It costs most dealers about five times as much to acquire a new customer than to retain those they already have. Yet, increasing customer retention by as little as five percent can increase profits by up to 95 percent, according to the research group Bain & Company.

That’s because loyal customers and enthusiastic fans will keep coming back - and they’ll refer friends and family to your dealership. Loyal customers also tend to prioritize great customer service over price and scoring the best deal.

Bottom line? It pays to put time and resources into nurturing your existing customer relationships.  Begin cultivating loyal customers immediately with these three retention strategies.

Build loyalty in the service lane.

Customers are wary of being sold unnecessary services. A multi-point inspection tool with photo and video capabilities allows service advisors to show customers what needs to be done, instead of just telling them. This goes a long way to build trust and loyalty.

Prioritizing customer convenience by implementing helpful technology also improves customer satisfaction. The J.D. Power 2019 Customer Service Index (CSI) Study found that satisfaction is 75 points higher (on a 1,000-point scale) among customers who have an all-digital experience where they can schedule service online, communicate via text message and view service recommendations on a tablet.

Some of the best results happen when service advisors change their communication strategy to emphasize the safety aspects of necessary services. When customers learn that a faulty spark plug or alternator could leave them stranded on the side of the road, they will be more likely to approve the service. They’ll also feel gratitude towards your service department for recognizing and fixing the problem.

Capitalize on your BDC.

The human connection goes a long way to create loyal buyers. Customers will reward companies that take the time to build genuine, personal relationships. Give your sales associates and service advisors that time by delegating everyday tasks to your BDC.

Don’t have the resources to handle these tasks? You might look at outsourcing the work, or a portion of it, to a trusted virtual BDC.

Your BDC should handle the majority of inbound and outbound phone calls, especially in the service department. When inbound service calls are handled properly by your BDC, up to 72 percent convert to an appointment.

Your BDC should also help with personalized, targeted marketing campaigns that build loyalty. Use your CRM to schedule event-based marketing triggers that re-engage customers at the perfect time in the buying cycle. For example, create a special offer for service customers you haven’t seen in six months. Then, have your BDC follow up with phone calls. Well-targeted cross-channel campaigns build momentum and loyalty because you’re offering a relevant message that meets your customers’ unique needs.

Practice Strategic Data Mining

Data mining can help you build loyalty at both the sales desk and in the service drive. It’s also a great way to source well-maintained vehicles for your pre-owned inventory without paying auction and delivery fees.

The best way to execute this strategy is to have a dedicated data mining expert or team. These individuals keep an eye on service appointments for customers in an equity position with vehicles that are in-demand in your market.

Eligible customers receive a written trade-in offer and suggestions for a new vehicle with confirmed incentives, interest rates, and lease options, if applicable. Keep in mind that few customers will accept a deal on the spot, so have a process in place for BDC follow up.

Customers who accept a deal will get a fair price for their trade-in vehicle, plus a new vehicle with the most modern safety and technology features, all fully protected by a manufacturer’s warranty.

This way, you meet vehicle needs your customers may not even know they have, which helps to engender loyalty and increase the likelihood they will return to your dealership for future service.  Plus, now you have well-maintained vehicles to stock your pre-owned lot. It’s a win-win.

Good selling!

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Today’s customers expect and demand an amazing customer experience. The dealership with the right vehicle and the best experience will ultimately win the business. To deliver the best experience possible, you must maintain expertise about your customers and their shopping behavior.

The average consumer today visits only one or two dealerships before buying. The odds are good consumers will purchase from your store if you focus more on delivering a great customer experience than on being lead-centric.

How do you do that? By mastering three touchpoints: research, communications and the showroom visit.

Research

Shaping that exceptional experience begins with research. According to AutoTrader, nearly 80 percent of shoppers use third-party sites to research and locate vehicles. Make sure your inventory pages on these sites are highly descriptive with critical information above the fold, including pricing, options, and interactive photos or videos.

Digital retailing tools can differentiate your dealership and enhance the experience. Consumers today do more work online. If customers are forced to rehash steps when they arrive in the store, it leads to frustration and erodes the great experience you’re trying to create.

But, if that previously-completed work flows into your CRM and DMS, it translates to a shorter and more pleasant in-store experience. That’s where your digital retailing tool comes in.

Communication

When you receive a phone call or lead form, don’t simply answer a question about price or availability and end the conversation there. Differentiate your dealership by offering customers critical information to make informed decisions.

For example, along with information on the requested vehicle, present information on similar vehicles in stock with more and less equipment, as well as a pre-owned option. Now the conversation isn’t only about price. It’s about defining what is really important to the customer and how your dealership can meet those vehicle needs.

Learn which communication channel the customer prefers and engage with them there. Be transparent about pricing and financing. Focus on delivering high-quality and relevant answers before asking for an appointment. Asking too soon can stop the transaction in its tracks.

Remember that the human touch still matters. Be warm, welcoming, and competent. Once you’ve answered every question, it’s time to ask for the appointment. By this point, you will have earned it.

Between setting the appointment and the showroom visit, continue shaping a great customer experience. Email the customer valuable information, such as a video of the vehicle of interest, or outline what to expect once they enter your store.

Maintain follow-up with an appointment reminder that clearly states the customer is coming in for a pre-scheduled VIP appointment.

If the vehicle of interest sells before the appointment, reach out immediately with details of other vehicles that meet the customer’s wants and needs.

A NADA survey found that 80 percent of consumers buy a different vehicle than the one they inquired about, so even if the vehicle of interest is still on the lot, prepare a list of alternates.

The Showroom Visit

On the day of the appointment, pull up the vehicle and make sure it’s spotless and ready for a test-drive. Write the customer’s name and VIP status on a prominently-placed appointment board for the customer to see as soon as they step on the floor. Ensure your receptionist has an up-to-date list of appointments and can greet each customer by name.

When you’re with the customer, be a product expert. Demonstrate all the vehicle features and how to use them. Set up preferred radio stations and synchronize mobile phones with the vehicle.

Introduce every customer to your service manager to close the gap between sales and service. This also lets the customer know that you care about the ongoing maintenance of the vehicle and are invested in a long-term relationship.

If the customer misses the appointment, follow up immediately through their preferred communication channel. Give them options of several new appointment days and times and let them know the vehicle is there and ready for the test drive.  

Winning more sales requires an amazing customer experience. Don’t see customers as just leads to be closed. Deliver the best possible experience throughout the customer journey and you’ll see results.

Good selling!

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