Building customer retention at your car dealership is an effective way to increase trust, credibility and profitability for your business. To retain customers in your dealership, it’s important to understand consumer behaviors in your market and what appeals to your customers.
Dealer software company Modera shared some insightful stats to help car dealerships identify and manage customers more effectively when developing customer retention strategies.
- Car buyers become more loyal to brands they trust as they age.
According to Modera, the customer retention rate for ages 18-24 is 58.3 percent while ages 70+ have a retention rate of 70.4 percent.
- 62% of consumers stop doing business with a company due to poor customer service
This is why it’s so important for your dealership to create a positive car buying experience for your customers.
- Customers who service their vehicle regularly at your dealership are eighty-six times (86X) more likely to purchase their next vehicle from you.
Along with being a great source of revenue for your car dealership, your service department is also a great way to retain customers. Offering quality service as well as certain amenities and perks while customers are waiting for their vehicle to be serviced can make all the difference.
Car Dealership Retention Strategies
- Encourage regular maintenance appointments
Since the service department is a way to retain customers at your car dealership, encouraging customers to get their vehicles serviced through your dealership via email communications, service specials, etc. may be an effective strategy for helping you achieve this goal.
- Build a reputation for selling reliable vehicles.
Whether you sell new and/or used vehicles, building and maintaining a reputation for selling quality, reliable cars may help you earn your customers’ repeat business and attract new customers.
- Offer quality customer service.
Making every customer feel important can go a long way towards earning their repeat and referral business. Pay attention to the smaller amenities such as complimentary coffee, water, and tea or a sitting and play area for children. If your goal is to gain lifelong business, you want to make sure your customers view your dealership as more than just a place to buy a car.
- Stay in constant contact with your customers
Customer retention is based on loyalty, loyalty is based on trust, and trust is based on communication. Communicating with your customers through more than just marketing messages is an effective way to build trust. Sending personalized messages to your customers for a birthday, holiday or special event shows that you care about them not only as a customer but as a person — which can go a long way.
- Provide written credit approval to credit-challenged car buyers.
Having the ability to approve first time car buyers or customers with bad credit for auto financing is an effective way for your dealership to build trust. Dealers enrolled in the Credit Acceptance dealer finance program can offer written approval to car buyers with bad credit or no credit through our proprietary Credit Approval Processing System, CAPS®.
If your car dealership is looking for ways to expand your profitability and customer retention, Credit Acceptance gives you the ability to say ‘YES’ to everyone regardless of credit history.
Simply fill out the form on our website to learn the benefits of becoming an enrolled dealer in our dealer finance program!
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