ON MY During the 1970s recession, my dad, a salesman by nature, worked at several jobs, one of which was a car salesman at Johnson Ford in Kingston, New York. I recall that he loved the job and the daily exposure to the incomparable “new car smell.” Eventually, however, as the economy improved, he returned to his true calling as a haberdasher, selling suits at a local menswear store, Rafalowsky’s. Rafalowsky’s was owned and operated by the Rafalowsky family, and later, when they retired, my dad purchased the store. I grew up around Rafalowsky’s, and one thing I distinctly remember is the connection my father had with his customers and his community. Connection. I think a lot about this word as we advocate for the survival of a system of local dealers. The franchised dealer model has many benefits. I would sum them up as the “4 C’s” – Competition, Convenience, Community and Connection. Connection is the key ingredient that makes the local dealer customer experience superior. A recent study performed by Pied Piper, a privately owned research firm that uses mystery shoppers to determine a Prospect Satisfaction Index, supports this conclusion. From July 2021 to June 2022, Pied Piper conducted a customer satisfaction survey covering 25 premium auto manufacturers and collecting over 1,650 measurements in categories such as salesperson attentiveness, availability of finance options and responsiveness to online inquiries. The top five ranked manufacturers utilize the franchise system, while the lowest scorers were direct sale manufacturers that reject the franchised model and instead keep the entire customer experience within their control. Moreover, the study demonstrated that as the popularity of EVs sold by these direct-to-consumer manufacturers increases, the customer experience declines. Since 2019, Tesla’s overall score fell by 22%. Specifically, measurements related to whether Tesla salespeople explained at home and EV network charging fell by a combined 34%. To summarize, directto-consumer sellers fail miserably in the area of customer service. It seems direct-to-consumer manufacturers may know how to build connected cars but don’t know anything about connecting with customers. On the other hand, franchised dealers can offer both a convenient, streamlined method of online shopping as well as attentive customer service. We are a connected society. Yes, that means something very different than it did back in the 70s, but ultimately, there is still and will always be, a need to connect on a personal level. Franchised dealers live and work in the communities where they sell and service their products. Dealers want to connect with their customers and strive to do so every day. Speaking of connections, and repetition aside, it is extremely important for dealers to initiate contact and stay connected to local lawmakers. Get involved in grassroots. Invite a legislator to visit your dealership to see your employees in action. If you need assistance with an introduction or setting up a visit, GADA is here to help — contact legislative@gada.com. ► MIND Connection is the key ingredient that makes the local dealer customer experience superior. Lea Kirschner, GADA President & CEO ISSUE 1., 2022 7
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