Retention & LoyaltyCommentary & Insights

I'll bet you one dollar ($1.00) you have this issue, too. When you're shopping at the market and see a food product that's "non-GMO," don't you stop and think about it? Follow my logic here, please. If it's "non-GMO," that means it's "natural," right? I mean, if it's not genetically modified, it's natural? So, if it's natural, that indicates it's "real food." So, they didn't insert not-real food into my food. Amiright? So, why do they feel the need to tell me that my food is made up of one hundred (100%) percent food? Why can't they just leave that off the labeling? Am I missing something here? I just want true and genuine food. Likewise, shoppers want a "genuine" dealership, not an artificial corporate one with no personality and a queue for everything. How do you translate this to action, so the customers feel what you are about? Let's just take one step today, and here it is: Respond to your online complaints like a human (and definitely not a robot) and invite the customers into the store to get their problem resolved. You cannot resolve these issues by communicating through postings on websites. All too often, I see dealers have "robo-responses" posted by real people telling the customers that the dealership is "sorry for their experience" and then offering nothing to the customer. Zero, zip, nada. What function is that fulfilling exactly? How does that help either the dealership or the customer? Even worse, I was recently at a dealership group in New England whose policy was to post something which said, "Please email xxxx@dealership.com and tell me your concerns." This was posted after the customers had just spilled their guts telling the dealership, and elaborating to the public, the very nature of the problems. At best, it appeared the dealership was insincere. The issue here is not just a reputational one. When potential buyers are scouring the internet, looking for where to purchase, they read these reviews to determine the genuine nature of the dealership. You really can tell the culture of a store by how its employees respond. So, responding to these reviews will help you sell units, too. I've seen it happen over and over again. Beyond this, an even better practice is when you have earned the right to ask the customer to "update" their review after you have fixed their problem. Here's what those updates should look like. And these are posted from the internet: "Previously, in a letter, I complimented the salesman yet slammed the dealership, which, in hindsight, was unfair since I never met Mr. Kline. After reading my letter, Mr. Kline was concerned enough about my feelings and thoughts about his dealership to invite me into his office and explain why I was so distressed. We listed my complaints and found that some were just anger on my part and unwarranted, yet some were justifiable. He fixed the ones that were justified. I guess the point I am trying to make is that he didn't have to do that. The owner of a corporation took the time to satisfy the concerns of one individual. I think that was great, and he'll have my business for life. Most times, you can get the help you need from the managers, and I'm not saying everyone should be running to the owner with every problem. It's just nice to know that Mr. Kline's door is always open. Thank you." Here's another: "At first, when I got the response back from Tom Kline, I did not respond back. I felt why bother if that is how his employees treat customers. I am sure it is the same way. Well, Mr. Kline kept calling, trying to settle this matter. Finally, he got a hold of my daughter, and we agreed to meet with him. I really did not want to, but my daughter said that it wouldn't hurt anything. I have to say that today I met with Tom Kline, and he was much different than what I accepted. He apologized, listened (truly listened to what I had to say and how I felt). He fixed the problem. I was so far off in my judgment about him, and I am glad that I listened to my daughter. I just knew that I would never use the dealership again for anything, but after dealing with Mr. Tom Kline, I have changed my mind. Thank you very much for your assistance and truly listening." Finally: "First, I want to thank Mr. Kline for his response. I was indeed contacted by Mr. Kline today and have set up a meeting with him soon. I must say any company that will take the time to not only listen to a customer but agrees to make it right is a place I want to do business with. I have never seen an organization except for the military to respond and address a problem so quickly. I look forward to working with Mr. Kline in fixing some concerns I have." There's nothing magical here, just good, old fashioned work. Fixing these complaints is money in the bank. And if you are not going to repair your customers' problems, the government will. Regulatory actions almost always start with unsatisfied customer complaints. Look at the recent regulatory actions against dealers resulting from upset and unresolved customer issues: Federal Trade Commission (FTC) Napleton Automotive $10 million Federal Trade Commission (FTC) Passport Automotive $3.380 million Commonwealth of Massachusetts Jaffarians Ongoing State of California Paul Blanco $27.5 million So, you can sell more units, have happier customers (who will continue to patronize your dealership), and avoid lawsuits and regulatory issues by controlling your online customer issues. By managing and overseeing these internet complaints, you are minimizing your risks and increasing your revenues. Now, that's a non-GMO deal if I've ever heard one!

