Currently reading: Why online dealer reputation matters (and 8 easy ways to improve it)

Research by automotive customer experience specialists Reputation shows that dealerships which manage their online reputation can boost sales by as much as 10%. Here’s how to do it

When it comes to retail, customer sentiment sits at the heart of the process. And while physical word of mouth remains as powerful as ever, the best and most forward-looking dealers need to evolve with the times to properly manage their online reputation alongside their in-person experience. According to Reputation, the software platform that manages consumer feedback from acquisition to loyalty, doing this effectively can yield increased sales of up to 10%.

Reputation has helped some of the world’s most recognisable brands manage their online reputation by helping them listen to, and understand, customer sentiment for more than 15 years. As outlined in its Automotive Industry 2022 report, Reputation has analysed over 5 million online reviews of dealerships and in-depth surveys of car buyers, letting it rank brands, dealer groups and dealerships from around the world using its industry-leading Reputation Score metric.

This essential tool can help businesses measure their reputation, and understand how to improve both customer acquisition and loyalty. Research shows that dealerships with higher Reputation Scores generate 2x higher conversion rates and 9.9x more actions, while Reputation’s data can also help brands identify actionable insights and take steps to improve customer retention.

“We created the Reputation platform to help brands benchmark their performance in real-time – from the brand level all the way down to their individual location,” says Reputation CEO Joe Fuca. “We take a snapshot of the entire automotive industry around the world, based on millions of customer insights. From this data, we’ve ranked the dealerships and manufacturers who provide the best overall customer experience.”

To find out more about how to manage your brand’s online reputation, download the full Automotive Industry 2022 Report here. If you want even more insight, watch Autocar Business’s latest webinar – in which Autocar’s editor Mark Tisshaw asked  Matthew Patchett of Reputation and other industry experts why customer experience is more important than ever in the automotive industry.

For more in-depth insight into why your online reputation matters (and how to improve it), click to download the full Automotive Industry 2022 report

Watch our Autocar Business Live Webinar ‘Why the car dealer has never been more important’ – featuring in-depth expert analysis from Autocar editor Mark Tisshaw and Reputation’s Matthew Patchett

Why does online reputation matter?

As every good dealer knows, loyalty is the key to growing your business, and that starts with a great customer experience. “The future of the automotive industry hinges on the value of the customer experience,” says Reputation CEO Joe Fuca. “A great experience transcends product features. Brands that intrinsically understand this point develop a deep emotional bond with their customers – so powerful that they can’t help but spread the word to others. Great experiences drive customer loyalty, and loyal customers create new customers.”

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As Reputation’s research highlights, that journey starts online. Reputation’s research shows that 70% of consumers prefer to communicate with dealers face-to-face, while the same amount are willing to travel 20 miles or more to a top-rated dealer. So, naturally, customers will find you online before visiting you in person. And, as anyone familiar with customer service will tell you, first impressions count.

A staggering 85% of consumers say that online reviews are the most important factor in choosing a dealership (behind price and inventory), while 65% of buyers say that a dealer needs at least a four-star rating for them to consider making a purchase from them. To capitalise on this demand, dealers need to harness the value of online customer feedback, converting shoppers to customers, and customers to loyal patrons.

“Your customers talk about you everywhere,” says Reputation CEO Joe Fuca. “Increasingly, they’re using public channels like reviews and social media platforms to voice their opinions about the brands, products and services that they consume. This is the feedback economy, and it’s powered by customers’ conversations about a business that happen everywhere in the digital world – including ratings, reviews and social media sentiment.

“As dealers and manufacturers try to unlock the keys to winning buyers’ business and creating long-term loyalty, getting a handle on all of these sources of customer feedback has never been more difficult. But it can be rewarding for those who figure out how.”

How to improve your online reputation

So, we’ve deciphered what your online reputation is and why it matters, but the big question is how to improve it. Well, although a lot of the time it feels like your online reputation is seemingly out of your control, you can – and need to – learn from it. So, how do you do this? Well, there are a number of ways to improve your online presence that are highlighted in Reputation’s Automotive Industry 2022 report.

