In my previous Blog, I made the statement – “Your Dealership's performance is only as strong as your database. That's a bold statement, but it's 100% true.”
Our current COVID lockdown challenges and the stock supply issues will play a more significant part in retaining your customers' business. Stock availability could determine where your customer might purchase their next vehicle, which is devastating for your service department too. Customers who regularly service their car are 80 times more likely to buy their next vehicle from that Dealership.
The topic of retention and Loyalty should be a top priority within your monthly scope of activities. The reason is that your customers' traditional buying behaviors have been affected. As lockdowns have meant, customers will change service locations for convenience or have relocated interstate or regionally. Lastly, with used car pricing surging, it has encouraged customers to trade up earlier than initially planned.
You can now see why it's about knowing your retention rates and creating actionable campaigns to improve your scores in these areas of your business.
- Do you know what your sales retention rate is?
- Do you know what your three aftersales defection points are?
Don't worry if you don't, as most Dealerships won't know this. I would urge you to find out as both are critical drivers for retention and Loyalty.
A few more interesting statistics to consider
- Consumers are more loyal to their brand as they age
- It cost seven times more to sell a new customer versus a returning customer
- A 5% increase in customer retention can result in 25% increased profits
All compelling reason to look after the ones you have already. So, where do you begin? You start by stopping the leakage – understand what your sales and service retention numbers are and why? Who is active and not, when do they intend to repurchase? And then, find out where your defection points are and create positive barriers to prevent more of your customers from defecting. In aftersales, this could be simply wiper blades or battery replacements.
Set in place Loyalty strategies, I have listed a few examples below.
- Continually manage your reputation and monitor reviews
- Send non-business messages to your customers. These could be birthdays, special days, i.e., Mother's Day and upcoming sports games. Keep communicating with ALL your customers
- Sell a car with a service package – especially with older vehicles
- Reward your most profitable customers by creating a VIP program
- Create a referral program
- Lastly, and an important part is to track and measure your progress. You need to know if what you are doing is working.
You all should have some retention process in place. This is no longer enough; it now goes way beyond just service reminders to loyal and lapsed customers.
DTS Loyalty Logistix program can help you!
The good news is that we can help! Our program allows us to take a deeper look into your customer's behavior and purchase activities and find out what is happening in your business.
This information means that we can highlight your market opportunities, and you will be able to react to them before any customer defection points.
It is a comprehensive reporting platform that does all the hard yards for you. You gain access to quality data that gives you the foundations to build meaningful marketing campaigns to improve your customer's Loyalty and retention.
You’ll have eyes on everything, with complete Aftersales and Sales customer clarity. The program amalgamates all of the data across your Dealership – from sales, service, parts, and finance – into one treasure trove of information.
Ready to improve your Retention and Loyalty?
Suppose you think your Dealership could save some time on creating ongoing actionable, measurable campaigns to improve retention and loyalty in both sales and service. In that case, you'll be glad to know that this can be done for you by opting for our solution. Give us a call today to find out about our program and, most importantly, how it can benefit your Dealership and your customers.
Ph: 0478 899 109