Enhancing the Customer Experience at Car Dealerships

Now that the U.S. automobile industry has strongly emerged from the depths of the recent Great Recession, it is time for more car dealers to improve their physical facilities and ambience.
Audi of America has gotten the message and hired Continuum to do a dealership design makeover. As Bob Parks reports for Businessweek:
“In September 2012, Audi of America President Scott Keogh began visiting dealers around the country, telling them he attributed the low numbers partly to the dealership experience, and that he wanted to focus on customer service. The dealerships ranked second to last in the U.S. Sales Satisfaction Index. Audis routinely win accolades for their seamlessly updated mapping and telematics packages, yet in car showrooms, young, affluent buyers entering a dealership have been greeted with a Bunn drip coffee machine and a crackling PA system.”
“If Audi doesn’t solve the dealership disconnect, the company’s rise could be a blip. A 2012 study from consumer marketing analyst Maritz Research found that the average car dealership could sell as many as 217 additional cars per year by improving customer service. So last year, Ramsey went shopping among the small number of design firms in the world that specialize in so-called service design, which emphasizes not just the aesthetics of a product but the actual process of buying it. He found just two in the U.S. and two abroad, and tapped Newton (Mass.)-based Continuum to make over Audi dealerships.”
Click the image to learn more about Audi’s dealership resign; and click here to view a Businessweek slide show on the evolution of car selling.

Photo by Mark Mahaney for BusinessWeek

Posted in Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together | Tagged , , , , , , , , , , , , , , , , , | 3 Comments

eBay: Back and Stronger Than Ever

Not long ago, eBay was experiencing some tough times, especially with the lessening of interest in its traditional auction system. Today, eBay is on another roll, even making the cover of a February 2013 issue of Fortune. Why is eBay doing so well today?
Here’s the scoop from J.P. Mangalindan, a Fortune writer: “Under [CEO John] Donahoe’s leadership, eBay has undergone a remarkable transformation, shifting from its original (and flailing) mission — online auctions — to a full-service E-commerce operation that helps big retailers such as Home Depot, Macy’s, and hundreds of others navigate the complex world of mobile payments, online comparison shopping, and same-day delivery. In other words, eBay is quickly emerging as the shopkeeper’s best answer to Amazon, which continues to disrupt the retail world with deep discounts and a dizzying array of new businesses. ‘Retailers are coming to us and saying, We need to have a technology partner,’ says Donahoe.”
Click the image to read Mangalindan’s in-depth article.

 

Posted in Online Retailing, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Shopping Smarter at J. Crew

Retailers have a lot of behind-the-scenes tactics in which they engage to stimulate customer shopping.
Recently, Businessweek reported on some of the tactics utilized by J. Crew to simulate shoppers in the store. This story has a lot of tips for shoppers, but it is sure to make retailers somewhat uncomfortable that some of their selling secrets are out.
Click the image for a Businessweek slide show that offers a number of shopping tips (retailing secrets).

 

Posted in Part 3: Targeting Customers and Gathering Information, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , , , , , | 4 Comments