1. Optimise your Google Profile

First, Reputation suggests maximising the value of Google Business Profiles. Around 43% of online buyers cite Google specifically as having a significant impact when deciding which dealer to buy a car from and where to get their car serviced. So, run as many Google Business Profiles as you can for each dealership and keep them updated when you open, close or rebrand a dealership outlet.

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2. Enhance your website user experience

It's also crucial to help customers get the particular service from you that they expect. Around 40% of customers said that being able to schedule a test drive online is important, while 61% highlighted the importance of being able to search your inventory online. So, make sure these are prominent when customers visit your website.

3. Stay active online

And, while 70% of consumers prefer to talk to a dealer face-to-face, some will prefer to talk to you online first. 40% of consumers expect a response within an hour, so make sure all your comms channels are appropriately resourced.

4. Maintain professionalism and friendliness – even when you’re not face to face

Your online reputation is driven by your people. Ensuring you’ve got a good online reputation helps get people through your door. But the way your team interacts with customers is what drives your longer-term online reputation.

According to Reputation, 50% of consumers said that the professionalism of staff is an important factor when selecting a dealership, with adjectives such as ‘easy’ and ‘friendly’ appearing most frequently in positive reviews. Purchasing a car is a highly emotional decision as well as a pragmatic one – especially with prices increasing as a result of Covid 19, Brexit, semiconductor shortages and energy prices. So, dealers that can make car buying easy and deliver service with a smile win.

5. Put your people at the heart of the experience

Equally, positive experiences often result in feedback that mentions salespeople by name – highlighting knowledge, attention to detail and commitment to helping a customer find the right car for their needs. So, empower your sales teams to be active on social media to talk about the dealership and their commitment to customers. Every member of your team is an ambassador for the brand.

6. Annual servicing is a key driver to your online reputation – make it good 

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Once you’ve sold a car to someone, you may only get one interaction with them a year –at their annual service – so it’s crucial to get this right each and every time. Make sure your team is providing a good experience – shortening wait times, providing easy attentive administration, delivering high-quality repairs, avoiding surprises (such as unexpected charges or delays for parts) with guaranteed estimates for the work that needs doing and clear transparent pricing. Equally, vehicle cleanliness can be a driver of negative sentiment. So, it’s important to dedicate some of your resources to making sure you return a car in tip-top condition.

7. Actively encourage your customers to fill in surveys

Another way to improve your online reputation is through continuous feedback loops. Encourage your customers to give you feedback via surveys: 65% of customers said they’re most likely to provide feedback via surveys. Not only will this engage customers, but give you crucial learnings on their overall experience – highlighting where you’re performing well, and where you need to improve.

8. Encourage happy customers to give good reviews (and proactively solve the problems for unhappy customers)

Finally, and possibly most importantly, you need to encourage your customers to give you an online review – especially if they’re pleased with the experience, or to highlight and share their experience on social media. Ensure staff proactively request reviews (without applying pressure), and make the process as easy as possible. Equally, whether good or bad, it’s essential to respond to reviews as much as possible. Cherish praise, and apologies for inconveniences to ensure problems are fixed wherever possible. And most importantly of all, learn from your reviews.

So, from deciphering your online reputation, to why it’s important and how to improve it, Reputation’s Automotive Report 2022 has the insight (and more) you need to put your dealership ahead of the pack. For even more insight, download the full Automotive Industry 2022 report here and sign up to Autocar Business’s upcoming webinar hosted on 23 March where editor Mark Tisshaw will be speaking with Matthew Patchett of Reputation, along with other industry experts, on why customer experience is more important than ever in the automotive industry.

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For more in-depth insight into why your online reputation matters (and how to improve it), click to download the full Automotive Industry 2022 report

Watch our Autocar Business Live Webinar ‘Why the car dealer has never been more important’ – featuring in-depth expert analysis from Autocar editor Mark Tisshaw and Reputation’s Matthew Patchett

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