The Career Journey: Jennifer was encouraged by her high school science teacher to pursue her love of math and science with a career in engineering. When it came to applying to colleges, Jennifer was set on Michigan State, "it was the only school I applied to; I knew I wanted to go there." The  MAPConnected Vehicle Service and Warranty Lifecycle Summit 2022  is approaching. A collaborative conversation, led by some of the most brilliant minds in the industry, will be hosted by the Westin Southfield Detroit on the 25th - 26th of October. We had the opportunity to sit with Jennifer Jones, Global Lifetime Warranty Manager at Ford Motor Company. After completing her undergraduate studies and an unappealing automotive coop, Jennifer chose to return to school to become a professor in engineering. Jennifer had enjoyed tutoring during her time as an undergrad, and it seemed a natural fit, coming from a family of teachers.  Jennifer's journey, however, would reintroduce her to the automotive industry: After completing her Master's thesis, Jennifer began working on four-wheel drive systems at Chrysler but would soon join Ford Motor Company in the Glass Division. "It was interesting, and it gave me great experience. I did rotations in different manufacturing areas, with my last rotation as a Production Supervisor at the Dearborn Glass Plant." Jennifer shared Ford has "a real focus on including everyone," noting DEI was an area Ford invested in even early in her career. She went on to work in four-wheel drive systems and engine mounts in product development for trucks. After being promoted to Supervisor of her team within Powertrain, Jennifer and her team launched hydromounts in Ford truck applications, which at the time was not commonplace. Working with new technology was "fascinating and challenging," says Jennifer.  After a downturn in the market, Jennifer took on a role in Engine Service, a position that she wouldn't necessarily have considered before but a role that ended up opening her career to a new trajectory. Jennifer was the primary liaison between engine product development and the Customer Service Division, focusing on understanding engine issues and working on how to service them. "We also were working on future vehicle service, how to plan for service, and engine repairs." "After being in that role for about four years, I had a manager that had moved to Quality, and he suggested that I apply to a new position there," Jennifer shares how she began her work in her current department. At the time, the department was called Warranty Spend, and Jennifer was experienced in powertrain warranty spend from her time in Engine Service. "My experience in Product Development made me a perfect fit for that role, and subsequently, I was promoted to manager and then Global Lead."  Global Responsibility: the importance of adapting the lens through which you view the objectives Jennifer is still responsible for the metrics of warranty spend and cost as well as the global tools and processes for their delivery. One of the pillars within Ford Motor Company is to treat customers like family. "I had thought about that and realized that the name of the Department needed to reflect that value," Jennifer says. "We should be working on improving warranty for our customers," and after a few iterations, "Warranty Spend" was replaced with "Lifetime Warranty." The exciting part about this name change and how it reflects what Jennifer and her team are building, is that the primary focus is on improving the warranty experience. Jennifer stated, "Within that, there are certain aspects of controlling costs because that impacts the customer too. But, if we focus on improving quality instead of controlling warranty, we will have happier customers and lower costs." Inspiring your team to make the right decisions "One of the things I love about being part of Ford is that there is a large focus on integrity, which is experienced through company culture and leadership," says Jennifer. In addition, it's about being a part of a team that is highly dedicated to what they do "within a Company that cares about its people." Jennifer shares that a long time ago, before remote work was a point of discussion, her Manager at Ford offered for her to work from home after her maternity leave. Jennifer's daughter will be attending college this year and will be following in Jennifer's footsteps, becoming an Engineer with plans to go into the Automotive Industry.  How Technology is Impacting and Driving Change "It's such an exciting time to be in the automotive industry," says Jennifer, "as technology progresses, our ability to take care of our customers increases." For example, a few years ago, customers could use USBs for updates. This progressed to updating your vehicle through connecting to WIFI and has now progressed to over-the-air updates.  "As an industry, we have the opportunity to reorient ourselves" Product development no longer ends when the vehicle is launched. "With developments in software, your vehicle can get better over time instead of worse, and it's a real mind-shift."  The Parts Return Process "The real purpose of parts return is to help us solve quality issues," Jennifer shares as she explains what she is most excited to talk about at the upcoming Vehicle Warranty Lifecycle Summit. "The ideas I want to talk about relate to how we can receive information from the dealers to solve problems faster." Integrating new technologies, such as video and virtual reality, allows for an integrated, real-time communication channel between the dealer and the OEM. To improve quality, how can the parts return process leverage technology and, more importantly, "leverage the relationship with the dealer to help us solve problems more efficiently."  Jennifer shares that a significant focus is also "how do we make the part return process easier and more consistent for the dealer?" She is interested to hear from dealers and other OEMs in terms of best practices. As with the name change to "Lifetime Warranty," Jennifer is keen to solve problems for all stakeholders faster.  Jennifer will discuss "Reimagining The Parts Return Process" MAPConnected Vehicle Service and Warranty Lifecycle Summit   at the Westin Southfield Detroit on October 25th and 26th.  www.mapconnected.com

