How Do You Retain Customers in the Automotive Industry?
Are you concerned with dealership customer retention? Some automotive dealerships create automotive customer retention programs to guide customers through an experience to build loyalty with the dealership.
Customer retention is an indicator of customer loyalty. And these customers repeatedly purchase services or products offered by that business.
The Importance of Customer Retention
Retaining current customers is inexpensive when compared to attracting new customers. A Harvard Business Review study found that it costs five to 25 times more money to attract a new customer.
When you retain customers, you convince them that you’re better than your competitors. And if you keep customers engaged with your service, brand, or product, they’re less likely to forget about it.
Tactics for Retaining Customers Include
- Customer relationship management
- Customer loyalty programs
- Loyalty offers and rewards
- Customer success teams specifically for customer retention
Customer loyalty is a great way to encourage repeat business. Loyal customers also bring in new business when they recommend your product or service. Word-of-mouth customers can influence their coworkers, family, and friends.
How to Measure Your Customer Retention Strategy
How is your current retention strategy working? You can judge your results in several ways:
- Customer Value During a Lifetime – Measures the amount of revenue generated by a specific customer during their lifetime.
- Revenue Growth Rate of Existing Customers – Measures the revenue obtained from your loyalty rewards program and customer retention efforts.
- Level of Churn – Churn represents customers who stop interacting with the business.
- Customer Retention Rate – Measures how many customers have remained loyal over a specific time.
Attract Repeat Customers
The purpose of customer retention is to attract repeat business. Accomplish this by:
- Building customer trust by offering good products and services. Good customer service also helps retain customers.
- Creating a customer rewards program. Offer rewards that help you achieve a specific business goal. You can also offer more significant benefits to customers who spend more on your products or services.
- Using customer data. Most businesses collect customer data, such as transaction histories, customer service interactions, and locations. This data can help you see what customers want and align with your business objectives.
Start Your Own Rewards Program
AutoAwards specializes in helping dealerships with customer retention. We’ve been collaborating with dealerships since 1991 and have a long record of success. Contact AutoAwards online or call us at 302-696-6000 to start your automotive dealership’s loyalty program.
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 (800) 405-4227.