Recently, I heard from one of our subscribers, a sales and finance consultant at a luxury automobile dealership. He shared a story about how a customer was almost mistreated.

In the world of auto sales, some salespeople are 100% commission-based, and when they sell a vehicle at a discounted price, there is little to no profit, resulting in a very small commission. This is important, as sometimes these low-commission sales cause employees to treat customers differently than they would for a high-commission sale.

Customers expect to be treated the same regardless of how much or little they pay for their vehicle. Furthermore, they don’t realize, nor do they care, how much of a sales commission is paid to the employee.

That brings us to the customer who bought a two-year-old luxury sports car. The first time it rained, she realized the windshield wipers needed to be replaced. The customer called her salesperson, who explained that he was happy to replace the blades. He went to his sales manager to ask how to handle the replacement and was told to charge her the cost of the blades or to tell her to buy them at Walmart for less than the dealership’s cost and bring them in to have them replaced.

The salesperson was shocked and reminded his sales manager that they were selling a premium brand. Eventually, the manager agreed, but the experience reminded him that profit, or the lack thereof, dictated the level of service the dealership would offer.

Three Customer-First Lessons

With that in mind, let’s use the story as a learning experience for all businesses. Here are three lessons from the story:

1. The Customer Doesn’t Care about Your Profit: Every customer deserves respect and a consistent experience, whether it’s $20 transaction or a $200,000 one. Profit per interaction shouldn’t determine the level of care.
2. Know the Lifetime Value of the Customer: The wiper blades may have been a $20 problem, but how the customer was treated for the problem could determine the future sale of a high-end luxury automobile worth thousands of times more. Knowing the average value of a customer will help employees make more informed, customer-focused decisions. Small gestures today can protect long-term loyalty and repeat business.
3. Consistency Builds Trust: Luxury brands thrive on consistent treatment, but the principle applies to all types of businesses. Today’s customers demand a good customer experience. Train and empower employees to deliver a consistent standard of service, every time, for every customer.

In the end, customers remember the experience, not your profit margins. Get the small things right, and the money follows as you earn their trust, confidence, and loyalty.

Shep Hyken
Shepard Presentations, LLC.

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