Dealerships all over have recognized the benefits in using an app for their store. It’s true – customer engagement is much simpler when you’re putting your communications in front of your customers’ eyes in real time. But having an app doesn’t guarantee customer loyalty.

In fact, a recent Think with Google study reports that 80 percent of app users churn within three months. That means they’re gone – no longer part of your clientele. The app is deleted. You’ll need to recapture that client again, and that’s harder than earning them in the first place.

It’s because of that high churn rate that some dealers don’t believe in the value of investing in a branded app. Hey, if 80 percent of the users drop off in 90 days, I’d question the value too! But there’s less wrong with the product (if anything) – it has to do with how an app is used.

Actual Customer Engagement

Listing information on an app and allowing customers to access it isn’t engagement. That’s passive, and it gives your competition the open door to engage your customer and grab their interest. It isn’t enough to have an app that sits idle until the customer decides to open it, browse through its features, make an appointment, or call your store.

Active engagement with an app requires an action plan. There should be push notifications and valuable content appearing on the smartphone screen regularly.

How Often Should You Engage?

Everyone has an opinion about the frequency of engagement through an app. For an auto dealer, daily is too much. In my opinion, once a week should be the minimum and three times per week the max – and that’s only IF your content is worth pushing.  

How to Use an App Well

I’m not an app developer, so the features you choose for your dealer’s app might not jive…but they should. I believe these three things are critical – they’ll help prevent that 80 percent churn rate.

Reward Loyalty

App users should receive perks and offers that others either don’t receive, or they should get them first! Use push notifications like a pre-sale for concert tickets. Only loyal app users are eligible for the service promotion first or the new car sale two days early.

Provide Valuable Information

Your dealership’s blog content should contain service tips, how-to’s for in-car technology, new vehicle walkarounds. Assuming you have these articles and videos being posted on your website, use push notifications to engage your customers with this valuable information. Keep it short and sweet.

Make It Personal

Customers increasingly appreciate the personal connection on websites. It helps to develop a ‘relationship’ without an interaction. Post team member profiles along with a short bio so customers know who they’re going to see in the store. Maybe they can’t remember their salesperson’s or service advisor’s name. It’s an easy reminder.

If you have an app, great! Do you use it well? If you have a high churn rate, there’s work you should do to keep your customer engaged.