THE performance of salespeople at a new-car dealership and the impact they have on customers has come under the spotlight in the first-ever JD Power Australia Sales Satisfaction Index (SSI) study released this month.

The global marketing information firm rates the salesperson as the most important factor in assessing overall customer satisfaction with the new-vehicle purchasing process, diving into areas such as:

• Their knowledge about the brand’s cars and competitors’ models
• Their concern that prospective buyers purchase the best vehicle for their needs
• Their level of courtesy and friendliness
• The degree of sales pressure applied
• Their fulfilment of commitments and promises made at the time

As new-vehicle sales continue at record levels in Australia, with another 1.1 million cars to leave showrooms this year, the SSI study shows that nearly half of all customers – 49 per cent – reported one or more problems from their selling dealer.

This does not always concern the salesperson – it might be a lack of models in stock, or insufficient staff available to handle customers, for example – but a variety of problems do relate specifically to sales staff.

Importantly, these problems can have a deep and lasting impact on whether a buyer will return to the dealer or become an advocate of the brand and/or dealership.

Among the top most reported problems:

• 19 per cent of respondents said the salesperson was acting fake or insincere
• 17 per cent said the salesperson tried to charge for free items or change the price
• Another 17 per cent said the salesperson had difficulty in answering questions
• 15 per cent said they were shuffled from one member of the sales team to the next. (See Figure 1)

The effect this had on the customer was profound, with the fake/insincere salesperson in particular dropping sales satisfaction by a significant 63 index points below the industry average on JD Power’s SSI scale.

The study also found that 17 per cent of customers said the salesperson applied “uncomfortable pressure” to get them to buy the vehicle on the same day – before they were ready. In doing so, customers’ sales satisfaction levels dropped by 67 points below the average mark, the deepest decline among other forms of sales pressure measured in the study. (See Figure 2)

These included:

• Paying more for the vehicle than they wanted and purchasing unwanted accessories (experienced by 16 per cent of customers in each case)
• Buying the vehicle without the exact options wanted (13 per cent)
• Having to accept an inconvenient delivery time (12 per cent)
• Paying a higher down-payment than expected (12 per cent)

In measuring the impact of a salesperson on customer satisfaction, JD Power found that, almost half the time (48 per cent), relevant comparisons with other models are not provided and, that as a result, satisfaction of these customers is 33 points below the industry average. (See Figure 3)

In contrast, satisfaction increases 30 points above the average when the salesperson does make the effort.

Consider also that more than a third of customers (37 per cent) said they did not receive a comprehensive explanation of vehicle features or benefits while shopping at the dealership – and that the 63 per cent who did reported a much higher satisfaction score (852 index points).

This is a significant 97 points above those who were not given a detailed explanation by the salesperson. (See Figure 4)

The other area in which salespeople have a major role to play is in keeping the buyer informed about the delivery status of their vehicle.

The time taken to deliver the vehicle is itself a key factor in the SSI study – on average, delivery takes around 13 days, with one in five customers receiving their car after two weeks – but keeping buyers up-to-date on the timing has, unsurprisingly, a big impact on their overall satisfaction.

The 18 per cent of customers in the study who were not kept updated had a much lower satisfaction score at 716 points – a considerable 101 points below the industry average – while the remainder who were kept up to date came in at 839 index points, which is 22 points above the average. (See Figure 5)

Even when the vehicle is coming in a timely fashion – less than a week – if the salesperson neglects to inform the customer about the delivery status, satisfaction levels fall significantly (90 points below the industry average), while those who were kept in the loop reported a satisfaction 28 points above average.

When the delay stretches out, keeping the customer informed is likewise important; the 21 per cent who received their vehicle after more than two weeks and did not receive timely communication from the salesperson reported satisfaction levels 156 points below the industry average. (See Figure 6)

The results of the SSI study clearly show that salespeople with a pleasant manner, strong product knowledge, an eye for detail and genuine empathy for a customer can make all the difference – and the upshot is that this is likely to be a determining factor in repeat business and new sales that stem from word of mouth.

As presenters at the recent Australian Automotive Dealer Association’s convention recently emphasised, good dealers and their sales staff put customers first.
Great dealers put customers at the centre of everything, they said.

By Terry Martin