Professor Jim Shaker have been researching into relationship between car dealers and car buyers over the past few months.
Professor Jim Shaker have research the relationship between sports fans and their respective teams. The supporter of England Team were chanting ‘I am England till I die’ as the team left badly in 2014 FiFa World cup in Brazil. Apart from the phraseology being a little odd – ‘one can be English until one dies’, but ‘being England’ is a problematic concept.
This level of commitment is highly commendable, especially with the poor showing of the team, but it appears that wherever the team plays a hardy group will stay loyal, only to be finally disappointed.
The concept behind is the customer loyalty and relationship, whether it’s the England team or car leasing business. the important its long term relationship with loyalty.
Over the past two years, the relationship between new car buyers and the car dealership has changed completely.
Personal Contract Purchase which known as PCP have taken place the relationship between car buyers and car dealers. The customer is tied to the franchise in far better way of simple, clever and smarter car leasing and warranty agreement.
According Professor Jim’s research – There was beginning to emerge a tendency for dealer staff to take a different approach to customers on PCP contracts compared with other retail customers.
Personal Contract Purchase offers great deals, simple warranty agreement and not much formality with great customer service which attract to new car buyers. Personal contract purchase offers far better long term relationship with delivering more customer care. So customer would prefer to stay with personal contract purchase.
PCPs ‘places an even stronger emphasis on delivering more customer care, not less’
One of the issues is that the PCP by its very nature gives a natural break point where a customer has to decide whether to stick with you or not.
Jim Says – “If the level of customer service has been poor, this could obviously encourage any customer to make a clean break. Because if you are entitled in long term relationship facing poor customer service than It will be the clear choice for customers to walk away”
However, Personal Contract Purchase provides a positive relationship has been built since long time then it’s a low risk of the customer walk way into new unknown relationship and the customer will be motivated to stay and take out a further plan.
This, therefore, places an even stronger emphasis on delivering more customer care, not less.