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…

When you buy something online, checkout can take mere seconds. And chances are good that your credit card was saved from previous transactions, meaning you just have to click the checkout button and your order is submitted. At the grocery store, checkout takes maybe a few minutes—if you have to insert your card and wait for a receipt. So it comes as no…

Many businesses focus on improving customer convenience as a means to expand their reach and volume of commerce. It’s not just Internet companies such as Amazon, but some of the most substantial brick and mortar chains, including Wal-Mart, Costco, Best Buy, Office Depot and several major grocery store chains. Adding options that increase customer convenience…

Hidden profit opportunities exist throughout most dealerships. Whether those opportunities present themselves through service customers migrating to sales or sales customers that become service customers, all can lead to increased revenue and building relationships with your customers. Many dealers, however, don't incentivize those handoffs, so these episodes…

The biggest driver of customer satisfaction today is speed.

As many have heard by now, the attention span of goldfish is 9 seconds. Human beings are down to 8 seconds. With smart phones and the associated instant gratification, attention spans are…

It’s not my fault – but it IS my responsibility to fix it! This attitude has served me very well in my career.

All too often we get wrapped up in the finger pointing when in reality all the customer cares about is "Who's going to fix my problem?"

Once we can eliminate the blame game, we can identify the underlying issues and…

Just about every technology company in the automotive space is working hard to produce pieces of the digital retailing puzzle to facilitate a better customer experience. But many are focused solely on crafting a solution that allows the customer to complete the car-buying transaction online -- from start to finish.

Dealerships should certainly…

In today’s digital world, if you want your audience to hear your message, it’s crucial to stand out among the flood of marketing communications hitting them at every turn. But all too often, marketers use a “one size fits all” mentality, sending messages on a standard interval without taking into account each customer’s unique purchase patterns. The result?…

While sitting here thinking about what to write for my next blog, I was taken back in time to a wonderful visit to a quaint little resort near Ocho Rios in Jamaica. Blissfully relaxing, looking at the sunset over the ocean, I recognized how blessed I am.

This was unlike any other trip. The entire resort was taken over by automotive industry…

Does your service department software remove friction for your customers but add friction for your staff? Perhaps that is why we see so many software companies come and go in this industry.

With today’s transformation from a dealership-centric focus to one that is more customer-centric, technology companies are rapidly developing solutions…

At NADA many exhibitors hyped their digital retailing solutions to support online vehicle transactions. While no one has cracked the code for a complete, seamless online transaction, there are several great solutions that provide enough functionality to meet consumer demands. After all, consumers are not asking for a 100% “digital…

Read the headlines and you see it everywhere: online used vehicle sales are booming.

Carvana is expanding into dozens of new markets and although it has yet to turn a profit, its vehicle unit sales more than doubled and gross profit nearly tripled in Q3 2018. The retailer just announced $2 billion in financing from Ally…

91% of service customers defect once they are out of warranty, and those are a dealership’s most profitable customers. What can your dealership do to help retain these valuable customers?

Tire sales can easily distinguish your dealership from its competition and decrease defection, but only if they are promoted and sold differently than how…

Customers don’t necessarily arrive at your dealership expecting a great experience. When it comes to service, many dread a higher-than-normal repair bill. They expect to hear additional maintenance is needed, but don’t want to spend a lot of time at the dealership and can get annoyed if made to wait longer than anticipated.

Whether this…

As more dealers turn to fixed ops to grow profits, it's important not to overlook the power of video. Video is a great tool for building customer trust because it allows you to address the perception that dealerships charge too much or try to sell customers unnecessary repairs.

An effective video marketing strategy for your service department…

It’s a common scenario: drivers eating, texting, talking on the phone, taking care of personal grooming, or even reading while on the road. Loosely termed “distracted driving,” it includes any activity drivers engage in when they’re behind the wheel, according to the National Highway Traffic Safety Administration (NHTSA).

A recent AutoLoop study identified the most common of those activities among morning commuters while driving. With a remarkable 48% of…

In our industry, conversion rates are horrible. A great dealer “might” convert at a higher rate, but many are missing the boat on the majority of their website visitors. There are many reasons why this is true. However, the sad fact remains that it is.

Imagine making some simple tweaks to your website which produce an immediate increase in the number of…

I think it’s fair to say that automotive technicians are getting harder to find. These days, less people are choosing a career in automotive repair, even though technicians make great money and many need little or no formal college education or previous experience. Look at independent repair facility employment ads and you’ll no doubt find plenty of messages stating, “no…

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…