Learning the top 5 methods to increase customer retention can be one of the smartest moves you make for your dealership. Customer retention is one of the pillars of any long-standing business and any successful dealership owner will tell you, repeat customers are the lifeblood of your organization.
Your customers are valuable not only for their financial contributions but also for their positive feedback and the word of mouth marketing they can provide. One satisfied customer can quickly turn into ten. As a dealership, you need to put the strategies in place that will allow you to capitalize on these satisfied clients.
In fact, you should be doing everything in your power to increase your customer retention and gain added market share. Preparation shows leadership and any top quality dealer understands that there is no room for regret. When a customer enters your facility, you cannot leave anything on the table. You need to perform to get results.
The internet is filled with customer retention techniques, some more effective than others. Your overall effectiveness will be determined by a combination of factors. These include the level of training your staff has, combined with the customer retention strategies you have set in place. Below are the top 5 methods to increase customer retention in your dealership.
The Top 5 Methods to Increase Customer Retention
- Customer Delight - This is more than just quality customer service. You need to delight your customers by providing them with unmatched quality and professionalism. One of the easiest ways to do this is by creating an educational based sales strategy. Studies have shown people are more likely to buy from someone who they feel has taught them something of value. This means you need to become the teacher, so you guide your clients to the purchase via your curriculum.
- Social Media - Social media is a very underutilized tool when it comes to customer retention. Social media platforms allow you instant access to a database of past and potential clients. It can also allow you to gauge the excitement of a product or offer. By having an aggressive social media marketing plan you stay fresh and in-tune with your client base. This will also allow you to show your clients new products and services, without directly contacting them. Pair your social media marketing strategy with a quality CRM and an informative blog to add penetration and get better results.
- CRM - A CRM, or Customer Relations Management System, can be the perfect addition to your dealership. These systems are designed to keep your contacts info up to date and automatically send out follow-up offers and thank you letters at preset time intervals. For example, a customer decides to purchase a boat from you on the first of the month. Once their info is entered into your CRM you can set it to send a 30-day thank you email, a 60-day follow-up email, and 90-day add-on sale email. All of this communication keeps you fresh in your customer’s minds and it also lets them know you appreciate their business.
- Follow-Up Sales - A customer that has already purchased your product is far more likely to purchase additional products from you. This is doubly true when you have maintained high customer service and high product quality standards. By incorporating follow-up sales into your CRM strategy, you can increase your follow up revenue without bogging down your sales staff.
- Loyalty Programs - Your customers reward you every time they choose to come into your dealership and make a purchase. Return the favor by providing special offers and discounts to your most loyal clients. Many dealerships give perks to their best clients. This lets your customers know you appreciate their business. The right loyalty program can be a highly effective strategy.
Every step of this plan interacts with the other components to create an effective retention net. You may notice that you have pieces of this plan already in place at your dealership. That is excellent and by adding any missing components, you will increase your retention rate significantly and keep your customers praising your establishment. This synergy between you and your clients is necessary to become the best dealership in your region.