These days, managing your dealership’s online reputation is a bit like trying to keep a balloon from touching the floor using only your head—exhausting, slightly ridiculous, and oddly competitive. One minute, you’re coasting along with five-star reviews and a coffee machine that works, and the next, your CSI score has been torpedoed by someone who thinks a 20-minute wait in service constitutes a hostage situation.
When “Word of Mouth” grew fangs
I’ve been in this game since 2009—back when Facebook still felt like a dorm room project and Yelp sounded like something your dog did when you stepped on its tail. I noticed there was zero standard process inside dealerships for dealing with what I called “customer feedback in the wild.” People were posting their experiences in real-time, and dealerships… were mostly just hoping for the best.
What followed was the typical industry cycle: panic, vendor invasion, and promises of easy fixes. Reputation “management” became a line item—outsourced, automated, and often ignored. The bad reviews piled up, and a few unfortunate souls found themselves digitally blackmailed by customers who knew exactly how much leverage a single star carried.
Instead of shifting the culture or investing in long-term solutions, dealers grabbed at shortcuts. We handed over the keys to our public image—and surprise!—the online platforms happily took control of the narrative.
Knowing it’s a problem isn’t the same as fixing it
Instead of digging in and building a sustainable, cultural shift in how customer experiences were handled, many dealers opted for duct-tape solutions: vendors with dashboards, widgets, and enough buzzwords to make your eyes glaze over. These tools promised to “fix” things, usually by emailing you every time someone sneezed near your Google listing.
Why I still believe (despite it all)
I’m what you might call a car business idealist. I come from family-owned franchise dealerships where the service manager also coached your kid’s soccer team. I believed—perhaps naïvely—that the industry would embrace online reputation management like a long-lost friend. Some did. And those dealers? They’re still winning. Their reviews read like love letters and their CSI scores are higher than most people’s cholesterol.
But for the majority, it was easier to just….not.
NIADA, underdogs, and flaming hats
When NIADA invited me to speak at last year’s conference, I was thrilled. These independent dealers—the ones whose lots are wedged between donut shops and dry cleaners—are scrappy, under-supported, and often running on pure adrenaline and black coffee.
I’ve always felt a connection with this crowd. They’re scrappy. They’re smart. And, let’s be honest, they’re often left fending for themselves when it comes to things like CFO guidance or digital marketing—especially online reputation.
They don’t have a manufacturer breathing down their necks, which is both a blessing and a curse. No rules… but also, no lifeline when things go sideways.
That’s where I come in.
I’ve spent hours talking to independent dealers who feel like they’re drowning in digital quicksand. They’re underserved, overworked, and sick of being pitched $1,500/month “solutions” by people who wouldn’t know a trade walk if it hit them in the CRM.
If you’re an independent dealer, you’re not just wearing multiple hats. You’re juggling them. On fire. While trying to close mostly subprime car deals.
What’s it worth—really?
So, in prepping for my NIADA session, I went back to basics: What’s an online reputation really worth? Not in likes or stars, but in cold, hard resale value. Because yes, it is an asset—just not one you can park on the lot or depreciate over five years.
Your online reputation is part of your Blue Sky
You won’t find your online reputation on a parts statement or hanging above the F&I desk—but it’s just as real. It’s not a vanity metric. It’s an asset, and one that—when managed right—can drive traffic, build trust, and yes, even increase the value of your business.
Reputation is equity. And unlike used car inventory, it doesn’t depreciate with every passing month. It grows when you nurture it. And it crumbles when you don’t.
Ignore it and watch it crumble
As with any asset, neglect leads to erosion. (See also: driveways, teeth, and goodwill.)
A cautionary carnival of mistakes
Later, I’ll be sharing some of the more common online reputation mistakes I see today. Think of it as a show-and-tell of other people’s bad decisions—a public service, really. There’s something noble in learning from someone else’s catastrophe so you don’t have to have your own.
But first, the price tag
Before we dive into the wreckage, let’s talk about what that online reputation is really worth—and why protecting it might be the best investment you’ll make this year.
What Is a Five-Star Reputation Worth, Anyway?
Let’s talk money. Not intangible money, such as goodwill or brand equity. I’m talking actual, spreadsheet-worthy value.
A glowing online reputation, much like a polished pair of Ferragamo loafers, sends a message: “We have our act together.” And whether you’re selling the business tomorrow or hanging on until retirement (or until your nephew finally learns what a service drive is), the financial impact of a 5-star reputation is no joke.
I’ve worked on several dealership buy/sells, and I assure you, a five-star rating isn’t just bragging rights—it’s real capital. Assigning monetary value to it should absolutely be part of your valuation process. If a store’s worth $10 million, a sterling online presence could bump that up by $500,000 to $1 million. Which is roughly the cost of ignoring it for two years and then scrambling to fix it.
