INNOVATION AND OLD-FASHIONED CUSTOMER SERVICE IS THE KEY TO SUCCESS FOR MOTOR DEALER

By Peter Davison, Deputy

On March 16, just five days after the World Health Organisation declared Covid-19 a pandemic, motor dealer Pebley Beach became one of the first companies in the South West to publicly react to the threat.

Customers who became sick with the virus, or were forced to self-isolate, could have their car collected and delivered back by a Pebley Beach driver for its MoT, repairs, or service.

The Doorstep Advantage scheme would cost customers a not-unreasonable surcharge of £10, which would be donated to a local food bank.

"This is a challenging situation, but one we'll all get through by supporting each other," managing director Dominic Threlfall told the local media. "As always, we want to do our best for our customers and our local community."

For customers of the Swindon-based Hyundai and Suzuki franchise, the initial announcement from Pebley Beach came as little surprise. Dom has a well-deserved reputation for putting customers and the community at the heart of his business operation.

In the early days of the pandemic, Pebley beach offered free vehicle maintenance to keep key workers on the road. With most staff furloughed, Dom was driving into the showroom every day to keep an eye on things. On his way home he'd often call at a customer's house with a set of jump leads to get their car started.

"Cars were sitting on the driveway for weeks. When people needed them, often they couldn't get them started. We had so many calls and emails about vehicle maintenance. I reckon I jump-started 20, at least."

Diving to, and starting at, the bottom

Dom grew up near Cirencester and after A-Levels at the local Deer Park School he headed to Australia for a year. “My parents paid for the flight out, but I had to earn my passage back.”

He moved to Shark Bay in Western Australia, where he would dive for pearls, and he joined the crew of a fishing boat catching Spanish mackerel.

Back in England, he joined the bottom rung of the family firm – Pebley Beach –which operated six petrol forecourt sites in and around Swindon.

As he learned about the retail business he quickly realised that technology could benefit businesses and customers. He was an early adopter of barcodes, doing away with price stickers and introducing scanners to the forecourt shops in 1991.

The petrol site in Wroughton, just outside Swindon, had a Lancia car dealership attached to it. In 1993 Dom acquired the franchise to sell Suzuki cars there. Within four years it was one of the highest-volume Suzuki dealers in the UK.

A second Suzuki dealership opened in Cirencester in 2002, and in 2005 Pebley Beach acquired Swindon Hyundai. In 2011 the company amalgamated its Wroughton and Swindon operations, moving into new premises on Paddington Drive. Pebley Beach now turns over an average £20 million every year.

Over the past decade, Dom has continued his two-pronged strategy to drive sales: early adoption of technology that will enhance the customer experience and make life easier for staff, and a concern for the community through charitable giving and practical assistance, which has helped to grow the brand’s reputation.

“Pebley Beach is at the forefront of innovation,” says Dom. “I like to adopt technology from other sectors. I see an idea and think ‘how can I replicate that?’”

One such innovation was adopted from pizza franchise Dominos. “When a registered customer phones through to Pebley Beach their information will flash up on the computer monitors. As the staff answer the call, they already know who they’re likely to be talking to and what the call might be about. It allows us to route calls far more effectively.”

“Another innovation is ANPR cameras. If we have your vehicle registration then when you drive on to the site you’ll be directed by a display screen to an allotted parking space, and a member of staff will be ready to receive you.”

But behind every tech innovation is what Dom calls “old-fashioned customer service.”

“We operate a SSSH philosophy,” explains Dom. “See, Smile, Say Hello. Every visitor to the site is made to feel welcome.”

Concern for his staff is as high on Dom’s priority list as customer care. The business has extremely low staff turnover, and the company operates a Train To Leave policy. Staff have an agreed training programme and clear career progression, which might ultimately lead to them leaving the company.

One of the group’s particular success stories is Mark Illsley, who joined the firm as an 19-year-old apprentice in 2005 and climbed the career ladder to become a Master Technician – the highest qualification a mechanic can earn – and winner of the coveted Suzuki Motor Technician of the Year award.

His Train To Leave programme took him outside the company, to a UK-wide role with Hyundai. But in 2020 he could not resist the offer of returning to Pebley Beach as workshop controller, with a team of seven technicians – including apprentice technicians – working under his watchful eye.

On the road to a bright, green future

Pebley Beach is as successful at retaining customers as staff – it is around 50 per cent more likely to retain customers than the average motor dealer, says Dom. “We’ve had some customers for more than 20 years and some are on to their 15th or 16th car with us.”

And it was the commitment to customers and embracing of technology that helped the group through the pandemic more successfully than others in the sector.

“Customers were already doing their research and buying cars online. By the time they got to us they were already pretty sure they were about to test drive the car they wanted.

As non-essential businesses, car showrooms were shut during the first lockdown. The day after Dom announced the launch of a Click and Deliver service –an industry first – he sold five cars.

The biggest challenge for the business now is availability. The adoption of electric vehicles and the pandemic created a perfect storm, says Dom.

“There are three factories in the world making microchips. At the start of the pandemic production stopped. At the same time demand for chips shot up –there was a boom in demand for consumer electronics, and motor manufacturers needed far more to run electric vehicles –maybe 3,000 per car.

“The short-term impact of the pandemic has meant we struggle to get enough cars to meet demand. But the shortage means we don’t have to discount, and the price of the used cars we sell has increased. At the same time the aftersales side of the business – MoTs, services, repairs – is doing really well.

“The next 12 months will be challenging, but the order books are full and Hyundai, especially, is well-placed to deliver.”

The next 10 years will be an interesting time for the motor industry. Customer adoption of electric vehicles will, Dom is certain, come much earlier than the government’s mandate of 2035.

And autonomous technology means that, in urban areas, drivers may stop owning cars altogether – ordering a car via an app when they need one. “We could be a car hire company before too long,” says Dom, “cleaning and servicing them overnight when demand is lower.”

Not that he’ll be in Swindon to see it.

“I still want to retire at 55,” says the 51-year-old. He’s training his son Harry, 24, in the ways of the business and his other son Ben, 21, is keen to join the firm when he finishes university. In typical Pebley Beach style, Harry is starting at the bottom – manning reception and managing the social media accounts.

“I’ll be available to lend a hand, but with a light and remote touch,” says Dom. “Last year I took my phone to Tenerife and ran the business from beside the pool. I could get used to that.”