THE TRUST ECONOMY AND WHAT IT MEANS FOR YOUR DEALERSHIP

By Angela West

WHETHER YOU’RE SELLING A CAR OR AN ICE CREAM MACHINE, every business transaction involves trust. Every sale is a small leap of faith where the consumer trusts that the product or service they’re purchasing performs as advertised.

Over 80% of customers say trust is a deciding factor in their buying decisions, according to a recent survey from media group Clear Channel, and nearly 90% are willing to pay more for a product or service when it’s offered by a brand they trust.

In the case of dealerships, trust is the secret ingredient that will help convert your customer from a browser to a buyer. Show them they can trust your brand, your business, your salespeople, and your services and you’ll build a reputation for trustworthiness that will bring in a steady stream of business.

WHAT IS THE TRUST ECONOMY?

Economists have long known the link between trust and economic prosperity. Business relies on relationships and those relationships rely on trust. But the nature of that trust is evolving as consumers look more to their peers than big brands or institutions.

Customers are now putting more faith in crowdsourced feedback, trusting each other more than the market. According to market analysts Nielsen, 84% of consumers trust word-of-mouth recommendations, while only 69% trust branded advertising.

Businesses have to switch up their tactics to reach these consumers, focusing on so-called ‘earned advertising’ like positive reviews and recommendations to establish credibility. Companies have to work hard to foster grassroots engagement, reaching their consumers where they are, and showing that values such as transparency and accountability are more than just buzzwords for their brand.

WHAT DOES THIS MEAN FOR AUTO DEALERS?

A vehicle is a large purchase, something that buyers plan and save for months in advance. They’re not buying a new coat or a carton of milk, this is an important decision that will impact every aspect of their life from their bank balance to their commute.

Buyers need to feel comfortable and confident when making their purchase and that means dealerships need to shed their reputation for being overbearing and pushy. A 2022 Ipsos survey highlights how damaging the car salesperson stereotype can be - 83% of Canadian buyers surveyed said they either don’t trust, or only somewhat trust, car salespeople.

At the root of this distrust is a feeling that salespeople are being dishonest or not sharing everything with their customers. More than half of respondents said they felt they needed more information when purchasing, 21% felt they’d been taken advantage of, and 27% said they didn’t trust salespeople to give them a fair price.

But it’s not just sales, dealerships should rethink all aspects of their business, looking at where they can do more to build trust in areas like advertising, customer relations, and service. Focus on quality and trust will follow. Establishing your dealership as a reliable place to purchase a vehicle or get it serviced also enables more trustworthy advertising, as your marketing team can push positive results and testimonials to build relationships with a wider audience.

The Role Of Reviews

As more Canadians take to the web to research their purchases and buy online, dealerships are faced with a problem - how do you build trust over the internet?

The best and easiest way is to let your (happy!) customers do your advertising for you. In the online era, positive reviews are marketing gold - 85% of buyers trust online reviews as much as a personal recommendation, according to Gartner.

Customer service is the main driver of positive reviews so every interaction you have with a customer counts. Don’t be shy about asking your customers to leave reviews, especially if they give great feedback. It’s perfectly appropriate to explain how much reviews help your business and ask them to take a minute to share their experiences to help other customers in their decision-making.

The best channel for these reviews is Google. Google Reviews offer dealerships a presence on one of the most influential online platforms out there, boosting their SEO (Search Engine Optimizing) and sharing their business with millions. Over 60% of customers check Google reviews before visiting a business, according to data analysts ReviewTrackers, so you need to be visible.

Getting that sought-after five star rating with Google sends a powerful message to consumers that you can be trusted. In addition, a significant amount of good Google reviews can help you rise to the top of Google Maps search engine results, which are usually the first thing searchers see when they look for local dealerships.

HOW TO CULTIVATE GREAT REVIEWS: Don’t police them

Every dealership will inevitably attract some negative feedback. Resist the temptation to erase or edit those bad reviews. It’s very obvious when companies cull the negativity to cherry pick the best comments, and that is a sure-fire way to destroy consumer trust.

Instead, respond to the negative in a timely and calm way. Identify whether the reviewer has a legitimate complaint and, if so, take responsibility for it while clearly outlining the steps you’ll take to remedy the situation. For example, if a customer calls out a staff member with a bad attitude, say that you’ve spoken with the employee and apologize on their behalf.

Be careful with your tone - explain but don’t excuse. Sounding defensive will turn off customers as they’ll think you have something to hide or aren’t taking their complaint seriously.

Share your positive feedback

Good reviews are invaluable marketing collateral so use them! Get the customer’s permission to display them in your advertising and then create testimonials that can be used across your website, social media channels, and other advertising.

If someone is particularly keen to sing your praises, think about getting them to share their story with your audience - share their photo on social media with a quote from them or a caption, e.g. “Sandra was looking for a reliable family vehicle to safely get her kids to hockey practice, but couldn’t decide which to choose. We helped her find the perfect ride and she couldn’t be happier.”

This helps potential buyers empathize with satisfied customers and see themselves taking the same path to purchase.

Build on your earned advertising

Good reviews can be further leveraged to develop your dealership’s strategic plan - informing future marketing campaigns, giving you ideas for additional services or offers, and adding to staff training.

When reviews come in, good or bad, share them with the relevant team so they can see how they’re performing. This provides great insight into how each department can tweak, refine or reform its services. That responsiveness and focus on quality will in turn build more trust down the road.

Building Trust Over The Longterm

Establishing trust isn’t a quick fix or a cynical sales tactic, it’s a core objective that should be embedded into every aspect of your dealership’s operations. Building a trustworthy reputation takes time, but you can speed things up with the following best practices.

1. Think quality

There’s a strong link between service quality and customer trust so focus on what you do best - selling and servicing vehicles. When you let your services speak for themselves, you show confidence in your own expertise and create more authenticity for your brand.

2. Build loyalty

Take the time to get to know your customers and nurture those relationships. Reward repeat customers with loyalty programs and offer discounts or other incentives to those who review or recommend your services.

3. Communicate with customers

Stay engaged. You can’t foster grassroots loyalty or trust unless you’re continually connecting with your market. Be sure to follow-up with customers after their purchase or service visit, prompting them to share their feedback and asking them to leave a review if it’s positive. You should also be closely monitoring any social media, replying to comments where appropriate and responding quickly to any direct messages.

4. Train for trust

Most of the work in building trust will be done by your customer relations department and your salespeople. Train these departments with trust in mind, encouraging the development of soft skills like empathy and communication, rather than focusing solely on driving home a sale. Sell based on quality and value, not rushing to close the deal.

5. Be transparent

The best weapon against mistrust is transparency. Sales teams should never be tempted to withhold information, especially around pricing. Communicate clearly, share relevant information, and never appear defensive or cagey.

ADOPTING A CUSTOMER-FIRST MINDSET

When it comes to trust, dealerships can often be their own worst enemy. Too many think of this all-important quality as a nice thing to have for their business or something that only marketing needs to worry about, rather than a fundamental driver of profitability.

They also tend to overestimate customer trust, according to a survey from Erickson Research which shows that nearly 70% of North American dealers report a high level of trust in their salespeople while a Gallup poll contradicts this, showing that only 9% of car buyers report trusting sales teams.

To quote Warren Buffet, “Trust is like the air we breathe - when it’s present nobody really notices; when it’s absent, everybody notices.” Your dealership needs to notice. Don’t take trust for granted; nurture it, grow it, and use it. ■