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Give dealers a chance to 'wow' you, and you might be pleasantly surprised
A visit to a car dealership should be a positive experience. And for the vast majority of people, it is. But there are some people who come to a dealership expecting and fearing the worst. They feel that they may be overcharged for repairs, or bullied into buying a vehicle that doesn't fit their needs or budget.
I'm not suggesting that unfortunate experiences don't occur in the auto industry. They do, just like in any other industry. But most dealership experiences are positive for both customers and dealers. The happy-ending, Cinderella stories rarely get reported in the media - just as airplanes landing safely at Pearson are not newsworthy.
What is the basis for this negative, 'us' verses 'them' mindset? Perhaps someone bought a lemon years ago and the experience has left him or her jaded. Or, maybe they once paid too much for transmission repairs and the memory has continued to linger. In such cases, a single, negative experience can affect a person's better judgment and fuel negative opinions of all dealerships. When people do this in the dating world, we tell them not to let past 'baggage' jeopardize the opportunities to build new relationships.
Some people have a vested interest in perpetuating the negative image of dealerships. Third parties, such as brokers, buying groups and consumer groups, have a financial interest in convincing customers that they shouldn't trust a dealer.
Bad news in any industry is never good, but in the car industry, it is amplified to a deafening roar. When someone's car breaks down on the highway, or a person feels that a salesperson was too pushy, they share their experiences and soon, these stories take on lives of their own.
As soon as customers come into a service department or a car showroom, they have a decision to make. They can either let past experiences (or hearsay) cloud what should be a pleasant experience, or they can park their negative mindset at the door and allow themselves the opportunity to be 'wowed'. I am not suggesting that past experiences should be ignored; just give the newly chosen dealer a chance.
Dealers, too, should remind their staffs not to stereotype customers, and to treat each new customer with respect and an open mind. Dealers have had bad experiences with customers, too, but they also should not assume that all customers are the same.
New-car dealerships are in the car business, but we are really in the people business. We have invested millions of dollars to build our businesses, and there is a lot at stake if we don't treat customers properly. Today, customers are more educated and sophisticated than ever before. They recognize dishonesty very quickly and bad news tends to spread like wildfire among friends, colleagues, relatives and neighbours. Conversely, a happy customer spreads the good news and sales increase for a dealer that provides great service. This means more repeat and referral business, allowing the dealer to spend less on advertising for new customers, which in turn, leads to better profitability.
Surveys have shown that customer satisfaction ratings have increased since 1995. Car dealers now rank well above many retail and service businesses. In 2002, Consumer Reports conducted a dealership satisfaction survey and found that 93 percent of new-car buyers ranked their overall buying and dealership experiences from 'very' to 'moderately' satisfied.
As new-car dealers, we are thrilled with the positive feedback that we receive from satisfied customers. Each year, we receive hundreds of letters of thanks from customers who often describe, in great detail, their experiences at the dealership. These types of letters are a ringing endorsement of the fact that the dealer has provided a good (even exceptional) experience for the customer.
Before visiting a new-car dealership, I would urge people to do their homework; research the type of vehicle you're interested in; talk to customers who do business at a particular dealership; and ask individuals in parking lots how they like their car and dealer. You will be sure to receive very frank and reliable feedback.
So, the next time you plan to visit a dealership either for service, or to buy a car, discard any preconceived ideas you may have. The dealership experience should be a pleasant one. Give us a chance to 'wow' you!
Ken Shaw Jr. is President of the Toronto Automobile Dealers Association and is a new-car dealer in Toronto. E-mail comments to president@tada.ca
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