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November 17, 2019 08:30 PM

Tenn. dealership's philosophy: Getting rid of hassles keeps customers

Alexa St. John
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    “It’s the second-largest purchase in one’s life. Sometimes people get in the middle of it and get excited, and once they get home, they say, ‘Oh, my gosh, what did I do?’ ” James Dixon, general manager,
Nelson Mazda Cool Springs

    “It’s the second-largest purchase in one’s life. Sometimes people get in the middle of it and get excited, and once they get home, they say, ‘Oh, my gosh, what did I do?’ ” James Dixon, general manager,
Nelson Mazda Cool Springs

    Free car washes, a no-hassle three-day return policy and efforts to shorten the car-buying process are the primary practices one Tennessee dealer employs to make "sure the customer comes back."

    "We just wanted to be different than anyone else in the car business," James Dixon, general manager of Nelson Mazda Cool Springs in Franklin, Tenn., told Automotive News.

    The dealership emphasizes improving the car-buying process, transparency and service.

     

     

     

    Nelson Mazda, which opened in 2013 as Nelson Auto Group's third location in Tennessee, has more than 50 employees and sells between 120 and 150 vehicles per month. Dixon began working with the group in Oklahoma in 2003.

    Coming back for more

    Nelson Mazda Cool Springs in Franklin, Tenn., focuses on getting repeat business in part by offering free car washes to vehicle buyers, plus a no-hassle 3-day return policy.

    Rinse and repeat

    Since the dealership's opening, Nelson Mazda has been offering free car washes to vehicle buyers for as long as the customer owns the car. So even if customers don't require service, they still feel compelled to return to the dealership.

    Dixon didn't share specific measurements on how the car wash perk translates to increased service appointments or vehicle sales.

    However, he said the free service has generally resulted in more customers returning to the dealership.

    "We know that it's so important for customers to keep coming back to the dealership for service," said Dixon. "There is an expense to it, but the payoff is astronomical. Getting the customers to come in; the car business is all about having the customer return."

    Offering such customer service tactics has been more effective than traditional advertising at bringing customers back to the dealership, Dixon said.

    "I'd rather spend the money on the customer and create a fantastic environment rather than throwing money in the wind and hoping it sticks, with a commercial," Dixon said.

    One thing Dixon tells his customers is, "You can't buy the wrong car."

    That's because Nelson Mazda customers have three days, or 300 miles, to return vehicles to the dealership after purchase.

    By eliminating the pressure people often feel at a dealership to purchase a vehicle quickly, the policy results in customers feeling more comfortable making a buying decision, Dixon said. It's a difference he sometimes physically observes.

    "The weight of the world gets lifted off when they feel like they're not being pushed in a direction," Dixon said. "You can just kind of see the pressure coming off their shoulders."

    There is a $299 restocking fee for returned vehicles, Dixon said. The store typically handles a few returns each year. It hasn't been a significant expense to the dealership, he said.

    "It's the second-largest purchase in one's life," Dixon said. "Sometimes people get in the middle of it and get excited, and once they get home, they say, 'Oh, my gosh, what did I do?' "

    One hour, one price

    Dixon acknowledges that a big challenge with car purchasing is the time it takes.

    "Time kills deals," Dixon said.

    So Nelson Mazda, a no-haggle dealership, is working toward a goal of a one-hour transaction time. The store uses a single client adviser throughout the process, rather than shifting the customer from person to person for each step.

    While the one-hour purchase isn't quite up and running yet, Dixon said, the dealership is already streamlining the buying process and changing customer expectations. "People are now more in tune of what's going on," Dixon said. "They can pick up their phone and call a different dealer or look at their inventory while they're sitting on the floor."

    He says competition is stiff, and sticking to his principles has been key in the business.

    "Our model is: Our integrity is worth more than the car deal," Dixon added.

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