Wednesday, August 14, 2013

A Blow-Your-Mind Example of Poor Customer Service

So, it's been a while since I've blogged, and I will have a bunch to share in the coming weeks.

I wanted to call attention to what I might consider the *worst* customer service I've ever witnessed. If I polled 100 business owners and asked, "if you could keep a loyal customer (who's been with you for 10+ years) and it'll cost you $100 -- would you do it? You might think 100 would say "Absolutely!" But, I now know, for a fact, there's at least one that won't.

Last year, my wife and I were shopping for new vehicles. We had decided to stick with Hyundai, since they'd been good to us so far. We shopped at a few different dealerships, including Mid-Island Hyundai (in Centereach), where we had purchased our last three Hyundais (although, at the time, they were known as Hustedt Hyundai ... they were subsequently purchased by Atlantic Auto Group.

We ended up buying the vehicles from Atlantic Hyundai, because, quite honestly, they blew everyone out of the water on price (same vehicles, and they came out about $50-55 per month, less than any other dealer).

About 8-9 months after purchasing the vehicles, the key fobs for my wife's car (which had the remote start installed by Hyundai), began cracking ... mine started disintegrating first; and then her's started developing the same cracks. I emailed the sales rep to see what we could do (because, after all, I have to imagine that with a company as keen on service and warranty as Hyundai, the fact that the fobs just disintegrated *had* to be covered under warranty.

I went back and forth with the rep for a while (he kept saying he'd follow up; but, truth be told, I wasn't pushing the issue a  lot). Then, in July, the fob on my key chain just gave up and all the pieces came tumbling out. I finally called the rep, and he said, "Definitely a warranty issue" and they'd replace them. He asked if I went to their location often, and I said I didn't, but that I usually visited Mid-Island. He said that would be fine -- all related and I'd get the same service there. If I had any issues, call him.

So, I made my appointment with Mid-Island for last weekend, Saturday, for an oil change and key fobs. Arrived early for my appointment (which, apparently, they never actually entered into the system ) and told the rep (Therese) what I needed. I also told her I'd be back later than service was open, so please just leave the new keys at the front reception desk. She told me she'd call me when the work was completed.

I never heard from her.

I arrived at the dealer around 6:30pm, and lo-and-behold, the keys were at the front desk; but not the new fobs ... just the old ones. The receptionist brought over the sales manager (Mike), who pointed out to me, on the receipt, that the keys were not covered under warranty, and would be $75 each, with $57.50 in labor (so, a total of approximately $200).

I asked why no one had called (especially when they had told me they would) -- obviously, I would've directed them to Atlantic Hyundai to figure everything out. He didn't know. Apparently, even if Mid Island isn't able to perform the work, it's not customary for them to inform the customer.  The customer only learns when he returns to pick up the vehicle (this is like ordering a dinner in a restaurant, and when the food comes out for the rest of the party, you don't get a plate. When you question it, the waitress says, 'oh, we ran out of that.')

When I told him that Atlantic said the parts *were* covered under warranty, he said, "So, go to Atlantic!" I explained I would've had the oil change done there too -- I didn't need to be without the car for two days, and -- since they had been servicing my cars for 10+ years, I thought it made sense to go there. He then proceeded to state that -- in his opinion -- the parts weren't covered, but, rather, Atlantic was going the extra mile for me, because I'd bought two cars from them.

I explained to him that I wouldn't be back, and that I'd be blogging about my experience. He asked me to hold off until Monday, so he could speak to his service manager (Tom) and rectify the situation. I agreed.

The next day, for some inexplicable reason, the car started honking. No pattern, and no consistency, just random, sporadic bursts of honking. This had never happened before; it only happened after the car was in the *care* of Mid Island Hyundai. My wife called and left a message and I called back and got Mike on the phone. His recommendation to me was to disconnect the battery -- of course, this would render the car un-driveable, but, no worries; I'm sure the next morning my wife could get up, reconnect the battery and park her non-stop honking car in the parking lot of her hospital.