Sustainable profit - Profit which everyone benefits from, growth driven by things you become. Unsustainable profit - Where one group benefits at the expense of another, growth driven by things you do. I can vividly remember discussing a car deal with a sales manager and him telling me, “Get all the profit you can, it’s not like they are going to be back to buy another one.” To me, coming from a Ford store in Michigan where most buyers were A-plan and exceptional customer experience is what made loyal customers, this statement hit hard, I could not believe my ears. Years later, after starting my own agency, I considered also starting Unsustainable Business Models Anonymous, I jest. You see, it is not the business model, because no dealership sets out to provide a poor experience for their customers, they just do not have a plan in place not to. The biggest difference in sustainable and unsustainable profit is how we get there. Sustainable profit is growth driven by what we become; unsustainable profit is driven by things we do. One key factor is the view of profit and loss. A sustainable view begins with an action that takes care of everyone from within and grows by influencing others to join. Unsustainable profit represents a pessimistic and single-minded view of life, where the primary goal is survival. Objectification places people in an out-group vs in-group dynamic, where competition exists, hence scarcity. Sustainable businesses have a solid foundation to prove it, they invest in assets that work for them in present and future conditions, allowing them to achieve new objectives. Today’s customers are looking for more than just a functional vehicle. Vehicles and the ownership experience must satisfy other critical needs as well; both physical and emotional. From the moment a customer enters your dealership, you have an opportunity to make an investment in their lives and in return get more than just profit. Sustainable profit is more than just numbers on a sheet. Sustainability is being honest and open with your customers so they can see you as human beings, not just as participants in a transaction. As such, sustainable profit is best realized in the long term by building trust and relationships along the entire lifecycle of a customer. This process begins at that first meeting when that customer enters your dealership and continues until long after the sale. So, where do you start to build a model of sustainable profit? Where can dealerships make investments everyone, including customers, can benefit from? Where results are realized in both the short term and long term. On the sales side, leading with pricing based sale or themed sale is an example of something you do vs something you become. These types of events, while profitable, when not conducted properly are band-aid solutions. For sales, focusing on finding ways to serve your customers in a way which positively impacts their lives, an example, working with a diverse credit group. Investing time and effort in customers with less than perfect credit will grow loyal relationships. You would be amazed at how deeply reliable transportation can impact a person’s life. Benefits of working with a diverse credit group include deepened relationships with your customers, wider market reach, and increased customer satisfaction as reach to meet customer needs. This is an opportunity to increase your sales and serve a greater customer base.  An even greater opportunity lies in Fixed Ops, sorry Sales I still love you! If you want to focus on the long-term sales, Service Advisors are the individuals with the most customer contact, largest impact on CSI, greatest opportunity for gross, and a major factor in whether a customer will return to make a vehicle purchase. Service Advisors are the first, and sometimes only, dealership’s representatives customers have contact with during their time at your location. They are the first impression of a dealership and can create trust through information gathering and interactions that lead to a successful purchase, or distrust that leads to an unsatisfied customer. We have all heard the adage, "Sell the sizzle, not the sausage." I am here to tell you that in most dealerships we have drifted from that process. Customers want value and they want options, so we must pay attention to both needs while interacting with our service customers.  What is a stellar Service Advisor without a solid Technician? Wait, those are in ridiculously high demand you say? Ahhh, yes, so you have an opportunity for an advantage if you are bold. This is going to come down to pay, culture, and resources, not necessarily in that order. When you find a technician with experience, strong training and customer service skills, honesty, and a love for what they do - you have a unicorn. These unicorn technicians are those that go beyond the call of duty, they can be a rock for a team. Not only do they keep your core services running, but a great one is also a living, breathing documentation library on your systems - documenting loose ends and potential pit falls. Find the best techs, unicorns if you can, and do what you can to get and keep them - you will never regret this move. In short, growth driven by serving customers, rather than the customer as your competition. Bring your customers along on your journey, help them grow with you.

