London City Chrysler: the impact of positive online reviews

Managing_London-Chrysler

A recent study conducted by DealerRater, in conjunction with Dataium discovered that dealerships that generate more positive, genuine reviews online are also those that tend to experience higher lead conversions. One store that’s been achieving great success online in working with DealerRater is London City Chrysler, in London Ont. Canadian auto dealer chatted with the dealership’s IT/Web Manager John Osinga, to find out more:

HE: How did London City Chrysler and Dealer-Rater first come into contact with each other?

John Osinga

John Osinga

JO: When I joined the team at London City Chrysler about three and a half years ago, one of the first things I did was talk to our general manager about looking after the dealership’s reputation online. I understood that Google Reviews are not generally an easy process for customers. That’s what led me to DealerRater. The company was highly thought of and one of the forums I frequented gave me some good insight. So I reached out to DealerRater and discovered it would be a good match for both of us and one that would benefit our store’s customers.

HE: When it came to developing a successful online reputation management strategy at London City Chrysler, what were some of the key factors you took into consideration at the beginning?

JO: We began by focusing the process on our sales staff. It was very tough for the first 4-5 months and we got virtually no reviews. We had to have specific meetings and talk to the staff, to get them to understand the moment of truth, what it is and how consumers are now developing a relationship with our business online. We asked individual salespeople about review sites they use, such as TripAdvisor when planning a vacation. We asked how many of them read the reviews on such sites when researching a resort or hotel. Three quarters of them said they did and we showed them that consumers are now doing exactly the same thing when researching a car. We also discussed the fact that consumers want to have a great experience when shopping for a vehicle, whether our dealership is able to provide them with that experience or not and where the online review process fits in. That was the moment it changed and today we are consistently selling more and more vehicles as a result.

HE: How much have you seen sales volume grow as a result of your online reputation?

JO: Approximately three years ago, when we just started doing this, we were selling around 80-85 vehicles a month. Last month we did 115, so the review process has definitely helped.

HE: Can you tell us a little about how you’ve been able to use these reviews to fundamentally change the sales process at the dealership?

JO: One thing you need to remember is that it is not only about getting reviews, it’s what you do with them. We’ve learned that if you ask a customer to give you a review, you often get two lines such as “I had a great time and it was a great dealership.” If you say to a customer, “may I ask you a favour? Can you share your experience online if you are happy with what we have done for you because it is important for people who do business with us,” you often get a paragraph in response and it is those shared experiences that tend to influence others.

HE: Something that’s on the minds of many dealerships, is likely how to handle those reviews that are negative. What’s been your approach to this?

JO: It’s important to understand that reviews really are a reflection of what is going on in the business. A negative review only becomes so if you don’t respond to it, or don’t do something internally to deal with that customer. There were four negative reviews we received that we were able to turn around and end up with customers for life. It was related to service and in one case, the service manager contacted the customer and said we will take the whole day to make sure the problem with the vehicle is addressed. The customer in question said “I have never had anybody reply to me like you did,” and I think that’s important to understand. It’s about communication. If a customer writes a negative review, they are communicating — we thank them because they took the time to write a review and we have to acknowledge where we made a mistake and will take the steps necessary to solve it and ensure it doesn’t happen again.

HE: While we’re touching on the subject of service, how has the dealership’s online reputation had an impact on the back end?

JO: About three years ago, we were averaging 950-1000 R/Os each month. In May this year we surpassed 1400 so the growth is real. From our own experience, people don’t tend to give reviews quite as quickly when it comes to the service experience versus that in sales but it’s important because we always want to ensure we get better and that we thank our customers for returning to us for their service needs. We always need to remember that there are a lot of other places they can go to if they so choose.

HE: The London area has been hit hard over the last several years, with a number of companies closing down operations and a high rate of unemployment and yet from your perspective, business is thriving. Can you tell us a little why you think that is?

JO: It’s no secret that this area is suffering from high unemployment. It’s hovering at around 9 per cent, so for us to thrive under such conditions is quite exceptional. We have to maintain momentum and continue to build on the things we’re doing right. Our investment group has a lot of faith in our store and we’ve recently opened a new point — London City Mazda — but it’s up to our team as a whole to continue to make things happen. The Internet has changed the way people communicate so you can’t play games anymore. You have to be truthful and you have to perform at the best of your ability to meet and exceed the expectations of your customers. We are in the business of selling and servicing cars but more importantly we’re in the business of building long term relationships.

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