8:03 am, July 31, 2023
The FCA’s new Consumer Duty comes into effect today, bringing a renewed focus on ensuring positive outcomes for retail customers.
While having the FCA oversee the industry is undoubtedly beneficial, I firmly believe that the treatment of customers should be at the core of every reputable dealership, broker and finance company.
Regulations should and need to be adhered to, but prioritising customer satisfaction should be at the heart of what we do as standard.
The motor industry’s main goal should be making customers happy rather than solely focusing on selling vehicles.
By doing the right thing, delivering excellent customer service and ensuring the finance products you sell meet the needs and expectations of customers, sales will naturally follow because of genuine care and service.
The current economic climate presents significant challenges and will do for some time, not just for customers but for all of us.
It is therefore the industry’s duty to ensure that customers on the forecourt are given more support, options and guidance when committing to short- or long-term financial agreements associated with the vehicles it sells.
We should all ensure that what customers buy today shouldn’t put them at harm or in any financial difficulty at any point in the future.
In my opinion, we should go above and beyond to understand every customer’s personal circumstances when buying a car, especially considering the financial commitments involved and the current economic climate.
To address customers’ concerns, we must offer vehicles and products that genuinely serve their best interests, providing them with peace of mind.
Many dealers have told me they use certain companies because they pay more commission, are cheaper or because an old school friend works for them.
Taking the new Consumer Duty into consideration, I think dealers should be a lot more cautious when choosing which companies they partner with.
Companies that may offer the highest commissions, for example, may not always fit your customers’ needs.
Every dealer should review the companies they work with, including reviewing their customer service levels and lending practices, to ensure they are delivering what customers need.
I have told countless dealers their online reviews are a great way of measuring how good their dealership is at delivering good customer outcomes.
Using and promoting positive reviews of your dealership as part of your marketing strategy is a must, as there is no better wording for an advert than the words of your happy customers.
It’s crucial for the whole industry to view Consumer Duty as a chance to strengthen our commitment to achieving positive customer outcomes.
If we prioritise our customers and put them at the heart of everything we do, everybody wins.
This column appears in the current edition of Car Dealer – issue 185 – along with news, reviews, interviews, features and much more. Read and download it for FREE here!
