Improve Customer Retention with Actionable Strategies
Whether big or small, no business survives without growth. This fundamental need takes two forms: gaining new customers and retaining existing customers. Yet, many businesses make the error of just focusing on customer acquisition and forgo the importance of customer retention.
Customer Retention Drives Sales and Revenue
As your greatest asset, your customers must be taken care of if your business wants to succeed, much less thrive. According to a report from Harvard Business School, profits can increase by up to 95 percent by increasing customer retention rates. That’s a huge growth factor you’re missing out on if you’re only focusing on new customers.
The Extended Value of Customer Retention Strategies
By investing in customer retention strategies for your auto dealership, your business doesn’t just gain a one-dimensional growth factor. It’s the gift that keeps giving. Great businesses are built on multiple sale points, not “one and done” sales goals. From cross-selling, up-selling, to repeat sales, customer retention strategies entice existing customers beyond that initial single purchase.
Customer loyalty is built on customer retention strategies, which includes superior customer service to ensure customer satisfaction. The most powerful brands all have one thing in common – they build a relationship with customers through ongoing communication. This customer lifetime value transforms everyday consumers into brand advocates and ambassadors, and a solid loyalty program is one of the most actionable, affordable, and successful paths to get there.
Improve Your Dealership’s Customer Retention Rates with A Loyalty Program
Customer retention programs can help you both harness the value of loyal customers and attract new customers. Research clearly shows that dealerships make more and larger sales when they engage customers. One of the best engagement tools is a loyalty rewards program.
Benefits of a Loyalty Program
Whether you’re looking to acquire or retain customers, loyalty programs are a low-cost ‘stickiness’ measure to keep your consumers engaged throughout the entire cycle of sales. These programs keep the consumer engaged during their initial purchase and throughout the life of that purchase with incentives like ongoing vehicle maintenance, service, and special offerings.
You’re building brand loyalty, boosting consumer morale, and establishing a personal connection between the consumer and your brand. The result? You’ve ensured your dealership is at the forefront of the customer’s mind when their vehicle’s life expires and they’re ready for another purchase.
Research shows that auto dealership loyalty programs can boost revenue by five to ten percent. Research also shows that consumer members spend an average of five to twenty percent more than consumers not affiliated with a loyalty program. Plus, you can use the data from the program to better target your marketing campaigns.
Is Your Dealership Ready for The Best Customer Retention Strategy?
Have questions about implementing a new or improving your existing customer retention strategy and loyalty program? Contact us today for a consultation at 302-696-6000.
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.