Friday, October 26, 2018

The Difference Between Trust and Loyalty, by Tom Cohn (DPHA Executive Vice President)


There was a recall on one of my cars recently, so I took it to the dealer to be fixed. While it was in the shop, I asked for an oil change and a replacement wiper blade. I also asked the technician to check a whistling sound coming from an air vent. 
 
Several hours later, I received a call from the service technician who offered a laundry list of fixes and recommendations that totaled more than $3,000. The repairs that I had requested amounted to $112.50. Being mechanically challenged and not knowing the difference between a camshaft and a spark plug, I questioned the service manager about his recommendations. The car had just reached 60,000 miles, and the manager informed me that at 60,000 miles the dealership performs a number of preventive maintenance services such as changing the power steering fluid and a bunch of other stuff that sailed right over my head. Now I must admit that I take care of my cars, and I have two others. One is 19 years old and the other is 24 years old. Both run great. I have had no previous problems with preventive maintenance, but I do want my cars to last a long time. When I got the call, however, my antenna went up. "Danger, Danger" rang through my head, and for good reason. About six months earlier, I had to take the 19 year old car to the same dealer for an emissions check. A couple of hours after dropping it off, a call came in recommending $5,500 worth of repairs. I simply laughed. The car is not worth $5,500, so I respectfully declined the additional repair recommendations. That was more than a year ago, and the car continues to operate beautifully.
 
I asked a simple question, "Does the car really need all of this work?" The response I received was, "this is what we do at 60,000 miles." I again asked, "Does the car need to have the work done. I realize that this is what you want to do, but is it necessary?" The manager could not answer. He repeatedly stated that this is what they do. He could not answer why they do it or explain the necessity for doing it. I was left to believe that the only reason the work was recommended was to make money for the dealership. Bottom line: There was no trust. 
 
Trust is the hardest thing for any business to earn today. This lack of trust is helping to commoditize products and service. That's one of many reasons for Amazon's success. According to Charles H. Green, author of Trust-Based Selling, "We know that when we are buyers, we are afraid of being manipulated or taken advantage of, looking stupid or silly in the eyes of our peers or bosses or subordinates or of risks only simply perceived. In all cases, our inclination is to revert to features and price and away from the relationship - and away from the risks and opportunities of trust."
 
Consumer caution and skepticism fuels commoditization that has intensified because the Internet provides access to information never before available. Couple that with online discussion forums and review sites such as Yelp, Angie's List, Home Advisor and a host of others and consumers, regardless of what they purchase, do not willingly trust sellers. Trust is something that has to be earned. 

What are you doing to earn the trust of your customers? Do you know how trust is established? Green points out there is a difference between trust and loyalty. Customers may buy from you, but that does not necessarily mean they trust you. Trust involves making emotional connections. It requires really listening to customers, understanding both their wants and needs, and then delivering. Green believes that trust is established if a buyer believes that the seller actually cares. "Caring is indicated by things like paying attention to, showing interest in and exhibiting curiosity about the things that customers themselves care about. If you do, people tend to trust you, and buy from you when they need what you are selling," Green writes.
 
Did the service manager at the car dealership care about me or my car? There was nothing in our conversation that gave me that impression. What do you and your sales staff do to show that you care? 
 

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