The Key to Auto Dealerships Boosting Revenue Lies in Customer Experience

How can auto dealerships boost revenue? According to numerous studies, the key to increasing revenue lies in the customer experience.?

As the automotive industry continues to grow and automobile sales remain strong, customers are looking for an experience when they buy or service their vehicle. In addition, they want to feel valued, appreciated, and cared for by the dealership staff, which means the sales team, parts and service staff, management, and ownership.?

To give you some inspiration on how you can make the customer experience at your dealership top-notch, let’s look at five ways to improve the automotive customer experience.

To Improve Customer Experience, You Need to Understand the Car Buyers’ Journey and Their Pain Points

Automotive customers have more options than ever when it comes to buying a vehicle, and over the last few years, there has been a significant shift in the car buyers’ journey.?

In a 2019 survey report from ThinkNow, 81% of car buyers preferred purchasing their vehicle at an auto dealership. But, according to The Zebra, that number has dropped to 61.4% in 2021.

While the COVID-19 pandemic has played a large part in the fall of these numbers, other trends also contributed. Car buyers have been spending less time visiting dealerships and more time researching and shopping online for the last several years. While only one in four consumers is interested in a fully online buying experience, the number of consumers wanting more online services increases.

For example, almost half of the time a car buyer spends at an auto dealership is spent on negotiations and paperwork – a top pain point for most consumers. In addition, 48% of car buyers want to handle price negotiations online, and 42% want to handle financing online.?

Car buyers want convenience. They don’t want to spend hours dealing with salespeople or being pressured into buying a vehicle they don’t want. In fact, whether for sales or service, post-COVID customers are less patient than they’ve ever been. Today’s car buyer expects a clean, easy, and straightforward shopping experience that only allows for one decision: whether or not they want to buy.?

Additionally, after purchase, they want convenient auto services. They don’t want to drive from dealership to dealership for maintenance, repairs, or other services. Instead, consumers want a one-stop shop that provides everything they need.

For dealerships to increase revenues, they need to consider these consumer wants and provide a customized customer approach based on the buyers’ stage in the purchase journey (consider these three stages: pre-purchase research, when they are interested in a new vehicle; during purchase when they’re deciding which dealership is right for them; and post-purchase when they receive additional services).

5 Ways Auto Dealerships Can Improve the Customer Experience

Now that you have more insight into the car buyers’ journey and their pain points, let’s focus on improving your customer experience and increasing your dealership’s revenue.?

Here are five areas you can consider to improve the customer experience at your auto dealership.

Make Salespeople More Easily Accessible

Customers don’t want to deal with salespeople, but they need answers. If a salesperson is readily available when customers have questions, they will be able to answer their questions quickly. This increases transparency and keeps customers happy.?

Having an accessible salesperson also shows that your dealership values their business, making them more likely to buy from you. But salespeople are hardly ever just standing around or sitting at their desks. To make salespeople more accessible, ensure that you have a system in place to reach them.?

For example,?DealerPhones by Clarity ? allow you to reach your sales reps wherever they roam?by turning their mobile phone into an extension of their desk phone. The system allows your sales rep to be mobile without giving out their personal phone number. In addition, you can ensure that call reporting and call recording continues, logged in your dealership CRM or DMS (like CDK, eLead, VIN Solutions, Momentum, and others), so you don’t miss out on essential data for managing your sales team.

Offer More Services that Your Customer Wants and Needs

Customers have busy lives, so they don’t want to spend time looking for a vehicle, securing financing, shopping for insurance, or even auto parts. The more of that business you can gain, the more customers you attract.?

And once you’ve attracted those customers, you have more opportunities for cross-over sales. Repeat customers are easier to sell to, and they spend 300% more than new customers. So, if you are looking to grow your bottom line, you need to be thinking about providing an all-in-one experience for your customers.

If You Make Customers Wait, Make it Comfortable and Convenient

Have you ever gotten frustrated after waiting for a long time for something? What about when you’re forced to wait longer than you thought??

These negative emotions can easily affect your perception of your experience, so your customers mustn’t have these experiences at your dealership. Allowing your customers to relax while they wait is one of the easiest ways to improve their experience.?

How can you do it??

Create a comfortable waiting area with complimentary drinks and snacks where customers can sit comfortably. Offer free Wi-Fi and a space where people can work while they wait if needed. And for those customers with small children, consider creating an entertainment space that keeps the kids occupied and the parents stress-free.?

Communicate with Customers During the Sales and Service Process

Whether we’re talking about sales or service, it’s essential to keep in communication with your customers, so they know exactly what’s happening at every stage of the process.

A great way to do this is through texting. In fact, text communication between the customer and dealership representative is becoming a more preferred method of contact, so it’s something that every auto dealership should consider adding to improve the customer experience.

Texting allows you to keep customers updated in real-time. For example, let’s say your customer is buying a new vehicle. Most dealerships gather all the information they need and then leave the customer to sit and wait. Imagine what a better experience it would be for the customer if they got a text informing them that their application for financing was just sent off to the bank or that their new car was being washed and prepped for them to take home.?

What a better experience that would be!

The same can be done for vehicle servicing. Imagine how many fewer inbound calls you would receive if you were texting regular updates to your customer on the status of their vehicle. Not only would that create a better experience for your customer, but you’d also increase technician wrench time. That’s a win-win!

Ensure Customers Know You Value Their Business

If a customer has a great experience at your dealership, not only are they more likely to buy from you in the future, but they’ll also serve as a brand ambassador by telling their friends and family about their experience.?

Make sure they know you value their business by thanking them for choosing your dealership and offering them extra incentives or discounts. The more personal you can make that experience, the more memorable and genuine it will be for them, which can go a long way.

The end of any sale should be viewed as the beginning of a relationship, not the end of a transaction. If your team understands that, your customer will feel it.

It’s no longer enough to provide exceptional products and customer service. With so much competition in the auto industry, dealerships need to think bigger and create a superior customer experience if they want to outshine, and outsell, the competition. Putting any of the ideas we outlined above won’t require a significant investment in time or dollars but will boost your bottom line!

What is your auto dealership doing to improve the customer experience? Please share with us below in the comments.