Dealerships crucial in maturing auto market

• Source: Ce.cn
• [11:12 July 28 2009]
• Comments

Dealers are asked to understand - and take great care to communicate to customers - the strengths of the manufacturer's products. Manufacturers seek dealers willing to place customers on a pedestal, to provide the customer an experience beyond the simple transaction.

And manufacturers look for dealers that will be as concerned about customers after the sale as they are before the sale. A vehicle requires ongoing maintenance to continue to perform at an optimal level. A manufacturer wants its customers coming back to its dealer network for the opportunity to sell spare parts, but also to continue the existing relationship. All things being equal, it requires less effort to keep a customer than it does to conquer a new one.

Auto companies spend enormous effort on the search for dealers that look beyond short-term profits and strive to deliver a top level of service to customers - with good reason.

Customer satisfaction

Customer satisfaction studies conducted by JD Power and Associates indicate that a high level of customer satisfaction with dealer complements the strength of a brand's product, and encourages car owners to endorse the brand to prospective buyers.

To emphasize to dealers the importance of customer satisfaction, manufacturers expect rising scores from dealers in customer satisfaction tracking studies and invest heavily in performance improvement programs. Frequently, higher margins accompany higher scores on customer satisfaction studies.

Dealers are independent businessmen. Their main goal is to make money. For most Chinese businessmen, that means making money today. A long-term perspective is only slowly taking hold among dealers as their confidence in the brand and the overall system rises.

While the manufacturers are selective in the dealers they choose, the capable dealers can be selective in the brands they choose. Dealers want to represent brands that help them build their business. Strong products are a must, along with fair margins and importantly other types of support systems.

Another recent study by JD Power and Associates that looks at dealer satisfaction with their brands found that dealers cited manufacturers support as the leading factor contributing to their satisfaction or dissatisfaction with the brand. Dealers want more organizational support as they learn the business of selling cars and servicing customers.