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Auto Dealers: Raise Customer Satisfaction with Low Payments

Posted by Tom Lombardo | Thu, May 15, 2014 @ 10:00 AM

Every November J.D. Powers & Associates releases the results of itscustomer satisfaction Sales Satisfaction Index Study, which is considered one of the definitive benchmarks for the auto dealer industry. It’s based upon tens of thousands of phone calls to car buyers across the country. Since we have six months to prepare, we want to make sure our dealerships belong among the highest scoring in the industry.

How does a general manager ensure his dealership scores high on a customer satisfaction survey? First, focus on satisfied customers.

To help you out, here are the top five characteristics your best customers have in common:

  1. They understood what you said. Satisfaction skyrockets along with clear communication, especially regarding payment options and maintenance plans. Train your staff to understand your stock, your maintenance options, and your flexible payment plans so thoroughly they could explain them to a ten year old.
  2. They’ve never had an unresolved negative experience at your shop. It takes twelve – count ‘em: TWELVE – positive experiences to undo one negative one. And do not expect the customer to tell you if something negative happened, because 96% of them won’t complain. Instead, almost all of them simply leave in silence and never return. Make sure your staff asks questions constantly, anticipates needs pro actively, and does whatever it takes to leave every customer with a smile.
  3. You sold them a long-term relationship. This comes in two parts: maintenance packages and flexible financing. “Maintenance packages—whether they’re complimentary or paid for by owners—create a long-term relationship between the customer and dealership, which…can have a very positive impact on loyalty rates,” said Chris Sutton, senior director of the U.S. Automotive Retail Practice at J.D. Power. Flexible payment options should include more than just various types of loans; since Americans prefer to make large purchases with checks, helping a client make a higher down payment by accepting two to four checks to deposit over a 30-day period can not only close the sale but contribute to long-term repeat business.
  4. You impressed them with technology. J.D. Powers found that “sales satisfaction among new-vehicle buyers is higher when their salesperson uses a tablet” to have all relevant information at her fingertips so the customer can fully understand his options. Dealers who let customers self-manage their account, particularly to set up auto-payments, also increased satisfaction significantly in both the luxury and mass markets.
  5. They would promote your business if you let them. A significant number of buyers distrust online reviews – 41% don’t even read them – and they feel they can tell when reviews are phony. But they are more likely to believe reviews from your customers, posted by them on your site.

Of these, the most important is probably funding because a solid 95% of customers satisfied with their payments are likely to become repeat customers. Let your competitors try to win business with only variations on interest rates and terms. You can bring a multiple check payment option to the table which may help a prospect make a higher down payment, save money on his payments overall, and become one of the satisfied customers singing your praises. 

Multiple Check Insider's Guide

Topics: Auto Dealerships

Written by Tom Lombardo