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Business Review 2006 from
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Who cares wins
Paul Collier
managing director, Jacksons,
DESPITE VRD, fluctuating fuel prices and increased parking charges, it seems that Islanders are not yet ready to abandon their cars.
The first Jersey Annual Social survey produced in March by the States Statistics Unit showed that 30 per cent of those surveyed said that, nothing would make them use their cars any less.
This is good news for the Island's motoring industry, but it doesn't let motor retailers off the hook in terms of sales and after-sales care. It is certainly not a free for all and the dealerships who truly commit to making the car buying experience and after sales service what it should be will be rewarded with customer loyalty and increased sales. Thanks to the overwhelming amount of automotive information available in the press and online, the prospective car buyer is far more knowledgeable than ever before. This means many customers know exactly what they are looking for and what they should expect from a dealership even before they visit.
Delighted
There is no doubt that the emotive car purchase can be a special experience if it's handled correctly by the dealership. Who hasn't been delighted with their new car when collecting it from the showroom, shining like a new pin and ready to go - it feels like the best car on the road. In order to retain their customers and remain competitive, dealerships need to start or maintain their creativity in making the purchase package of a car as attractive as possible. This includes finding the right vehicle for the customer, offering the most suitable finance package and ensuring total care throughout ownership.
The challenge arises in keeping the customer happy through the years in which they'll own their car. Once the honeymoon period of a new car purchase is over, the driver has to think about the ongoing requirements of keeping warranties valid, annual servicing, valet and cleaning, winter health checks, tyre repairs and of course getting the best value at the pumps. Unfortunately, these are the necessities of owning a car and as no one likes parting with money to keep their vehicle on the road; all dealerships need to ensure a complete care service, offering value for money to all their customers.
A car service has been likened to a routine visit to the dentist - you know it has to be done but paying for it is often the painful bit.
People ask: 'Why do I have to service my car when it's running as well as the day I drove it out of the showroom?' One simple answer is to protect residual sale value and ensure that all manufacturers' warranties remain in force.
It is then, the responsibility of the dealership to make this and all other aspects of after sales as painless as possible. Build quality and technologies have advanced, which has lead to some manufacturers introducing variable service intervals to help decrease running costs but dealers still need to provide efficient service and value for money during important maintenance visits to ensure that the customer remains loyal to the dealership.
As vehicle technologies evolve, most manufacturers have strict guidelines in terms of customer care and after sales. Meeting these requirements demands the on-going training of Service staff and Technicians, which is not cheap when this by definition involves sending staff on five-day training courses to the mainland. Parts have to be shipped to the Island and this inevitably drives up the overall costs of service. The customer does not see or need to know about this; they just see the bottom line of the service invoice. This dictates that the dealers must offer added value service with such extras as mini-valets, courtesy cars and collection and drop-off to satisfy the customer desire for value for money.
Service
After-sales is the most important aspect of the car owning experience and the customer desires to have the same care and attention paid to them for their after sales service as the sales service they received on the day when they shook hands with their salesman.
In the motor industry, sales inevitably lead to after sales, but more importantly, good after sales leads to customer retention and hence more sales.
The Island is a small place, and in the motor industry to be a successful sales and after sales dealership, the employees behind the scenes have to work just as hard as the sales executives in the showroom - the net result being, who cares, wins.
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