Dealer reputations improve online, but customers still have gripes

Dealers’ reputations online are improving slowly, but certain factors are holding the industry back.

Driving the news: Dealers have seen a small boost in review scores on Google this year, according to a new report from Widewail, suggesting an increase in customer service satisfaction.

• Customers are engaging more with dealership Google pages. The average number of monthly reviews dealers receive is now at 11.7, up 18.5% or roughly three reviews from 2023.

• Despite the increased engagement, bad reviews are on the decline. Only 11.1% of dealership reviews were negative this year, down 21%.

• Overall, dealership Google ratings averaged 4.56 stars (out of five) in 2024, up from last year’s score of 4.44.

Zooming in: Although dealers are seeing slight improvements in engagement and performance, certain problem areas continue to hold scores back.

• Same as last year, communication remains the biggest factor driving bad reviews, with the number of negative scores rising about 6.4% from 2023. While service remains the area most affected by poor communication, sales departments saw the biggest increase in negative feedback.

• Negative mentions of staff overall are also up 19.6% this year, with most reviews focusing on financing department employees. With the return of incentives and ongoing challenges surrounding affordability, the F&I side of the car business is becoming more complex than it was during the COVID era.

Zooming out: However, it’s also important to note that Google review scores may not offer a complete picture of a dealer’s typical performance.

• Reviewers may not feel the need to share ratings unless they had a particularly memorable experience (either positive or negative). Businesses can also easily incentivize positive reviews online.

• With that in mind, Customer Service Index scores, usually hosted by the manufacturer, may offer a more accurate and unbiased view of a dealer’s performance.

Bottom line: Dealers will need to address knowledgeability gaps among staff members to ensure they communicate effectively with customers and work to boost transparency in the financing process. However, with the overall gain in positive scores, it seems the industry is working hard to learn from the past and make the car buying experience better for buyers despite the ongoing challenges.

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