If you want to meet your sales goals, you are going to need more customers. That may sound logical, but it's not necessarily the case. According to recent findings, the success rate of selling to an existing customer is 60-70%, while the success rate of selling to a new customer is only 5-20%.
That means your next best customer is likely one you already have.
Seeing the Opportunity
Strangely, though it's been proven that existing customers are more likely to purchase than new prospects, industries seem to have a hard time leveraging this knowledge for their own good.
It's a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on customer retention. Reportedly only 40% of companies and 30% of agencies have an equal focus on acquisition and retention. (Invesp)
Every industry has its nuances, of course. These principles can be applied differently in retail chains than it would in automotive dealerships. People buy clothes more often than they buy cars. (At least, most people.)
But just because we apply it differently doesn't mean we don't apply it at all.
Statistically, people will buy another vehicle.
They should want to buy it from you again.
Seizing the Day
To make the most of your existing customers, it's imperative that you provide exceptional an exceptional customer experience and service. From the moment your customers walk onto the lot, your dealership should be understanding of their needs, be operating smoothly, efficiently, and consistently. When you do have the processes in place to do things well, you not only build brand loyalty, but you naturally put customers in a more receptive mood for an upsell.
In addition to offering impeccable service, consider the ways in which you can build relationships directly with customers. Writing for Forbes, entrepreneur Jia Wertz recommends introducing a personal touch. Even something as simple as a phone call or personalized e-mail can make a difference in how customers think about you and your dealership.
In an age of artificial intelligence and overseas customer service, it's our experience that people really enjoy a personal touch, and to know that we are truly invested in their experience.
Classy and effective, the personal touch goes a long way toward building relationships with customers and, in the long run, helps extend the lifetime value of every customer.
We Can Help
Here at Vanguard Dealer Services, we want to help you make the most of your opportunities for growth.
To learn more about this or if you have any questions, please feel free to contact us at any time.
We look forward to hearing from you.