The Hindu Business Line : `Deal'ing with the customer

Not too long ago, owning a house was considered a dream and telephone a status symbol. That has changed with the youngest country in the world, India's youth constituting 70 per cent of the population. Though a segment of this younger generation still pursues academics, its daily necessities include such lifestyle goods as mobile phones and two-wheelers.

Effect of media

The varied media now available in every household have largely influenced the lifestyle of the rural populace too. Second, with India edging towards economic boom, the affordability levels of the employed class have increased, enabling it to experience those lifestyles. The improving lifestyle of this younger segment has influenced other members of their families to change their way of life as well.

It is not unusual for a rural household to own a small car for its domestic and business needs or for people in cities to have a home-theatre, refrigerator and air-conditioned rooms.

No wonder also that retailers are laughing all the way to the bank. The easy availability of credit and affordable EMIs have redefined the consumer market.

Experiencing the product

But there is a flip side to it for the dealers in such goods. For, dealership is not merely about an ultra-modern showroom infrastructure. Showrooms can only entice the customer. Unaddressed customer complaints, delayed deliveries against commitments, sale of defective pieces, delays in the issue of free gifts, and reluctant receipt of customer returns make every customer wary.

Right now, product demonstration by most dealerships is a ritual exercise in the sales process. But many prospective customers are not actively encouraged to `experience' the product. At times, sales commitments by field executives may not even be within the product specifications.

Dealerships need to understand the perceived needs of a varied customer base. At the first instance, the gaps that now exist between the customer and the dealership should be eliminated by encouraging `true' sales commitments. While sales commitment in India is dealer-driven, it is imperative that every customer is actively encouraged to personally experience the product.

Often, dealerships do not extend technical expertise once the product is delivered at the customer's doorstep. The initial days of the product use is the trial-and-error period, when the product is susceptible to damage. Hence, service after door-delivery requires considerable attention by dealerships. Customers are still unaware of the perceived benefits of value-added services such as warranty. They need to be educated about the untapped benefits during the period of an extended warranty.

Voice of customer

A genuine customer complaint seriously questions the process stability in the dealership business. The lack of clarity in business process is the prime reason for repetitive and rigorous customer complaints. It is the prudence of a dealer to redress the underlying process and not the complaint per se. Since customer complaints mostly land at the service engineer's desk, senior management of dealerships miss out on the opportunity to hear the `voice of the customer'. The mantra for dealership is "Customers have the right to switch between dealerships but not vice versa. They are the prime movers of survival."

(The author is CEO, ABT, Chennai.)