Dealers' successful management of complaints and reviews readily translates into profit.

Understanding, collating and responding to complaints and reviews is now a massive task for automotive retailers with multiple online platforms to monitor and practically immediate responses expected.

With customer experience arguably the most important battleground, one bad review or unanswered complaint could sway a car buyer’s decision.

Reputation’s 2023 Auto Report found that year-on- year, review volume increased by 11%, with last year recording peak review volumes for the past three years.

The report also found 84% of customers believe ‘reviews factored into their choice of dealership in 2023’ while 74% would only consider shopping at a dealership with four or more stars.

Paul Modaley, content and digital marketing manager at Reputation, says: “In today's motor retail sector, where choices abound and customer loyalty is gold, one truth is undeniable: the treatment of complaints and management of online reviews can significantly impact a dealership’s reputation and bottom line.”

Proactively encouraging satisfied customers to share their experiences online is a must, according to Reputation. A well-placed request after a successful interaction can lead to a wealth of positive reviews, which act as strong social proof to prospective customers.

JudgeService’s Reputation Manager tool allows dealers to see all online reviews in one place whether left on Google or Facebook or any other number of sites without the need to navigate to the native platform. Reputation Manager also enables dealership staff to reply to reviews, keeping responses up to date. If multiple employees are utilising the platform, its reporting function provides insights on each individual team member’s performance.

“It's like an ongoing audit of your online reputation,” says managing director Neil Addley.

Its core product React is its customer satisfaction survey triggered after a new or used car purchase to provide insight into the customer experience and to highlight positives and negatives.

Addley (pictured) says: “One of our clients said they didn’t know what they were doing wrong but with React they can see where mistakes were made such as not offering test drives or not offering finance and that’s really useful data. We train our clients on how to use that data to coach their sales teams so they can do a better job.”

When a used car is purchased, customers are asked whether they were contacted after delivery. JudgeService has found usually when a dealership client first onboards React, contact after delivery on used car purchases hovers around 30%-40% but, by focusing on that area, Judge-Service expects the figure to double. The company’s current average contact after delivery currently sits around 80% across all clients.

React pushes reviews out automatically onto dealer websites and other sites such as Auto Trader, and JudgeService’s ‘State of the Nation’ survey figures indicate that around half of people read dealer reviews before they look to buy a car. Car buyers are asked to agree or disagree with the statement ‘I always look at dealer reviews before I enquire about a vehicle’ with 50% of respondents selecting either ‘completely agree’ or ‘agree’ but among people under the age of 25, that figure rises to 75%.

Addley says: “They are the Amazon generation and they have been brought up on reviews.”

JudgeService has launched a new dashboard on React to provide information not just on how a client is performing, but to display KPIs such as contact on delivery, making such insights easily visible and enabling targets to be readily set. Retailers can also see the performance of competitors, whether that’s another group or a local business, with information collated from all online reviews providing an aggregate promoter score.

However, not everything is in the dealership or group’s control. Charlotte Murray, commercial director at Marketing Delivery, says: “Not all of the critical factors that can impact customer perception – such as the availability of suitable stock – are in the retailer’s control. And, even if the customer ultimately has a positive experience, motivating them to upload a review on a suitable website is a task in itself.”

Retailers should read and respond promptly and in a tailored way to reviews that are posted, be they positive or negative, according to Murray, as it demonstrates to consumers that their opinions matter and that the retailer is focused on delivering positive outcomes. Others are then more likely to post a review if they see a retailer is listening and engaging.

Murray (pictured) adds: “But sometimes you also need to give customers a helping hand and there are multiple opportunities throughout the ownership cycle to capture feedback. We’ve seen how automated prompts can encourage significantly more customers to leave positive reviews. For example, our VoiceBox software has helped Barretts Group secure more Trustpilot reviews, which they have found facilitates enquiries and helps to drive conversions. Personalised and timely emails that simplified the review process for Barretts’ customers increased the number of Trustpilot reviews by five-fold in the first four months of the programme, with 90% of reviewers giving the maximum rating of five stars.”

Complaints or, more precisely a retailer’s response, are just as important as reviews. As Reputation’s Modaley says: “A staggering 95% of consumers say they read online reviews before making a purchase decision. But, more importantly, how a dealership responds to negative feedback is often more telling than the review itself.”

As such, Reputation advises retailers to view complaints as opportunities to turn dissatisfied customers into brand advocates by demonstrating commitment to excellence, and to distinguish the dealership in a competitive marketplace.

He adds: “Every complaint is a window into a customer's experience with your brand. By listening actively, you show respect for their concerns. A prompt and thoughtful response not only has the potential to rectify an issue but also demonstrates your dealership's dedication to customer satisfaction.”

Reputation urges transparency when addressing complaints and to offer genuine, tangible solutions to reinforce the retailer’s commitment to the customer beyond the sale.

In much the same way as managing a business’s online reputation, technology has a role to play in the complaints process. Utilising feedback management software can streamline the process of tracking complaints and managing responses as well as highlighting patterns in feedback and guiding improvements in service and operations.

Launched six months ago, JudgeService’s Resolution allows complaints to be captured whether they are left on a website, sent by email or recorded from a telephone call and incorporates a specific module to collate FCA complaints.

The system logs complaints and is semi-automatic in that it allocates them to the individual or team the retailer has identified as best placed to provide a resolution. If a complaint is unresolved, the system is designed to escalate the issue for attention.

Addley says: “It ensures complaints are managed effectively and not left untended.”

The battle for customer experience can be just as easily won or lost in the digital domain with complaints and reviews and the retailer response the deciding factors.

Modaley says: “It is essential to recognise that in the digital age every review and complaint handled well is not just damage control, it's an advertisement of your dealership’s customer-centric values. Conversely, neglecting this critical area can erode trust and deter potential customers. Experts agree that by managing complaints and reviews effectively, dealerships not only enhance customer experience, but also safeguard their brand reputation, ultimately driving business growth.

“Adopting best practices in complaint handling and review management is a strategic investment in your dealership's reputation and customer satisfaction. It's about transforming challenges into opportunities – where every complaint addressed thoughtfully and every positive review earned is a step towards building a loyal customer base and a respected brand.”

The impact of online reviews and complaints is aptly reflected in JudgeService clients’ average promoter score which has grown exponentially in just less than five years. In March 2019, the average score across its dealer clients was 69% whereas the average in December 2023 had risen to 82%.

Addley says: “How do you know what’s going wrong if you don’t use a system to ask customers what’s going right as well as to see what people are saying unprompted? One of our clients told us ‘with this information, I can more or less run my business just on our reports alone’.”

Such successful management of complaints and reviews readily translates into profit, Reputation’s 2023 report found businesses which raise their Reputation scores by 150 points increase sales by 10% while dealerships with a high Reputation Score generate seven times the actions on their Google Business Profiles.

This feature was first published in AM's Spotlight on Customer Experience and Retention report.
Read the full report here.