rketing experts agree that retaining customers
at your Car Dealership is far easier than acquiring
them. If that’s the case, then why do so many auto
dealers spend so much money on marketing to new
customers and so little on loyalty programs for
existing customers?
The Value of Customer Loyalty Programs for Your
Car Dealership
Here are the key elements to a customer loyalty
program:
* Customer repeat buying behavior
* Customer referrals to friends, family, and co-workers
* Customer’s commitment to your dealership relationship
* Customer trust
* Customer spends more money over time
* Customer satisfaction
Basically your loyal customers pay, stay and refer
to others. This in turn brings more profit into
your dealership.
Justifying A Customer Loyalty Program
According to a marketing Metrics study, the average
dealership has a 60-70% success rate for repeat
sales with an "active customer:; a 10-15% chance
of repeat sale to a "lost customer"; and
only a 5-15% chance of sale to a prospective customer.
Loyal customers always tend to spend more money
at your dealership and refer others. Does it not
make sense to entertain a good loyalty program?
A good loyalty program will improve your dealership
profits, grow your revenue and greatly expand your
customer database. Money spent on customers will:
*Increase total profitability – not just revenue
growth
*Increase revenue profitability per customer segment
(car purchases, car servicing)
*Increase total dealeship revenue – customer defective
rate is lowered
*Increase total number of customers – loyal customers
refer many others, resulting in lower marketing
costs
*Improves how your dealership operates – loyal customers
provide more feedback than typical customers.
Customer Loyalty Factors
*Attitudes about your dealership, vehicle quality
and attention to customer service
*Dealership image
*Customer has a better overall experience at your
dealership
*Your customers will have a higher perceived value
of your dealership resulting in paying more for
vehicles
In today's competitive market where every car dealer
is offering similar vehicles and services, preventing
customer defection will have a huge impact on your
bottom line. The right customer loyalty program
may be just the thing to jump start lagging sales.
Need help with building customer loyalty Program?
We have a "done-for-you" plan you just
need to fill in the blanks. Call 866-927-0437 or
use our contact form
for more information
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