Customers have the final say when it comes to dealer revenue

Posted by Nathan Elliott on 29-May-2018 10:41:00
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When it comes to your dealership I know you’re looking to drive engagement, revenue and ultimately retention, and service is where it all happens- that’s where the margin is. Take the diagram below for example, service allows you to make the margin profit, which drives customer loyalty and loyalty drives repeat sales. But for all this to happen customer experience is key.

Customers have the final say dealer revenue 1

 

Studies suggest that if you’re not servicing at a dealership on a regular basis then service retention is cut in half, which emphasises just how important the customer experience with a dealership is. Customer expectations are defined by the engagement with a brand and if you’re not on point you can bet your competitor will be.

Cox media conducted a consumer auto-buying study and reported that 50% of participants said they would pay more if the experience was right. Overall, the consumer is looking for value, convenience and most of all trust. This has to be consistent throughout the customer journey, so every interaction the customer has with your dealership must be exactly that- consistent. The last thing you want is to spend all that time and effort onboarding a new customer to lose them through a lack of consistency which, in a nutshell, is just plain lazy.

Customers have the final say dealer revenue 2

 

What about enhancing the experience? Wouldn’t it be nice for your customer to come into the dealership and to be greeted by your staff who know who they are, what vehicle they have and why they are there? How much time would this take your staff to do? Minutes - but it’s little touches like this that make the experience for the customer and that’s what will make the difference between them being a one-time customer or a repeat customer.

Key Takeaway

If you want to increase revenue then your customer retention should be your main focus. Invest the time to make sure you have the correct procedures and touch points throughout your dealership, which includes every member of staff. Remember, going that extra mile can make all the difference, from your customer turning into a repeat customer and even an advocate.

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Topics: retention, customer experience, loyalty, dealerships, dealer management, revenue