Focus on the Front End
Managing customer loyalty from beginning to end

So many things are out of a dealer’s control. There’s no way to manage the economy, the weather or what the competition does. But everything that happens within the store can—and should—be managed. Customer retention should be at the top of that list.

How do you keep customers coming back? Some dealers think the answer lies within huge inventories, service department specials or non-stop advertising. There’s nothing wrong with those strategies, but customer loyalty starts and ends with your store’s people. The key to customer loyalty is who your store hires, how you train them to treat your customers, and holding them accountable to follow the processes your store has established.

“At JM&A Group, we see the impact of training in companies like the Ritz Carlton or Nordstrom,” says Jeff Knittel, senior trainer at JM&A’s Performance Development Center. “When you go to a Ritz Carlton or Nordstrom, you feel important. Those companies have a culture. If you can’t live by it, you can’t work there.”

“If you’re looking for one change your store can make to improve customer loyalty, try changing your hiring practices,” Knittel says.

“Have more than one person interview a sales person,” he suggests. “If you have two or three people interview a candidate, you get different perspectives. Give them some kind of assessment for personality and their fit into the position. You can build a culture off of that—you’re hiring for skills, not because you need a person.”

Hiring the right people for the store will give customers a better experience. People like to do business with people they know and trust.

They also like to do business with people who are knowledgeable and professional. That doesn’t happen accidentally. It comes out of a store having processes, training and accountability.

Even something as simple as letting customers know that you’re glad to see them comes from processes and training. An easy way to do that is to institute the five-foot rule that is standard at many successful dealerships. The five-foot rule says that if you’re within five feet of a customer, you smile and welcome them. In addition, all sales associates need a professional meet-and-greet process.

“There’s a saying, ‘As it begins, so it goes,’” Knittel says. “We need to make sure we get that good first impression. It starts with the meet-and-greet and a smile. When a customer comes in, he’s probably already been to three or four dealerships. What makes your store different? Engage them in a conversation.”

Of course, the easiest conversations are with people you already know—the store’s existing customers. One successful sales professional sends his customers a quarterly newsletter. It includes items such as awards won by the store’s vehicle makes and models, such as a J.D. Power award or a highway safety ranking. It also promotes the dealership by discussing contributions the store has made to the community, and includes pictures of the salesman with customers who have bought repeat vehicles. He also sends out birthday cards for the customers and their cars.

The best way to stay in touch with customers and keep them coming back to the store is to pay attention during conversations. It could be something as simple as a customer mentioning that he has a daughter in high school, or maybe the customer fondly mentions that his first car was a Camaro.

After the customer leaves, record the details and create reminders to get back in touch at the appropriate time. That customer with the teenage daughter may soon be looking for a vehicle for her. You could follow up with an article on the safest cars for young drivers—and a list of those vehicles in your inventory. For the customer who is the classic car enthusiast, you could send along information about a car show or a classic Camaro club meeting—and an offer to test drive the new updated Camaro.

“Those kinds of sales professionals don’t have to wait around for someone to come in,” Knittel says. “They have customers coming in and asking for them.”

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