The service department tends to be the busiest place in a dealership, and service managers must stay in tune with what’s going on. While meetings and discussions can be useful, at times they only result in vague ideas the service staff never acts upon. Just like in any organization, a service department is only as good as its leader. Sometimes, you have to get in the…

Today's market dictates that to succeed as a dealer, you have to create a great customer experience. You have to provide value and give the customer a reason to come back. A great customer experience is now one of the strongest value propositions any dealership can use to increase customer loyalty and retention.

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In a previous article, I provided two very real scenarios that occurred right before Memorial Day weekend and asked readers how they would have handled them. For convenience, I’ve repeated the scenarios again with the actual outcomes attached:

Scenario #1:

A customer…

No one doubts the average age of vehicles on the road has gone up. The current average vehicle is 11 years old and trends in consumer purchases indicate this statistic isn’t going to change any time soon. In fact, indicators suggest average vehicle age might increase.

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Every dealership has seen this customer—the one who demands to be reimbursed for damage they claim happened while the car was in the dealership’s care, or because of faulty service work. You might find it challenging to deal with these customers, especially when you don’t believe your team is at fault. So what is the best way to handle them?

To help answer…

Life in the retail automotive industry is taxing. Managers and employees work long hours and, in many cases, are with their co-workers more than they are with their families. Miscommunications, tension or arguments can detract from the efficiency of the dealership, and thus decrease overall profitability.

Technicians and service advisors work very closely…

As part of doing business in today’s fast-paced world, inevitably we all have to adopt new technology to make things run more efficiently.  Whether it’s a CRM, a call-tracking system, or a new DMS, it’s not usually met with a big welcome from all employees when the time comes to implement it. Most people don’t like change. Not necessarily because they are afraid of it, but…

Automotive News recently reported that FCA will offer free college tuition to all FCA dealership employees. It will begin immediately in the southeast region and roll out to the rest of the U.S. by the third quarter.…

The Digital Millennium Copyright Act is a law enacted in 1998, enforced and administrated by the U.S. Copyright Office. Every three years, the U.S. Copyright Office is tasked with holding hearings to determine what new technology should, or should not, be exempt from copyright laws. According to…

FCA US CEO, Sergio Marchionne, recently announced plans to reduce the profit on new cars sold within the FCA brands by increasing the invoice prices, while keeping the MSRP the same. This will result in less potential profit for its dealers. The move, as reported by Automotive News, is FCA's attempt to increase its profitability. This, of course, will probably…

At the end of March, Amazon announced the launch of what they’re calling “Amazon Home Services.” This new service by Amazon enables customers to order services for their homes without the inconvenience of having to search for these service providers, obtain references and obtain pricing. Services range from television installation, painting contractors, electrical work and……

An article last month in USA Today, revealed that General Motors plans to dramatically cut the warranty coverage on Chevrolet and GMC vehicles beginning with 2016 models. Additionally, GM is halving those brands’ maintenance-free programs. According to…

With almost everything consumers purchase, there’s an owner’s manual or set of instructions for them to use.  For decades, car manufacturers have included an owner’s manual with new vehicles. Sadly, it is no secret that this tidy three hundred-page booklet is one of the least read publications produced in mass quantity. 

Some car dealerships require that…

Automotive News recently carried a story about a lawsuit filed by Subaru of America against one of their franchisees. The lawsuit accuses a Southern California dealership of falsifying 224 CSI surveys in an effort to increase their CSI scores. This was after…

We all have a myriad of contacts that we consciously (or subconsciously) place into separate categories in our relationships. These categories include family, close friends, business associates, colleagues and acquaintances. Most people tend to act differently depending on which group they are surrounded by at any particular moment. People may relax a little, be more…

With a steadily improving economy and declining unemployment rates, the automobile industry is geared up to experience another year of expansion and progress. While this is great news, it would be wise to consider that just as customers now have more choices when it comes to buying or servicing their vehicle, employees (and prospective employees) also have more options than they did just a few years ago.  In general they no longer feel quite so loyal to their position, nor do they fear…

Most executives believe that providing an excellent customer experience will increase customer loyalty. Many companies are known for it and stand out as examples of how to win business and loyalty – Nordstrom, Zappos and Apple come to mind. While providing an excellent customer experience is certainly more likely to increase a loyal customer base than providing a poor one,…

Imagine a customer that is in for a routine oil change at your dealership. As part of the complimentary inspection your store provides, it is discovered that the vehicle’s brake pads are severely worn and it would be unsafe to continue driving the vehicle much longer without replacement.  The service advisor brings this to the customer’s attention. Rather than making the…

Each year OEMs add more and more advanced technology to their vehicles. As a result, the skill set demanded of today’s technician has transitioned from one that is purely mechanical, into one that is more technology-based. Up until now, technicians have had access to master techs at their respective manufacturers to help diagnose and repair vehicles, and that was enough.…

While most businesses analyze budgets and shift money towards digital advertising, video and branding, Volvo has taken an interesting strategy: to decrease marketing. While it isn’t planning to cease all activities, Volvo has decided that, rather than attempt to take on any rivals with bigger budgets, it will shift money towards providing a more personalized customer…