Honda Downtown’s new location was conceived to meet and exceed the unique requirements of an urban customer base
You probably wouldn’t think this was a 35,000 sq. ft. facility from the outside but appearances can be deceiving. Located at 47 Eastern Ave. in Toronto, Ont., Honda Downtown’s new facility was designed to make maximum use of space.
Once fully completed, the building will boast five levels, a first floor showroom and service department, second floor used car department (including parking), while the remaining levels will be used for additional parking that includes staff vehicles and demonstrators.
General Manager Angus Tai says that for many franchised dealerships located close to the downtown core of major urban centres, operating parameters are often quite different than typical stores located in most suburbs.
“Generally, during the day, customers are in a hurry. Their expectations are high and in order to have an edge we need to make sure we are able to tailor our business to their needs.”
Honda Downtown Sales Team
Honda Downtown Service Team
DIFFERENT HOURS
Tai says that while many suburban dealerships might choose to have their showroom open from 9 a.m. to 9 p.m. during the week and 9 a.m. to 5 p.m. on Saturdays, such hours don’t really make sense at Honda Downtown. “After 6 p.m. on a weeknight or on a Saturday, it’s very quiet around here,” he says.
To compensate, the dealership has shortened open hours but added more staff to ensure customer needs are met on a consistent basis in busy periods during regular work hours.
With land space at a premium, Honda Downtown relies extensively on valet and shuttle bus services for its service customers. Clients will drive their vehicles into the expansive service drive, where they will be greeted by a staff member who will take their keys and provide them with an overview of what their vehicle needs. A complimentary alignment check, right in the drive-through area, allows customers to see firsthand what those needs are. Tai says the concept has proved popular, adding value and increasing transparency between customers and service staff.
Angus Tai, General Manager, Honda Downtown
Honda Downtown’s new location opened officially for business on Sept. 25, 2014 and even in that short period of time, Tai says the difference between the new store and the old location on Lakeshore Dr. is like night and day. “Just by moving north of The Gardiner (Expressway) we’ve seen almost double the sales volume and a 20 per cent increase in service work.”
He says both customers and staff alike have reacted positively to the new location. “Customers can now walk to the dealership from downtown more easily than before.”
Tai says the new facility has also been a hit with staff too, providing light and spacious conditions for those working in both sales and service. A dedicated used car department on the second level and easy access to inventory has been a big bonus.
Meanwhile, in the service department, massive fans on the ceiling can lower the temperature by as much as five degrees during the hot summer months. The dealership’s heating system is able to push cooler air from the service department to the showroom during the warmer months and direct heat to where it is most needed on colder days.
Demonstrator vehicles are stored on the roof, ready for test drives
TEST DRIVE CENTRIC
A big part of the modern dealership experience centres around the test drive. Given Honda’s longtime focus on sporty handling, being able to deliver that fun-to-drive sensation to the customer is of paramount importance.
When you factor in the limited physical space in which many downtown dealerships have to contend, this can appear to be a challenge. Honda Downtown has been able to circumvent this by keeping a fleet of demonstrator vehicles on the roof of the building, which can be brought down quickly to the service drive for those customers looking to get an “on the road” experience.
Tai says that as part of Honda Downtown’s mission to elevate the customer experience, the dealership has placed a strong emphasis on services such as complimentary car washes for every vehicle and same-day delivery service. “Provided the financing is available we can have our new car customers come into the showroom and be on the road the very same day,” he says.
Additional value propositions include discount days for seniors and off-site, underground storage for new inventory, since our harsh Canadian climate can wreak havoc on vehicles exposed to the elements — even brand new ones. It also expedites the delivery process, since less cleaning and prep work is generally required.
In today’s ultra competitive auto retail market, it’s service that really stands out. Staying ahead of the curve often requires innovation and different approaches to the concept of customer service. So far, given the increase in business witnessed in a short timeframe, it appears Honda Downtown’s strategy is most definitely working.
Complimentary alignment check is just one of the services on offer
BUILDING REPUTATION
In lockstep with Honda Downtown’s growth in physical customers, there’s also been an increase in online engagement. The dealership’s Marketing Coordinator, Sasha Bueno, says that based on her analytics, there’s a notable surge in online traffic during Mondays, Wednesdays and Fridays. “Customers are booking service appointments but we also see an increase in sales leads,” she says.
Additionally, Bueno says that consumers are actively seeking reviews on the dealership, which has led to a concerted effort to partner with a leading third party reputation management provider. “We’ve already seen that third party reviews have been very valuable for us,” she says. “We know that customers will come here for their vehicle needs if they feel we are a good place to do business.”
Besides growing Honda Downtown’s online marketing presence, Bueno has also seen positive response from other initiatives, such as the dealership’s toy drive program that takes place each December. “We actually began this at our old location in December 2012,” she says. “We advertise it to our customer database and encourage our customers to bring in a toy that we will donate to SickKids. In turn, we provide them a voucher for a free oil change.”
Since inception, the program has proved popular, creating a win-win scenario for all parties involved. “Because we are new to this area, we really want to increase our activities in the community,” says Bueno, proof that building a true positive reputation can only be done through actions and deeds that really make a difference to others.
