BURLINGTON, N.C. -

As you make your way down the short hallway leading to the service shop at David Westcott Buick GMC Suzuki, you can see a sign on the door indicating that customers are free to enter.

They can swing back there and see their vehicle getting worked on, and better yet, it gives the dealership a way to concretely show the customer what needs servicing.

This open-door policy is just one many ways that this Burlington, N.C., dealership builds rapport with customers.

In fact, during Auto Remarketing’s interview with vice president Greg Westcott in January, the importance of customer relationship building was a common thread throughout the discussion about the store’s best practices in the used-car market.

For example, consider what Westcott had to say about the store’s used-car advertising practices.
 
“The best one is retention,” said Westcott, when asked what advertising strategies work well on used-car side. “But as far as conquest and bringing in new customers, we’re finding good success through our reputation.

“It takes a long time to grow a tree, and minutes to chop it down. So we’re going to take care of someone after the sale. We really feel like the one-on-one relationship with the customer is going to sell them the first car — we’ve all heard it — service will sell them the next one,” he continued. “We truly do believe it, and we’ve found a lot of success in that. The relationship you have with the customer is paramount to long-term success in the used-car business.”

And not just the customers in your backyard, either.

In looking at practices that have generated success for the dealership in the used-car market, Westcott talked about using the Internet for display advertising tying back to the dealership’s website, search engine paid placement and other sites driving traffic. In doing so, he stressed tapping into markets beyond your own.

“We’re seeing that the breadth of our advertising isn’t local anymore. We’re pulling in customers from all over the region, out of state,” he said. “And if you can get into a community that’s maybe not yours and start building a relationship with people there, getting repeat and referral business with those customers, you’re just expanding your customer base and where you can more effectively market to.”

The customer relationship aspect isn’t just limited to sales, though. In fact, Westcott touched on how customer retention plays a crucial part in obtaining used cars, calling it a “main focus” of the dealership.

Granted, the store does utilize online and physical auctions as well as relationships with other dealers to acquire used inventory. But it also buys vehicles from “customers right off the street.”

But working with existing customers is huge, Westcott said.

“We have a big focus on our current customer base,” he said. “We have a very thorough sales-to-service handoff and making sure that we’re staying in front of those customers, and having them understand that now may be a good time to trade and putting offers in front of them that are compelling and make sense.”

Thoughts on Used-Car Supply

During the interview, Westcott also talked about the current used-car supply situation. Based on what the industry experts have forecasted, it appears this year is a better one for dealers than the past.

Westcott has also noticed some improvement himself.

“You’re starting to see some off-lease vehicles finally get back in,” he said. “The rental fleets have fluctuated a little bit so your supply from there is still a little bit volatile.

“It’s starting to come back,” Westcott added, referring to used-car supply. “Will it still be volatile? I believe it will be. So you still have to keep your eye on the ball with days’ supply of a particular unit, especially if it’s a high-dollar unit.

“If there’s a high days’ supply on an expensive unit on your lot, you’re going to want to make a decision on that one quicker. It’s a balance. You just can’t take a broad brush and say, ‘OK, (in) 45 days, 60 days, the cars are gone,’” he said. “Each car has a story, and you have to make an intelligent decision as to what your game plan is with that story.”

Advice for Fellow Suzuki Dealers

In light of the American Suzuki Motor Corp. Chapter 11 bankruptcy and the automaker exiting the U.S., Westcott also shared some advice for his fellow Suzuki dealer brethren.

The dealership also comes from a fairly unique vantage point.

“It was certainly bad news to hear that. Unfortunately, we’ve been an Isuzu dealer, we’ve been a Daewoo dealer, and we’ve also been a Pontiac dealer, so we’ve been there and had this situation before,” he said.

“Most of the dealers are doing a great job of winding down their operations. It’s a little bit different from the (perspective of) a stand-alone Suzuki dealer than from someone who’s paired up with somebody else,” Westcott would later add. “It’s definitely a little bit more challenging. But being a sales and service point, if it makes sense to that dealer … it’s a good idea to continue to do it, in my opinion. We still sell parts for Isuzu and Daewoo.”

Editor’s Note: Greg Westcott’s father is David Westcott, the owner of the dealership and the 2013 NADA chairman. Learn more about his goals for the association here.
 

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.