Efforts to attract new buyers is valuable, but it can be detrimental when it’s at the expense of appreciating current customers. Marketing to reel in new business can be very costly, while satisfied, loyal customers provide a far greater ROI. Investing in a retention plan for customer loyalty is, therefore, a smart move for auto dealers, but only 64% of dealerships make it a priority. Here are three winning strategies to consider to boost your business.
Incentives via a reward programme for loyalty can strengthen customer relations, satisfaction and mention while not being too costly to your business. Consider the likes of reward points for purchases, an app that provides discounts when the customer interacts with the brand via the app, and VIP packages for offers on parts and services.
According to ICDP, customers that are members of a loyalty programme make double the visits to their service department compared to non-members.
Even Ford have revamped their loyalty programme to provide app-based points in a move to focus on loyalty and improved customer satisfaction.
Reports from ICDP suggest that services packages included with car sales can result in a 50% greater margin over the lifetime of the customer, showing that this strategy keeps the customer close to the business. Signing customers up to a service plan will provide them with peace of mind, while providing you with the chance to deliver excellent customer service that further generates repeat business. Buyers that are totally satisfied are more than four times more likely, according to the Automotive Dealership Loyalty Study in 2016, to make a further purchase than those who were markedly dissatisfied.
Motor trade insurance is still a top consideration for dealers, so consider who can provide motor trade insurance to give you peace of mind. In the unfortunate case of any damage or theft, motor trade insurance will be imperative.
Marketing campaigns backed by research can tempt customers away from competitor brands they’ve been loyal towards and to consider your dealership instead. Marketing is also a great way to reach out to those who have previously purchased from you, targeting them with more personalised advertisements and emails to show they are valued. Social networks and digital displays can further broaden the reach of advertisements and boost brand loyalty.