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Solving Customer Experience Challenges: It’s Time for 21st Century Customer Success
Solving Customer Experience Challenges:
It’s Time for 21st Century Customer Success
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By Michael Fiorini, Regional Manager for Vanguard Dealer Services
As a result of digital engagement opportunities, there have been significant changes that have rapidly evolved the automotive customer experience. Consumers simply won’t settle for good enough. A large majority do their own research and due diligence, knowing exactly what they want and expect from a dealership. For dealers, understanding the expectations of these customers is what makes a great versus good versus mediocre customer experience. All having a huge impact on your dealership’s culture and on your profits.
Vehicle performance and price is still of primary importance, but a positive customer experience has become critical as well to make an initial sale, to start a relationship, and to make that person your customer for life. Today’s buyers have set higher standards for dealers and the dealership experience, both online and in the store. New consumers are looking for connected and virtual experiences that are efficient and timely. No one wants to spend hours in the dealership to purchase a vehicle. Research, in fact, suggests that after 90 minutes in a dealership, the purchase experience declines along with the customer’s ratings.
Disengagement, not driving customer loyalty to a store, makes the entire sales model precarious. There needs to be a more data driven approach to sales and after market sales that focuses on the customer experience. Customers want to develop a relationship wherein they feel assured that their needs are being met. Staff expertise, service drive accessibility, data privacy and protection are all key factors in today’s purchase process.
ANTICIPATE YOUR CUSTOMERS NEEDS
Does your sales staff make customers feel valued? Do they listen to and understand their needs? Do they show immediate action and provide solutions? Understanding the customer experience is a core business strategy for dealerships today.
It’s essential that customers are provided with factual information, especially about financial issues. Make it personal. Build a strong connection by training your staff to listen and get to know the customer. Salespersons need to earn trust. Be transparent. Provide legitimate assurances.
The sales force needs to have a thorough understanding of the products being sold, the vehicles, how financing works, ancillary products, F&I product benefits, and more. For Internet sales and required return calls/texts, is your team doing their homework before speaking to customers and getting back to them in a reasonable and timely manner? Did you know that a sale is seven times more likely to occur if a customer is responded to in less than 60 minutes?
RISK REDUCTION FOR DEALERS
As a dealer, you should evaluate the level of support you are receiving from your partners and consultants. For example, skilled, knowledgeable representatives should be providing you with support by way of F&I training and service training. Are your employees being trained effectively on how to handle customers, claims, and more?
How often do you see your representative, your trainer, and when are they present at your dealership?
Are they experts - helping your organization with everything from conducting interviews and staffing, to claims, to choosing the proper reinsurance structure to fit your long-term goals? Regardless of whether you sell the factories programs or reinsure through a third-party administrator, you’re sending money to someone. What are you getting in return? Are they working for it? You expect excellence and hard work
from your employees. The partners you choose should be held to those same high standards. Continuity is important.
Strive to attain great support. Like your customers, you shouldn’t settle for less. Align yourself with someone who knows your business inside and out, can see issues coming up, and solve for them strategically and soundly. Find support for analyzing your processes and your products, and helping you define and develop areas within the business. The partner should provide an action plan and, importantly, offer local support, flexibility, and timeliness - being there and being present.
Further plaguing dealers is the issue of becoming noncompliant. Deal audits must be consistent on a monthly ongoing basis, with an in-depth quarterly audit process. Your F&I partners who are not fulfilling this obligation are not providing you with optimal service. Look for a partner that provides monthly finance meetings, recaps with management both verbally and written, asks what the dealers’ agenda is and how can I help, understanding your goals, objectives and setting expectation and road map on how to get there.
When aligning yourself with a partner, check references and ask your colleagues for recommendations. First and foremost, your partners need to set up your dealership and your staff for success.
TRAINING YOUR STAFF IS IMPORTANT AND ONGOING
Untrained staff will have a negative impact on customer service. Support by way of oncea-month finance-only training is simply not enough. Your staff training needs to include sales skills, customer service, product knowledge, internal systems and processes, technology, and automotive compliance.
Training is most effective when it is preplanned. As a first step, the needs of the dealership and its customers should be identified, and how they relate to the functions of specific departments and individuals. That is the best way to assure they are managing your customers akin to your vision and are developing relationships for your brand. n
FY 2022-23 Pennsylvania State Budget Adopted
By Tyler Burke, Associate, Milliron & Goodman Government Relations
Early in July, the Pennsylvania General Assembly passed a $42.8 billion FY 20222023 budget. While the state budget is a yearly occurrence in Pennsylvania, this year’s budget is being heralded as a victory for every Pennsylvanian.
