HOW RECOGNITION FROM OEMS HELPS DRIVE DEALER PERFORMANCE AND REPUTATION
When we work hard, receiving acknowledgement for the tasks we’ve done is often very satisfying. Not only that but getting that recognition from others can also serve to promote our own position, giving us greater visibility and potentially providing us with new clients.
In the car business, many of us are only too aware of the time and effort it takes to build a successful automotive retail franchise. Whether it’s investing in staff and training, building or modernizing facilities, improving customer satisfaction and driving sales on both the showroom and fixed ops side, it’s often no small task. And considering that dealers don’t often receive a great deal of acknowledgement for their efforts and contributions, when an OEM awards franchises for outstanding performance and service, it’s often a very big deal.
To find out a little more about recognition programs, we talked to two different OEMs with a major penetration in the Canadian automotive market and asked them a little about the programs they provide, how they work and what the net result of being awarded recognition does for their dealers.
HYUNDAI CANADA INC.
In this country, Hyundai is one of the fastest growing automotive brands. And a great deal of that growth has been fueled by the efforts of dealers across Canada. Those retailers that achieve exceptional standards receive the Hyundai President’s Award of Merit.
“In order to qualify for the program, dealers must be in operation for the full calendar year in question,” says Hyundai Canada spokesperson Patrick Danielson. “In addition, dealers who qualify are also grouped into different classes as measured by sales volume.” In Hyundai’s case these categories are listed as A through D. Once each dealer has been grouped, their performance is then measured, not only against dealers of the same size class but also against the sales performance of other dealers in the same area.
Danielson says that a score “tally” is then kept for each dealer, with points being awarded for categories such as new sales volume, pre-owned sales volume, market share and also customer satisfaction scores. “Last year, we had 22 PAM winners out of more than 200 dealers nationwide,” says Danielson, “ the top six Class A dealers, the top six in Class B, the top five in Class C and the top four in Class D. Additionally, the dealer that ranks number one overall in terms of national sales also receives special recognition and a prize that varies from year to year.”
VOLKSWAGEN CANADA INC.
Another brand that’s experienced solid growth in the Canadian market is Volkswagen and to recognize the achievements of its dealers, it offers its top performers membership into the Wolfsburg Crest Club.
“The club was originally started back in 2000,” says Thomas Tetzlaff, a spokesperson for Volkswagen of Canada. “It was designed to award dealers who achieve excellence at all points of customer contact.” By rewarding those dealers that perform at the highest level, Tetzlaff says that “there is a direct correlation between a customer’s satisfaction and their loyalty, both to the dealer and the brand.” He also says that those dealers that do qualify “are generally among the most successful” and that it is their approach that “sets a high standard for other dealers striving to achieve similar success.”
Tetzlaff is keen to point out that membership to the Wolfsburg Crest Club is a source of pride for dealers. “Each dealer that achieves membership, receives a unique, personalized trophy which they can display in their store.” In addition, he says “they are also given the right to refer to their membership in all dealership advertising until the next year.”
Although no monetary value is attached to club membership and neither is the number of members limited, in order to qualify, dealers must meet standards across many different facets of auto retail operations, not only sales volumes for both new and pre-owned vehicles but also in terms of facilities and imaging, workshop repair quality and Volkswagen genuine parts purchase plans. And those standards are high.
“Although there is no actual limit to the number of dealers that can become members of the club, by maintaining high standards it results in a greater number of dealers pushing themselves to achieve the highest levels of customer service. That in turn, says Tetzlaff “will lead to significant long-term success for both the dealer and the brand, helping them cultivate a loyal customer base.”
