NEW YORK -

With the recent launch of the Consumer Financial Protection Bureau, and legislation arising right and left that will further regulate used-car dealers, not surprisingly, the Federal Trade Commission is receiving more complaints from consumers. What issues are on the top of their lists?

Well, according to a report from Fox Business, auto-related problems came in at at No. 4 among the top five areas included on the FTC’s list.

But dealers don’t necessarily need to fret; with the explosion of digital marketing and dealer-review sites, there are plenty of ways to improve a store’s reputation, if need be.

In fact, Auto Remarketing asked the chief operating officer of Potratz Advertising, Paul Potratz, for his input on how dealers can buck the trend and put consumers’ minds at ease.

Potratz noted that a way dealers can do this is by improving their online reputations.

“Customer complaints can’t be taken lightly in today’s digital world … regardless of how trivial,” Potratz noted.

“Online reputation is a buzz word today and for good reason since even the most insane complaint can drive away future customers.  Everyone and anyone with a smart phone or computer can complain and thousands of people can see it instantly,” he continued, noting that online complaints can be even more detrimental to a dealers’ reputation.

Delving further into FTC data, auto-related issues contributed to the 1.8 million complaints that the FTC received last year, which included used-car sales and advance-fee loans, among others. The number of complaints for 2011 rose by 24 percent over 2010.

Breaking it down further, consumers submitted 77,435 auto-related complaints in 2011. Moreover, this marks the fifth straight year that the number of complaints rose, Fox Business reported.

Why the jump?

David Torok, director of the division of planning and information at the FTC, was reported saying that the big jump in complaints was in part because more sources submitted data last year than in 2010.

Sales of New and Used Cars Dominate Complaints

According to Fox Business’ report, most of the auto complaints are over the sales of new and used cars.

Specifically, more than two out of five auto complaints filed to the FTC last year were over new-car sales, while more than a third revolved around used-car sales.

But that’s not all that consumers were concerned with in the automotive industry.

According to the report, consumers also voiced complaints about car rentals and car leasing, auto loans, parts and repairs, gas and warranty plans, and services.

For the whole story from Fox Business, see here.

Putting Consumers’ Minds at Ease

In light of this trend and consumer issues with the automotive industry, Potratz also provided a few steps dealers can take into account while trying to improve their stores’ reputation:

1. “Have a automated strategy to ask for reviews every month via email to new customers in sales and service.”

2. “Develop a process of always asking for a review and completing while the customer is on the lot taking delivery of the vehicle or picking up their car from service.”

3. “Pick one review platform and spend 75 percent of your effort on it and I suggest if it’s a Google product you focus on that review site.”

4. “Respond to all positive reviews by saying thank you and add something personal about the shopping process e.g. ‘It was a pleasure to work with you,’ and ‘Thank you for bringing Max; he is an awesome dog!’"

5. “Get chat on your website so customers can chat any issues first prior to posting on a review site.  Give customers a tool to open a discussion of concern and adress it; don’t ignore it.”

6. “Add a graphic on your website that says, "Tell Us How We Are Doing," and link to a page with a form.  Have this form come directly to you and respond to every email within 15 minutes!”

7. “Listen to your social audience and when someone says something extra nice or special about you and their experience, send them a little gift or thank you card and socially tell them thank you. They will become your brand advocate for life.”

But Potratz also notes dealers should not be discouraged if they still receive negative reviews.

“It is expected to receive a few negative reviews, and it is fine to have negative reviews as long as your positive reviews far outweigh the negative ones. It is also a best practice to respond on every review positive or negative.  People like the words ‘thank you,’” Potratz concluded. 

Editor’s Note: Paul Potratz is a Featured Contributor on AutoRemarketing.com. To read his columns and more from our Featured Contributors, visit www.autoremarketing.com/featured-contributors.