• Increase Dealership Customer Retention

Increase Dealership Customer Retention in 3 Steps

Dealerships have always relied on customer retention by making strong positive impressions with each vehicle buyer. Even if a customer’s next purchase is miles away, loyalty will return them for a new ride and inspires dealership referrals.

While dealerships have struggled with customer retention due to limited inventory, rising prices, and new buyer behaviors, the numbers are going back up. According to S&P Global Mobility, industry-wide brand loyalty rose to 52.5% through June 2024, a 1.9 percentage-point increase from the same period in 2023.

Why Customer Loyalty Matters for Dealerships Increase Dealership Customer Retention

Car buyers have never had more options when it comes to where and how they buy a car. Competing brands, models, and even car buying apps are increasing the challenge to secure customer loyalty. Dealerships who rely on return customers and referrals must focus on retention to win sales from the competitive car-buying landscape.

Three Steps to Boost Customer Retention

Fortunately, there are three essential steps that will increase dealership customer retention and build a community of loyal customers.

  1. Communicate to Improve Retention
    Dealerships must determine which customers will be long-term and which are likely to shop around based on CSI reviews and service drive history. Customers who invest in long-term vehicle service contracts and return to purchase a second vehicle are your most loyal audience.
  1. Personalize Messaging for Unique Needs
    Each of your customers is valuable and unique. Engagement ensures continued connection, and personalization is the key to engagement. To stand out from advertising competitors, tailor your messages to the unique interests, motivations, and needs of each loyal customer. Demonstrate why staying loyal to a local dealership is beneficial including:
  • F&I products that benefit their specific vehicle
  • Personalized financing offers based on their history
  • Ongoing communication and service after sale
  1. Make the Customer Experience a Priority
    Dealerships can retain customers by making the dealership experience worthwhile compared to the more impersonal approach taken by many competing services in the industry.

    Maintain communication throughout a customer’s buying journey. Look for opportunities to stay in contact, personalize messaging, and meet each customer’s unique needs in terms of purchasing and caring for their vehicles. Keep your loyal customer engaged by connecting at every stage of the car buying and ownership journey, such as maintenance prediction technology, dealership services, and future family deals. It’s also important to make sure that each department that the customer has contact with is helpful, professional and pleasant when assisting the customer.

Nurture Your Dealership’s Loyal Customers

By focusing on customer experience and prioritizing customers, dealerships can maintain their existing community of loyal customers and grow that community with news ones who are delighted by your quality of service and personal attention to detail.

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