In this competitive world of automobile industry, customer service is driving more sales to maximise sales and profitability. Customer Service is a key differentiator in attracting new customers to deepen the relationships with existing ones.

As per Lakshmiu Tatikonda writing in the Management Account Quarterly – 5% increase in CSAT and retention tends to add between 25% — 85% of the bottom line based on various factors. Investing in customer service hence appears to be a no-brainer.

There are various challenges faced by automobile dealerships looking to compete and differentiate in a crowded marketplace.

Challenge: Staffing in automobile industry

This the first and a typical problem that we cannot avoid. Most of the calls tend to be inquiries or scheduling and complaints. These can be easily addressed using automation and 2/3rds of these are being handled in offline ways with social media leverage.

Challenge: Training

Training is a crucial aspect of great customer service. Any customer service manager will tell you that it is almost impossible to get an even level. Most customer service KPIs tie back to the training of the Customer service representative.

Challenge: Always on engagement

There are limitations to building a customer service organisation that is always available when a customer needs it. We do not have a specific time when we drive. It is usual during the office hours but there can be emergencies or sudden plans. Unless an auto dealership is big enough or has many points of presence, staffing for a 24 x 7 cycle is cost prohibitive, which is clearly not sustainable.

Challenge: Spend on technology and infrastructure

Any organisation needs to acquire and pay for hardware and software to run the customer service function. In the current era, costs of customer service scale exponentially based on business growth. So the bigger you are the more issues customer service faces and lower the Customer Satisfaction traditionally measured with metrics like CSAT.

Challenge: Costs

A big issue that automobile dealerships are grappling with is how to contain costs and how to derive a respectable ROI from customer service investments.

Challenge: Deepening relationships

Focusing on customer service leads to better retention. Moreover, it’s a way to deepen customer relationships with automated intelligent handovers. The traditional way to do it the best way is face to face but it is a cumbersome process.

Challenge: Outbound sales and discounts

A typical issue faced by many dealerships is communication and marketing. Chat platforms have the broadest utilisation and reach among all interaction channels. It’s difficult to match the span of Facebook with 1.4 billion people online.

Challenge: Expanding customer base

Given that social channels now are the most broad-based, it pays increasingly to use them to expand reach. As a result, this is making it much easier to target on a channel that gets used multiple times a day.

If you are looking to overcome all these challenges, messaging platforms like Facebook Messenger represent a very low-cost way. After this, you might want to look at some ways to improve Automobile industry sales.

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