Every dealership needs to see an increase in profits at the close of every financial year. For that reason, most business owners spend a large portion of their budget on promotions and campaigns to attract more first-time customers, as part of the strategy to sell more cars and increase revenue. The problem is that focusing too much on attracting new customers while neglecting the need to retain existing customers can negatively affect your business.
According to a recent survey of businesses, it costs five times more to earn new customers as it does to retain existing customers, and those businesses have a 60% to 70% chance of reselling to former customers versus a 5% to 20% chance of sales success with new ones.
Car dealership owners who are keen on winning customer loyalty and creating customers for life can adopt the right strategies that will help them retain current clients and build their customer base at the same time. First-time customers expect more from you because it affects your future relationship with them. Here are some approaches that offer guidance on how you can turn first-time clients into lifelong customers.
First Impressions Count
Every first-time customer will have a particular perception when they interact with your dealership. Making the first impression count is paramount if you want to give customers sufficient reasons for seeking your services again in the future. It will also go a long way in securing word-of-mouth recommendations to other potential customers.
Remember that new customers will be warier, listening carefully to your choice of words, maintaining eye contact, an understanding of the automotive industry, your mannerism, your listening skills, presenting products and options that align with their wants and needs, among other things.
Gaining the confidence of first-time customers, and doing what it takes to maintain that relationship, is what guarantees their repeat visit at your car dealership. You need to make the right impression when you engage them for the first time.
Re-Engage New Customers
Closing a sale with a client who visits your car dealership for the first time is quite fulfilling, but it’s not one and done. Consider this the start of a relationship with a customer who will buy from you again and send referrals your way. There is a great deal of competition with the variety of car dealerships available, as well as online options, and you have to remain etched in the minds of new customers if you want them to prioritize your services and get referrals through them in the future.
Making a follow up on first-time customers within 30 days after their initial purchase is a great best practice. Your original interaction with them will still be top of mind. Making sure they are happy and knowing you are there for them by way of engaging with coupons, specials, etc., will go a long way towards earning their loyalty.
Ask For Feedback
As much as you are confident that the vehicles you have on sale are in top-notch condition, you can’t just assume that a customer felt like you valued them a few days or weeks after their purchase. Asking for feedback and understanding the experience of every new customer will help you by indicating that you care and are going the extra mile to exceed their expectations.
If something is amiss in the customer feedback, you can address and correct it immediately. You can tie an incentive to it for your sales team so that they strive to obtain excellent marks.
Differentiation is Hard but Necessary
Setting your car dealership business apart from the rest by offering what your competitors are unwilling or unable to give will promote success. New customers are looking for car dealerships that can offer something extra, which should be worth the deal they intend to close.
Some of the ways you can differentiate your business include offering better deals, personalized services, better warranties, and free transportation if you have several car yards.
The Value of a Thank You Note
Showing appreciation to a first-time customer for choosing your car dealership is a kind gesture you should not overlook. It is true that some new customers will make their first stop at your dealership and close a deal without checking what other sellers are offering even though this is an option.
Sending a thank you note to new customers for doing business with you will capture their attention and it can win you their loyalty as well.
Are you interested in learning about turning first-time clients into lifelong customers? Contact Danielle Cumbee today on LinkedIn or by email at dcumbee@sautomotive.com.