19 Jul 2018
Hopefully your answer to the above question is “great!”. If it is, then good for you but you should read on because it could always be better. If your answer wasn’t quite so positive then welcome, this quick blog is here to help.
The only way to answer this question properly is by knowing how to measure retention. This industry consists of multi-year purchases, with almost a guarantee that your customers will be sticking around. Then, why, are there still issues with retention when the customer is primed to stay?
A survey carried out by AutoMD found that 78% of drivers say they plan on keeping their cars for 10 years or more after their purchase, with customers also often swapping model rather than brand. This shows how long customers could be retained for from one initial purchase. This is a great lifetime value as customers can be up-sold to and engage in a lot of add on/upgrade purchases in this time.
A SuperOffice survey looked into reasons why customers leave and showed that 68% that leave, go because they believe the company doesn’t care about them. Customer loyalty only occurs when you are loyal to your customers, build relationships and exceed expectations.
Customers are only going to stick around if they feel valued and to value a customer is to listen to them. Rather than selling to each customer in the same way, a targeted approach needs to be adopted where you’re telling customers about things coming their way that would be of value to them.
Customer retention relies on consistent comms with your customers. The ability to give excellent customer service, not just to ensure the sale is made, but to ensure the aftersales relationship is maintained and nurtured. Caring about the customer doesn’t stop when they have made a purchase, it starts. This is the beginning of a relationship and will determine how long your customers stick around. The UK automotive aftersales market is worth £21.1 billion annually and is said to rise to £28 billion by 2022. Aftersales is a large chunk of all dealers profits and so consistency and care should be number one priority. This is the only way to ensure retention.