A customer for life goes a long way in automotive. It’s not just the vehicle purchase, it’s everything that comes with it: maintenance, service, add-ons, renewals, and, of course, referrals.   But it’s hard to scale personalized campaigns to past customers and to leads that ghosted. The messaging is different, the approach is sensitive, and the timing has to be perfect. There are also several factors that come into play like the last website visit, VDP views, and lease/finance renewal.  While no human can physically scale this kind of personalization, this is just another application of machine learning that could turn your CRM into a money-making machine. Think about it: if your CRM has 10,000 non-active leads, and you can reawaken even as little as 10%, you're looking at 1,000 new customers for life. It’s really pure gold waiting to be discovered.  It’s all about the audiences  The first step in making sure you’re investing in the right technology to turn more of your CRM into revenue opportunities is the audience game. You want to make sure your dealership isn’t bucketing opportunities into irrelevant audiences, like lease renewal for someone who has more than a year remaining, or service for someone who just came in. The demanded-- and expected-- hyper-personalization starts with the right segmentation, so you need to be optimizing audiences like people who recently visited VDPs, cash renewals, and cold “non-buyers” (leads that converted over 8 months ago and did not buy a car from you).  Make it dynamic  Once you have the right machines in place to identify and segment appropriate audiences, you need to make sure your email templates and SMS marketing have dynamic templates and merge tags. No one wants to receive an email without their first name or pre-filled forms. If you’re sending the email, you should know who they are!  But it goes even further than this- as you send traffic from an email blast to a specific landing page, your dealership can have dynamic videos and forms already embedded on the landing page to maintain that 1:1 conversation with your prospect. Once someone clicks on a hyperlink from your email, you will know how to identify them and greet them when they land on your website, keeping the transition and user experience extremely smooth. You can also personalize things like vehicles of interest or relevant services with dynamic templates.  Don’t forget connectivity  Even if your dealership invests in the best technology for mining your CRM, real-time machine learning can’t possibly function at its best without connected data. Make sure your dealership’s website data and ad activity is connected and communicating with the CRM so you have a full picture of the prospect’s digital footprint. While CRM information is critical, it has to be coupled with shopper activity in order to make the most of every opportunity and turn more (dead) leads into sales. When data is connected it also provides you with the most updated version of your customer’s story, bringing you one step closer to conversion.   There are a lot of pieces to pull together when thinking about personalized lead nurture at a scale that can convert more of your database into business. And while no human can possibly do this, your dealership should consider AI-powered technologies that can learn your audiences, segment, and target shoppers with just the right message on and off the site. Your data and your customer base could be the gold mine you’ve been looking for, so don’t miss out. 

