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Keep your customers coming back with first class communication

The cost of acquiring new customers is almost always considerably more than the cost of keeping the customers you already have. Car retailers probably know this more than anyone. Retention will not only boost revenue from repeat business, it will help attract new customers through word-of-mouth referrals – as the likelihood of recommendations increases if they keep returning themselves.

Developing that initial relationship is one of the most important aspects of sales. It can be the longest and most difficult step, as you try to establish trust, build an understanding of their requirements and find the stock and add-on products to suit. With returning customers, you might find you’ve already broken down those barriers, and it could be easier to convince customers to upgrade their vehicle, arrange a service or renew a financial aftercare policy.

Learn more about putting customers at the heart of your business with our FREE eBook.

Communication is central to retention

Communication is key to ensuring customers keep coming back to your business. After they drive their new car off the forecourt, regular contact will help ensure you see them again. So here are our top three tips for boosting retention through better customer communication:

• Keep in touch – make sure customers are happy with their purchase, provide reminders for add-on product renewal dates or just add them to your Christmas card list. Ensure your business comes to mind the next time they’re looking for a new car or a mechanic.

• Use the right communications tool – there are multitude of ways to contact customers. Calls and direct mail are still powerful methods for boosting customer retention, but don’t overlook email, text messages, social media, as well as digital and traditional advertising.

• Timing is essential – knowing when to contact your customers is just as important as how you’re going to do it. But don’t ignore them for 11 months of the year and drop them a message just in time for their annual service – this will look opportunistic at best.

Learn more about communicating with customers in the digital age with our FREE eBook – Digital technology for dealerships.

Support with your communications is at hand

Communication is essential to customer retention but that doesn’t mean you need to spend all your time contacting past buyers. Getting new customers through your door is still vital, of course. There is support available to help you make the most of your customer base and this is where choosing a good financial aftercare provider will benefit your business.

At Car Care Plan, we have implemented a wide range of retention programmes to businesses of all sizes. We work with manufacturers, dealers and affinity partners in over 50 countries, providing over 1,300,000 peace-of-mind products every year. So if you’re looking for advice and support with your customer retention activity:

Call Car Care Plan today on 0344 573 8000 or visit our website.