For dealers, time to cure COVID hangover with customer service

If you ordered a new vehicle and were told it could take a few weeks to come in and all you had to do was leave a deposit and wait, you'd be pretty excited, right?

Well, what happens when a post-pandemic global chip shortage starts to squeeze automakers' abilities to deliver their vehicles to their dealer network?

Dealers are now delayed in scheduling retail deliveries with their customers and have to disclose missing items.

The chip shortage is creating catastrophic wait times, crippling dealers' ability to offer vehicles containing the high-tech features many customers want. The outward sensors are controlled by microchip processors; as a result, some manufacturers are building vehicles without the features. Others are simply pausing production. Either way, it's not a good situation.

There are a variety of anomalies occurring in the auto industry. The biggest challenges we in the F&I industry face include managing customer expectations, factory constraints and used-vehicle valuations skewed by market conditions. The values, because of low supply, are at an all-time high.

Meanwhile, increasing delays leave some customers wanting to cancel their orders. Those who keep theirs wait weeks and months. When they finally take delivery, the sales process suffers greatly.

In the customer's mind, they were lied to and ignored. They are extremely frustrated and anxious about getting their new vehicle. Increases in sticker price and egregious dealer addendums have customers feeling squeezed.

After being ignored by their salesperson for the last few months, they have no patience left for our process and they certainly aren't interested in spending extra time in the business office listening to our pitch.

The customer has the cashier's check in hand, made out to the penny, and can't wait to torch you on the factory survey. Those customers are also highly likely to leave a really nice one-star Google or DealerRater review. Did I miss anything?

Vehicle sales plummeted to some of the lowest levels at the start of the COVID-19 pandemic, and now that we have sold through the bloated inventory, we are struggling to build back up.

We are reminded that after what we have all experienced during this pandemic, people's psyches have changed. That includes not just our customers but our employees too. It's time to readjust our approach, our frame of mind and our actions.

To fix this, start with an attitude adjustment and increase the amount of engagement with customers. Reach out periodically with updates and let your customers know what's happening. People feel good when you call or text them. It makes them feel like a priority. They are happy you didn't forget them and know someone is paying attention to their vehicle and its arrival date.

We also need to change our negative attitudes regarding low inventory — it's low everywhere. Next, pay attention to our appearances and the vibe we give off. When people are dropping $100,000 on a new Cadillac Escalade, they want to know we care about their purchase.

Finally, take action. Start realizing one of the biggest perks our industry is experiencing — low volume and high profits. How fortunate are we? We've never had to sell fewer vehicles for more gross profit in history. Commissions are at an all-time high and life is pretty good considering.

Get excited about having more time to spend with each customer. During busy times when we give vehicles away for little to no profit, we are always rushed. We never seem to get quality time to connect with customers.

If you spend extra time with customers now, you can set clearer expectations. This allows you to manage communication more effectively during the waiting process. It also ensures the delivery is more successful and brings the customer back for future purchases in sales and service.

It's time to get reconnected with our customers and stay there.