For those of you that depend upon your retention rates to be higher, it may cost you a bit to gain a lot. I have said this so many times during my career, “It takes money to make money”! The average dealership loses 50% of its servicing clientele after year one of selling the vehicle. Roughly 30% of car buyers purchase the vehicle and never come back to your dealership at all. That is really bad odds when your business is set up to make money on the front and back end.
We set up three months ago within our dealership a retention strategy that seems to be working rather well. When the customer purchases their new or pre owned vehicle the sales department automatically gives the client a coupon for the first maintenance, complimentary of the sales department. We are getting over 95% of these customers back now.
To ensure the service department retains these customers for a longer duration then most dealerships historically, we also as a complimentary gift from the service department offer each client a coupon post card which states the next three services are free. As well there is a 10% off coupon for accessory parts purchases and installation.
If you give your customers a reason to stay with you, they will. What did it cost you over the life of four oil services, $180.00? That is a very small price to pay to retain your customers and give them a WOW experience. If you can maintain the WOW experience offering, you’ve probably won them over for life. When you look at retention in this light, who in their right mind wouldn’t spend the initial $180.00? Well I am sure that there are some that might still want to save their way to a profit or HOPE they can continue down the same path they have always traveled.
Times are a changing and to succeed in these times you need to change your thinking. Change your thinking and change your life and your business for tomorrow!
David
