The term "reinsurance" is confusing, but its concept is not hard to understand. As explained on AutoSuccess, "reinsurance is a separate company, owned by you the dealer, to provide Warranties, Vehicle Service Contracts, GAP, Certified Pre-Owned programs, and Collateral Protection to your customers without having to buy from a third party company."
Did you know that attracting a new customer is five times costlier than retaining an old one? Also, by increasing customer retention by only 5%, you can boost your profits by 25-95%. These statistics apply to all industries, including the automotive sector.
Dealerships are increasingly realizing that transactional, one-time business practices no longer work. They have to focus on strategies to not only attract but also retain customers. Customer retention has positive outcomes for dealerships, including reducing costs, enhancing customer lifetime value, increasing competitiveness, and boosting profitability. This article outlines four ways for dealerships to increase customer retention, and consequently harness its benefits.
While the ignition is the key to starting a vehicle, the sales desk is the key to approaching and earning a customer's trust. It's that trust that helps customers feel confident to commit to purchasing a vehicle. Beyond the commitment to purchase a vehicle, a customer's journey within your dealership is only just beginning.
Dealership compliance has never been more important. Businesses are going to suffer in the wake of the pandemic. Do not put your dealership at a disadvantage by falling out of compliance with state and federal regulations. With more people getting out and about dealerships are opening again. Make sure your dealership is ready to float in the sea of uncertainty that is today's consumer market. Is your dealership compliant with federal and state regulations?
Businesses can prosper when they focus on their sales processes and provide excellent customer experiences. This is especially true for automobile dealerships, where the quality of service provided is crucial to customer retention.
Customer retention is vital to growing a dealership's business and profits. When a customer remains loyal throughout the life of a vehicle, it's a sign they trust a dealership.
Reinsurance sounds like a good technical term. However, this technical term can be among the best things you do for your dealership and customers. Reinsurance is an excellent strategy for insulating your dealership from volatility and protecting your bottom line.
As we enter the post-pandemic period, the COVID-19 crisis leaves many of us with lingering fears. While business, as usual, will not be the case, it is time to begin working on the new way of doing business. Dealerships must take a few steps to help staff feel comfortable returning to work, as reviewed on CBT Automotive Network.
The success of any business, to some extent, depends on whether target customers are aware of its existence or not, which is why brand awareness is a critical factor of consideration. Dealerships can benefit a lot by promoting their brand to increase awareness, and one of the ways they can achieve this is through social media.
COVID-19 has disrupted many social norms that we used to take for granted. However, now we are beginning to see light at the end of the tunnel. Now that many states are allowing for the reopening of showrooms as well as sales departments and other key areas of a dealership, many dealerships will need to have clear rules and regulations for both staff and customers to ensure that the environment is safe to visit.