Dealerships have measurement tools to record customer feedback. But are they really listening?
THE AUTO INDUSTRY is probably one of the most avid users of “voice of the customer” data.
We use surveys of one type or another to measure brand image and consideration, to gauge vehicle quality, to tell us what customers like and dislike about vehicles, and especially, to understand the customer experience at the dealership.
The technology available to gather the information and to analyse and report it has advanced significantly over the past few years, making it easier than ever to listen to the customer.
But are we doing it effectively, and are there new opportunities to listen to the customer?
I believe there are and that the companies and dealerships that get it right will have a definite advantage as the new cohorts of customers move into showrooms — both virtual and real.
From a dealership’s perspective, there are essentially five channels for listening to (and communicating with) customers. Each one plays an important role and most dealerships use all of these channels, but not necessarily effectively.
- Surveys (Customer Satisfaction and others)
- Social media
- Web – manufacturer, dealer and email
- Staff feedback
- Direct communication and observation
• SURVEYS: Are we getting our money’s worth?
I have recently been pouring over hundreds of individual survey responses for dealer customers across a range of different brands, and a few things struck me.
First, the ratings on most questions are exceptionally high. This is not to say that the sales experience or the service experience delivered by those dealerships does not warrant good scores, but there is little or no variation.
This also reflects what I have seen over the years in sales and service satisfaction studies — scores mostly over 90 per cent (or at least nine out of 10).
This looks good, but is it a reflection of reality? The pressure to achieve perfect scores, along with financial incentives to do so, are partly responsible for this.
So are the constant appeals to customers to “speak to me first if you can’t give me a 10.”
No wonder the scores don’t vary much even though we know that not every customer has a perfect or near perfect experience. It raises the question as to why we do these surveys and whether or not we’re getting value from them.
On the positive side, I have also been looking at some of the verbatim responses from customers. These are extremely enlightening and provide true insights into the rather bland and meaningless numbers. I believe this is where more attention should be focused.
• SOCIAL MEDIA: Be careful how you use and interpret social media content
A study done by Canadian company Vision Critical late last year drew some startling conclusions. The study found that “85 per cent of social media updates come from 29 per cent of a company’s social media audience.”
This is a wake-up call to those who live and die by customer comments on social media sites such as Facebook and Twitter, and base important decisions on what they find there.
The report is aptly titled “What social media analytics can’t tell you about your customers” and it finds that “the minority of social media users generate the majority of the content.”
Paying too much attention to what customers are saying on social media can be misleading because it’s coming from a small slice of your total customer base.
While social media is an essential and growing part of the customer feedback mix, the findings underline this feedback channel must be seen and used in context with other channels and that feedback is only part of what customers are thinking and feeling.
• WEB: Make sure the reality meets expectations
Bricks and mortar no longer define the dealership. We all understand that the customer’s experience of the dealership can and often does start immediately when the customer clicks on your site, whether through a search or as a hand-off from the manufacturer’s site.
They may communicate with someone in the dealership and provide information or ask for it. All these are valuable pieces of building knowledge of a customer or prospect to make sure that the dealership can provide a positive experience.
Whether it’s a question on pricing or a customer scheduling a service appointment on-line, there should be a seamless transition from the web to the experience in the dealership.
• STAFF FEEDBACK: There’s gold here
Your staff are on the front lines when it comes to dealing with customers. The customer satisfaction surveys and comments from customers are often the tip of the iceberg when it comes to what happens in a day-to-day interaction with a customer — positive or negative.
One of the challenges in getting feedback from staff is that it takes time. But those on the front lines are in the very best position to let managers know what works and what doesn’t work when it comes to processes and policies, the way the dealership operates and how customers respond to the physical aspects of the dealership.
An informal, but well-managed system of feedback and staff suggestions can provide a wealth of information to help hone processes and be aware of potential pitfalls that cause customer dissatisfaction. It’s more than a suggestion box in the staff lounge — it’s helping staff share best practices to improve both their engagement and your customers’ experience.
• GO AND SEE: We need more of this
There’s nothing more impressive in a retail environment than when the owner or manager of an organization shows a genuine interest in what’s going on with customers and is visible where customer interactions take place. If done well, it has an impact on the staff and on customers.
There are examples of formalized observation processes in business — the Japanese “genshi genbutsu” (literally “go and see”) process that was part of “the Toyota Way,” initially in the engineering context and the similar MBWA (management by walking around) process that was adopted by companies in North America and Europe.
Like a mystery shopping exercise, much can be learned by watching carefully what’s happening and understanding the customer experience in the dealership first-hand.
Direct communication with customers serves two purposes — you or your managers hear things straight from the customer; and customers appreciate the fact that management cares.
So, when you think about listening to your customers, keep in mind that there are many ways you can do this.
Listening to customers should not be restricted to looking at the numbers that come from your CS surveys or by reading comments on social media.
Most dealers probably use all of the channels mentioned here, but combining the information from all can give you a very good feel for how your customers perceive your business.
