JIM ROCHE

Keep your customers: Give them the experience they want

Jim Roche is senior vice president of marketing and managed services at Xtime, a Cox Automotive company. This essay is excerpted from his new book, Fast Lane: How to Accelerate Service Loyalty and Unlock its Profit-Making Potential.

If you ask car owners across America, they will tell you the benefits of vehicle ownership, such as the positive impact it has on their lifestyles.

Now, ask that same group what they don't like about owning a car. They'll probably cite going to a dealership to get service as a major pitfall of their ownership experience.

Studies suggest that some Americans would rather get a root canal than take their car to a dealership. Think about that: Why would someone rather be in a dentist's chair than at your dealership?

You don't have to look past the lines outside service departments each morning for your answer. Given retention statistics, if 10 cars are in line, five of them probably aren't coming back.

You also don't have to look much further to know why they're not coming back. They make appointments, yet wait in line. They believe they'll pay more, in part because of upsells and not knowing the cost of needed services.

They expect to get a call or text letting them know the status of their vehicle, then get frustrated when the communications don't happen. They expect they'll miss at least a couple hours of work because the whole process is a hassle.

True or not, these are the perceptions of inconvenience that vehicle owners bring with them when they come to your service department. The key question: Are you working to ease these perceptions — or are you affirming them?

Del Grande's way

Some might argue that dealers and their service directors have come a long way when it comes to changing the service experience and customer perceptions. I agree.

They're talking about guys like CEO Shaun Del Grande and COO Jeremy Beaver of the Del Grande Dealer Group in California. They understand that the opportunity for lower-cost repeat and referral business rests on the experience they provide customers.

"Retention is the Holy Grail, and the experience is what drives retention," Beaver says. As a result, he says, Del Grande has a laser focus on designing, implementing and tracking world-class, technology-enhanced experiences.

"You have to shift away from a 'visit' mentality and think about a 'lifetime value' mentality," he says.

In Del Grande service departments, the emphasis on technology-enhanced experiences has advisers and technicians doing the bulk of their work with tablets.

"Advisers are probably on the phone one-third of the time compared to the past," says Tully Williams, Del Grande's fixed operations director. "The technology helps them work more efficiently, and spend more time with customers.

He adds: "The technology enhances the experience, but you start with the fundamentals of people and process. You get those right and then add the technology."

Tech cues

Today, nearly everyone has a smartphone, tablet or computer. We need these devices to conduct much of our daily business.

It's all about ease, efficiency and convenience. Technology has become so ubiquitous that its absence signals to many consumers that the dealer experience won't be ideal.

Consumer preferences for technology-enhanced experiences didn't come out of nowhere. They have been apparent since it became clear that retailers were in trouble, thanks to the ease and convenience their online competitors offered.

Today, many retailers have re-engineered their in-store experiences, blending technology and amenities to keep customers coming back. Dealers need to look outward and forward for inspiration, rather than leaning on what they already know to shape the future of their service departments.

It's difficult for some dealers and service directors to effectively give up control and let customer preferences point the way forward. But customers are just like you and me: We may not always know what we want, but we most definitely know what we don't want.

Dealers and service directors have the choice whether to adopt a more experience-focused approach to their service departments. No one suggests that if you don't provide a more high-tech and high-touch experience, your service business will dry up completely and you'll be out of business.

This day of reckoning, though, is probably coming faster than many of us would care to believe or think. The dealers who have already begun the transition are reaping the rewards that flow naturally to early adopters.

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