Car dealerships are in the people business
At this year’s Canadian International AutoShow, I had an “aha” moment.
I was speaking with a visitor at the show about his recent vehicle purchase, and he told me an interesting story.
This person, Brad (not his real name), was in the market to buy a new vehicle. He had done his homework and narrowed his choices down to two compact SUVs.
Both vehicles offered essentially the same features and cost roughly the same. Brad preferred one vehicle slightly over the other.
Brad’s experience at the dealership that sold his “preferred” vehicle was OK, but when he asked for the “best price,” that is when the experience fell apart. Brad indicated that he was ready to buy, but the salesperson was not forthcoming with a best price.
Frustrated, Brad thanked the product adviser for his time and went to a nearby dealership that sold his “second” choice of vehicle.
His experience at the second store was altogether different. The product adviser listened carefully to what Brad said, and he swiftly delivered a best price for the SUV.
Brad was pleased with the product adviser and the level of service that he received at the second dealership, so he bought the vehicle.
Two different interactions, two different outcomes.
And that’s when I had my “aha” moment.
We are not just in the car business, we are in the people business.
Every day at my Toyota dealership, there are hundreds of interactions between staff and customers — in new- and preowned- vehicle sales, financial services, service, parts and collision repairs.
In each case, our staff is trying to provide the best customer experience possible, and getting it right requires dedication and commitment.
All dealerships are trying to do the same thing — to deliver an optimum buying experience, where the customer feels important and valued.
Studies have shown that the buying experience today (especially among millennials) often rates higher than the product or service being sold.
I frequent a local Starbucks, and the barista there knows my name. Could you imagine how thrilled I was to receive a handwritten Christmas card last December from my barista?
Starbucks, like a new car dealership, is in the people business, too. The company sells quality coffees and foods, but it is the experience of being at a Starbucks, and the personal connections that are made there, that brings customers back, again and again.
Same with new car dealerships. When someone buys a car and has a great experience — where they feel valued and important — why wouldn’t that customer return to buy another vehicle? Why wouldn’t that customer tell a friend or relative about that great experience?
In sales and service, it is all about building and maintaining relationships with customers. It is about listening and putting customers’ concerns first.
Once you have an established, trusted relationship, I refer to that salesperson as the “easy button.” You know that your needs come first without question.
It is about ensuring that the customer finds the right vehicle for the right price and that the paperwork is handled in a timely manner.
It is about making the buying experience seamless and comfortable, and ensuring that the customer’s expectations are met — and exceeded.
It is about making sure that the delivery of a vehicle is performed in a reasonable amount of time and that the customer has everything they need to drive away with confidence.
After the sale, it is about following up to make sure that everything about the vehicle is as it should be. If there are any questions or issues, the product adviser should address them as quickly as possible.
Car dealerships (all businesses, for that matter) that understand what business they are in will thrive in this new economy. And it all starts with people.