Dealer Profile: RMB Automotive

The rebuilding of the Renault dealer network has continued apace, the latest opening being the RMB Automotive outlet in Northallerton, North Yorkshire. For RMB managing director and owner Robert Bennett, the opening brings him back to a brand he knows well having spent 32 years with Renault, eventually running the Renault Retail Group, before leaving to set up his own business.

RMB Automotive launched in 2003 with Toyota and Lexus franchises in Teeside. Since then it has added two more Toyota sites, a Ford outlet and an RMB Autoparc used-car centre.

The new Renault and Dacia site, which opened in June, is one of the first to offer the Renault Store retail concept, featuring themed zones and interactive displays. The group is already planning its second Renault/Dacia site in Darlington in 2016.

What was the attraction of adding Renault and Dacia to your brand portfolio?
Well we all know Renault has had its problems in the recent past and effectively it is now the same in name only compared to when I knew it 13 years ago. I’ve watched the brand with interest, and yes some sentimentality creeps into one’s thoughts – I am glad to see the brand has come back good and strong.

Going forward Renault has a fantastic range of products, with more coming in the next couple of years. Also, despite what’s happened before, the brand also has incredible customer loyalty. We are also pleased that Renault now features in the top 10 of the JD Power surveys – that’s something that we are used to running Toyota and Lexus centres.

Is Dacia bringing in a different kind of customer to what you are used to?
I don’t think so – we’ve been quite surprised at the customers attracted to the brand. Contrary to what we expected Dacia is not necessarily attracting budget buyers but instead people that are simply looking for good value – the brand probably resonates quite well with Yorkshire people.

You have been ranked top for Toyota customer satisfaction in the last three years – how will this help you with your new Renault business?
The two sites where we are putting Renault and Dacia, Northallerton and Darlington, are currently number one and two for Toyota customer satisfaction. We have very much a customer-centric mentality that translates into customer-centric business processing. Our processes consider the customer before the bottom line and we coach and train all our staff to focus on identifying the needs of our customers.

Firstly our staff needs to listen to what the customer has to say and then deliver and over-deliver on what they are looking for in an honest and transparent way. That’s easily said, but more challenging to achieve – staff need to fully understand that the sale is probably only half the job in terms of bringing the customer back to maintain the relationship with the dealership.

We have been unusual in that in some instances, our customer satisfaction in the service department has actually exceeded that of sales – currently our customer service recommendation score and follow-up is within one percentage point of sales.

Does this focused approach to sales require a lot of training?
Not so much training but more coaching, on the showroom floor rather than in a classroom environment. I set out, wherever possible, to speak to any customer I come into contact with, whether in the showroom, the used car pitch or the workshop and that helps with top-to-bottom communication.

What are the issues you’ve encountered with staff recruitment?
Recruiting technicians has been a particular problem – the brand has suffered from its recent difficult history in that many Renault-trained technicians have gone off to other brands. But historically they’ve been trained to very high standards and attracting them back to the brand isn’t so much of an issue.

What focus are you giving to the sale of added-value products such as GAP/RTI insurance?
A fair amount – we’re currently going through a period of change and some people are nervous about selling such products. But we work from a background of transparency and honesty, selling a customer what they need rather than what we want to sell, so we don’t find it so much of a challenge.

How important are such products to your business both in terms of profit and the impact on CSI and retention?
Very strong – the impact on customer satisfaction is very hard to measure, but we do know that customers that do have to claim on such products, particularly GAP, are very happy that they invested in them and they then become very good ambassadors for the business. The customer satisfaction aspect of it is a bit of a slow burn but it is there.

What steps have your business taken to adapt to the new regulatory framework for F&I?
Our manufacturer partners have obviously adapted to the regime and are very much compliant with it. Toyota and Lexus are probably ahead of the rest in terms of compliance and Renault seems to be the same. We follow suit, so we are comfortable with what we are doing.

How do you see the new car market performing?
I find it quite challenging at the moment. Manufacturers are pushing for a slice of an ever-growing pie but I’m not sure that’s sustainable in the medium term. I think the slowdown predicted by the SMMT is now happening, and going forward the successful manufacturers will be those who realise quickly what their true volume potential is, whilst maintaining a stable network. I’m confident in the manufacturers we are with. It’s always going to be difficult where there are relatively new entrants into the marketplace wanting to push for what is more than their natural share of the market.

Meanwhile you are already planning the opening of a second Renault/Dacia outlet.
Yes. We have over the last couple of years purchased additional land at our Darlington centre. The new outlet is part of our organic growth that we see continuing, certainly with our existing brands.

We would also consider adding another brand wherever there is a good fit with our ethos.