Lead conversions and customer satisfaction up since agency model move
After six months’ operating under an agency retail model, Honda Australia says it is ‘continuing to build momentum’ towards an expected 20,000 annual sales future.
The controversial move to this fixed price sales model, where dealers act as agents for the manufacturer, has attracted considerable criticism from announcement to implementation… the latest flurry surrounding the premium price positioning of Honda’s new Civic.
In its latest update, Honda Australia points to the ’89 per cent of customers that strongly agree that buying a new Honda was exceptionally easy’ and that its lead conversion rate, as measured by Deloitte, increased 40 per cent in 2021.
That first figure was garnered via Honda’s new ‘live’ customer feedback system, Honda Australia’s Managing Director Stephen Collins adding that “87 per cent (of customers) gave the new sales experience a top rating of 9 or 10 out of 10.”
According to VFACTS December 2021 figures, Honda sold 1640 vehicles in the month. While this figure would put Honda on target for its 20,000 unit annual target, it remains well short of the 2619 units moved in December, 2020.
For calendar year 2021, Honda hit 17.562 sales; down from 2020’s 29,040.
“November was actually the first full month of relatively normal trading conditions for our new national network of Honda Centres, especially in the key metropolitan areas of Melbourne and Sydney, which resulted in more sales contracts signed and more cars delivered to customers, as well as an increased level of customer enquiries,” said Collins.
Honda’s focus now moves to refreshing the entire model line-up over the next 18-24 months, with each new model expected to follow the ‘premium’ template set by the Civic: less grade complexity, more equipment… and higher price of entry.
