Sunday, September 13, 2009

The Dealer Principle - Part 2

The trust we build or loose in the sales transaction is then transferred to the service process. Dealerships should begin to build the service department into their sales process. Customer should be offered an opportunity to talk with the service manager and ask questions about service. The service manager should be the individual that explains the new car warranty to the customer. This will eliminate the chance of confusion and misleading statements by the sales department. If we are truly going to revolutionize our industry for the better CUSTOMER RETENTION should be the standard, not sales volume.

Customers should be taken thru the parts department and advised that this dealership has hundreds of thousands of parts and parts inventory to fix this brand of cars.

When this brand of car has a service or parts issue, the selling dealership has an obligation and an opportunity to repair the vehicle as well as the customer. The dealership can start the relationship off right by selling the Creative Effort to the customer and Stop Selling the Business. This is the time to build the customer relationship. By not trying to sell that car as selling the effort, the dealership will retain the customer forever.

Imagine that your dealership walks the customer thru all of its departments; the service, parts and body prior to negotiating the deal. The dealership is setting a tone that not only do you have the auto maker guarantee; you have the personal guarantee of the DEALER PRINCIPAL. This is the highest level of assurance you can give to a new car owner.

Customers make purchasing decisions based upon a relationship. Build that relationship and maintain that relationship over the course of ownership and you will RETAIN your customers. Hard sell them into a payment or price and the next opportunity they will be down the road to another dealership and brand.

M5™ Management Services Team has spent countless hours of travel and research on improving the performance of new car dealerships. Customers ask for sales techniques. They ask for closing techniques. The answer to closing a sale starts way before the closing situation appears. Closing the sale starts by answering the telephone. Building a relationship and retaining the customers will happen by providing a tireless effort to set the customers’ expectations and live up to those standards at each and every opportunity. If you fail, refer to the standard and exceed it. Your customer will appreciate the effort and stand side by side with you through the ownership lifecycle. You will be rewarded by loyalty unseen in the history of the automobile industry.

Steve Shaw
M5™ Management Services