From labor shortages to rising customer expectations (and demands), service teams have to sing for their supper, so to speak, in the current economic climate. And with such increased pressure comes the need to empower staff with the right communication tools and integrated strategies for success. Here, we’ve gathered up five of the most impactful industry trends of the moment and explained the best way to manage each for maximum profits and minimal downside, utilizing smart technologies and VoIP phone systems.
1. The Trend: Labor Shortages
Labor shortages are being felt across nearly every industry, and it’s not a figment of hype—it’s very much accurate, explains an article on Supplychainbrain. “The jolt to business as usual from the COVID-19 pandemic was followed by a mass exodus of workers from the labor force. The Great Resignation saw 47.8 million Americans quitting their jobs in 2021, and another 50.6 million in 2022. And the ripple effects on the workforce continue to impact employers today.”
Indeed, things aren’t anywhere near back to where they were pre-COVID: Supplychainbrain further highlights that as of May 2024, labor force participation was around 62.5%, meaning there were about 2.3 million workers fewer than in February of 2020.
So, how can the automotive dealer industry respond? Implement smart technology that allows human workers to operate happily, efficiently, and effectively. As IBM argues, “AI helps companies meet modern demands by delivering intelligent, always-available assistance that quickly resolves issues while easing the load on human customer service teams.”
Technologies, like cloud or hosted phone systems, that harness AI in a way that enhance human performance are just smart business.
2. The Trend: Rising Consumer Demands
Alongside a minimal workforce that is stretched thin, consumers are becoming increasingly demanding, too. According to Salesforce: “Our State of Service research finds that 82% of service pros say customer demands have increased, while 78% of customers feel service is rushed.” It goes without saying that customer satisfaction is a requirement for success—as IBM notes, “AI is reshaping customer service into a strategic advantage, as customer experience often determines loyalty.”
This is another reason integrating AI is key. A smart phone system that allows your brand to properly and efficiently route calls, and then learn from those calls to continuously increase the personalized experience for the consumer, will work wonders. A blog from brand Nextiva elaborates that with such systems, “Customers never have to wait due to the efficient management of call volumes, which redirects calls to the next available support team member. Customer information readily available to service agents results in a more personalized interaction, impressing customers.”
Further, explains a piece by Freshworks, a unified communications system routed in a cloud-based VoIP offers the customer a chance to work as they please, rather than conforming to your brand as the provider. “Giving your customers the freedom to choose their preferred communication channel is part of providing an excellent customer experience.”
3. The Trend: Higher Cost of Goods
You could argue that the automotive industry has felt the impact of the rising cost of goods more than nearly any other, and it’s hard to manage. But there are ways to encourage your business to survive: Namely, lowering costs where you can and, of course, encouraging customer loyalty to ensure a steady revenue base. And when it comes to the former, a VoIP system is just smart business.
As a Nextiva blog illuminates, “On average, a landline phone system costs businesses $50 per line each month for local or domestic calls. In contrast, VoIP plans start at less than $20 per line per month with international calling, video conferencing, and many other features.” When you add to that the customer-facing personalization benefits and improved experience, it’s a no-brainer.
4. The Trend: The Increase of Unchecked Social Media Reviews
While sites like Yelp, Google, and other crowd-sourced review aggregators can be incredibly helpful when used positively, there’s always a risk of one unhappy customer spoiling the pot. “A single bad experience can affect how your customers perceive your brand,” the article from Freshworks notes. “In fact, one-third of consumers say they would consider switching companies after just one instance of bad customer service. Being able to convey a message effectively is critical to offering excellent customer support.”
The easiest way to safeguard against this is to ensure all interactions are as positive as they can be—and cloud-based phone systems are an easy, low-hanging-fruit way to achieve just that. As Nextiva continues, “Cloud-based telephone systems offer businesses enhanced flexibility, scalability, and accessibility to ensure a positive customer experience.”
Freshworks doubles down on this idea, elaborating that, “Knowing who your customers are and what drives them to buy your product or request your service is crucial to business growth and success. Use data analytics for identifying customer groups, problem-solving, and troubleshooting.”
5. The Trend: Notable Market Uncertainty
It’s an opaque time—the market and its future are in flux, and people are feeling iffy, at best. The most ideal way to handle this from a customer-relations angle is to be a source of stability and consistency when everything else seems, well, inconsistent.
As Business.com recommends, “The customer journey, including all customer service interactions with your brand, should be consistent and frictionless. Customers should view your brand as a cohesive unit and experience the same high-quality service at every touchpoint.” One key way to do this? A phone system that works with you and enables your service team to get to know your customer on a personal level and shows up the same way, no matter who is handling any given interaction. “Excellent customer service communication is consistent across channels and customer interactions,” continues Freshworks. “It means that the service experience doesn’t change depending on who offers support.
For example, when customer support reps communicate with your customers, you want them to use consistent tone and language and refer to unified customer records to ensure that customers don’t experience any friction in their experience.”
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