CORPORATE NET INCOME TAX (CNI):
As part of the budget package, legislators have agreed to reduce Pennsylvania’s CNI from it’s currently 9.99% to 4.99% by 2031. Starting with a 1% reduction in 2023 and then shifting to .5% reduction over the next 8 years. Pennsylvania currently has the highest flat rate CNI in the country. By reducing the CNI, legislators have set Pennsylvania on a path that will help to bring many more business and jobs to the Commonwealth in the years to come.
RAINY DAY FUND:
Another important aspect of the budget is the further investment of $2.1 billion to the Rainy Day Fund. This fund exists to help the government keep functioning in the event of an emergency or financial catastrophe. With this year’s investment, the total value of the Rainy Day fund has increased to approximately $5 billion or 42.6 days of General Fund expenses. By adding funds to the Rainy Day Fund, legislators are also helping to improve Pennsylvania’s debt rating and make our debt less expensive.
MOTOR LICENSE FUND (MLF):
Legislators have also reduced the amount of MLF dollars used to support the Pennsylvania State Police to $500 million, which frees up $175 million annually for road and bridge projects. The State Police are not losing funding. The costs are being shifted from the MLF to the General Fund. With the passage of the budget, the Pennsylvania General Assembly is in recess until mid-September. As this year is an election year, we anticipate a limited number of session days this fall. With the possibility of limited session days, PIADA’s Legislative Committee remains hard at work advocating for the following pieces of legislation: House Bill 2372 (Schmitt-R): This legislation authorizes a wholesale vehicle auction, or salvor, to remove vehicles that have been abandoned by dealers after 3 business days of the vehicle remaining without consent. It would also authorize the auction to charge and collect storage fees, as well as the releasing or recovering costs of the abandoned vehicle. This legislation passed the House by a vote of 109 to 90 and is now before the Senate Transportation Committee for its consideration.
House Bill 2290 (Isaacson-D): This legislation adds catalytic converter to the definition of “secondary metal.” Under this legislation, a person commits the offense of theft of secondary metal (i.e., catalytic converter) if the person unlawfully takes or attempts to take possession of, carries away or exercises unlawful control over any secondary metal with intent to deprive the rightful owner thereof. This legislation was reported from committee and is now before the full House for its consideration.
House Bill 1092 (Kaufman-R): This legislation further provides for identification requirements for sale of scrap materials to scrap processors and recycling facility operators. It also creates a new process for scrap processors or recycling facilities before purchasing a catalytic converter. This legislation was reported from committee and is now before the full House for its consideration. The House returns to voting session on September 12th and the Senate on September 19th. PIADA’s Legislative Committee will continue to push these bills and keep you apprised of any further developments. n
LOCATIONS TO SERVE DEALERS
THROUGHOUT THE MID-ATLANTIC
KEYSTONE PENNSYLVANIA
488 Firehouse Road Grantville, PA 17028
717-469-7900 | Fax 717-469-2842
Joey Hughes, GM Shirley Kennedy, Office Manager / Dealer Services
Mondays, 11 AM
PENNSYLVANIA
1190 Lancaster Road Manheim, PA 17545
717-665-3571 | Fax 717-665-7521
Joey Hughes, GM Randy Derr, AGM Kevin Gantz, AGM Tim Doyle, AGM Andy Mekulsia, Commercial Accounts Manager Deni Hostsetter, Dealer Services
Exotic Highline Sales every other Thursday at 11 AM, Friday is regular sale stating
stating at 9 AM PITTSBURGH
21095 Route 19 Cranberry Twp., PA 16066
724-452-5555 | Fax 724-452-1310
Tom McDonald, GM Shawn Byers, AGM Zak Hanna, Senior Manager Client Service Justin LaScola, Manager Client Service Dealer
Wednesdays, 9 AM TRA Sale Wednesday, 11:30 AM
PHILADELPHIA
2280 Bethlehem Pike Hatfield, PA 19440
215-822-1935 | Fax 215-822-8140
Charles Polina, GM Scott Mulligan, AGM Gregg Pachik, Dealer Services Manager Troy Moyer, Commercial Accounts Manager
Tuesdays, 9:30 AM TRA Sale, Tuesday 12 PM BALTIMORE-WASHINGTON
7120 Dorsey Run Road Elkridge, MD 21075
410-796-8899 | Fax 410-799-0512
Chad Spearman, GM Audrey England, AGM Steve Soprano, Dealer Sales Manager
Tuesdays, 9:30 AM
