RSS

Why is Customer Retention Important???

01 Jul

Customer retention…. It’s the single most important item…. that any Dealership can concentrate on….

Let me start with an NADA statistic

NADA did a survey…. And it showed that customers that service their vehicle… at the dealership…. are 17 times more likely to purchase another vehicle from you.

17 TIMES more likely!!!

Not twice as likely….

Not 5 times more likely….

Not even 10 times more likely…

Seven…teen times more likely…

If this statistic doesn’t get your attention…..NOTHING will…

THIS….is how important Customer retention is…..

A dealership will spend thousands and thousands of dollars attracting new business through advertising and marketing….

But what is getting spent on retaining the customers that you already have???

Lets face it…..customers will always return to a place that they feel comfortable doing business with and charges them a fair price.

Just like the old comedy show….Cheers…they all want to go where everybody knows their name….

Let me give you a correlation….

If you go into a restaurant and have bad service and bad food…..you are not likely to go back…

If you have good service and just fair food…..you might go back…

BUT….if you have great service and a great meal……you will definitely go back and tell all of your friends and relatives about the experience….

In turn….your friends and relatives will go to that restaurant…. based on your recommendation….

Wouldn’t you want the same thing to happen at the dealership???

Well…..it can happen!!!

There has to be a concentrated effort on staying in contact with the entire database of customers…

This contact needs to be timely and be of value to the customer…

You can’t just contact them for the purpose of selling them something…. You have to form a relationship with your customer….

You have to get every employee in the dealership to understand just how important customer retention is…

What it means for them in regards to expanding the business….. And expanding their own individual paycheck….

If you don’t have a customer retention process in your organization……you will not be able to grow your business at the rate in which you desire…

Have you measured your customer retention???

Do you know how many new customers you just sold a vehicle to…..come into your shop for service??

Do you know how many loyal service customers have come back and purchased another vehicle from you…or better yet…that loyal customer….. Telling a friend or family member about your store and they make a purchase from you….

Are you rewarding these loyal customers in some way???

If you are not rewarding these loyal customers…..they won’t be loyal for long….

Sometimes… just simply recognizing them for their loyalty is all that is needed…

You think customer retention is important???

The word important….. doesn’t do it justice….

The word essential….. is more fitting…

Customer retention is essential…… for the continued prosperity of your organization…

About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff

WordPress blogsite: https://jimkristoff.wordpress.com/

Blogspot blog: http://jimkristoff.blogspot.com/

DealerElite.net: http://www.dealerelite.net/profile/JimKristoff

Automotive Digital Marketing.com: http://www.automotivedigitalmarketing.com/profile/JimKristoff

LinkedIn:  http://www.linkedin.com/in/jimkristoff  

Youtube: www.youtube.com/user/jimkristoff


Advertisements
 
Leave a comment

Posted by on July 1, 2011 in Archive of all blogs

 

Tags: , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: