When it comes to buying a vehicle, the experience at the dealership can be just as influential as the car itself. A recent internal discussion explored a critical question: If a customer has a poor experience at a dealership, are they more likely to write off the dealership, the OEM, or both? As you may have guessed, each experience is unique. But there are trends to follow that make it so adjusting your strategy and working WITH the customer, not against them, can lead to the best possible outcome. One key point is that depending on where the poor experience happened (Sales or Service), it can drastically affect the way your customer thinks not only about your dealership, but the entire brand itself. Logic would dictate that people don’t want to be in the service bay every month with problem after problem. Maybe it’s a faulty engine, transmission, or computer issues. If the customer is spending more time in the shop than on the road, chances are they won’t be looking at that OEM again anytime soon. But add in a poor service experience, or mishandled warranty claims…well you are pretty much signing off ANY chance of retaining that customer. If they are shopping around and the first interaction with the salesperson is rude, forceful, or gives the customer the feeling they can’t trust what is said to them, that dealership often gets the boot. It only takes one bad experience for a customer not to shop there again. Let’s look specifically at the breakdown of where things can go wrong depending on where a poor experience happens:
Sales Experience: Dealerships Take the Hit
Poor experiences during the sales process most often lead customers to avoid that specific dealership. From the people we asked, many noted that if the vehicle itself is still appealing and the brand reputation remains intact, customers will simply seek out another dealer offering the same OEM.
However, the fear of encountering the same salesperson again or dealing with a dealership that feels untrustworthy can be enough to push customers to look elsewhere for both sales and service. In these cases, the dealership loses the customer, but the brand may still retain them…at least temporarily.
Service Experience: Brand Loyalty at Risk
When the issue shifts to service, the consequences are more severe. Customers often associate these frustrations directly with the brand. If the vehicle itself is the source of the problem, and the dealership fails to resolve it in a timely or cost-effective manner, the customer may not only leave the dealership but also vow never to buy that brand again. This is where the OEM’s reputation is most vulnerable. A poor service experience can erode trust in the product itself, leading to a complete switch in brand loyalty.
It’s an unfortunate dilemma most service bays encounter. But making sure the experience is as pain free as possible can preserve a relationship, not just with the dealership, but with the brand. When you’re in the business of making sure people look at your brand first, this step is vital for the longevity of the customer relationship.
The Small Town Dilemma: No Second Chances
In smaller communities, the stakes are even higher. When there’s only one dealership per OEM, a bad experience at that dealership often means walking away from the brand entirely. Customers in these areas may not have the time, resources, or willingness to travel to another town for service or sales.
Being limited by your location turns every customer interaction into a high-stakes moment. A single poor experience can cost both the dealership and the OEM a customer for life.
Customer Experience Is a Shared Responsibility
Unlike so many other purchases, a vehicle purchase is one that spans YEARS. Things don’t have to stop at the showroom floor. One great customer experience can mean a generation of customer loyalty that can spread across family, friends, and co-workers.
Every corner of the dealership plays a part in making sure the customer feels welcome and that they can trust the information given to them. When the ripple effect of a bad customer experience can go from dealer to brand, it’s vital to make each visit the best you can offer.
We all rely on our vehicles to get around. We all want the best option to fit our needs. And most importantly, we want to feel confident that the purchase we made was the right one.
When dealerships and OEMs prioritize the customer experience they build trust that lasts. In a competitive market, that approach doesn’t just retain customers, it earns advocates.
Customer experience isn’t just part of the journey. It is the journey. And the businesses that understand that are the ones that win.
