Planning an Effective Customer Retention Strategy
Effective customer retention is an essential part of the overall success that your auto dealership enjoys. When it comes to car dealership customer retention, our team here at AutoAwards is made up of industry experts who know how to help you plan an effective customer retention strategy that works. Continue reading on to learn more about this critical topic.
What Is Customer Retention? – What Are Its Benefits
The term customer retention refers to a business’s ability to keep its existing base of customers returning to it for future sales and services. There are a variety of tactics that today’s auto dealerships utilize to enjoy effective customer retention. It is a topic of great importance since loyal customers make up a large percentage of an auto dealership’s profits during the year. Some of the notable benefits of effective customer retention strategies include:
- A boost in overall profits
- An increase in the average value of each order
- A great way to acquire brand ambassadors through word of mouth
- Retaining customers leads to lower overall costs than the efforts required to attain new ones
Four Key Steps to Effective Customer Retention
There are four key steps involved with effective customer retention. They are:
- Customer Segmentation – Effectively segmenting your customer base by way of their buying behavior can make a significant difference in the success of your retention efforts. Considering the various types of customers, you interact with can allow you to modify your strategy for each one. This can include taking a subtle approach with your customers who are already solid in their loyalty while being more active in the way that you approach more fickle ones.
- Excellence in Service – Consistently providing excellent service is one of the foundations of effective customer retention strategies.
- Implementing Effective Systems – Having a solid customer retention system in place can make a significant difference in the success of your program. This is a key area where our AutoAwards team can help.
- Active Selling to Existing Customers – Your efforts to actively sell to your existing customers can significantly affect your success rates.
Learn More About Car Dealership Customer Retention
At AutoAwards, we lead the industry in automotive customer retention programs. Reach out to our team today to take advantage of your consultation for launching effective automotive customer retention programs with loyalty rewards at your dealership. Call AutoAwards at 302-696-6000 and talk to one of our automotive loyalty program specialists. You can also contact us online.
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.