Dealerships as destinations

FROM INDOOR PLAY AREAS TO FULL-FLEDGED RESTAURANTS, DEALERSHIPS ARE UPPING THEIR GAME TO PROVIDE THE BEST CUSTOMER SERVICE

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In recent months I have had the pleasure of attending a few dealership grand openings in Canada and the U.S.

All were lavish affairs with fancy catering, live bands and one even had drones circling overhead beaming images of the event to large screen TVs throughout the dealership.

These events are a show of pride, as dealers take the opportunity to entertain customers, staff, business associates, brand representatives, community leaders, family and friends. It’s a time for celebration and a time for optimism.

Although most dealerships today are built to fairly strict OEM-driven specifications, each dealer has the opportunity to put an individual stamp on the design. The goal is to better serve existing customers — and hopefully attract some new ones.

These stamps, as I will call them, always seem to include non-automotive characteristics largely designed to entertain and welcome customers and prospects. These are far reaching, and can be somewhat creative.

Service customers are likely going to be the biggest users of dealership facilities in the years to come.

The Internet continues to drive ever-evolving consumer expectations, one of which is to drastically reduce the time spent in the dealership to execute a new vehicle sale. Some dealers are responding by offering in-home services where customers can complete all the paperwork from the comfort of their dining rooms. Others are using their online capabilities to shorten the vehicle contract execution process.

Many dealers, however, still have the same time-consuming process requiring consumers to spend several hours inside the store to complete the transaction, and finally transition to becoming a customer.

Service customers are likely going to be the biggest users of dealership facilities in the years to come.

Many of those customers choose to wait at the dealership while their vehicles are being serviced. For longer services, some dealerships offer loaner or rental cars, and other forms of shuttle service.

Dealers have made some creative investments with the goal of keeping customers and prospects satisfied while waiting in the dealership.

Many dealerships operate or support in-dealership food service operations, ranging from cappuccino bars to lunch counters, and even restaurants with Red Seal Chefs. Often the dealer does not operate these customer and employee support services. They chose to outsource the entire function, many times not even charging rent to the third party operators.

Then there is the entertainment aspect.

Many dealers offer their customers the opportunity to watch TV. In my experience the TV screens are normally showing all news stations.

I am always amazed when commercials for competing automotive brands, dealerships and also aftermarket providers are front and centre available for your customers to watch, often many times in an hour.

Other dealers offer OEM programming showing all aspects of vehicles and vehicle service, with the goal of educating and enticing these captive customers to your brand and dealership.

I’ve even seen other dealers provide individual TVs with private headphones at every seat, much like first class on an airplane. Customers can choose what they want to watch, including Internet channels like YouTube, or even a close circuit view of their vehicle while it is being serviced.

Others offer private workstations complete with free Wi-Fi to allow a segment of their customers the opportunity and workspace they need to conduct their individual business. In this way, customers don’t skip a beat and can function as though they were at their office.

For customers with children, some dealers have carved out space in their dealership for play areas equipped with plastic slides, toys, children’s books, video games and children’s TV and video programming.

One dealership I visited recently had a children’s play area, fully stocked with the latest activities. It was attached by a glass wall to the store’s F&I offices, the reason being that children could play, risk free, with their parents right there.

The parents could focus their attention on the F&I manager, without being distracted or worried about their children.

I’ve also seen dealers offer a history section, like a wallboard of the dealership’s history from its inception along with any awards won. Some of these sections are interactive, enabling the user to electronically troll though history, including vehicle model history and stories.

It’s the non-automotive investments that can make you stand out from the competition.
But keep in mind that bad service
experience can never be turned around by a fine cappuccino.
We can’t lose focus of our core business.

Customers can also watch short video clips of movies where vehicles were the stars, adding a bit of nostalgia to the ambiance and supporting the brand.

Many dealers have an antique car in their showroom, while others have full-fledged museums. Then there are some high-end dealerships with their own racetrack, giving customers the opportunity to test vehicles in a closed and fun environment.

Why do dealers go to such extremes to offer such a variety of in-store options? It’s quite simple.

For many dealers, these added amenities can help them build a strong relationship with their customers by keeping them occupied so they will feel comfortable and stick around.

It also goes beyond that. In today’s auto retail environment, dealers have to differentiate their customer service from their competition — including the same-brand dealer down the road.

It’s the non-automotive investments that can make you stand out from the competition. But keep in mind that bad service experience can never be turned around by a fine cappuccino. We can’t lose focus of our core business.

Keeping customers and attracting prospects requires ongoing effort. You can never let up on the pedal.

Consumers today have many choices and buying habits. Options seem endless.

As dealers, we attempt to make a lasting connection with our customers. With gorillas on the roof banned by most municipalities, options are limited.

Satisfying your customer’s itch likely goes beyond offering them tea and coffee to get them to return after tire season.

About Chuck Seguin

Charles (Chuck) Seguin is a chartered accountant and president of Seguin Advisory Services (www.seguinadvisory.ca). He can be contacted at cs@seguinadvisory.ca.

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