Car Dealerships Still Are Still Clueless in How to Increase Car Sales & Develop Customer Loyalty
With more and more cars being sold and competition for existing new and used at all time high, the ability to increase and to develop customer loyalty would be the number one. Yet, after listening to several friends who have just purchased new cars, many auto dealerships still are clueless about how to develop customer loyalty. Also, their sales' practices continue to reaffirm the public's negative opinion about people who sell cars.
Within the new and used vehicle sales industry, selling a car and developing customer loyalty happen almost simultaneously. For example, when someone buys a new car from an auto dealer, they negotiate a price based upon the desired features. The negotiation goes through a time consuming and complicated approval process designed by the car dealership to increase sales. This is the first step to destroying customer loyalty.
Then when delivery is supposed to happen, the car salesman decides to add something because the particular contracted car is not available. A better substitute is found. Unfortunately, the substitute has one or two additional features that increase the price by $100 to $300. The increase is around 1% of the total vehicle price and is viewed as not a big deal to the car salesman. However, it is a big deal to the customer. This is the second step to destroying any customer loyalty.
Finally, the seller works with the buyer who objects to this minor increase mainly because of poor communication. No one likes surprises especially after a contract has been signed.
The buyer accepts delivery of the car at the agreed price, but is not happy with the process. Then, the man or woman asks the buyer to fill out the forthcoming customer satisfaction survey because it would mean additional benefits to the dealership. Since most people are nice, they comply even though the experiences were not the best. The dealership gets raves reviews and remains clueless about how to increase sales and how to develop customer loyalty. This is the third step to destroying customer loyalty. HINT: Additional steps happen when service fail to come through, when warranties are not honored, etc.
Since most people need a car to get to the grocery store, to work, to school, to church, to restaurants, to shopping, to whatever, selling cars should be the easiest sale in the world. The need is there, you are dealing usually with the decision-maker, there is a budget sometimes not as large as the seller is lead to believe and a high degree of inclination. Most people shop for cars when the inclination is strong whether it is because of attractive financing to the debut of new car models.
However, until the general managers, sales managers, sales staff and support staff align all behaviors to the desired goals, they will still fall a day late and a dollar short.