Many people don’t know this but Kruse Control got into digital by way of online reputation management. In 2009, I could see online reviews becoming more important than CSI ratings, given the fact that customers could talk to one another in real time rather than waiting for JD Power to announce their findings every year. Dealership surveys had become boring and customers who took the time to express their opinions felt like their efforts were falling on deaf ears.
I was a Yelper from the beginning.
I was an early user of Yelp, enjoying how it allowed friends to share their experiences with local businesses. Yelp made it engaging by gamifying interactions and hosting real-life meetups. One day, I was chatting with a friend who still worked at a dealership I had previously managed. Back when we worked together, the dealership had been #1 in sales, service, parts, and customer satisfaction.
After our conversation, I decided to check out the store’s Yelp reviews. To my dismay, the ratings were terrible. I knew the dealership’s in-person customer experience hadn’t declined that drastically, so I suspected the low scores were due to a lack of attention to this new online platform.
The next day, I spent some time researching Yelp reviews for all 50+ BMW dealerships in California. I was surprised to find that, except for two, all had ratings below 3 stars, with most averaging only 1 or 2 stars. It became clear to me that dealerships needed an internal process to capture the voices of happy, loyal customers—something different from traditional CSI surveys. At the time, no one within dealerships was responsible for monitoring, managing, and responding to online reviews. This realization sparked Kruse Control’s journey into the automotive digital space.
Importance of responding to online reviews
Back then, there was little focus on online reviews, even though customers were embracing them and relying on them when buying a car or servicing their vehicle. I never fully understood why it took dealers so long to recognize the opportunity—or the risk—and even today, some still treat it as an afterthought.
With CSI and online reviews now coexisting, it’s more important than ever to monitor and respond to what your customers are saying online.
Online ratings are a company asset
Online reviews significantly impact the value of a car dealership by influencing customer trust, loyalty, and ultimately, sales volume. However, this impact goes both ways: positive reviews boost…and negative reviews drain.
I would consider several key factors to determine the monetary value of a 5-star online reputation for a potential sale. The value can vary widely, but a conservative estimate would be 5%-10% over a dealership’s baseline valuation. So if the value of the dealership is say, $10m, that equates to $500K – $1m in additional value. That’s a pretty nice return on hard work.
As a former dealership CFO, managing risk was a key part of my role, which is why I became so invested in—and vocal about—online reviews. If your dealership is already handling online ratings effectively, congratulations! I hope this post offers fresh ideas to help you further fine-tune your strategy.
If it feels like your online ratings are controlling you—making you feel they’re out of your control—you may be leaving your reputation to chance. With the rise of fake reviews and online outrage, it’s important to assess and possibly improve your review management process, no matter where you are on your journey.
Rationale for implementing a policy for monitoring and responding to online reviews
As a dealership CFO, I relied on well-defined policies to guide our efforts. Establishing a policy for monitoring and responding to online reviews is an excellent first step. A clear policy helps you, your managers, and the entire team set expectations, uphold accountability, and work toward your goals with precision.
1. Necessity of the Policy
- Reputation management. Online reviews significantly impact a dealers’s reputation. Having a clear policy in place helps ensure consistent, professional responses that can protect—and even boost—the store’s image.
- Customer engagement: Responding to reviews shows that the company values customer feedback and is committed to improving its customers’ experience. BrightLocal’s 2024 Local Consumer Review Survey found that review responses are crucial:
- 88% of consumers would use a business that replies to all of its reviews, compared to just 47% who would use a business that doesn’t respond to reviews at all.
- Consumers are 41% more likely to use a business that responds to all of its reviews than a business that doesn’t respond to any.
- This indicates that not only do customers read reviews, but they also pay close attention to how businesses address feedback.
- Competitive advantage: Actively managing online reviews provide valuable insights into customer perception, their satisfaction and areas for improvement, giving the dealership a competitive edge.
2. Benefits of the Policy
- Improved customer relations: Timely and thoughtful responses to reviews build trust and loyalty among customers.
- Positive image: Consistent monitoring and professional handling of reviews enhance the company’s online presence and reputation.
- Increased transparency: Demonstrates the company’s openness to feedback and willingness to address concerns publicly.
- Insightful feedback: Online reviews provide valuable insights into customer preferences and pain points, guiding business improvements.
3. Risks of Not Having a Policy
- Reputation damage: Unaddressed negative reviews harm the dealership’s reputation and deter potential customers.
- Inconsistent responses: Without a policy, responses may vary in tone and content, leading to confusion and dissatisfaction among customers.
- Missed opportunities: Failure to monitor and respond to reviews can result in missed opportunities to resolve issues and improve customer satisfaction.
- Escalation of issues: Ignoring negative feedback can lead to escalated complaints and potential public relations crises.
Key Components of the Policy for Monitoring and Responding to Online Reviews
1. Monitoring Procedures
- Regular review checks: Establish a schedule for regularly checking online review platforms.
- Designated personnel: Assign specific team members or roles responsible for monitoring and responding to reviews.
2. Response Guidelines
- Timeliness: Set clear timelines for responding to reviews, prioritizing prompt responses to negative feedback.
- Consistency: Ensure responses are consistent with the company’s brand voice and messaging.
- Tone and language: Provide guidelines on maintaining a professional, respectful, and empathetic tone in responses. Never sound “corporate” or “canned” in your response – people are looking for authentic responses.
