Drive customer retention with these two loyalty gems

Posted by Alex Knight on 28-Jan-2019 11:21:00
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A study by DMEautomotive noted customers who develop a habit of maintaining their vehicle at a dealership are 86 times more likely to purchase their next vehicle from you.

This reiterates what dealers have known for years- customer retention is key to future car sales and profitability. This is where loyalty programmes come into play- a great way to encourage customers to make your dealership a priority.

Loyalty programmes

Loyalty programmes can make customers feel valued. With the end goal being customer retention, loyalty programmes are worth the investment, especially with the above stat considered. By considering your customer’s unique needs you can pick the right programme for them, building a strong basis for a future relationship based upon personalisation to their needs. The more personalised and consistent you can make the customer journey from purchase to aftersales, the more likely you will have of customer retention and staying front of mind.

 Round up- Why loyalty programmes lead to retention:

 -      They make the customer feel valued

-      They ensure personalisation

-      They save customers money

-      They receive rewards and incentives along the way

Consistent and relevant comms

So many times have I been to a car dealership and then a few days later received a generic “Is it time for your MOT?” style text or email. Dealerships tend to be great when customers come into the dealerships and then the communication and relevance drops as they leave. Customers receiving a marketing email from you about a new model two weeks after they’ve bought a car from you is bad practice. No matter how good the service was when the customer came into your dealership, this is only going to annoy them and take away from their experience.

Why is it that dealerships put so much weight and value on perfecting the customer experience and then slip up at the most basic things such updating their CRM?


Dealerships need to work in real-time- if someone has just bought a car, follow up with relevant messages and make a note that they aren’t going to need an email about MOTs or new models from you for a while.

Retention is about making customers feel valued and one way to show them the opposite is to send an email that makes it look like you’ve forgotten they even came to see you in the first place!

As Bruce Springstein once said, “Sustaining an audience is hard, it demands a consistency of thought, of purpose and of action over a long period of time”. Although this quote was said about his music career it still stands when it comes to retention in general. The only way to keep your customers engaged is to have a consistent process that delivers time and time again. This will develop your dealership brand, which is what your customers buy into at the end of the day. 

Round up - Why consistent and relevant comms lead to retention:

-      They lead to branding and your unique dealership personality

-      They lead to reliability- the customer knows they’ll always be treated well

-      They lead to an emotional connection

-      They make the customer feel in control

I think these two things are key when driving customer retention, especially in 2018 where digital comms, customer retention difficulties and dealership branding are hot topics.

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Topics: customer experience, loyalty, customer satisfaction, communication

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