What’s more valuable to your business – one customer deal or a lifelong customer relationship that results in repeat business and referrals? You’d think the answer is obvious, wouldn’t you?
My family is in the market for a new SUV. We’ve got a Toyota Sequoia that’s nearly a decade old with about 160k miles on it – and it’s time for us to get a new one. It’s been a good truck for us – so naturally, looking at new Sequoias was part of our purchasing plan. After some other research and a few peeks at various other brands and models, we narrowed our search down to a Toyota Sequoia or a Ford Expedition.
After a lot of discussions, research on both brands and price negotiations, we decided to stick with the Toyota. So my husband struck a good deal and signed the papers with McGee Toyota in Hanover, MA, on Friday. We bought our last Toyota from McGee and we have gone there for every service need for the last decade. So, it seemed to be a natural and feel-good move.
He had such a good experience with the salesman on Friday that on Saturday, after running a road race, we headed right back to the dealership with my sister-in-law who was also in the market for a new SUV.
After another great experience with the same salesman, we sat down do talk price – including an option for trading in her existing SUV (which we were driving, so the dealer could see it on the spot). The natural back and forth took place with the manager in his office (ivory tower) and the poor salesman running back and forth between him and us – trying to strike a deal.
Let me just point a few things out:
- We’re repeat customers
- We’ve been loyal customers for a decade
- We brought in more customers/referrals
- We just bought a car the day before
- We came after a road race – in our running gear!
- The point being, clearly, we were serious buyers.
As I mentioned, my sister-in-law had a car to trade in. And the manager refused to tell her the estimate for the trade in – or negotiate the cost of the car she was trying to buy – until she would commit to buying RIGHT THEN AND THERE. Clearly, that wasn’t going to happen if a) she didn’t know the value of her trade-in, and b) the bottom line cost of the car she wanted to buy, and c) her husband (who wasn’t present) had an opportunity to see the car and hear the possible deal (i.e., value of the trade-in as well as the deal for the new car after negotiation). Oh, and also – why would we commit to buying something without knowing the cost? Who does that?
This was the exact opposite experience than the day before – with a different manager (same salesman). What a shock.
After several rounds with the poor salesman – embarrassed and frustrated, recognizing we were serious buyers and repeat customers, shaking his head and apologizing – that went nowhere, we decided to get up and leave. My sister-in-law wasn’t about to commit to buying a car without understanding the costs or even the courtesy of an estimate or starting point. Why were these games necessary when we were obviously serious about buying?
Before we left, my husband (keep in mind, it was his sister he brought in and thus, he’s naturally protective) stated that he couldn’t believe the way we were being treated after having just bought a car yesterday. And he began asking about the timeframe available to us to change our minds on our earlier purchase, considering we were not only being treated rudely, and being toyed with, but the manager didn’t even have the courtesy to come out and thank us for not only buying a car the day before – but coming back the next day with another customer.
So my husband said he was going to look into the time we had to change our mind on our purchase – unless we heard from them on an estimate for her trade in soon. (Keep in mind, it’s not that he didn’t know the estimate – the salesman confirmed the manager had a price; he just didn’t want to give it to us – wouldn’t write down a number – until she committed to buying on the spot.) The salesman said “I don’t want to tell him [the manager] that, you tell him.” And my husband said, “I would if he ever had the courtesy to come out here and talk to us.”
So we walked out and as we were getting into our car, the manager finally found a reason to walk out and talk to us. He boldly sauntered to our car and walked right up to the window as my husband got out. The manager then said, “Oh, you wanna call off the deal? That’s fine, we’ll rip up the contract right now.”
Does this bullying tactic work on others? Because it didn’t work on us. This man couldn’t give us the privilege of a face-to-face discussion when we were ready to buy another car, and insisted on playing unnecessary, old-school games with a serious customer – and then he comes out with bravado and ego and tells us he’d rather lose TWO SALES than give us a simple estimate?
What is going on here? Would YOU do this? Is this how you treat your repeat customers? I sure hope not.
I can tell you what’s going on now:
- McGee Toyota just lost two car sales – over ego. (Ask yourself, will your investment matter to them either?)
- They just lost a loyal, potentially life-long customer
- They showed how little their customers mean to them
- They created a negative brand experience associated with Toyota
- We’ll not only never return, and never refer someone to them again, but we’ll continually tell everyone we know not to buy from them – ever
- We’re now back to discussions with Ford and may abandon Toyota altogether – we’re still negotiating
- They showed that the value of a deal is more important to them than the value of a customer relationship.
A customer deal is great. But a salesman – especially a sales manager (or, perhaps he was the owner, which makes it even more ludicrous) – should be savvy enough to recognize when a customer is a serious, loyal and repeat customer who not only continues to give you business, but also refers others. This manager basically took the customer referral pyramid and chucked it out the window.
Am I out of touch here? Are $40-50k cars flying out the door in this economy? Are ready-to-buy customers flocking to the doors for you? Even if they were, would you treat a long time, loyal customer in this manner?
Make sure your sales team can recognize the difference between a customer deal and a customer relationship – and if you care about your business, train them to treat every customer with respect and gratitude. Even if you are in the car sales business.