"Right to Repair" Significantly Expanded In the November, 2020 election, voters in the Commonwealth of Massachusetts passed a ballot initiative, Question 1 , by an overwhelming margin (75% approved). Question 1 requires that OEM's make diagnostic data collected remotely -- through OEM telematics systems -- available to individual vehicle owners and to independent repair shops. The 2020 initiative expands on a "Right to Repair" initiative passed in 2013. The original initiative required OEM's to make diagnostic and repair data available to individual owners or independent repair shops. In 2013, this meant that OEM's had to provide data access to diagnostic repair tools.  In 2020, this requirement was expanded to include data collected remotely through telematics systems from vehicles that are on the road. The original "Right to Repair" was also first passed in Massachusetts, but in 2014, the Alliance of Auto Manufacturers signed a memorandum of understanding to support implementation in all 50 States and the District of Columbia. This move pre-empted "Right to Repair" initiatives in several other States that were similar to the one in Massachusetts. With the "Telematics Right to Repair" initiative of 2020, however, the Alliance is challenging the expansion of Right to Repair into data collected through telematics systems. The trial began on June 15 and is ongoing. If the Telematics expansion is allowed to proceed, however, dealers should be thinking about the implications to their service business, because this expansion might be much more significant than it at first appears. "Right to Repair" and the Connected Car On the surface, expansion of “Right to Repair” to include telematics may not seem like a big difference. But the difference has the potential to be enormous for service retention, which is why independent repair shops and service chains fought so hard for the Massachusetts initiative. With this change, customers will be enticed to set up an ongoing remote connection to their service provider of choice, putting that provider in the best position to capture and retain that customer.   Once this system is in place, a visit to the local quick lube shop, tire store, or parts store will change. As the customer wraps up an oil change, for example, the attendant will ask the customer to authorize the shop to monitor the vehicle’s diagnostics. This will allow the shop to see when the vehicle is in need of its next service and send out a text or email with a perfectly timed service reminder. Well-run shops will eventually analyze their base of connected customers to determine the optimal time to bring them in – both when the vehicle needs service and when the shop has available capacity. Service shops and chains that do this well will cement a closer relationship with their customers and increase repeat service loyalty.   Alternatively, customers may choose to authorize an intermediate service “broker” to monitor their diagnostics and manage their vehicle’s maintenance. The broker will then be in a position to act as the customer’s trusted advisor, and will route service jobs to the most competitive service provider. Dealers Should Prepare Now The Independent shops and service chains in Massachusetts clearly hope to use this new initiative to gain business from franchised dealers (or prevent current business from being lost to Dealers). In order to maintain and grow the dealers' share of the non-warranty repair and maintenance business, dealers will have to make excellent use of the telematics systems installed by their manufacturers.  Dealers start with a key advantage, which is the opportunity to start a connected service relationship with the customer from the moment the new or used vehicle is delivered. But not all dealers today do a great job activating these systems, and activation for some OEMs is very inconsistent. Dealers must be sure to activate OEM-provided systems and secure customer consent to share service and maintenance data. Dealers then have to do a great job of managing data notifications to quickly schedule customers for any needed service work. Dealers may also want to take advantage of aftermarket systems for their older inventory that lacks OEM-provided telematics. A service like Spireon’s Lojack is a good example of an effective aftermarket system. Dealers will have a very brief head start to fine-tune their use of connected car service notifications, and they will need to take full advantage. If you are a dealer considering connected service and service retention opportunities, please reach out to motormindz to hear more about how to “get” Connected.  

