Correcting My Contribution to the Battle Between Buyer and Seller

I spent 31 years in automotive retail, in every variable role from used car salesperson to GSM, then GM and Dealer Principal.

For most of that time, I was a part of and supported the combative culture the car business created.

• I was a master of small…

A great article in CBT News cites that almost half of customers who state they are loyal to the selling dealer go elsewhere to service their vehicle. Only one-third of all vehicle services are performed at automotive dealerships. And we know brand loyalty and…

With most of the country in quarantine, people are more reliant upon digital applications like Netflix and Amazon than ever before. Netflix reportedly had 16 million new subscribers in the first three months of 2020 due to the coronavirus. It’s no…

User Experience, by definition, addresses all aspects of an experience within automotive shopping, purchasing and owning of a vehicle from the customer's perspective. From interacting with an ad, to interacting with a website and to parking their new vehicle in their driveway, user experience guides the interaction of the customer throughout mobile apps and…

Most auto dealerships do some, if not all of their service marketing with their manufacturer owner retention programs (ORPs). The purpose of ORPs is stated in the name: to build customer loyalty. But how well do these programs deliver on that promise?

The results from ORPs are all over the board. Some dealerships effectively use ORPs to…

That feeling of dread – the letter arrives at the dealership with a return address from an attorney you don’t recognize, addressed to "Owner" or "General Manager." Inside is a demand letter indicating that your website or mobile application is inaccessible as required under the Americans With Disabilities Act (ADA). You need to contact them right away to…

These days, consumers usually look at online reviews when deciding not only WHAT they are going to buy, but also WHO to buy it from. However, there have been plenty of scandals in the retail industry concerning fake or paid reviews. So, it gets a little cloudy in the water, and consumers have gotten somewhat cynical.

Take Amazon. Hundreds of…

You know to protect your dealership computer system from hackers, but what about your phone system? Phone hacking is common and often overlooked until you get hit with fraudulent charges. According to the Communications Fraud Control Association, phone fraud costs companies over $4 billion each year. The majority of that cost is due to toll fraud;…

With the auto industry facing a shortage of technicians, it’s important to do what we can to attract young technicians and keep them. After all, when the front end of the business slows down, it’s the back end that can keep your store afloat and profitable. But there are two main problems with getting young professionals into the automotive industry: image…

Price is often a major factor in the purchase of any service or product. But it’s important to separate perceived price and received value. For example, $5 for a bottle of water might seem expensive, but that’s a deal if you’re walking through a desert. And there’s nothing blatantly wrong with paying more for quality (or perceived quality)––just look at…

When my friend, Erica* took her vehicle to the dealer recently, the needed repairs were performed quickly and competently. Yet, when the CSI survey came, she rated her overall experience three stars: “just okay.” Why not five stars: “excellent”? Well, because frankly, they didn’t earn it. This was the result of a couple very significant––and…

When my friend, Erica* took her vehicle to the dealer recently, the needed repairs were performed quickly and competently. Yet, when the CSI survey came, she rated her overall experience three stars: “just okay.” Why not five stars: “excellent”? Well, because frankly, they didn’t earn it. This was the result of a couple very significant––and…

Every day, dealers are faced with multiple decisions about various facets of their business. Among them: constantly trying to decide if they should invest in buying leads to conquest more consumers or if they should spend more to retain existing customers. At the same time, they often lack the information required to choose the best course of action. In fact,…

How long does it take to build customer loyalty? It might start with a great sales experience, but if a customer feels like they've been taken advantage of in the sales process, it will be hard convincing them to come back for service. True customer loyalty is built over a period of several years in the service drive.

But providing a great…

For car dealers, the opportunity to create loyal customers might start with a sale, but true loyalty is created in the service department. According to a 2017 IHS Markit study, the average length of car ownership is nearly seven years. That's a long time to maintain a relationship with someone until the next sales cycle.

So, the focus must be…

The good news? To date, automotive sales have remained stronger than many analysts originally predicted, with customers of all ages continuing to buy both new and pre-owned vehicles. Considering some of the earlier ominous forecasts, it’s no wonder numerous retailers are breathing a collective sigh of relief.

The not-quite-so-good news, at least for those…

Have you ever noticed how the market values dealerships versus how it values Software as a Service (SaaS) businesses that derive income from the same automotive revenue stream? SaaS businesses such as CDK trade at mid-20x P/E ratios while dealers trade at 4-6x operating profit.

One major reason for this disparity is because SaaS business revenues are…

When it comes to sales and service transactions in the retail automotive industry, a main strategy in acquiring new customers or repeat business has always…

Today one of five vehicles on the road are under recall. This year alone there have been 46 million vehicle owners notified of a recall; seven million of which are not related to the Takata airbag issue.

Recalls represent a significant revenue opportunity for dealership service departments. Whenever a customer comes in for a recall repair, there’s an…

I frequently write about how, in my opinion, dealerships would be wise to expand their thinking and change attitudes towards recall customers … and not just recall customers, but all customers

The customer experience is key to building customer loyalty, increasing referrals and securing repeat business. It is also one of a dealership’s most important…