Service makes a difference in LCV sales
Price is just part of creating value with a prospective used van buyer. An unhealthy focus on price alone is just that ‘unhealthy’ for dealer profitability and need not be the case argues NextGear Capital, which provides specialist used stock funding facilities for LCV dealers.
“It seems that all too often LCV dealers focus their promotional activity on price as the main lever that establishes a sale. However, this risks underestimating the impact of service. This is especially true for used LCV buyers, many of whom are SME businesses and who commonly value a dealer’s expertise in vehicle and finance selection,” comments NextGear Capital Sales Director Nigel Warrington.
It is a view borne out by the latest UKCSI data, published by the Institute of Customer Service. Over the last three years, the UKCSI report has been able to demonstrate a strong, and consistent link between customer satisfaction, sales growth and market share. Organisations with the highest satisfaction have outperformed their competitors. High customer satisfaction scores drive higher loyalty, trust and likelihood of recommendation to family and friends. This analysis includes the motor industry.
“LCV buyers are often particularly reliant upon their van as a core work tool. They are also commonly part of a local work community of supporting trades Creating a long term customer by going the extra step will inevitably lead to referrals. Such leads arrive already understanding that a premium service is a central part of the dealer’s offer, not just price. In this situation, dealers can take the time to buy the right stock on demand. At every level delivering a better buyer experience has the potential to deliver a higher value sale at lower cost. Get it right and this can become a virtuous circle,” comments Warrington.
NextGear Capital are themselves members of the ICS, committed to practising what they preach to deliver a premium service and are happy to be measured accordingly, because as Warrington concludes; “we really have benefitted from the ‘halo effect’ of good service ourselves with numerous referrals over the last year for our stock funding service; great service does create more great customers.”
About UKCSI & Institute of Customer Service
The UK Customer Satisfaction Index (UKCSI) is produced by the Institute of Customer Service and has been published twice a year for the last 12 year and provides insight on 11 distinct market sectors within the UK
The UKCSI is the national measure of satisfaction based on the experiences of over 10,000 customers across 13 sectors of the economy. The latest report reveals satisfaction at 76.2 (out of 100). This represents a 0.2 point improvement on January 2015, but is almost identical (0.1 down) compared to the same time last year.