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Automotive industry can learn from Tesco woes.

Automotive industry can learn from Tesco woes. September 01, 2014 by Ian Wright

The weekend business sections have been filled with the news that the new Tesco CEO Dave Lewis has a £700 million 'war chest' to lead the turnaround of the ailing grocery retailer.
Sales are falling, staff morale is low and shoppers have fallen out of love with the brand, increasingly tempted by the charms of the discounters Aldi and Lidl.

Analysts are expecting Lewis to slash the price of groceries, unleashing a price war that will dent the profitability of the largest UK supermarket and therefore, it seems, lead a chase to the bottom.

And this from a company which has long been at the forefront of customer relationship technology based on their Club Card and hitherto seemed skilled at customer retention.

So what lessons can the automotive industry draw from this?

Car retailers may like to think about innovative ways to retain customers and build their spend with the dealership.
Years ago we developed an approach where sales staff 'owned' customers after they had made the original sale, very much in the way that industrial sales teams look after their accounts. These dealership ‘mentors’ would build ongoing relationships with their customers based on service and value, not just price, with feedback integrated and acted upon.

And why not create roles where sales people are tasked, targeted and measured to sell service, insurance, tyres, and cars to friends and family?

At a stroke you will make the buying experience more pleasurable  and valued and take huge steps towards making the customer want to demonstrate loyalty towards their dealership mentor.

That demands, of course, a huge shift in staff retention, pay schemes and the quality of sales management.

Anyone interested should contact Ian Wright at PEP who has all the tools - Job Descriptions and Pay Schemes, for example,to give you a good start at showing Tesco and the others the way ahead.

 

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