Environmental responsibility is important to consumers across the globe. They’re starting to walk the talk, and dealers who choose to ignore doing their part risk the impact of going against consumer values.
We have all lived through down business cycles before; it seems to happen every 10 to 15 years in general. Brands all have different ups and downs, though our last real downturn was in 2008/2009 and we enjoyed a steady upward run until 2017.
We are now in a plateau period with new vehicles sales bouncing around the lofty 1.9 million range. At the same time, used vehicle sales are strong and service is steady although some brands and locations have seen slower traffic than they would like.
Many national dealer meetings were held this fall. Depending on your brand you either came back extremely positive and energized, or concerned and worried. Canadian distributors are feeling the impact of uncertain global performance of their parent companies. As vehicle propulsion shifts, the future of new vehicle retail will be impacted. Balanced scorecards are being redesigned, 2020 sales targets set and facility programs still being enforced. The pressure on dealers feels heightened. Some dealers view this as a challenge and opportunity, and others don’t quite seem to know what to do.
The media barrage expounding changes to our industry seems endless. Based largely on fake news, the media is exerting its power to shift consumer sentiment. Combatting this wave is extremely challenging and seemingly never ending.
At the same time there is a real movement afoot, on a global basis, about climate change and environmental responsibility. The younger demographic seems all about carbon footprints and reversing the damage caused by a century of environmental abuse. This view is not limited to the young and is quite widespread globally. This is the new battle ground, with lines in the sand clearly drawn. Some of the brands we represent are up to the challenge, while others offer potential solutions but years away.
Our dealerships are being closely examined. Any actions that contradict brand promises are quickly identified. Customers are starting to walk the talk and expect dealers, as their front-line brand touch point, to also walk the talk. Any disconnect on the environmental front is magnified in the eyes of your customers and prospects and significantly influences where they choose to do business.
Our dealerships are also being closely examined by current and prospective employees. Their values are no different than consumers. Employees trust and believe in your commitments and grow very dissatisfied when your environmental performance runs in the face of their beliefs.
Dealers, on top of all their other responsibilities, must show environmental responsibility front and centre. Dealers must be seen as environmental advocates. This is something you and only you control.
The good news is that there is much good information to share with our customers. Vehicles today and environmental practices in today’s dealerships are very environmentally responsible. However, we kick ourselves in the teeth with visual eyesores around our property and inside our facilities. We also don’t do ourselves any favours through usage of materials that don’t often create a good impression. This is easy to fix with a little effort in establishing a visual standard around our stores and making someone responsible for a walk-about each morning and afternoon to deal with the eyesores.
Dumpsters over-flowing, car parts and old cars sitting around, jammed and disorganized drive-thru, and messy reception areas and the like all lend to the impression that your dealership is not on top of things. Customers are assessing your store and making decisions based on impressions.
Sales and service staff must genuinely talk environmental responsibility. When taking an order for an oil change, for example, take the next step and let the customer know how you are handling their used oil in an environmentally responsible way. Dealership staff in all departments should be promoting environmental responsibility at every opportunity.
New vehicles are much better on the environment that older ones. Make sure your sales staff are up to speed on all the environmental features of the vehicles they are selling. Performance is no longer the key for a potential new or used vehicle customer. Environmental responsibility takes priority over performance in the consumer’s mind. Once environmental responsibility is established, then other performance and safety features come into play.
Your website should stress environmental responsibility first and foremost. Your YouTube videos should stress environment responsibility as well as your LinkedIn, Facebook, Twitter and other social media handles. Your radio and TV spots need to stress environmental first, and other benefits of your dealership second. Your in-dealership digital signage should reinforce this. No sense convincing them that you can give them the best experience possible if you can’t get them past your environmental commitment.
Reduce the plastic you use. No bottled water and no plastic cups for instance. Recycling should be genuine with proper recycling stations in the showroom and service drive-thru.
All this adds to demonstrating that you walk the talk. Nothing works better than putting into practice what you preach. Customers will respond and it will set your dealership apart from the competition.
I get that our dealerships are busy with high traffic volume. I get that cleaning up after customers and fellow employees is a pain. I get that running the dealership day to day is not easy. However, you run the risk of turning customers away and receiving negative online ratings and negative word of mouth if you do not demonstrate your environmental commitment. Customers cannot see into all aspects of your business. They can only assume or extrapolate from what they see and experience. You cannot afford to let that happen and you cannot give them the ammunition to think otherwise.
Climate change and environmental sustainability are the new critical assessment items that consumers measure you by. You cannot afford to be complacent and paralyzed about this. Customer experience is important. From the customers’ perspective, your perceived environmental commitment is a huge part of framing that experience. Make it open, visible and consistent. Those who do will quickly be separated from those who don’t.
