In today’s fast-evolving automotive industry, customer expectations have shifted dramatically. The days of transactional interactions are expected to be long gone, replaced by a demand for personalized, seamless, and memorable guest experiences.
I call this shift “Customer Experience 3.0,” which represents a transformative approach that prioritizes the guest journey at every touchpoint—from the initial online search to post-purchase follow-ups in both sales and service. However, getting retailers to adapt to this strategy is a complicated process.
The sooner our dealerships can adapt to this mindset, the better chance we have of competing against the disruptors.
The Evolution of Customer Experience
In the past, dealerships operated under a Customer Experience 1.0 model, focusing on in-person interactions and basic customer service. We were all focused on having excellent customer satisfaction index (CSI) scores because of the benefits we received from the OEMs (bonuses, allocation, growth opportunities, etc).
Still, we were and continue to focus on the bottom line at all costs. This was still, as I like to call it, the “pen and paper age” of conducting business. The consummate professionals carried a pen, asked questions, took notes, and treated the customer as a guest to an extent.
Customer Experience 2.0 was a new age that introduced digital tools (websites, CRM, ILM, digital retail tools, appointment schedulers, DMS, etc), enabling online inquiries, lead generation, and follow-up processes. Even business development centers were implemented with a whole new layer of staff to do the job that our sales and service professionals were too busy to do or refused to do. When the expenses got high, the outsourced BDC was invented.
Rigorous follow-up through calling, texting, emailing, direct mail, and multiple systems would create a guest experience (or so one would think). The lesson learned was that it pushed people away, as many in the new generation do not want to be bothered by marketing messages. While these innovations improved efficiency, they often lacked the necessary human touch to create lasting connections.
Technology Offering Personalization
Customer Experience 3.0 bridges this gap by blending advanced technology with personalized, human-centric engagement. It’s no longer enough to sell a car simply; dealerships must create an environment where guests feel valued, understood, and supported throughout their journey.
It starts from how simple we make it for them to research and shop online with a clean and straightforward call to action. The process continues with what we say in digital communications and how we say it. As the quest visits us, we follow a guest-centric process that keeps feeling welcome as we slow down to meet the guests where they want to be met.
We at Dealer eTraining coach BDC, sales, and service professionals to ask specific questions that make the guest feel warm and comfortable to move to the next level and continue to build trust.
Key Components of Customer Experience 3.0
- Personalization at Scale: Every guest interaction should feel tailored to their unique needs and preferences. Advanced CRM systems and AI-driven tools allow dealerships to track customer behavior, anticipate needs, and offer customized solutions. For example, guests who frequently search for hybrid vehicles can be presented with targeted offers and relevant content. In some cases, we even know the demographic of our guest, which allows us to operate at their level.
- Seamless Omnichannel Experience: Today’s customers expect a consistent experience across all platforms. Whether browsing inventory online, chatting with a representative, or visiting the showroom, the transition between channels should be smooth and cohesive. An omnichannel approach ensures that the guest feels connected and informed no matter where the interaction begins.
- Empowered and Engaged Staff: A great guest experience starts with a well-trained, motivated team. Employees who understand the importance of guest-centricity and have access to the right tools can provide exceptional service. Regular training in communication skills, empathy, and problem-solving is essential. It’s also about recruiting and hiring talent to join our teams. Consider scouting talent from other businesses like bartenders, waiters, or hospitality industry professionals.
- Proactive Communication: Instead of waiting for guests to reach out, dealerships should take the initiative to engage. Proactive communication demonstrates attentiveness and builds trust, whether it’s a follow-up email after a test drive or a personalized message about a service reminder. Connected technology in the vehicles we sell and service creates an opportunity to stay connected with our guests to keep them comfortable.
- Creating Memorable Moments: Small gestures can leave a lasting impression. Offering a celebratory experience when a guest takes delivery of their vehicle or providing a complimentary car wash during a service visit can transform ordinary interactions into memorable moments. A sales professional has every tool available to build and retain a guest relationship at their fingertips.
The Role of Technology
Technology plays a crucial role in delivering Customer Experience 3.0. However, technology usage needs to be tamed and adequately managed. Technology can be a friend or foe if not set up and appropriately controlled. Tools like Dealer Management Systems (DMS), chatbots, and virtual assistants streamline operations and provide advanced analytics insights into guest preferences.
But if they are too automated, it can hinder the guest experience and cost you business. Technology should enhance, not replace, the human element. Balancing automation with personal interaction is key to creating an exceptional guest experience.
To ensure the effectiveness of a Customer Experience 3.0 strategy, dealerships must track key performance indicators (KPIs) such as:
- Customer Satisfaction Index (CSI)
- Net Promoter Score (NPS)
- Retention and Loyalty Rates
- Online Reviews and Reputation
Regularly analyzing these metrics allows dealerships to identify areas for improvement and refine their approach. An excellent recommendation is to have one individual manage this department by having weekly meetings with the team to review where they are at. Many yards ago, Honda had the Excel facilitator program, where someone was designated to run conferences and create in-store action plans. It was a position I once held.
Conclusion
Customer Experience 3.0 is not just a trend—it’s the future of automotive retail. By focusing on personalization, seamless integration, and memorable interactions, dealerships can build lasting relationships with their guests, driving loyalty and long-term success.
In this new era, the guest journey is the dealership’s most valuable asset, and those who prioritize it will redefine the automotive experience. Let’s change the word from “customer” to “guest” and use the change management approach to our processes and reap the rewards. How does it relate to the bottom line? The guests become repeat guests and generate more referral business!
Stan
