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Car sales rise due to focus on customer service

Car companies have successfully bounced back from their financial troubles during the recession. A recent survey by J.D. Power and LMC Automotive found that June car sales are on pace to be one of the best months since December 2007.

Car companies have successfully bounced back from their financial troubles during the recession. A recent survey by J.D. Power and LMC Automotive found that June car sales are on pace to be one of the best months since December 2007. Reuters reported that purchases were up 7.6 percent from a year ago to reach an annualized rate of 15.7 million vehicles.

"There is little question that the automotive market has strong momentum as we close out the first half of 2013," Jeff Schuster, head of forecasting at LMC Automotive, told the source. "Looking forward, all the key fundamentals are in alignment to continue the current growth trend, with production capacity limitations being the only major visible risk."

The improvements within the industry have been due to a focus on customer service. Dealers are encouraging their staff to take the time to answer questions and provide high-quality service as a way to win buyers and encourage brand loyalty. The Motley Fool stated that consumers are holding onto their vehicles for longer, which is limiting repeat purchases. This has made customer service even more important than in years past for car companies.

Businesses could direct their employees to deliver outstanding purchasing experiences by linking customer satisfaction to sales incentive programs. Most sales initiatives use metrics tied to the number of transactions or revenue generated to determine bonuses and other rewards. However, collecting client feedback and measuring overall customer satisfaction could improve staff performance.

There are a significant number of advantages to focusing on service. Consumers are very willing to buy from dealers they feel are treating them fairly. Open and honest communication could improve conversion rates without a lot of additional effort by staff members. A good buying experience encourages individuals to make repeat purchases or recommendations to friends and family. Employee reward recognition programs give companies the ability to acknowledge the contributions of individual workers who have helped boost firms' reputations by providing outstanding service.

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