Customer Retention 101: Basic Building Blocks to Building Relationships
Dealerships typically form a relationship with a customer to gain their loyalty. That’s why losing customers to another company can affect the dealership in different ways. Higher retention rates lead to increased profits for dealerships annually. But, how do you keep customers? Great customer retention starts with tried and true practices, technology, and understanding customer loyalty.
Customer Retention Using CRM Software
Surprisingly, the average dealership is simply not aware of the real numbers. They are completely in the dark concerning their customer retention rate. Having CRM software in place provides the data your dealership needs for insight that builds loyalty with your customers.
AutoAwards’ CRM software includes real time reporting of data, benchmarking, assessment of goals, and support that allows the solution to be completely turn-key. Our dealership customer retention specialists set up CRM software and also develop a strategic plan for customer retention.
Dealership CRM software provides the numbers for your customer retention rates. Dealerships would easily notice any drops in customer retention and can quickly design a plan for improvement. Improving customer retention rates keeps the dealership from lost profits. Indeed, an entire department should be established to handle customer retention, making sure that customer loyalty is the major priority with the dealership.
Understanding Customer Loyalty
Customer loyalty relates to a customer that buys all his vehicles from the same dealership or manufacturer. Today, customer loyalty is becoming an issue with many dealerships and manufacturers because of the industry’s increased competition.
Many dealerships are adding loyalty programs that are proven to increase customer loyalty. Customers respond more favorably to programs that offer them real value and benefits.
Tried and True Customer Relationship Building
The tried and true ways of building customer relationships and retention still work. Customers respond very favorably to honesty, integrity, and high-quality customer service. In addition, incentives in the customer loyalty plans are considered part of the overall structure of the loyalty program. High value service begins with understanding the true value of customer retention.