Modernizing Car Dealerships: Embracing a Consultative Approach for Customer-Centric Success

In an era characterized by rapidly advancing technology and changing consumer behavior, it is surprising to witness car dealerships clinging to outdated tactics from the 90s. While maximizing profits is essential for any business, some dealers have taken advantage of customers during challenging times, like the Covid pandemic. As a result, these dealers are now experiencing economic repercussions as consumers have become more discerning and unforgiving.

"The Customer is Always Right" is a widely accepted mantra, yet it seems to be overlooked in the automotive industry. Consumers expect professionalism and a customer-centric approach when making significant purchases like buying a house, but unfortunately, this is often not the case at car dealerships. Dealers must understand that customer satisfaction is paramount, and refusing to adapt to the evolving expectations of consumers will lead to their downfall.

Reflecting to the early 2000s, the automotive industry was rife with outdated practices such as the infamous 4 squares, misplacing trade keys, employing strong-arm tactics and the sound of a dot matrix printer screaming in the background. Astonishingly, even in 2023, some dealerships have not progressed beyond these archaic strategies. The use of the same forms from 25 years ago and manipulative sales tactics can leave customers feeling frustrated and taken advantage of. Some GMs still love the sound of a Dot Matrix printer, it reminds them of the sound of money being printed.

The world has witnessed a shift in consumer behavior, especially when it comes to purchasing cars. In today's digital age, consumers prefer to conduct extensive research online before stepping into a dealership. They use various websites, like AutoTrader and CarGurus, to find the perfect vehicle, customize it on manufacturers' websites, and seek the best deals to spend less time at the dealership.

The negative perception of dealerships and lack of transparency from dealers has contributed to this change. Customers often view dealerships as a place they reluctantly visit, comparing the experience to visiting the dentist. To thrive in this competitive market, dealers must embrace a customer-centric approach and cater to the preferences and expectations of modern consumers.

The key to regaining consumer trust and thriving in the modern automotive landscape lies in adopting a consultative approach. Instead of resorting to high-pressure sales tactics, dealerships should focus on guiding customers through the buying process. Transparency from the outset is crucial, as customers appreciate open and honest communication.

By investing in easy-to-navigate websites with digital retailing tools, dealers can empower customers to build their deals, customize vehicles, and explore various options. Providing ample information on accessories, protections, and service contracts enables customers to make informed decisions, leading to increased sales and customer satisfaction.

The reputation of car salesmen has suffered due to unscrupulous practices employed by some dealerships. However, the tide can be turned by establishing trust with consumers. A customer-centric, consultative approach can win back customers and build lasting relationships.

In Conclusion, Dealerships must realize that traditional, outdated tactics are no longer effective in today's automotive market. To succeed and build a loyal customer base, dealers need to embrace a consultative approach, prioritizing customer satisfaction and transparency. By adapting to changing consumer behavior and providing a positive buying experience, dealerships can rewrite the narrative and thrive in a competitive automotive landscape.

If your dealership is ready for the change, contact Performance Dealer Solutions.