RV Weekly

In today’s high-tech world, it is possible for businesses to irritate customers long before they set foot in a store. A few weeks ago, some friends were debating the worst business practices in place in America. Here are just a few of their complaints:

• People without voice mail or companies that allow phones to ring and ring after hours without giving callers a chance to leave a message.
• Companies that have machines answer the phones… but don’t give an option to press 0 for an operator.
• People who never check their voice mail. Few things are more irritating to callers who finally wade through multiple layers of �??press 1 for X, press 3 for Y�?� only to get to the right person’s voice mail and, after listening to the greeting hear �??mailbox full �?? goodbye.�?�
• Companies that offer electronic phone directories so callers can enter a person’s name and be directed to the extension�?� but don’t offer a way out if you don’t know how to spell the first or last name. Imagine trying to reach Cherie Maikowski (pronounced �??Sherry Mycowski�?�) only to hear �??no such person exists, please try again�?� over and over and over.
• Companies that don’t create electronic directories but force callers to listen to the entire employee roster in the greeting without telling who the people are. For example, �??Thank you for calling XYZ Company. Press 1 for Bob Anderson. Press 2 for Robert Anderson. Press 3 for Bill Anderson …�?� It’s more helpful to hear: �??Press 1 for CEO Bob Anderson. Press 2 for Sales Manager Robert Anderson…�?�
• Companies without websites �?? period.
• Companies with websites that don’t publish a contact phone number or address anywhere on any page.
• Company websites offering a contact us page, but instead of posting an e-mail address, require people to fill out a form in its entirety with a series of required fields regardless of the nature of the person’s question.
• Companies that don’t respond to e-mail inquiries �?? ever.
• Websites that entice viewers to �??click here for a larger image�?� but the enhanced image is only 10 percent bigger than the photo on the website.

Properly used, technology can make it much easier for businesses to communicate with customers. But, used improperly or not at all, it can sour a customer’s perception of the business before he or she sets one foot on the property.

The next 18 to 36 months are likely to be the most definitive in our industry’s history. A process is underway in which the wheat is being separated from the chaff not only by consumers but by dealers as well. Whether it is on a dealer’s lot or at a manufacturer’s show, many people seem both excited and nervous about the developing situation.

As we have reported before, Baby Boomers have been instrumental in defining industries throughout their life cycle. They have repeatedly demonstrated their power to make or break companies.

Many firms in the RV industry already recognize this fact and are taking bold steps to ensure they have the infrastructure and support services in place to exceed Boomer expectations. Today’s customers are telling us loudly and clearly they aren’t going to settle for business as usual.

Yes, there are still people who shop price alone, but many more buyers appear willing to reward dealers who make professional investments in their facilities, staff and Internet presence. They are choosing firms that convey the excitement and fun of the RV lifestyle as well as those capable of delivering on the promise of service. Buyers are using the Internet to educate themselves, select products and narrow down dealerships they’ll visit.

Buyers are rebuffing dealers that simply advertise the lowest prices and provide the lowest level of service to support the discounts. They’re concluding that if a dealer’s website is substandard, so is the business.

In the same light, RV dealers are becoming a more discerning about the companies they do business with. I’ve talked to dozens of dealers who are either dropping manufacturers �?? or are about to �?? because they are suffering from battle fatigue.

They’re tired of fighting about warranty claims, trying to get the correct parts delivered on time, and investing a lot of manhours prepping new units to the point they can be displayed. Rather than offering a wide array of product lines, these dealers are opting to focus their attention on a few manufacturers who cater specifically to their needs.

Some manufacturers are also being proactive by developing special programs to help their dealers create more professional business and exceptional buying experiences for their customers.

I’ll predict this year’s National RV Show will be a big surprise for several manufacturers who have been comfortable telling dealers to take a hike, because many of them will do just that.

Within three years, our industry will see megadealers dominating their markets selling a few brands for manufacturers that provide the level of support RV users demand. The low-price dealers will be left carrying product from manufacturers who could care less about their long-term success. And most consumers today are smart enough to notice the difference.

