Top five customer loyalty trends for your dealership
Building a loyal customer base, retaining those customers and rewarding them for their loyalty can have a big impact on your business. Your most loyal customers will spend significantly more with you than your average customer and are more likely to return for future purchases, so it pays to keep them happy.
Great customer service, loyalty programmes, and deals are all great ways to achieve this. That goes beyond simply selling a car, but retaining their custom for repairs, MOT and service work, as well as buying and renewing financial add-on products. This can introduce new revenue streams and improve satisfaction levels which, in turn, can help attract new customers.
Some statistics to bear in mind to help boost customer retention:
- Top 10% of your customers spend 3x more than the average
The top 10% of your customer base is spending 3x more than your average customer, according to data from Adobe. The top 1% is spending 5x more. Regular communications with these customers about new services, deals or products will likely have a much higher success rate.
- Great customer service can cut lost customers by 67%
If you can resolve customers’ issues with the first interaction with your team, you can reduce the loss of potentially loyal customers by 67%, according to thinkJar Research. If a customer wants to claim on their warranty, for example, making this process as easy as possible will encourage them to use your services again in future.
- Emotionally connected customers have a 306% higher lifetime value
Creating memorable and positive interactions with your customers boosts their lifetime value by 306%, according to a study of over 100k consumers by Motista. As one of life’s biggest investments, everyone has an emotional connection with their car, so the automotive industry is in a prime position to take advantage of this trend.
- 47% of disappointed consumers stop doing business with a brand
No business is perfect but it’s always worth striving for perfection, as just one mistake can have a massive impact on retention. According to Accenture, 47% of customers stop doing business with a brand after the company disappoints them.
- 77% of Brits are members of a loyalty programme
A great way to keep customers coming back to your dealership is by introducing a loyalty programme. Research from YouGov and partnership and rewards agency Mando-Connect found that 77% of Britons are members of a loyalty programme. 72% believe they are a good way to reward customers and 59% think all brands should offer them.
To learn more about providing great customer service to help boost your retention rates, download our eBook: Customer Service – Essential to Success.