Automotive News - September 21, 2020 - Best Practices Supplement - S37

SEPTEMBER 21, 2020 | 37
N E L S O N M A Z DA C O O L S P R I N G S , F R A N K L I N , T E N N .

Cutting hassles, keeping customers
Vehicle returns, shorter
sales process key parts of
buyer-focused approach
Published in Automotive News Nov. 18, 2019

Alexa St. John
astjohn@crain.com

ree car washes, a no-hassle three-day
return policy and efforts to shorten
the car-buying process are the primary practices one Tennessee dealer employs to make "sure the customer comes
back."
"We just wanted to be different than anyone
else in the car business," James Dixon, general
manager of Nelson Mazda Cool Springs in
Franklin, Tenn., told Automotive News.
The dealership emphasizes improving the
car-buying process, transparency and service.
Nelson Mazda, which opened in 2013 as
Nelson Auto Group's third location in Tennessee, has more than 50 employees and sells between 120 and 150 vehicles per month. Dixon
began working with the group in Oklahoma in
2003.

"Our model is: Our
integrity is worth more
than the car deal," says
James Dixon, general
manager of Nelson Mazda.

Rinse and repeat
Since the dealership's opening, Nelson Mazda has been offering free car washes to vehicle
buyers for as long as the customer owns the
car. So even if customers don't require service,
they still feel compelled to return to the dealership.
Dixon didn't share specific measurements
on how the car wash perk translates to increased service appointments or vehicle sales.
However, he said the free service has generally resulted in more customers returning to
the dealership.
"We know that it's so important for customers to keep coming back to the dealership for
service," said Dixon. "There is an expense to it,
but the payoff is astronomical. Getting the
customers to come in; the car business is all
about having the customer return."
Offering such customer service tactics has
been more effective than traditional advertising at bringing customers back to the dealership, Dixon said.
"I'd rather spend the money on the customer and create a fantastic environment rather
than throwing money in the wind and hoping
it sticks, with a commercial," Dixon said.
One thing Dixon tells his customers is, "You

Nelson Mazda Cool Springs in
Franklin, Tenn., focuses on getting
repeat business in part by offering
free car washes to vehicle buyers,
plus a no-hassle 3-day return policy.

can't buy the wrong car."
That's because Nelson Mazda customers
have three days, or 300 miles, to return vehicles to the dealership after purchase.
By eliminating the pressure people often
feel at a dealership to purchase a vehicle
quickly, the policy results in customers feeling
more comfortable making a buying decision,
Dixon said. It's a difference he sometimes
physically observes.
"The weight of the world gets lifted off when
they feel like they're not being pushed in a direction," Dixon said. "You can just kind of see
the pressure coming off their shoulders."
There is a $299 restocking fee for returned
vehicles, Dixon said. The store typically handles a few returns each year. It hasn't been a
significant expense to the dealership, he said.

"It's the second-largest purchase in one's
life," Dixon said. "Sometimes people get in the
middle of it and get excited, and once they get
home, they say, 'Oh, my gosh, what did I do?' "

One hour, one price
Dixon acknowledges that a big challenge
with car purchasing is the time it takes.
"Time kills deals," Dixon said.
So Nelson Mazda, a no-haggle dealership, is
working toward a goal of a one-hour transaction time. The store uses a single client adviser
throughout the process, rather than shifting
the customer from person to person for each
step.
While the one-hour purchase isn't quite up
and running yet, Dixon said, the dealership is
already streamlining the buying process and
changing customer expectations. "People are
now more in tune of what's going on," Dixon
said. "They can pick up their phone and call a
different dealer or look at their inventory
while they're sitting on the floor."
He says competition is stiff, and sticking to
his principles has been key in the business.
"Our model is: Our integrity is worth more
than the car deal," Dixon added. a

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