In 2016, there were 17.5 million New vehicles sold and 41 million Pre-Owned vehicles sold. That’s a total of 58.5 million vehicles sold in 2016.

There are 213 million licensed drivers in the United States. If you divide the 58.5 million vehicle sales into the 213 million licensed drivers, you get 27%.....27% of ALL licensed drivers are going to buy a vehicle this year.

What percentage are you retaining? 27%?? That would mean a database of 10,000 customers should sell 2700 vehicles in the next 12 months without any new customers! Is that even possible??….how can you retain them all? Do you know what your dealerships sales retention percentages are?….and what is a realistic percentage for your store?

References:

• http://money.cnn.com/2017/01/04/news/companies/car-sales-2016/

   

• http://www.cnbc.com/2016/12/05/used-vehicle-sales-look-set-to-hit-all-time-high.html

   

• https://www.fhwa.dot.gov/policyinformation/statistics/2013/dl22.cfm

   

There are 4 drivers of customer retention.

They are; Convenience, Experience, Price and Credibility

I’m going to cover each of these in separate videos.

But here is the overview….Have you examined, in depth, how your dealership can maximize and execute each one of these drivers?

How convenient are you to do business with?

What experience do you provide your customers AND employees with on a daily basis?

Is your pricing both transparent and justifiable?

And how do you build credibility with both your customers and your employees?? The key is communication!!

Just how convenient is your store to do business with?

Does a live operator answer the phone? Does it go to an automated answering device, where you need to dial “1” for sales or “2” for service and so on?

Can a customer set their own service appointment on your website?

How easy is it to email employees or management in the store from a customers perspective?

Is your “staff page” on your website up to date with phone numbers and email addresses?

How about your hours of operation for service?

Do you know what the “preferred method of contact” is for each customer? Some want a phone call….some want a text….some want an email…..Do you ask them??

Do you update the customer file every time you speak with the customer…thus updating current phone numbers, email addresses and physical address?

Does your dealership provide a positive experience for your customer?

A positive experience for the customer requires that your employee is thoroughly trained in all aspects of their position!

Most towns have one…A legendary local business… that consistently attracts people from miles around…

It’s a place that the locals proudly bring visiting relatives and friends to….

The place that’s always jumping with turbocharged workers and lines of delighted customers…

Even while nearby competitors are struggling just to stay in business…

It is a highly successful business…where it is difficult to get a job there…all the employees are thoroughly trained…and all the employees wear a smile…and share a laugh…

Does this describe your organization??

Is your dealership providing this type of experience?

Pricing is an important part of customer retention!

The Dealerships pricing needs to be transparent…but that doesn’t mean you are giving away your services for free….

Transparency means being able to justify your pricing!!

Is your Sales and Service pricing in line with the competition?

Do you provide “standard vehicle service maintenance interval” pricing on your website? In other words…the “A” service or the “B” service maintenance that is required on all vehicles?

Does your website provide the 3 options of, “good, better and best” pricing for your a la carte items in service, such as batteries, wiper blades etc….

Do you want to have transparent pricing for the customer? Maybe so…maybe not…

Are you pricing yourself to the market….or are you priced too high for your market?

And most importantly, do your employees know how to justify the dealerships pricing in sales and service?

Credibility…..it takes effort and time to build it….and it can all be lost in one second!!

The very best way you can build credibility with your customer is to consistently communicate with them! Speak with them on the phone….email them….mail them…speak with them in the Service Drive…..

That holds true with your employees also….you need to speak with ALL the employees constantly….otherwise…if you don’t speak with both your customer and your employees all the time…..you will lose credibility! You will lose their trust!!

Every relationship you have in life, is built on credibility. If you have an open and honest dialog on a consistent basis with both your employees and customers….they will each be happy!

Happy, knowledgeable and professional employees are your “front line” in communicating with your customers! If your employees are not happy, knowledgeable and professional…..how can they build credibility with your customers??

Service retention is the number one opportunity for both improvement and driving revenue that a dealership has!

Average dealership service retention numbers….are terrible….and we just seem to accept them!

Isn’t it time to take massive action and drive additional revenue to the store?

Did you know that a customer that consistently services their vehicle at the dealership, is 7 to 8 times more likely to purchase another vehicle from you?

Do you have a Service/Retention BDC that is separate from your Sales BDC?

The average dealership, according to NADA is spending a little over $600 per vehicle retailed on marketing and advertising. If your dealership is selling 100 vehicles, you’re spending $60,000 a month in marketing and advertising…..once you OBTAIN the customer….how much money and effort are you spending on RETAINING them?

No one will dispute that it is MORE cost effective to retain a customer rather than go find a new one….

What are your efforts, processes and successes in retaining YOUR Service Drive??

Have you considered opening your service department at 4:30am, by appointment only?

In an effort to really retain your customer, consider their service visit.

Convenience is why a lot of customers leave your service department and go to a third party vendor for service.

Here is what your customer goes through to drop off the car for service before work.

They have to get up earlier, change their routine, bring their vehicle to you, get a loaner vehicle, rental, shuttle van or have a friend pick them up….then they go to work.

Then after work, they once again have to change their routine, bring back the loaner vehicle, the rental, get a ride…etc….and then you want to talk to them about declined services or what they need next time they service their vehicle?? After all of this, they probably aren’t listening to your pitch.

Imagine the ease for the customer… if they could bring their vehicle in early before work. Sit in your lounge and have a cup of coffee….have the service performed on their vehicle….and then take the vehicle to work with them!! They may even consider additional services while they are there…..