Auto Dealer Monthly

JUN 2013

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

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DE A LERSHIP SPOTLIGHT Hoffman Audi's new customer lounge features comfortable, theater-style seating, modern décor, a beverage station and a freplace to create a homier environment. The popularity of smartphones and tablets also allowed it to move the lounge's desktop computers off to the side to create more open space. afer an Audi model. And customers are guaranteed to have a fresh sandwich in their hand within 15 minutes. "Tis amenity isn't cheap, so with something like this, you have to consider longterm sustainability," Matos says. "Tat's why breakfast is only for customers who invest in a service. We want their waiting experience to be a highlight experience." On a regular day, while clients are waiting at Hofman Audi, they are handed what Matos calls "Tanks for coming" souvenirs. Gifs can include hats, mouse pads, cups and tote bags. DELIVERING THE 'WOW' FACTOR Matos says customer expectations of the dealership's parts and service departments have evolved over the last few years. Pickup and drop-of services are now expected, as are complimentary car washes and free loaner vehicles. "Nowadays, if you really want to excite the customer, you have to do something above and beyond," Matos says. "What I was hoping to achieve with the Ultra Lounge Experience amenities was to recreate the 'Wow' factor that's been missing for so long." Instead of hosting one big launch party, where guests would eat, drink and leave, Hof man Audi decided to use its funds for more efective marketing. "My philosophy was, if I could use that money to host a year-long event and really stretch those dollars, I could return the 'Wow' factor and retain more customers," Matos notes. "Whether or not a customer takes you up on the ofer of a free breakfast, the 'Wow' factor is still achieved." Te dealership plans to stick with its 16 marketing strategy through 2013 and beyond, Matos adds. "We're really trying to spark up the customer experience to make it something special," he explains. "It's hard, and it's something we have to think about every day. If you think about it every day, one day you'll get an answer. So far, our answer has been remarkably successful." SATISFACTION EQUALS PROFITS While the lounge was under construction back in January, Hofman Audi's CSI score dipped into the low 900s out of 1,000 points. But afer the start of the dealership's marketing program, its score climbed back into the 970- to 980-point range. "Our CSI was always traditionally strong; however, with this new lounge, we've netted a point bump and have calculated from surveys and reviews that we're making 97 percent of our customers really happy," Matos says, noting that Audi has begun asking other dealers to step up to Hofman's standards. "Tey're putting their feet to the fre, saying, 'Tis is what these guys are doing, and these are the results,'" Matos adds Hofman Audi's customers have even taken to Yelp and other social media outlets to share their positive feedback. Online reviews in total have increased as well. "Satisfaction really translates to dollars," Matos explains. "Proftability is a byproduct of good customer service. … It's going to translate remarkably well because people really want to come back." CUSTOMER RETENTION Te dealership's marketing strategy caters to new and old customers alike. For repeat AUTO DE ALE R MONTHLY • J U N E 2013 customers, Matos says having additional amenities just provides an incentive to stay. "A customer came in and told me, 'I'm bringing my husband's car here on Saturdays from now on so I can get a manicure,'" Matos says. "Tat's a return customer we know is going to come back." Naturally, customers aren't going to come into the dealership to get services they don't need. However, Matos says they know the dealership is there for them if their Audi should require any additional services between regularly scheduled visits. "It's cheaper to keep the customers you have than to f nd new ones," Matos says. "We can't let our current customers go away, but we really do have to go afer new customers too. And that's what our lounge helps us do." Matos says there's something else the dealership is targeting with its marketing strategy. "We have customers that own other highline vehicles, and we want them to switch over to us," Matos says. "So, if they also own a Mercedes, we want to create an experience at Audi that's diferent — one they'll like so much they'll totally migrate to our brand." Te trick, Matos explains, is to constantly refresh your marketing ideas and look for new and original ways to grab customers' attention. "Te minute you think you have to stop thinking of new ideas, you'll create more things to worry about," Matos says. "You always have to keep it fresh to prevent things from going stale. I see this new type of ofering becoming very common among dealers in the future."

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