Attracting new customers to meet sales expectations takes a significant investment of time, effort, and money. Dealers understand that the longer you retain a customer, the greater the value that they will bring into your dealership. Whether it’s vehicles, tires, service drive, or products, dealers know they need repeat customers, and want to provide them with top-of-the-line products. Any person who buys an automobile must trust the dealership to come back. Every transaction should be easy and seamless. Building a relationship means that communicating with the customer on a regular basis and giving them the opportunity to know you and show that you understand their needs.

Perceptions of Automotive Customers

Recent studies show that a large percentage of automotive shoppers start their purchase journey anticipating it will be a difficult process. We all know that the chip shortage has significantly hindered the buying experience for customers. The lack of inventory and need to raise pricing unfortunately have caused consumers to have a lack of trust when making a purchase.

However, better digital engagement has helped raise customer satisfaction. It's reported that 95% of consumers have used digital sources to find information on getting the best car and truck deals. Close to half of all buyers take less than 30 days to shop for and purchase a vehicle. There are very few, if any, ‘be backs’ in dealerships today. Many dealer customers are still spending an average of three hours doing a deal at the dealership, and their satisfaction rate drops after 90 minutes. Time spent at the dealership can be lessened and enhanced with online engagement for their buying journey. Customers are showing up having done their research and looking for someone they can trust with an easy transaction.

The Value of a Customer Relationship

When you come to consider the lifetime value of a customer, which was estimated at $50,000* by Black Book, and multiply that by the total number of customers at a dealership, we quickly get to a value that is critically important to dealers for profitability. It’s imperative to tie-back your customers to your service drive to retain that lifetime value. Tenets for building a relationship include:

• Providing great products
• Promote product education
• Customer satisfaction follow-up
• Understanding customers communication preferences
• Using your customer database to continue communication
• Initiate a post-sale program for vehicle service contracts

Are you asking your customers how they prefer to be contacted and then apply that information? There is a need to understand customer dynamics and if they prefer to be approached by phone, text, email, direct mail, or other. Are you continuing to communicate automotive car tips, dealership service drive specials, providing product education? Do you have a post-sale program for vehicle service contracts?

Satisfaction Drives Loyalty

Getting poor reviews and poor ratings are all at the hands of savvy and empowered customers. A single bad review can have an impact on a dealership. We all know that negative experiences spread far more quickly and broadly then positive ones and leave a lasting impression. Unhappy customers cost you money. If you can build trust with these same empowered customers, you can unlock them as an advocate, and they become an asset to your dealership! Unless you currently enjoy 100% customer satisfaction you can set a goal to improve. Loyalty isn’t earned in a day; it’s earned day-by-day.

Automotive Manufacturers Want to Own Your Customers

Dealerships across the US have suffered a loss of their own identity. How much has your brand been diluted or over-shadowed? Further, manufacturers are releasing models that can only be purchased online directly, not from dealerships. The Tesla sales model changed the field for automotive transactions, and today we have more companies moving to that same end. You need to protect your customer base and profitability. Furthering your customer retention processes will help you secure customer relationships and drive lifetime values.

Think about yourself as a consumer. Do you look to people who you haven’t heard from in years as advisors? If no lasting impression was made, are you likely to go back? Honesty, transparency, exceptional products and services that have value, are what today’s customers will need to keep coming back to your dealership and earning that lifetime customer value. By putting a focus on going beyond meeting your customer’s basic needs, you can establish the basis for your dealership to have a clear competitive advantage.

To learn more about customer service at dealerships, connect with Mickey Quinn by reaching out to mquinn@ezvds.com or contact him on LinkedIn.