Honda UK began in 2007 with an ambitious research initiative in Experience Programme (REP), to identify why customers walk away from showrooms empty-handed and why they might not return in the future. Article from Tim Routledge, Founder – Experience Insight.

The research focused on both customers and customer facing staff and used a combination of scientific research approaches and techniques from neuroscience, psychology, physiology and behavioural economics to truly understand customer experiences and the factors that influence decision making and purchasing.

Using cutting-edge technology to take biometric monitoring out of the lab and into the world of car retailing, Experience Insight monitored real customers who were intent on buying a car, filming and recording them while they researched online and when they visited car showrooms. This information was matched with second-by-second recordings of their heart rates, respiration and galvanic skin responses.

Using this data scientists completed a physiological and psychological profile of the customer journey to identify the moments when it goes wrong – events that can ‘trip up’ the relationship and get in the way of a successful interaction between customers and staff (Experience Insight has named such moments the ‘Tripping Points’)

The findings from the research activity were used to create a programme of practical improvements focusing on the three key elements of customer experience: People,

Place and Process. Extensive trials of the experimental pilot programme took place during 2011 at two Honda dealerships. The REP was developed and officially rolled out to 13 Honda dealerships in 2012. The REP includes a comprehensive training and coaching programme for sales and aftersales teams. The employee programme provides both a theoretical framework and practical support to enable dealership teams to implement and sustain improvements and so consistently deliver optimal customer experiences.

The REP uses an experiential approach to learning, and is delivered on site at participating dealerships. Each module of the five-year programme focuses on a different element of the customer experience including: new car sales; used car sales; aftersales; sales prospecting; aftersales conversion and motor finance

Training modules are designed to build and integrate knowledge, skills and competencies year-on-year, and are complemented by individual coaching

Dealership participation is currently voluntary, and new dealerships have joined every year and as of July 2016 over 600 staff were participating in the training programme

The REP is subsidised by Honda UK but dealers also contribute separately to the cost of the programme – a critical indication of the value they place on it

The programme must deliver a return on investment and so every area on which it impacts is carefully monitored. Research and development phases are ongoing to ensure the content of existing REP training is relevant and up to date for the individuals and teams on the programme. Dealers within the REP have on average achieved increased margins and unit sales of 23% above dealers not on the programme.

Dealers within the REP are on average ranked 20 places higher than dealers not on the programme and occupy 6 of the top 10 positions as ranked by Honda UK’s scoring system. Honda’s Customer Satisfaction Index shows that the average combined score in both sales and aftersales for REP dealers is currently around 16% higher than those dealers not on the programme. The average rate of staff retention across the Honda network is around 50% per 12 month period in-keeping with the industry average; for  REP dealers who have been in the programme for 3 years that retention figure is 81% (across all 36 months), 85% for those who have been in the programme for 2 years (across 24 months) and 90% for those in the programme for 1 year (12 months).

The recognition of the crucial contribution of people rather than process to the customer experience has generated improved staff morale with overall job ‘positivity’ rising by 13% according to research of over 200 members of staff. Honda UK currently holds the number 1 position for both customer satisfaction (JD Power CSI League 2015 – Volume Brands)  and customer retention (Castrol Trend Tracker Service Retention 2015). Since its launch in 2012 the REP continues to deliver significant and measurable improvements in car sales, aftersales performance, dealership profitability, staff retention and improved customer experience.