Sales vs. Customer Service

The entire structure of a marketing based organization can be a prelude to systemic failure for the entire organization. What do I mean by this? In simple terms, established quota's imposed upon the sales force for new clients often times overshadow efforts to enhance or maximize sales through existing clients. In almost every organization, a sales department's entire existence is based upon acquiring new, and not taking care of existing customers. Where do you think most sales departments priorities are focused?

One of the very best examples I can think of that you can immediately identify with is a car dealership. The sales manager for that dealer hired on with the explicit understanding that there are goals to be met regardless of current economic downturns, unpopularity of vehicles being offered or manufacturer defects. You can bet the General Manager for that dealership is watching the numbers and could care less about excuses.

Here’s Johnny!

Now comes Johnny Prime Lately, with an ego and family to feed and he's eager to prove his merit as the top sales person for the entire dealership. The sales manager has prepped him and expectations have been set in order for him to continue employment. Do you think he's focused on existing customers or anxious to develop a relationship with the service manager? Not! That’s not his job, believe me, he knows it. Going back to the systemic failure scenario, do you think this is Johnny’s fault?

Who’s Responsible For Customer Service?

The organizational structure dictates what Johnny’s role is and it's definitely not about taking care of the customer, it is about getting that customer to say "yes" and signing a finance document then move on to the next prospect. So whose job is it to ensure customer satisfaction after they sign for the vehicle? The service manager of course and that's generally viewed as a necessary evil from most General Managers point of view.

Customer Service Missed Opportunities

Often times this is a huge missed opportunity, not to up-sell but instead educate the customer about the service offerings the dealership has invested so much into. In other words, the new vehicle owner is well aware that there’s going to be periodic service required. They will even appreciate and be reassured that the dealerships value continues long after they leave the lot. Unfortunately, most sales departments have this ingrained idea that the mere mentioning of service in any form during or immediately following a sale constitutes a negative term. In general the sales process is designed to move on once the sale is consummated. Why you wonder?

Economics Of Selling Creates Divisions

Simple economics, the GM is enamored with the enormous dollar volume his sales department generates in comparison to the service department. Case in point, would you be more concerned with making $100,000,000 in sales or $1,000,000 in service? Most of you realize that the answers a bit more complicated with factors such as profit margin, floor planning, SPIF's, etc. Unfortunately, a large number of dealerships only focus on the larger dollar volume and because of financial pressure; subjugate the service concept to lower than cellar status. While it can be and has been argued about the profits between product sales versus service in terms of margins, there can be little doubt that many organizations instinctively separate the two departments both physically and psychologically. The central point is that there is this great chasm that exists between departments with respect to sales & service and believe it or not, that's by design! Does your organization operate in the same way? Do you consider your business to be marketing based, service oriented or some combination of? Is there a direct benefit to having both departments work more closely together and can they?

Criticizing Success

Ok, I know the criticism I levied above towards a stalwart industry is sure to ruffle a few feathers and the argument will be made that you can't criticize success. Well, sure I can and I just did. Let me ask this question, how long do typical dealerships stay around? Until they've exhausted their marketing and sales market, that's how long.

True Customer Service Value Proposition

Unless there is a concerted effort on the part of the General Manager to add value to their offering, that value being superb service in all its forms, dealerships will burn like a Roman Candle then sputter out the same way. This brings me right back to the very essence of this post, that there is a systemic culture that exists within this industry as well as others that thumbs its nose at the value proposition true customer service has to offer. When was the last time you received a call or letter from a dealership a year or two after you purchased your vehicle? I’m not referring to a required service check but rather a follow up concerning vehicle or customer satisfaction.

The Goal Is To Get Your Customers To Sell For You!

Any marketing organization can enhance its value by offering exceptional customer service that doesn't rely on slick ads, self-promotion, or costly advertising but instead relies on the fragile and intangible relationships that are built upon trust, integrity and value to the customer. With those ingredients, not only will your customers come back, but they will tell 10 of their friends where to buy their next car as well.