A warm smile, a friendly handshake, and a listening ear can make all the difference to customers coming to your dealership. Together, they can be the deciding factor in whether or not your vehicles make it off the lot.
For many customers, the quality of service is just as important as the product they see or the price they pay.
Above all else, customers care about service. Learn more about the importance of good customer service practices and how your dealership can improve yours.
Why It's Important to Have Good Customer Practices
In the automotive industry, good customer service can go a long way — not just for the customer but also for you. Here are a few reasons why.
- Better customer service equals higher revenue. A 2020 study shows that 89% of companies with significantly above-average customer experiences perform better than competitors.
- Happy customers refer new customers. 72% of customers share their experience with six or more people when they have a positive customer experience.
- Unhappy customers switch to competitors. When they have a negative customer experience, on the other hand, 89% of customers switch to a competing product or service.
- Customer retention is cheaper than customer acquisition. 65% of sales come from existing customers, and 20% of current customers account for 80% of your profits.
- Happy customers become lifetime customers. If you offer good customer service, 93% of customers will make repeat purchases and become lifetime customers.
8 Tips to Improve Customer Services Practices
Now that you know the importance of customer service practices, you can switch gears to improving yours. Here are some quick tips you can implement today at your dealership.
- Know your customer. Before your appointment, research what your customer needs, wants, and what they're willing to pay for it.
- Be personable. When your appointment starts, focus on building rapport with the customer. Ask questions, listen closely, and get to know them beyond the sale.
- Offer recommendations. Based on each customer's preferences, recommend specific vehicles and features they may be interested in.
- Show value. Explain the value each vehicle can bring to the customer. Offer them the opportunity to look around or even take a test drive.
- Be honest. Be upfront about the price. Customers should know the ticket price, taxes, and applicable fees to make a well-informed decision.
- Be patient. Give the customer time and space to decide instead of using pressure tactics.
- Maintain great communication. After your appointment and throughout your ongoing relationship with the customer, check-in. Send a quick text, call, or schedule an appointment to stay connected.
- Use your resources. Customer service can be tricky but using resources at your disposal, such as Vanguard Dealer Services, can help. We offer individualized training in sales, F&I, customer retention, and more — keeping you and your customers satisfied.
Customer service is essential to the financial success of your dealership. Take the time and effort to get to know your customers, understand what they want, and utilize resources to help prove your value. You won't just make a sale; you'll make a lifelong customer. Contact us today to assist you in generating productive customer service habits.
