WHY APPLE’S APPROACH TO RETAILING CAN HIGHLIGHT SOME IMPORTANT CONSIDERATIONS FOR DEALERSHIPS WHEN IT COMES TO FOSTERING RELATIONSHIPS WITH THEIR CUSTOMERS
Since this column first started appearing in Canadian auto dealer, the basic theme has been about facility-centric ideas that are generally off the radar. In particular, it tends to be about ideas that should generate a positive return on investment, and build customer loyalty and employee morale.
It is always interesting to look outside the automotive industry. We can learn how other businesses invest in their facilities to enhance the customer experience.
With this in mind, it is amazing how often the topic of the Apple Store comes up with dealers, OEMs, and friends of mine who take pride in their vehicle purchases.
Generally, I avoid making comparisons about the Apple Store because I thought that Apple’s success was based on products. Because Apple owns its stores, there’s no internal competition. Prices are fixed, and people go to the Apple Store to pick up the gadgets they have already researched. So how does that relate to Automotive?
A DIFFERENT APPROACH
Well, it was literally an “ah-ha” moment for me (yes, I am a little slow sometimes). I was helping my father set up the iPhone Bluetooth in his new Audi A6. What was intended to be a five-minute phone hookup turned into a 45 minute MMI 101 (MMI is the on board computer system used by Audi, similar to iDrive for BMW, SYNC for Ford, etc.). We checked out everything from setting the date, to switching to a 24-hour clock, to figuring out traffic jam assist. Once we were finished, he said, “Thanks Monte, this was just like the Genius Bar at Apple.”
That’s when it occurred to me that the Apple Store isn’t just a store — but arguably the world’s largest Training/Educational Institute. The Genius Bar is really quite a clever concept. It brings people back. It helps them understand how to use their product more effectively. It leads to being more productive with their devices and having more fun. Most importantly, it connects Apple to their customers and they become brand advocates.
Fast-forward to the North American International Auto Show (NAIAS) in Detroit this January — and virtually every vehicle launch or concept car, in just about every segment, boasted about its on-board computer and its tech wizardry. They all seem to connect to your phone, your email, social media, etc, through Android, Microsoft or others.
THE NEED FOR DEMONSTRATION
With this gadgetry, it becomes very clear (to me, at least), that the dealership of the future will absolutely require a “Genius Bar.” OEMs such as BMW are already beginning to implement this feature in the showroom environment.
For those of you whose OEM is not mandating it yet, you have many areas to choose from when deciding where to locate it. In my humble opinion, the New Vehicle Delivery provides a very functional area that can serve as the classroom for an individual, or for regularly scheduled group classes on “Gadget Group Wednesdays.”
The reason I am suggesting to use New Vehicle Delivery for this function? Well, most OEMs mandate a Vehicle Delivery Area. And, while I see these areas being used frequently in my travels across the country, I also see this space being underutilized. And when we look at how dealers invest in bricks and mortar — every square foot of a facility needs to generate some sort of consistent return on investment.
The Delivery Area provides a reasonable space, with the ability to have a demonstration vehicle. It is visible from the showroom in most cases — so customers can see that there is activity going on. Perhaps the most important point is to have patience. Maybe start with monthly classes, and then it may grow to bi-monthly classes or more frequently. It took Apple many years to grow the Genius Bar but today they book days in advance, and have expanded their areas of specialization to cover hardware, apps and OS software.
Most importantly, the Genius concept gives you a chance to reach out to and connect with your customer. By offering help, the hope is to bring them to your showroom and maximize a space that may be currently underutilized, plus you’re already paying for it, right? And while staffing may prove to be a challenge for some, it’s also a great way for a new hire or IT person to get to know your customers.
Time will tell if this concept has legs. But one thing is for sure. On-board computers, electronic safety features and gadget connectivity are not going away. So why not stay ahead of the curve?
