Fixed Operations
Why Not Give Customers Exactly What They Want?
By Fred Wallace
A well-known marketing information services firm has this to say about the relationship between customer satisfaction and customer service provided by service departments at auto dealerships: New car owners expect to receive quality service quickly at their dealerships and at a reasonable cost-customer treatment during visits for both routine maintenance and repairs has a direct influence on future service for the dealer.
Not exactly a revolutionary idea, is it? But then neither is customer relationship management (CRM)-which in essence says: keep track of customers, target their needs, delight them, and they shall return. In other words, "Why not give customers exactly what they want?"
So why doesn't every dealer have a high CSI (Customer Service Index)? And why isn't every dealer using CRM to ensure high marks? Probably because both ideas are so simple.
That said, effective CRM is not as easy as many experts would have us believe, nor is it easy to deliver quality service quickly at a reasonable cost. With those caveats in mind, here are some ideas on how to design a CRM system to raise the overall customer satisfaction index of your client base.
First, use your CRM system to answer this question: How happy are my customers right now? To do this, survey your entire active customer list, then divide your customers into groups based on their satisfaction level-dissatisfied, marginally satisfied, and satisfied.
Next, ask yourself: How can I change the satisfaction level of my dissatisfied customers? If a specific complaint is cited on the survey you've sent out, make sure you respond back to the customer with a solution to their complaint. A call might very well be in order in these situations, especially if the customer has a long history with your dealership. For dissatisfied customers who don't state a specific reason, you might consider designing a letter (or making a phone call) targeting these folks, asking them to try out your service department again, and include a call to action like a service discount or free service activity. Then, follow through: Make sure their experience is the very best you can provide. Again, delight the customer.
Whatever you do, don't use the same promotional strategies or CRM materials on your dissatisfied customers as those used on your satisfied customers. A more effective and less costly approach is to use different CRM strategies for each of these unique customer segments.
Take a look at your satisfied groups. Figure out how your CRM system can ensure that your satisfied customers remain that way. Instead of a discount coupon, offer them a free loaner while their car is being repaired or a delivery service to and from work or home. Make sure these customers' cars are cleaned inside and out after servicing. Give them a free tank of gas. Do something extra to keep them coming back.
Now, the real question: How important is all of this, anyway? In answer, let's consider the following statistics:
According to the Coopers & Lybrand Trendsetter Barometer, 82 percent of America's fastest-growing companies cite quality of customer service as very important to the growth of their business over the next 12 months and expect it to produce the single most profitable return for each dollar.
Seven of ten customers with complaints will return if the complaint is resolved in their favor, and 95 percent will return if the complaint is resolved on the spot. More important, they will recommend your dealership to their friends and family.
It's easier and less expensive to keep a current customer than to market or advertise in an effort to gain new ones. Bottom line: You can't afford not to delight your customers!
Fred Wallace is vice president marketing/business development of Newgen Results Corporation, Inc. fwallace@dealeronline.com
