Today’s customers are more informed and discerning than at any point in history. This shift has fundamentally changed how businesses must approach customer service, especially in the automotive industry where I’ve spent decades observing changing consumer behaviors.
The most significant change I’ve noticed is that customers no longer limit their comparisons to direct competitors. When someone walks into your dealership, they aren’t just comparing your service to the dealership down the street. They’re comparing you to every exceptional service experience they’ve ever had—regardless of industry.
The New Competitive Landscape
This reality creates an entirely new competitive landscape for businesses. As a car dealer, you’re not just competing with other car dealers. You’re competing with:
- The hotel that remembered a guest’s preferences from their last stay
- The online retailer that made returns effortless
- The restaurant that went above and beyond to accommodate dietary restrictions
- The subscription service that resolved an issue in minutes rather than hours
These experiences set the bar for what customers now expect from every business they interact with, including yours. When a customer has experienced truly exceptional service anywhere, that becomes their new minimum standard.
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Why This Matters
The implications of this shift are enormous. Meeting industry standards is no longer enough to stand out or even satisfy customers. If the best experience a customer has ever had was with an online retailer who shipped their product the same day with perfect communication throughout the process, they’ll be disappointed when your dealership doesn’t provide that same level of efficiency and transparency.
I’ve watched dealerships struggle with this new reality. Many continue operating as if their only competition is the dealer across town. This mindset is a recipe for customer disappointment and eventual business decline.
How to Adapt
Adapting to this new reality requires a fundamental shift in how we approach customer service in the automotive industry:
- Look beyond your industry for service inspiration
- Regularly ask customers about their best service experiences anywhere
- Train staff to understand this broader competitive landscape
- Measure your service against best-in-class experiences from any industry
The most successful dealerships I work with have embraced this approach. They study customer service leaders across industries and implement relevant practices in their own businesses.
For example, one dealership I advised implemented a system inspired by how high-end hotels welcome returning guests. They now greet repeat customers by name when they arrive for service appointments and have their preferences already loaded in their system. This small touch—borrowed from hospitality—has significantly improved their customer satisfaction scores.
When someone walks into your dealership, they aren’t just comparing your service to the dealership down the street. They’re comparing you to every exceptional service experience they’ve ever had.
The Path Forward
The automotive industry has traditionally been slow to adapt to changing customer expectations. Many dealerships still operate with the same service model they’ve used for decades. But those who recognize and respond to this new competitive reality will thrive.
My research shows that dealerships that benchmark their service against best-in-class experiences from any industry—not just automotive—see higher customer loyalty, better reviews, and ultimately stronger financial performance.
The next time you evaluate your customer service, don’t just look at what other dealers are doing. Ask yourself: “How does our service compare to the absolute best experience our customers have ever had anywhere?” That’s the real standard you’re being measured against.
And if you’re not meeting that standard, you can be certain your customers notice—even if they don’t explicitly tell you. They’ll simply take their business elsewhere, to someone who understands that in today’s world, we all compete with the best service our customers have ever received.
