Customers come into your dealership relate with a business person or two, purchase a vehicle, or purchase a service, and leave “satisfied.” You made a sale. Slam, bam, thank you mam! Will you still love me tomorrow? Will you even care? Were they just another sale --- next?
Okay, so nothing much has really changed over the years? Auto sales and service are still ranked at the bottom by consumer’s right down there with a root canal. I know, I know, things are getting better now, you say. It's not us, but everyone else that is insane, right?
The concept of “customer loyalty” today is like reading your standard newspaper to get your daily truth of news never considering there may be another side of truth in another newspaper you do not read. Why is customer loyalty suddenly important? After all, dealerships are measured on satisfaction, experience and retention. Isn’t that enough? What’s the big deal with loyalty?
Compare, not Compromise
To YOU, the business person in the dealership, the true, real meaning of “Customer Loyalty” means EVERYTHING going forward. You will cease to exist without it!
When a customer is unsatisfied the business person gets the brunt of it, yes?
When a customer is happy the business assumes credit for it, yes?
When a customer is happy with the product the O.E.M. assumes credit of it, yes?
Google: “customer loyalty”. Here is what you will discover:
You might want to read those three again. Numbers 1 and 2 are in sync. Number 3 isn’t anywhere close! Why?
First, let’s understand that there is study upon study out there on customer satisfaction, experience and retention. You are measured on them! Try finding a study on “Customer Loyalty” as it relates specifically to the auto industry. The only one I found was reported just one year ago. The findings I will share in Part II.
Defining
Customer Retention is price-driven. Customer Loyalty is personal relationship-driven. That’s the simplest and most accurate definition of each. Don’t lump them together as many do in articles you read when you Google the two. The two are as different as night and day, and you better get to use this difference to your advantage, like now!
Sure there are customers that are loyal to a brand…until! I feel it is more accurately stated that customers may be brand retained, not brand loyal. The swing of market share between both O.E.M.’s and dealerships center on retention standards in customers minds, not loyalty habits in customers hearts.
Social Media
The rise of social media has broad implications for retail business persons in our industry in particular. Survival depends on Customer Loyalty! Social media will either push you down to irrelevance, or pull you up to highly valued relevance. Either direction, the change will be quicker than you imagine. Why? Consumers are faster than us.
Several dealerships today rely on “Customer Loyalty Programs” that center on “Free.” These are retention price-driven initiatives, not people relationship-driven. These programs have merit, for sure. Yet, only within people relationships built and maintained on trust, validation and transparency between people will loyalty take root, stick and stay.
Coming
In Part II, titled: “Customer Loyalty --- Will your still meet me tomorrow” I will share statistics revealing current conditions and causes. In Part III, titled: “Customer Loyalty --- Will you still share me tomorrow” I will share a proven business system, aim, learning environment and method of delivery to gain the elusive Customer Loyalty-For-Life gaining and retaining more customers loyal to you, your team, then your business, and the abundant positive impact on all.
Summary
Let’s summarize Part I so Part II has you sky-high fired up.
The rise of team synergy habit loyalists with each other and with every customer causes Customer Loyalty to rise significantly as you'll learn in Part II and experience in Part III. Stay tuned. Customer Loyalty-For-Life thrives here.
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