The customer relationship is the lifeblood of any car dealership and the dealer should own that relationship, says Jon Moodie, Chief Executive of auto financer Allied Credit.
While others in the market take the view that the relationship might belong to the financer, the broker, or the OEM, Moodie points out that when something goes wrong with a car, the customer returns to the dealer, not to the financer.
For most dealers, selling a new car is key to the business but it usually only makes up a relatively small part of their profit. Far more valuable are used car sales, servicing and spare parts, and financing, and all of these rely on a strong customer relationship.
Additionally, if some OEMs move to an agency model, the customer relationship will become even more important because dealers won’t be able to win customers by discounting in the way they have in the past.
With over twenty branded label partners across the auto and recreational asset markets, Allied Credit is highly experienced in communicating with customers on behalf of partner brands. In fact, Allied Credit is not a customer-facing brand at all.Â
“We often say to people that Allied Credit is the brand behind the brands. We’ve had this philosophy since we started 11 years ago that we are really there just to facilitate and empower our partners, whether they be dealers or OEMs,” Moodie says.
“Everything we do, and all of the tools we’ve set up, are about elevating our partners in front of the customer and creating as much activity and traffic as we can.”
Allied Credit offers training to business managers on how to interact with the hybrid customers (online and in person) and provides advice about how to maintain that relationship. “It’s these well-trained, confident business managers who make the biggest difference to the customer experience and will be the most successful, as well as their dealerships,” Moodie says.
Allied Credit also helps dealers with a Sales Support service when the dealer’s business manager isn’t available. They log on as that particular dealer and transact with the customer on their behalf. Then, when the business manager is available again, they take back that relationship and manage the process through to completion.
“This kind of hands-on approach makes us integral to dealers’ operations and supports them to maximise their opportunities to convert customers,” says Moodie.
Several of Allied Credit’s finance products also help keep the customer attached to their dealer.
The recently launched Guaranteed Future Value offer will help maximise customer retention for Allied Credit’s OEM partners and their dealers by creating a strong CRM opportunity. It gives customers the opportunity to upgrade their car more often rather than after the loan expires in five to seven years.
Allied Credit may also choose to reduce early termination fees for customers who go back to their dealer and replace their car and their loan.
“We see it as our mission to optimise the relationships that dealers have with their customers. That will drive the loyalty and will keep the customers coming back in. And we all know that a repeat customer is worth double,” Moodie says.