16 January 2023

Those organisations which allow customer service standards to drop will feel the impact on the bottom line – not always immediately, but inevitably and significantly in the longer term.

This is the key message from Jo Causon, CEO of the Institute of Customer Service, which has produced ROI research showing that organisations consistently earning higher levels of customer satisfaction achieve stronger financial results than peers in their sector.

Customer service remains a pressing issue for automotive retailers as we enter 2023, with retailers reporting that customers are becoming more demanding as the economy contracts, according to the findings of the latest Auto Retail Network Barometer survey.

Most notably, at a time when key proportions of retailer income are based on meeting customer service targets, retailers say that customer feedback is being based more on price than about service. Further, they say that customer service demands are continually increasing, yet with those same customers unwilling to pay more.

They note that keeping close to customers is key in gauging their reaction to increased costs, but even so one retailer told us: “Customers moan about everything at the moment, and are always trying to get something for nothing.”

Right now, extended lead times for new vehicles are a fact of life, as well as delays on parts supplies, and managing customer expectations is going to be key through 2023. However, it seems customers are becoming increasingly impatient and unwilling to accept delays, even when those delays are out of the retailer’s hands.

Despite these challenges, retailers assert that customer service is at the heart of their business strategy, and they remain committed to striving for the highest levels of performance. They are aware that delighting the customer is more important than ever.

With a key aspect of customer satisfaction coming from the online aspect of the business, retailers report that this remains a prime area of focus for them. Having all forms of communication available, combined with speed of response, are as important as building presence and online awareness.

One of the risks that retailers identify is falling into the trap of believing that the things that worked so well online during Covid are no longer necessary and aren’t demanded by today’s car buyers. If anything, retailers say there is a need to go further and to deliver full transparency of both cost and value, while strengthening their online teams to ensure that the levels of support will provide readiness for what is to come over the next few years.

Tags: customer satisfaction, Institute of Customer Service, Jo Causon, satisfaction