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Jared Hamilton
From: Jared Hamilton
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Andy Church

Andy Church CEO

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Do you know your Lost customers?

In today's world a Service Department's most valuable asset, after it's people, is it's customer database. As a consultant during my first visit to a store I am working with I always ask these 2 questions: 

1. How many total customers are in your database?  

2. How many are Lost customers?

I always get an answer to number 1, but a blank stare on number 2, "What's a Lost customer?". Knowing this number is key to understanding and growing your business. An Lost customer is any customer who has not had a transaction with your Dealership over $50 in the last 12 months. If you haven't seen them in over 12 months they are either are already a lost customer or you are on the cusp of losing them.

In the typical Dealership the percentage of Lost customers in relation to all customers is over 50%! Can you imagine 50% of your customers just disappearing! How do we get them back? "I know we'll do a letter with a coupon".... That failed strategy will be the subject for my next blog.

Do you know your % of Lost customers? leave me a comment if you dare.... wink   

 

Jim Bell
Customer retention is a huge thing to keep a business going. One thing that we do in order to retain our off brand vehicle customers that we sold is send them a free oil change a couple months after their purchase so they can have the whole experience of our dealership. That has helped us greatly over the years and keeps them coming back. You have to offer them something to get them in the door and then when they do show up, kill them with kindness.

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