Here’s how I break it down:
The Reputation Revenue Equation
Impact on sales
A glowing reputation brings people through the door. Not just any people—pre-sold, eager-to-like-you, wallet-in-hand people. Look at your historical sales data: how did your numbers shift before and after you earned that fifth star? The answer, like carbs after 40, might surprise you.
Customer Lifetime Value (CLV)
A happy customer returns. An ecstatic one brings friends. When your reviews scream, “These people care,” the customer doesn’t just buy a car. They come back for service, send their cousin when his lease is up, and maybe even drop off cookies at Christmas.
Competitive Advantage
In markets where dealers are practically on top of each other (I often with clients who have several stores visible from the same stoplight), a top-tier reputation becomes your moat. Customers scroll. They compare. And when it’s between you and the place with the 2.9-star average and a review titled “WORST EXPERIENCE EVER,” well… the math does itself.
Reduced marketing costs
Great reviews are free advertising. (Technically, they’re hard-earned, slightly traumatizing, and possibly fueled by too many espresso shots, but still—free-ish.) You don’t have to spend as much convincing people you’re legit when your customers are already doing it for you.
Goodwill and Brand Equity
Let’s not forget the squishy stuff. The “vibe,” the “energy,” the feeling customers get when they walk into your store and don’t want to turn around and flee. That’s goodwill, and it has a value. Intangible? Sure. But so is Taylor Swift’s cultural impact and she seems to be doing just fine.
Why It Still Goes Wrong
Despite all this, many dealerships still stumble. In fact, the road to a 5-star reputation is littered with the scorched remains of misguided responses and “Canned Reply #4 – Thank you for your feedback, valued customer!”
I once led a national online reputation training session for a manufacturer, where a very red-faced dealer stood up and announced, “Social media is a scourge!” His frustration was understandable—he was trying—but every day felt like a game of digital whack-a-mole.
We found a workaround. He’d write review responses in a Word doc and send them to his wife before posting. Not the most scalable strategy, but hey, whatever keeps the peace—and the replies heartfelt.
Six Common Mistakes in Online Reputation Management
I’ve been cataloging the greatest hits of dealership reputation missteps. Think of it like a “Don’t Do This” mixtape.
1. Ignoring Customer Reviews
Example: Letting reviews pile up like mail in a vacation home.
Impact: Makes it seem like you don’t care. Even worse, it suggests you do care but can’t be bothered.
Fix: Respond. Like a person. Not a robot. Avoid copy-paste fatigue and take sensitive stuff offline to rebuild trust.
2. Negative Customer Experience
Example: The greeter looks through you like you’re a ghost. The service advisor forgot your name. Twice.
Impact: People talk. And not in a “you’ve got to go there” kind of way.
Fix: You can’t fake nice. Either train for a better customer experience, or prepare to pay in refunds, apologies, and online reputation rehab.
3. Poor Handling of Negative Feedback
Example: Responding to a 1-star review with a digital temper tantrum.
Impact: Public meltdown. Your future customers are watching and wondering if they’ll be next.
Fix: Breathe. Don’t make the customer wrong (even if they are). Offer a lifeline—like a direct number to the GM. Preferably one that works.
4. Lack of Proactive Engagement
Example: You only show up when there’s a fire.
Impact: No relationship = no forgiveness.
Fix: Engage early and often. A quick “thanks for the love” goes a long way. Make it personal. Be human.
5. Neglecting Employee Training
Example: Your Internet salesperson just answered a Facebook message. Badly.
Impact: One untrained response can start a wildfire.
Fix: Train your team. Create a social media policy. Give them tools so they don’t improvise… unless you’re into improv tragedies.
6. Failing to Leverage Positive Reviews
Example: You earned a raving 5-star review… and it dies alone on Google.
Impact: You miss your moment. That’s a party you forgot to invite anyone to.
Fix: Share the love. Post it on your site, your socials, your service lounge TV—heck, get it framed for the restroom.
Parting Thoughts (and One Friendly Nudge)
If you take nothing else from this, remember: your online reputation isn’t a “nice to have.” It’s not dessert. It’s inventory. It’s an asset—just as critical as the cars on your lot or the parts in your bins. If you wouldn’t ignore a row of unsold trucks or a month’s worth of aging repair orders, don’t ignore this either. Nurture it. Measure it. Protect it like it’s worth something—because it absolutely is.
Is your financial health in the fast lane or stalled on the side of the road? You want experience on your side without the huge salary expense. Let’s talk and figure out if an on-demand Automotive CFO is right for you!