Today's automotive dealerships must maximize profits from every revenue center. Good managers at auto dealerships also understand that revenue depends on customers. However, without a good customer retention program, you're likely missing out on potentially substantial income. One way to improve your revenue capture, though, is by enhancing your dealership customer retention rate. Read on to find out how.
Auto dealership owners need to focus on one key concern — providing excellent customer service that leads to retention. It is vital to do everything you can to transform first-time customers into lifelong clients.
Luckily, retaining a successful relationship with your current clients is easier and cheaper than obtaining new customers. Follow these top five strategies to improve your dealership's customer retention and boost sales.
For your dealership to be successful, you need to master the art of continuously attracting clients and ensuring customer loyalty. In fact, it is much easier to retain your customer base than to attract a new lot of clients. Additionally, various reports state that increasing your customer retention by 5% is likely to increase your profitability by 75%. This just further proves how vital customer retention is. So, how do you achieve this?
Improving customer retention will ensure your dealership succeeds in the long run. Finding new customers is never as simple as it sounds, primarily due to the Covid-19 pandemic. You will end up spending a fortune on expenses such as advertising with a low likelihood of success.
Management of customer retention rates is one of the key pillars of successful dealership. Great research from Harvard Business School details that a 5 % increase in customer retention rate significantly improves the business profit from 25% to 95%. Also, the fact that it is five times more difficult to acquire new customers extends the need to have customer retention strategies. Therefore, mastering the art of customer retention is an imperative undertaking in dealerships. How then can you do this?
Acquiring a new customer can cost five times more than retaining an existing one. However, in a world where customers are more informed, more demanding and savvier than ever, retaining existing customers can be challenging.
Customers need a good reason to come back to your dealer shop. You can provide it by offering an excellent customer experience. Statistics show that 84% of businesses that improve customer experience get higher revenue. A fantastic experience when buying a new car, accessories, or servicing a vehicle can keep the customers coming back. Here are five tips on how to increase customer retention
Good marketing is crucial to the success of any business. From print media and digital ad campaigns to social media marketing- these all play a significant role in creating a brand image. However, there is one thing that is perhaps the most important tool for spreading the word about a business. That is great customer reviews.
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%.
Repeat business is the proverbial 'bird-in-hand.' Your current customers are fertile ground for cross-selling. It's your golden opportunity to wow them beyond belief. Take the initiative, know your customers and understand their needs. Do this and your long-standing customers will remain loyal and your successes will continue to grow.