He recommended I contact Hyundai Roadside Assistance, who said they could tow the vehicle to the dealer; but I'd still be out a car. I called him back to see if he had a loaner car -- no such luck.

I called Atlantic -- just to see what they could do; and I spoke to a sales manager, Russ. I explained the situation. He seemed appalled by Mid-Island's responses; and said he would take care of me

I then contacted Corporate Hyundai, to inquire if they really expected their franchises to respond in the way Mid Island had responded (telling me to go somewhere else and that the only reason another dealer was willing to perform the work was because *they* had sold be the vehicles). I explained that brand awareness was such that, even though this was a franchise's actions, it still reflected back on the parent. And, while I knew they couldn't *tell* their franchises what to do; they certainly had the power to not permit a franchise to sell their vehicles any longer.

Corporate was even more appalled than Atlantic. They were incredulous that over -- what was $200 out of my pocket (and, almost certainly less cost to Mid Island) the dealer was willing to lose a customer (and potentially many more, depending on the reach of this blog). They viewed my 10 years of service history as supreme loyalty.

And my car kept honking.

Monday morning, Mike called from Mid Island, and said he had spoken to Tom, and they (Mid Island) would be willing to do the work if Atlantic paid them (this, apparently, constituted "taking care of me" -- "If *someone* pays us, we'll do it"... great). He told me he had left  a message with Russ at Atlantic, and he (Mike) would get back to me that day. Car still honking.

That afternoon, a service adviser from Atlantic called on behalf of Russ, and said they would need to see the key fobs first (now, I started getting a little worried; since I already had verbal confirmation from the sales rep that the fobs would be covered). I told them I'd be in the next morning and I called the sales rep to fill him in on the situation, and ensure he'd be there in the morning.

I got there, went to service. The adviser took the keys to the service manager who said, "replace them, and run them through as a warranty item." Basically, everything they said they would do. The entire situation took about 10 minutes. The service manager said, point blank, that he was amazed that over such a little expense (somewhere between $100-200, of *their* cost), Mid Island would lose a 10-year customer.

I called Mid Island back to speak with Mike -- told him I was being taken care of by Atlantic. He said he hadn't gotten a call back from them; I told him I didn't think he would get one ...that the reactions I'd gotten from Atlantic (and corporate) led me to believe they saw no point in interacting with Mid Island.

A wise man once told me that businesses can excel in three things: Price, Product and Service. They can't do all three and remain profitable.

In the case of Mid Island (versus other Hyundai dealers) -- the product is the same at all dealers (a Santa Fe is a Santa Fe is a Santa Fe). The price is competitive; but as evidenced by the end result, Mid Island still can't compete with Atlantic on price. So that leaves service, and -- after this ordeal, I guess Mid Island has made the conscious choice to not excel in *any* of the three areas.


PS - I've now added "share" buttons (so, if you read something you like, you can share it on various social media sites) and -- for the RSS-feed resistant among you -- I've now added a "subscribe via email" form, so you can be updated via email whenever a new post is made!
PS - I've now added "share" buttons (so, if you read something you like, you can share it on various social media sites) and -- for the RSS-feed resistant among us, I've now added a "subscribe via email" form, so you can be updated via email whenever a new post is made! - See more at: http://cpalermo21.blogspot.com/#sthash.gps0cCPN.dpuf
PS - I've now added "share" buttons (so, if you read something you like, you can share it on various social media sites) and -- for the RSS-feed resistant among us, I've now added a "subscribe via email" form, so you can be updated via email whenever a new post is made! - See more at: http://cpalermo21.blogspot.com/#sthash.gps0cCPN.dpuf

PS - I've now added "share" buttons (so, if you read something you like, you can share it on various social media sites) and -- for the RSS-feed resistant among us, I've now added a "subscribe via email" form, so you can be updated via email whenever a new post is made! - See more at: http://cpalermo21.blogspot.com/#sthash.5zRMYBCr.dpuf