Whitepapers

3-Step Guide to Protecting Your Dealership Loyalty Customer Base Typically representing the highest ROI sales and the most likely to generate service and other fixed-ops revenues, dealers have long understood the value of their loyal customers. But in today's increasingly competitive market, dealers can no longer assume any customer's future business is guaranteed – even if a customer and their family have been buying from your dealership for years. Amid inventory shortages, aggressive offers from competitors and expanded online retailing options that are increasingly tempting your customers to defect, it's critical dealers proactively prevent customer defection and protect their loyal customer base. This process can be simplified into three key steps: 1. Plan Your Approach The first step to protecting your loyalty customer base is identifying your dealership's most significant risks and opportunities for customer retention. Analyze why your customers are defecting. Is it the inventory? Pricing? A prior bad experience? Assess where your current retention efforts have been successful and where they haven't, including asking customers – politely and directly – how your dealership can better serve them long-term. From here: Use existing dealership customer retention statistics, gross and net revenues and other relevant KPIs to project what even minor improvements in loyalty mean to your top-line and bottom-line figures. Meet with each department manager to get their feedback and understand what's preventing customers from re-signing on the dotted line. • Measure against expectations and relevant KPIs like your CSI score, service and sales retention rates and customer referrals. Brand loyalty among U.S. consumers for new vehicles dropped to a six-year low in June 2021. IHS Markit 91% of car buyers say "trust" is essential when deciding where to purchase their new vehicle. Marchex, Automotive Buyer Study 2021

• Cover