For the first time, we can see a potential cost to dealers and manufacturers for ignoring the needs of their customers. The 2005 RV Consumer Satisfaction Study plainly exposes the dirty, ugly secret.

Researchers from GfK/NOP/Roper laid it out as plainly as they could. �??Customers satisfied with service are five times more likely to be satisfied with the dealership overall,�?� the report read. �??And customers satisfied with service are four times more likely to recommend a dealer.�?�

The impact of dealer service and repair on manufacturer loyalty was also clear. The study noted 72 percent of motorhome owners and 63 percent of towable owners would likely repurchase from the same manufacturer IF they are satisfied with their most recent service/repair experience at the dealership. If they weren’t satisfied, the numbers plummeted to 38 percent and 31 percent, respectively.

The survey results justify a position I took in our September issue. I had suggested the RV industry is weeding out those dealers and manufacturers who don’t provide the level of service today’s consumers are accustomed to receiving. Now we know it’s true.

While we aren’t privileged to know the results for specific manufacturers and dealers, there are people in the industry who do. While thumbing through the report, I was struck by the high levels of dissatisfaction among many of our consumers. It helped explain why we lose nearly one-quarter of our customers every year.

How long are forward-thinking manufacturers going to risk losing nearly half their customers �?? which they have invested millions to acquire �?? to dealers who can’t ensure the buyers are satisfied?

Along the same line, how many dealers who have invested millions into their own businesses are going to tolerate losing nearly half their customers because an average of only 38 percent of motorhome manufacturers (and 52 percent of towable manufacturers) can provide parts for service on a timely basis?

There is no doubt, the RV industry is competitive and that’s a good thing. Those dealers and manufacturers who are ardent supporters of service have little to worry about in light of these numbers. An opportunity exists in 2006 for them to slam the door on competitors who aren’t living up to customer expectations.

By highlighting their strengths backed up with empirical third-party data and on-the-record customer testimonials, and delivering on promises they make, these modern business owners will expose their competitors’ jugulars and exploit their weaknesses.

They won’t need much help in that area. If the Roper data truly reflects the attitude of RVers, word is already spreading consumer to consumer via the campfire connection �?? the industry’s most reliable communication vehicle �?? as to who really cares.

�??What Will You Discover? Go RVing?�?� is the theme of the current round of television, print, Internet, TiVo and cinema messages that will tug at the hearts and pocketbooks of families. The commercials were well received by industry leaders at the Outlook 2006 breakfast during the National RV Show in Louisville . The print ads not only attract attention to the lifestyle, but show buyers there is an RV to fit any budget.

The industry is making a sizeable investment in Go RVing. But all of it will be wasted if dealers, manufacturers and suppliers don’t leverage the exposure to promote their own firms.

A long-held principle suggested that Go RVing should build awareness and dealers should sell specific units. But new thinking suggests a local tie-in is essential to dealer success.

Look how McDonald’s leverages its partnership with Disney when family movies are released. The restaurant chain spends millions advertising the movie and the Happy Meal toy kids can get only at their stores. It would be silly to think a family could walk into a McDonald’s and not see related posters, counter displays, uniform buttons, plastic cups and street-facing banners. Yet that’s how Go RVing is treated by many of our dealers.

Raff Vinton, with Two By Four Communications, suggested last year that Go RVing has been greatly misunderstood and strategically underutilized by the RV industry. Vinton strongly feels dealers must ride the coattails of lifestyle marketing and enhance what consumers are experiencing when they view Go RVing ads.

That means using Go RVing images in local advertising, placing Go RVing posters around the dealership, sending Go RVing postcards to customers and prospects, and placing Go RVing images on the dealership’s website. Best of all, it doesn’t take a high-priced ad agency to create compelling, targeted messages.

For $225 dealers get access to an industry-only section of the website where they can build quality print advertisements, design direct mail pieces, download high-resolution images and gain access to leads generated by the Go RVing website �?? of which more than 4.3 million were downloaded in 2005.

With the Go RVing program spending $66 million to promote your industry, how much will you spend to leverage that exposure and bring gold to your dealership?