How Lexus Changed the Dealership Experience

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One day in 1987, Dave Illingworth, the general manager of Lexus, dictated to his assistant "The Lexus Covenant." Hokey in a way that mission statements can be, Illingworth's spark of inspiration nonetheless reshaped customer service throughout the industry. "The Lexus Covenant" was carved into a block of granite and placed in the company's then headquarters in California. Every Lexus dealer, none of whom had seen or driven the LS400, had to sign a copy. You can find it on Lexus's dealership training website, though with a slightly evolved intro. It reads, in part:

"Lexus will do it right from the start. Lexus will have the finest dealer network in the industry. Lexus will treat each customer as we would a guest in our home. If you think you can't, you won't. If you think you can, you will. We can, we will."

In 2004, Lexus published a book—cleverly called The Lexus Story—that told the tale of implementing a promise that touched every corner of the fledgling brand, including the literal corners. When it came to designing the first dealership, the man chosen for the task, Jim Sherburne of Toyota's Calty Design Research, explains: "I felt that it had to have a feeling of permanence. 'We're here and we're substantial,' it should say."

That meant leather chairs, earth tones, and coffee tables instead of sales desks, and restrained and consistent signage. But it was the less obvious touches that best sold the new brand. For instance, Sherburne positioned the service write-up areas alongside the dealership's driveway so that service writers could see the customers approaching, slam the license plate into the computer database, call up the car's history, and greet the owners by name. Customers were given loaner Lexuses, not compact cars, and their vehicles would be washed before they were returned. Plus, Lexus established a roadside-assistance program.

Customer service among luxury dealerships was legendarily crappy before Lexus. Many owners would ditch dealerships, relying instead on independent shops to maintain their cars. Service was Lexus's way to overcome its lack of heritage. Lexus's senior technicians became "diagnostic specialists." They wore clean white shirts and were expected to explain directly to customers what was going on with their cars. It changed the industry.

Some 30 years later, almost every luxury brand has stepped up to meet or exceed Lexus's standard. Even the coffee is better now. Starbucks drip and real half-and-half have pretty much replaced percolators full of Folgers and packets of nondairy creamer in every dealership's waiting room. That's a win.
30 years later, has every dealer experience been as good as they were before? YMMV?
 

suxeL

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Dealership experience is a very YMMV experience. If were on the whole excellence bit, I would like some changes that Lexus such as prepaid maintenance and the genesis style of pick up and and drop off for every vehicle as an option with a loaner for certain services.

While coffee, donuts, popcorn and free wifi is great, I`d dont see the point in todays world for those amenities, which are built into the cost of that service anyways...use it towards the aforementioned (heck even use to expand dealer floorspace or service bays)
 

CRSKTN

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Genesis does pick up and drop off because they have no network outside of Hyundai, and having someone pay what Genesis is asking and them experience a Hyundai dealership would leave them DOA as a luxury brand. They're not doing it because it's cost effective or the ideal solution.
 

suxeL

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^Lincoln is doing it as well and I guess its the same issue as you point with genesis.

Just a thought that would really speak volumes about their "Lexus Covenant" thinking moving forward and setting the new standard of service.
 

CRSKTN

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It's funny though, that it's quite intuitive once you think about it. It basically boils down to "could you not screw up all the effort we put into this vehicle, because the customer doesn't like the way you want to sell them a vehicle?".

Plus, i imagine making it a core "cultural" thing of the brand was a nicer way of telling Americans that it couldn't hurt to be a bit more Japanese in how they view their guests/customers.

I absolutely detest walking into a German dealership. Good god almighty.
 
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I absolutely detest walking into a German dealership. Good god almighty.
IDK, last time I went into a BMW store was pretty nice, and was greeted too. But then I was there to drive cars for a special event (M Cars) and there was no pressure to buy one. Did get snacks and water, and a free hat for driving that day.

OTOH, I do mention that dealer experiences do vary. While my folks' experience with two dealers in the LA area were always pleasant (They used to go to one, but they now go to another because its closer and has similar amenities in their lounge), I recall some specific member on that other board go through some horrid events with a certain dealer in Phoenix that even the corporate brass were shaking their head.
 

LexsCTJill

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Dealership experience is a very YMMV experience. If were on the whole excellence bit, I would like some changes that Lexus such as prepaid maintenance and the genesis style of pick up and and drop off for every vehicle as an option with a loaner for certain services.

While coffee, donuts, popcorn and free wifi is great, I`d dont see the point in todays world for those amenities, which are built into the cost of that service anyways...use it towards the aforementioned (heck even use to expand dealer floorspace or service bays)

Lexus can only charge for maintenance as well as not providing pick and drop off because Lexus is a legitimate brand...”a luxury brand”. This is for the areas that Lexus is already know. In some countries, Lexus does offer maintenance included as well as drop off or pick up.
 

CRSKTN

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Lexus can only charge for maintenance as well as not providing pick and drop off because Lexus is a legitimate brand...”a luxury brand”. This is for the areas that Lexus is already know. In some countries, Lexus does offer maintenance included as well as drop off or pick up.

I was gonna say, i've already got service pickup and dropoff, it's just not the same sort of deal that genesis does i think.
 

Ian Schmidt

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I absolutely detest walking into a German dealership. Good god almighty.

A co-worker at my previous job went into the local BMW dealership in a T-shirt and shorts (in Orlando, in July) and they were super snotty about it, so he went elsewhere. The Benz and Lexus dealerships had no such hangups. (This was 20 years ago when BMW had undisputed great product, but even so...).