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CXM, Part II: A Proven Approach

Customer experience management is a relatively new concept for most agents, but its effectiveness in driving F&I product sales means it’s probably worth investigating.

February 28, 2020
CXM, Part II: A Proven Approach

Customer experience management is a relatively new concept for most agents, but its effectiveness in driving F&I product sales means it’s probably worth investigating.

Image by skynesher via Getty Images

3 min to read


In part one of this article, we discussed the concept of customer experience management and why it’s vital for agents who help drive dealership marketing and customer retention strategies. Now we’ll discuss different CXM strategies and how to leverage technology to help your dealers improve their customers’ experience.

Customers who know, trust, and value your dealers will return again and again.

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ADMINISTRATORS AND THE DEALER’S CXM STRATEGY

After purchase, every touchpoint between a dealer and their customer is an opportunity for that dealer to reinforce a positive customer experience. For that reason, ancillary product administration companies can play a significant role in their dealer clients’ CXM and retention strategies.

Many dealers consider service contracts and GAP insurance to be their “core” products, but ancillary vehicle protection products — such as tire and wheel, paintless dent repair, and key and windshield replacement — actually have a higher frequency of claims.

Consequently, high penetration rates on ancillary product sales create opportunities for valuable post-purchase touchpoints. They also generate significant additional profit opportunities for the dealership.

MOBILE-FIRST, -SECOND, AND -THIRD APPROACH

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A key component of CXM is building and maintaining trust. This is done by providing consistent and open communication, and it must be done in a way that is easy and convenient for the customer.

Rather than having customers call customer service lines, utilizing in-app communications make customer service quick and easy. Customers increasingly want to communicate with brands on their own schedule — when and how they want.

In 2015, 85% of millennials owned a smartphone. Today, according to Pew Research, that number has climbed to 93%, including nearly 100% of Gen Z internet users. In order to deliver an exceptional experience to today’s customer, you must reach them on their mobile device.

BE A PART OF THE SOLUTION

Agents know that customers lose their keys and get flats, dents, and dings. The question to ask your dealers is “are you a part of the solution?” When a customer has a loss that would be covered by an ancillary product, if the customer purchased a policy that covers the loss, the dealer becomes a part of the solution. Find a product administrator that customizes their mobile app to each dealership, so that when a customer initiates a claim or interacts, the customer associates the interaction with the dealer.

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This integrated communication is a vital component in helping dealers augment their CXM strategy.

YOU CAN’T MANAGE WHAT YOU DON’T MEASURE

To ensure that you are delivering worldclass experiences to your dealer clients and their customers, you need to measure the effectiveness of their interactions. Do this by surveying each customer and calculating their net promoter score.

NPS is the core metric used for measuring CXM. The score ranges from -100 to 100.

For example, the average auto dealership NPS is 39, but those that incorporate a mobile app, with customer-oriented interactions, have an average NPS of 77.8. Thus, dealers whose customers interact with their dealers have an NPS double that of the average dealership.

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PROVEN RESULTS

This customer-oriented approach yields calculable results.

The car business is changing faster than ever. With disrupters like Carvana and Vroom, a declining SAARs forecast, and increasing customer expectations, it’s more important than ever for dealers to maximize their CXM strategy.

Integrating customer experience management concepts like great two-way communication and follow-ups into your marketing and customer retention strategies is vital in today’s market. Customers who know, trust, and value your dealers will return again and again.

Dean Harrison is the president of Maximus Auto Group, a customer service-focused F&I product provider and administrator to some of the nation’s largest dealer groups.

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