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.
Customer retention is the end game- it’s what all dealerships are looking to nail and this is becoming increasingly hard. Doug Van Sach, AutoLoop’s Vice President, put it perfectly when he said, “the hard truth for dealers is most consumers have redefined what it means to be loyal in the digital age.”
The digitalisation of the buying process has particularly effected the automotive industry. Customers are carrying out most of the buying journey online and, in most cases, only come into the dealership when they have almost made their purchase decision. Everything is quick, easy and optimised and this is what has become the norm. Anything that doesn’t hit the mark with those points sticks out like an underperforming sore thumb.
According to the SMMT 2.5 million cars were registered in 2017. This is a 5.7% drop from 2016. This may come as a surprise to many as the market has been growing year on year since 2012.
Hopefully your answer to the above question is “great!”. If it is, then good for you but you should read on because it could always be better. If your answer wasn’t quite so positive then welcome, this quick blog is here to help.
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.
I know that enhancing the ownership experience for your customers is a key priority but the modern customer has higher expectations. They now require and expect immediate information, personalised services and offers and consistency, which is imperative to the customer-dealer relationship.