In an era when consumers are impatient, distractable and rich with choice, dealerships must invest in their customer service to secure future profitability, suggests Mike Allen, the managing director of Cambria Private Capital, which invests in and provides advisory services to automotive start-ups and scale-ups.
For UK car dealers navigating an uncertain economic landscape, how you support customers before, during and after a sale could be the single biggest driver of retention and profitability.
Customer support is a frontline differentiator. Customers don’t tolerate slow response times or disconnected channels and expect answers in minutes. Service must be consistent across every interaction, whether they’re browsing online at 10 pm or standing in the showroom on a Saturday afternoon.
It means dealers must think bigger than phone lines and contact forms. Messaging platforms, social media, live chat, in-person visits and follow-ups must all connect to a single source of truth. When a customer repeats themselves, you lose time and trust. Integration is a technical necessity; it’s a basic requirement for delivering a professional, frictionless experience.
Speed is no longer a nice-to-have. Two-thirds of UK consumers expect a response within two hours. That clock starts ticking the moment they click, call or message.
During peak demand or high-intent windows, dealers who can’t keep up risk losing the sale entirely. Automation and smart ticketing systems help manage the load, but the real value lies in the ability to triage, assign and resolve with urgency. Slow replies can lead to missed opportunities and erode confidence.
Technology is part of the solution, not the whole. The rise of artificial intelligence has unlocked powerful tools for modern retailers. AI-powered chatbots can answer common queries around the clock, and predictive systems can flag churn risks before they occur. Automated reminders with status updates can help eliminate the black holes that customers dislike.
But tools only matter if they serve a purpose. The role of AI here is not to replace people, but to make them faster, sharper and more consistent.
Dealers who succeed will be the ones who utilise AI to free up their top talent for the conversations that truly matter. The ones who combine automation with human judgment and understand that experience is a product, not an afterthought.
In an AI-driven world, the biggest advantage remains an experienced and well-trained team. Technology creates efficiency, but people create loyalty. If frontline staff aren’t trained to use systems or empowered to resolve problems quickly, the entire investment falls flat. Product knowledge alone isn’t enough; staff need to understand the full customer journey and their role within it. Empathy, confidence and clarity matter as much as closing skills.
As more buyers begin their journey online, first impressions happen long before a showroom visit. Whether it’s an instant message or a finance enquiry, the tone, speed and helpfulness of a first reply often sets the tone for the entire relationship.
And the numbers back it up. According to management consultants at Bain, a 5% increase in customer retention can drive a 25% boost in profit, making loyalty one of the highest-impact investments a retailer can make. While Experian estimates that around 65% of dealership revenue comes from repeat customers.
That’s not a coincidence; it’s the result of consistent service and proactive engagement.
A good customer experience drives revenue and builds resilience. In the automotive industry, brand loyalty averages around 50 to 52%, but only holds when expectations are met. Even luxury brands struggle to retain customers if their service falls short of expectations. Great service earns advocacy, creating a virtuous cycle of growth through word-of-mouth and trust.
As interest rates begin to soften, the cost of holding stock will fall, freeing up capital for investment in customer service technology and training. The focus should be on CRM upgrades, staff development, integrated messaging systems and intelligent automation. Not because they’re trends, but because they reduce churn, increase conversions and protect profit margins.
In a market where pricing and product are increasingly transparent, experience is the only true advantage. What separates the best dealers from the rest isn’t the inventory; it’s the way they treat people.
The strongest dealers over the next decade won’t be the loudest or the biggest. They’ll be the most responsive, the most joined-up, and the most trusted.
Author: Mike Allen, managing director, Cambria Private Capital