it now. Same day delivery. Dash buttons where all you have to do is press a button and the item is shipped. You can even place orders through Amazon’s Alexa with a voice command.

Businesses like Amazon have grown into hugely popular industry giants because they understand what customers want and when they want it. And, for the most part, they want it NOW!

Design For Change

Our society has transitioned to a self-service customer service model. Before that, customer service was handled in a human-only model, with bank tellers, cashiers, travel agents, and other similar service positions. Now, we can do all of our banking online: pay our bills, arrange for travel, and even go grocery shopping, completing the entire transaction with no need for human assistance. The reason these self-service opportunities exist is two-fold.  Firstly, it’s convenient for the customer and cost efficient for the business. Secondly, if a customer can accomplish all they need without an employee, that’s potentially one less employee on the payroll.

However, occasionally the customer cannot accomplish all they need without some assistance. Despite the desire for instant gratification and self-service convenience, occasionally most customers will encounter a roadblock which cannot be handled with digital technology. They will need the help of an actual human being.

When those occasions arise, this transfer needs to be seamless for the customer, as they will probably be short on patience and get quickly fed up. I’m sure many of you have been there – forced to endure endless phone trees, explaining the problem to several different representatives before finally getting someone who can actually help solve the problem.

Today’s consumers want help immediately and efficiently, with zero inconvenience. Anything short of that will potentially cause the customer to defect to another retailer who can quickly and conveniently help them. Who can blame them? Inconvenience is irritating.

Humans Have Adapted

As technology has evolved, consumers have learned that they don’t need a live person to help them, most of the time. Technology has also trained consumers to have little patience with a poor customer experience, such as excessive hold times, imperfect communication skills, and any lack of helpfulness. Today’s customers feel that the world is at their fingertips and they no longer have to do business with any specific company.

This is how the world is evolving. Knowing that, it would be a wise move to carefully examine how easy it is for customers to do business with your dealership. Responsiveness, helpfulness, and engagement are more important than ever. Make it easy and convenient for all customers to interact with your dealership. Ensure that when they need you, you are there and can help – right then, with no delay – in whatever way the customer wishes to interact with you.

Anything less than that and you may just find your customer moving on to your competition.