The True Cost of Complacency
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.
July 20th, 2007 at 10:10 pm
This article is dead on! The industry needs to take head that consumers are getting tired of the business as usual attitude. It should be mentioned that the list should include appliance manufactures as well. They have been getting away with putting inferior products on the market place and taking a get it fixed how ever you can attitude. Some of them make it so hard for dealers to do their job and that in the end affects the customers perception of the industry as a whole.
October 4th, 2006 at 8:54 am
Hello Greg,
How true…. It does not require many evenings of sitting around the campfire with fellow RVers to learn of the problems and frustrations that permeate the RV industry. If only RV manufacturers could be a “fly on the wall” at some of these campfire discussions, they would hang there head in shame. But, it is not only the Manufacturing segment of the industry, but also the Dealers must share in the level of satusfaction. Some dealers are super and it does not take long to learn who they are. However, these dealers are among the minority.
You are on the right track. Hope it all shakes out for the RV industry’s best.
Gene