Why the Customer Experience is So Valuable to Dealerships

Don't deliver a product. Deliver an experience. Handwriting on a napkin with a cup of tea

Customer experience refers to the total of all interactions a customer has with a dealership, including pre-purchase research, purchase, and post-purchase activities. It is becoming increasingly important for dealerships as consumers are becoming more discerning and looking for a more personalized and engaging experience. Here are seven reasons why both automotive and powersports dealerships should have a focus on customer experience.

1. Improved Customer Satisfaction and Loyalty

A positive customer experience can result in increased customer satisfaction and loyalty. Customers are more likely to return to a dealership that they have had a positive experience with, and they are more likely to recommend it to others. This can result in additional service revenue, increased repeat business and word-of-mouth marketing, which can be more effective than traditional advertising methods.

2. Increased Revenue

When customers have positive experiences with a dealership, they are more likely to spend more money. This is because they have developed a level of trust and confidence in the dealership and are willing to pay more for the value they receive. Dealerships with a focus on customer experience have been found to have higher revenue and growth rates compared to those that do not.

3. Better Understanding of Customer Needs and Preferences

A focus on customer experience can help dealerships better understand their customers’ needs and preferences. This information can then be used to inform product presentation and improve the overall customer experience. Additionally, by providing customers with a personalized experience, dealerships can build stronger relationships with their customers, which can lead to increased loyalty.

4. Improved Reputation and Brand Awareness

Customer experience can also play a role in improving a dealership's reputation and brand awareness. Positive customer experiences can lead to increased positive word-of-mouth marketing and online reviews, which can drive traffic and increase brand recognition. Additionally, a focus on customer experience can lead to improved customer satisfaction and loyalty, which can help to establish a dealership's reputation as a customer-centric organization.

5. Increased Customer Retention

Customer experience is also valuable in terms of customer retention. When customers have positive experiences with a company, they are less likely to switch to a competitor. This can result in increased customer loyalty and reduce the costs associated with acquiring new customers. It is much less expensive to keep and market to existing customers than to acquire new ones. Additionally, customers are more likely to refer others to a dealership if they have had positive experiences, which can result in increased business growth.

6. Improved Employee Engagement and Productivity

A focus on customer experience can also improve employee engagement and productivity. When employees understand the importance of customer experience and feel valued, they are more likely to be motivated and engaged in their work. This can result in improved customer service, increased sales, and higher levels of customer satisfaction. In addition, it will help dealerships establish a strong company culture and lower turnover rates within their store.

7. Competitive Advantage

A focus on customer experience can give dealerships a competitive advantage. In today's market, customers have more options than ever before, and they are looking for unique and engaging experiences. Dealerships that invest in providing a great customer experience can differentiate themselves from their competitors and stand out in the marketplace.

Customer experience is valuable for dealerships for a variety of reasons. It can result in increased customer satisfaction and loyalty, increased revenue, better understanding of customer needs and preferences, improved reputation and brand awareness, increased customer retention, improved employee engagement and productivity, and a competitive advantage. Dealerships that prioritize customer experience are likely to see benefits in terms of increased customer satisfaction, improved company culture, a lower turnover  rate, increased revenue, and increased brand recognition.