March 5th, 2009
Tangible Impact of Customer Satisfaction
Right now, regardless of where the dealership is located — Dubai, England, Canada, U.S. — sales of new cars are down. The major source of cash flow to prop up these companies comes from vehicle repair and maintenance. (Duh!)
So, my friend Jerry (not his real name, ha!) is part of a team developing and selling software into Auto Dealership Service Departments. Their program streamlines service delivery through better scheduling, more effective time management of the technicians, etc.
Most of these dealerships, especially Toyota’s, are aware of the impact of Customer Satisfaction on gross revenues. The rule of thumb is this: for every change of one percent (1%) in the Customer Satisfaction Index for a given dealer, there is a $500K impact in annual revenues.
Yes, of course, this would have held true during the “good times” (which seem pretty far away right now) but the impact is still there. Customer satisfaction does impact the bottom line.
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