You Can Always Do Better... So, I sold my RV, (please hold your applause) and needed to buy HDX 27 gallon storage containers to keep “my stuff,” which had previously lived in the RV basement. I did what I always do, which is go to Home Depot to buy my favorite black and yellow containers. Upon entering a post-COVID-ish Home Depot, I noticed how few people were actually in the store. It was quite empty, actually. I proceeded to the usual place where my favorite storage containers were kept. (Yes, I have favorite containers – HDX 27 gallons with spiffy, stackable tops.) Lo and behold they were absent. I found a not-so-friendly man, in the requisite orange apron, and asked him where my favorite containers were. He gestured to the “end cap” and said, “they’re over there.” (Glad he didn’t strain himself with that one!) I walked over and (of course) they were not there. I came back and he was still standing in the same place. I explained (again) that those were the lowly 17 gallon containers and I needed the superior 27-gallon ones, please. He pointed to the floor where I was standing and said “Have you looked there?” (As if I had missed them the first time I brought him over to that aisle to explain I couldn’t find them?) I pointed out that those were the 17-gallon storage containers, not the 27 gallons that I have come to know and love. (You see in my garage I have approximately 40 of these beloved containers and they are stacked nicely and neatly and in a proper OCD fashion along the wall.)  He then proceeded to the computer where he looked up the SKU number so that he could find out if the containers were on the tippy-top shelves where I had looked for them before I asked him to locate them.  He announced the SKU number out loud, so we could both look together, to determine if we could physically see the location of my beloved containers. Now, to put this in perspective, a 27-gallon container is about the size of a grown Labrador retriever. They are hard to miss, but I continued looking and played along.  He left and then drove back to the aisle with the forklift-thingie which acts like a one-person elevator. (Meanwhile about 20 minutes have elapsed and I’m still looking for my containers.) He closed the aisle by stretching out two gates on either end of the each side, so no one could walk under the forklift-thingie. I think he was actually walking in slow motion.   Then, up he went. (Insert annoying noise here.) After 10 minutes aloft, he sadly announced he could not find the containers. (Immediately after he gave me the SKU, I had told him I did not see any boxes showing that SKU number, based on the old method of “looking up” from the floor where I was standing. He proceeded to look there anyway.)    After he came back down to terra firma on the forklift-elevator-thingie, (don’t forget to insert the annoying noise), I asked if he had looked at the quantity in stock when he initially looked at the computer. He responded “no.” So, he ambled back over to the computer. If this is agonizing to read, imagine how it was to be there.  Now, I’ve been in the Home Depot for almost 45 minutes. Mr. Orange Apron looked back at the computer and announced (quietly) “We have one hundred eight (108) of them. I’m really sorry, I don’t know where they are.” And they have 108 of them they cannot find. ARE YOU KIDDING ME? 108!  108 Labrador Retrievers you cannot find? Just to be sure, I walked up and down a few of the aisles to see what I could see. It was painful and fruitless. I left in a huff. (Usually, I don’t get worked up over these issues. This saga was particularly painful and dreadful.) I trudged next door (literally) to Lowes. They had 27-gallon containers made from another manufacturer. I was desperate, so I bought four (4)…from another manufacturer. They are shaped differently than the forty (40) in my garage but I was desperate.    Now, Home Depot’s ruined my OCD-themed garage because I have about forty (40) of my beloved 27-gallon container and four (4) of the runner-up, “The Commander” – the brand name – of another. (Isn’t that ironic as they are not “commanding anything in my garage?”) Every time I walk into my garage, I cringe. OK, while this was a long and now-amusing story, (not so much at the time), why am I telling you this, and how does this relate to running a dealership? Home Depot could have done better. So can your dealership. You can always do better than this. If I had seen a manager, I would have discussed it with him. I was so irritated, I didn’t go looking for a manager. It likely would have taken another 30 or more minutes. And when I left, I thought I should post a review online.  Or at least, I should post on Twitter where I would likely get a response.   I didn’t.  I just wanted to move on with my life.  After all, I’m dyin’ over here. I carried on.  I was irritated about aggravation over $60 worth of containers. Imagine how hot a customer gets when they are spending tens of thousands of dollars. How can you capture this feedback and mitigate the problem before the customer explodes online?  You could prominently post signage in your dealership asking for feedback. You could post a cell phone number for someone who could fix the problem. You could make sure the floor manager knows when there is an upset customer in the building so your managers can be prepared to act. Do you know the nature of the issues your customers face? Are you certain? How can you stop the problems before they happen? More training? New policies? You have to capture this feedback to attempt to prevent the problems before they start. (Risk mitigation!)  And what about aggravated employees? Ever considered an employee poll or human resources consultant? How can you capture their attention? (Remember, problems at a dealership are like rotten fish. They don’t smell better as time moves on…) And as for me, I’ll be standing in my garage staring at the odd-sized containers. (See attached photo.) If you are reading this #HomeDepot, please send me four (4) HDX 27-gallon containers quickly (and for free), and both me and my OCD, will feel much better. PM me on LinkedIn and I will give you my address!