The Road to ROI with F&I

The global automotive industry has been hit hard by the Covid-19 pandemic. Considering that it can cost up to five times more to acquire a new customer than to keep an existing one, it is important that dealerships do everything they can to turn first-time customers into lifelong clients. Keeping customers that you have won over will save you money and help to take your dealership to the next level. So, what can you do to maximize the value of each customer?

Every so often, you'll hear about a customer who just purchased their umpteenth car from the same dealership. Chances are, if you read the story, the customer was overly impressed with their first purchase experience that coming back was easy. So how can you make the same experience a reality for your customers?

Bringing in new customers is always important but bringing back existing customers and building loyalty is even better. There are several ways to keep people coming back, and we'll look at 3 of the most important tips here to improve customer retention.

If you are looking to take your dealership to the next level, then you will want to expand your profit per customer and lower your marketing costs. The good news is that you can accomplish both by simply retaining the customers that you already have. Customer loyalty and customer retention are the foundation for all dealership operations. Why sell five vehicles to five different people when you can sell five vehicles to one customer? Here are some proven dealership customer retention strategies you can use.

Nothing is more fulfilling to an auto dealer than seeing customers walk in and drive out with one of the cars on sale. Acquiring new customers takes effort, just as retaining existing ones. As an auto dealer, you know too well that maintaining the cycle is critical in the face of increasing competition. By retaining customers, dealerships can stay ahead and pull through tumultuous times.

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.

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%.

Going digital in auto dealerships has become more of a priority with COVID-19 wreaking havoc on customer’s willingness to venture to a dealership and/or allowing customers on-site. As a result, having to offer retailing through online means is becoming a new norm.

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. 

Dealers often focus their marketing efforts on finding new leads and bringing in first-time customers. While those strategies are important, the most successful dealer managers know that retaining their customers is also essential. We wanted to highlight a few best practices the most successful dealerships leverage to create the ultimate customer experience and increase retention.