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The Dealership Business Model: Winning The Customer Service Game

Customer experience isn’t just a buzzword – it’s a core component of any successful Dealership. Most dealerships aren’t given a lot of room to be creative and entrepreneurial, but customer experience is a facet of the business you can control. As customer care worsens by the day, you can establish a system that bucks the trend and immediately helps you stand out. 

Why Customer Experience Matters 

A well-crafted customer experience ensures loyalty, repeat business, and referrals, which is what we all want. In the world of dealerships, trust is paramount, and dealerships that provide an enjoyable and stress-free experience will stand out. 

At the heart of this concept is the realization that a great customer experience is curated. Everything from the appointment process to how customers are greeted can be controlled to create a seamless, personalized interaction. It’s not just about checking boxes, it’s about leaving nothing to chance. In most cases, this is the difference between average and highly profitable dealerships. 

Creating a System, Not Just a Sale 

A standout point is the idea that customer experience should be like a finely tuned machine – every piece has its place. It all has to be a system made of smaller systems that all work hand-in-hand. Starting with the appointment system, the process must be smooth and intuitive for the customer. We’ve all been turned away, told that “nothing is available” or have had an appointment canceled – remember how you felt about that place? Now, swap your name in for theirs and see how that feels. Yeah. It’s not good.  
 
Chaotic scheduling leads to haphazard shop loading, which leads to Service Managers and Technicians being overwhelmed and becoming inefficient and ultimately, resentful. This illustrates how this is all a chain reaction where one department directly affects another.  

Equally important is how Service Managers and Service Advisors interact with customers. Instead of random greetings and assignments, fostering consistent relationships between staff and customers ensures familiarity and builds trust. This reduces the “unknowns” that many customers fear when bringing in their vehicles for service. When customers know and trust their advisor, the anxiety of a repair or maintenance visit decreases significantly – both helping to raise your CSI and CPL. 

attracting new customers

Controlling the Chaos 

Many Service Departments fall into the trap of “controlled chaos” and wear it like a badge of honor. But let’s face it: chaos isn’t a strategy. It’s stressful for both customers and staff. To build a truly exceptional service department, every step of the customer interaction needs to be predictable and smooth. When the team has a clear plan, customers are more likely to feel confident and satisfied with the service they receive. 

The Art of Control 

One of the key takeaways from the best-in-class customer experience is control. In a world where customers often feel powerless, dealerships that take control and guide them through the process with care will win their trust. When someone steps up and takes control, everyone around them relaxes. From the moment a customer steps out of their car, the dealership should exude confidence, competence, and familiarity. Whether it’s meeting the customer at their car or asking thoughtful questions about their day, small touches like these give the customer peace of mind. 

Pricing and Perception 

A big hurdle in many Service Departments is pricing. It’s essential that pricing reflects the value of the service while ensuring the dealership remains profitable. By understanding financial statements and effectively pricing labor and services, dealerships can avoid the pitfall of constant discounting, which erodes profit margins. Providing discounts is often done to “improve” the customer experience after an error has been made; having systems in place to help avoid mistakes in the first place should be the goal of all dealerships. 

Just like luxury hotels that price their services strategically, successful dealerships must find the sweet spot where customers feel they’ve received value for their money without feeling overcharged. It’s not always about “what it costs”, but more often, “was it worth it?”  

Final Thoughts: Design for Success 

If your dealership’s customer experience feels more like an afterthought than a finely tuned system, it’s time to rethink your approach. Exceptional customer experiences are built on intentional design, not luck. By controlling every aspect of the interaction and creating a sense of comfort, dealerships can foster loyalty, increase sales, and stand out from the competition. 

Remember, a successful dealership is not only one that sells cars but one that leaves customers feeling taken care of from start to finish. 

Ready To Take Your Service Game To The Next Level? 

If you’re ready to create unforgettable customer experiences and set your Service Department apart from the competition, I invite you to book a 15-minute strategy session with my team. In this call, we’ll discuss your specific challenges, goals, and share some proven strategies I’ve used to help dealerships across the country implement unreasonable hospitality.

Don’t settle for ordinary service. It’s time to embrace unreasonable hospitality and elevate your service game to new heights.

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