Pro Tip: I like to use my “Stop, Drop and Roll” method, which simply means don’t respond quickly when your emotions are high. Negative reviews can feel like someone is calling your baby ugly, and that’s not a great frame of mind to be in when responding to reviews that have a potential audience of thousands. Take a beat, respond the next day and if you can, write out your response first and have someone objective take a look at it before you hit send.
3. Handling Negative Reviews
- Acknowledge and apologize: Always acknowledge the reviewer’s feedback and apologize for any negative experiences. Remember, you’re responding to the reviewer and a potential audience of thousands who will often judge whether to buy from you based on your responses.
- Offer solutions: Provide solutions or steps being taken to address the issue mentioned in the review.
- Take it offline: Where appropriate, suggest taking the conversation offline to resolve the issue more effectively.
4. Promoting Positive Reviews
- Encourage feedback: Encourage satisfied customers to leave positive reviews on various platforms.
- Highlight reviews: Share positive reviews on the company’s website or social media to build credibility.
5. Training and Support
- Employee Training: Provide training for employees on:
- How to build a Review Funnel: Systematically drive customers to one conversion funnel that routes them to the review sites you care about.
- How to ask for reviews
- Follow-up protocols. Most people are happy to leave reviews but once they get home, life gets in the way so a gentle follow up is key.
- How to effectively monitor and respond to reviews.
- Support Resources:
- Offer resources and support for employees handling reviews, including templates and FAQs.
- Recognize, incentivize and reward those who are enthusiastic about getting verified reviews.
6. Review Analysis and Reporting
- Regular Analysis: Conduct regular analysis of reviews to identify trends and areas for improvement.
- Reporting: Maintain records of reviews and responses, and report findings to management for strategic planning.
Best Practices for Responding to Negative Reviews
Since we’re focusing on responding to reviews, let’s look at effective ways to handle the negative ones that are bound to come up. Spotlighting this area of review responding in your dealership written policy will provide specific guidance for team members.
1. Timely Responses
- Prompt action: Respond to negative reviews as quickly as possible to show that you value customer feedback and are proactive in addressing concerns.
- Monitoring systems: Implement a software monitoring system to alert you to new reviews immediately.
2. Acknowledgement and Empathy
- Listen intently so that the customer feels heard: Very often, their need for someone care enough to listen to their complaint is what they desire, and when they get that, they usually calm down.
- Recognize the issue: When it’s your turn to talk, start by acknowledging the customer’s concerns and thank them for their feedback.
- Show empathy: Express genuine empathy and understanding of their frustration or disappointment.
3. Professional and Respectful Tone
- Stay calm and courteous: Maintain a calm, courteous, and professional tone, even if the review is harsh or unfair.
- Avoid online arguments at all costs: Never argue or respond defensively to negative reviews.
4. Apologize Sincerely
- Offer a genuine apology: Apologize sincerely for the customer’s negative experience, regardless of who is at fault.
- Take responsibility: Accept responsibility where appropriate and assure the customer that their feedback is taken seriously.
5. Provide Solutions
- Propose a resolution: Offer a clear solution to address the issue raised in the review. This can often be an invitation to discuss the matter further offline. Then, once the offline connection is made, offer a refund, a replacement or, in some cases, monetary compensation or a discount on their next service.
- Take action: Ensure that the proposed resolution is actionable and follow through with any promises made.
6. Take the Conversation Offline
- Private discussion: Suggest continuing the conversation offline to resolve the issue more effectively and privately. Provide contact details such as an email or phone number.
- Follow-up: Follow up with the customer after the issue has been resolved to ensure their satisfaction. I have often turned a very unhappy customer into a “customer for life” by how I handled their issue. It’s not difficult – it takes practice and not every customer is a candidate for that outcome – in fact, few really are – but it’s fun to try.
7. Learn from Feedback
- Identify patterns: Analyze negative reviews to identify recurring issues or patterns that need addressing.
- Implement changes: Use the feedback to make necessary improvements in team member training and customer service processes.
8. Encourage Positive Reviews
- Respond to positives: Also respond to positive reviews to balance your online presence and show appreciation for satisfied customers.
- Promote positive experiences: Encourage happy customers to share their experiences online.
9. Transparency and Honesty
- Be honest: If there was a mistake, admit it openly and explain the steps being taken to prevent it from happening again.
- Transparency: Maintain transparency in your responses to build trust with your customers.
10. Training and Guidelines
- Employee training: Train employees on how to handle negative reviews effectively and professionally, while incorporating your Policy for Monitoring and Responding to Online Reviews.
- Response Templates: Provide templates for common issues to ensure consistency in responses. That way, when someone is out sick or off duty, another team member can easily pick up the baton.
Final Thoughts
Online reviews are more than just feedback—they’re a vital part of a dealership’s reputation and customer relationship strategy.
By proactively monitoring and thoughtfully responding to reviews, dealerships can strengthen their brand, build trust with potential buyers, and address issues before they escalate.
Implementing a structured approach ensures that every review, whether positive or negative, is seen as an opportunity to connect with customers and demonstrate commitment to their satisfaction. With the right playbook in place, dealers can transform reviews into a powerful tool for higher sales and customer loyalty.
Is your financial health in the fast lane or stalled on the side of the road? You want experience on your side without the huge salary. Let’s talk and figure out if an On-Demand Automotive CFO is right for you!