Avoid Customer Dissatisfaction-Build a Quality Auto Loyalty Program
The majority of customers switch their auto dealers because of customer service dissatisfaction with sales and service employees. There’s another percentage of customers who are dissatisfied but who don’t switch.
Dealing with Complaints from Customers
Managers usually assume that most of their customers are completely satisfied if few complaints reach their desk. However, long-standing research about the pattern of customer behavior reveals why this happens — around 96 percent of dissatisfied customers never complain!
Managers can safely assume that for every complaint received, there are about 25 other customers with the same complaint who won’t mention their problem to them at all. Instead, customers who don’t complain to the company will voice their grievances with 10-20 other people if their problem isn’t resolved.
How Managers Can Reduce Customer Dissatisfaction
The smartest thing that managers can do to minimize this issue is to encourage people to voice any complaints they have about their services with their auto company and make this provision readily available.
The following reasons show why this action is so crucial:
1) About 54-70 percent of complainers will remain loyal to a company they know will handle their problems efficiently. About 95 percent will repeat their business with an auto dealer if it resolves their problem quickly.
2) Complainers will typically tell other people about their company’s good customer service when their problems are resolved.
3) Complainers typically stay loyal to a company as opposed to non-complainers, even when their problems are unresolved.
4) Auto dealers can greatly reduce their marketing spending seeking new customers as much as 80-90 percent by retaining existing ones.
Automotive customer loyalty programs that ask the right questions and encourage feedback via auto survey mailers greatly reduce dissatisfaction among its customers.
Moreover, the execution of good customer service strategies among management and staff can do much to fulfill their customers’ needs and keep their loyalty long-term.
Since our founding in 1991, AutoAwards has been widely recognized as the industry-leader in automotive and marine loyalty marketing, earning longstanding relationships with many of the industry’s most successful dealer groups and OEMs. AutoAwards understands the #1 predictive factor for dealer growth and profitability. Customer loyalty is the most successful way to build revenue. AutoAwards has always recognized the need for top notch, highly creative, effective loyalty strategies in large and small businesses alike. Contact us online to talk about dealer loyalty or call 302-696-6000.