Automotive dealership customer retention is the foundation for a long-term relationship with loyal customers. This translates to high-profit sales and scheduled services for the dealership.
Most dealers need help getting this metric right. This is because most only focus on new vehicle sales from their manufacturer and need an in-house tool to measure customer retention.
Table of Contents
Increased Service Revenue
In an age where digital disruptors and car buying trends have shifted the industry, dealerships are starting to realize that customer retention and satisfaction is the key to a healthy business. It’s estimated that acquiring a new customer costs five times more than retaining an existing one, so service departments should always prioritize this business area.
Dealerships should implement a strategy to identify loyal customers and then use CRM tools to keep in touch, offering coupons and promotions for scheduled service. Taking the time to personalize these messages can make a huge impact. A simple message to a returning customer, such as “Happy anniversary,” can be a great way of showing that you care.
A successful service retention strategy also identifies areas of opportunity for a dealership. For example, suppose a service advisor notices a customer coming in for an oil change. In that case, the dealership can promote an additional service, such as an engine tune-up or brake fluid flush, to increase profit.
Creating automotive service customer retention strategies takes time, money and energy. However, the investment pays off in the long run. Having a list of loyal customers can help dealerships avoid a dip in service revenue during a slow season and allow them to take advantage of a strong market.
Increased Customer Satisfaction
The automotive industry has long had a transactional focus, which is even more true regarding service. Dealerships pay their customer-facing employees based on how many sales they close, so focusing on retention can take a backseat when the dealership is busy. However, this is an excellent opportunity for a dealership to foster customer loyalty and confidence.
Using an automated customer care system to create a smooth contact experience is one of the best methods.
With conversation intelligence, dealerships can intelligently route each customer to the right person based on their calling and even provide them with helpful resources while waiting on hold.
Automobile businesses can also show their customers they care by proactively soliciting feedback and reviews. This can be done by offering service customers an online customer satisfaction survey or through a dedicated email and phone number.
The automotive market is highly competitive, and it’s now more important than ever to focus on building a loyal customer base. As a result, increasing customer retention should be a priority for dealerships, especially when busy. Doing this will help protect their revenue and ensure they have a solid base of loyal customers when things slow down.
Increased Brand Loyalty
Customers are more inclined to stick with a brand if they feel connected. With a comprehensive automotive customer retention strategy, dealerships can nurture these relationships and ensure long-term growth for their business.
Traditionally, exotic, luxury and high-line car manufacturers see the highest levels of customer loyalty. However, even these brands must continue working hard to establish customer loyalty – especially as the market shifts. A personalized marketing approach is crucial, including a focus on service.
By implementing an innovative solution for connecting all aspects of the automotive customer journey, a dealership can offer a unique way for customers to communicate with their brand. This means offering customers various benefits and rewards across the vehicle lifecycle from a loyalty program perspective.
In addition to offering a bespoke loyalty program, dealerships can build a more intimate relationship with their customers through a unified digital experience. This can be achieved by linking all interactions between the customer and the brand, from a chat conversation in your dealer website chatbot to personalizing email messaging.
By investing time and resources into a tailored automotive customer retention strategy, dealerships can reap the rewards of increased service department revenue and boosted brand loyalty. By avoiding the traditional transactional approach to customer acquisition, dealers can focus on retaining first-time customers and turning them into recurring clients who value their brand.
Increased Customer Referrals
In the world of dealerships, where the transactional mindset reigns supreme and customer-facing employees are paid to maximize, it’s easy for automotive service customer retention to take a back seat. However, when a loyal customer refers friends to the dealership, it’s not only an excellent source of new business. Still, it can also turn your shop into the preferred dealer for that referral customer.
While the adage “there are lies, damned lies and statistics” holds, there is no doubt that improving customer retention results in more revenue. A study reported that a customer loyalty program resulted in 35% of sold customers returning to the original dealership for their next vehicle purchase, even if they purchased from a competitor.
This is a key reason why generating more auto repair shop customer referrals should be a priority for any dealership. Implementing a program that rewards your devoted customers for referring their friends to your shop is the best approach to increasing the number of car repair customer referrals. This can be done in a variety of ways, for as through email or direct mail campaigns that provide rewards for both the client and the person who referred the friend. Rewards can include technology, gift cards, sports tickets or experiential experiences. In addition, you can reward current customers who refer their friends by offering a special discount or credit for services at your auto shop.
Also Read – 5 Reasons Why Silicone Edge Graphics Are a Great Choice for Your Business
