Why Customers Aren’t Returning…and What to Do to Fix That
It’s well acknowledged, quoted, and recognized that acquiring a new client costs at least five times as much as retaining an existing one.
Given that fact, it is understandable why so many businesses (including dealerships) prioritize client retention as a key strategy for boosting overall sales and profit. But what if your consumers simply aren’t returning, despite your best efforts? Without direct access to your client’s thoughts, it may seem as though you are losing an uphill battle.
The top five reasons you might be losing your best customers and how to fix them are covered in our 2020 Dealership Service Retention Report, which looked at the reasons why customers (even devoted ones) don’t return to your dealership.
The Top 5 Reasons Why Your Customers Aren’t Returning
These five factors, whether it be a poor first impression or a hefty price tag, could have a disastrous effect on consumer loyalty and income.
1. A negative past experience
A negative encounter is the fastest way to lose a client. Don’t trust us? 32% of all consumers would cease doing business with a brand they adored after one negative encounter, according to PWC. That doesn’t give you a lot of leeway.
And one lost customer might cost you a lot in the age of social media and Yelp ratings. However, negative encounters aren’t restricted to situations where a client feels that a service agent was impolite. In actuality, it may involve:
Repeating a problem to various departmental personnel
sticker shock, especially on the initial visit following the end of their warranty
feeling compelled to purchase more (perhaps expensive) services…Strategies to Affect Change
Everyone on your team needs to be trained in customer experience so that you can give your clients the best possible service. This is not only a talent for your service advisors. Consider developing a customer feedback loop to enable your team members to gain useful consumer insight, or consider offering yearly training on customer service skills, if you notice that you are losing clients due to negative encounters.
2. Cheaper Services at Other Locations
Sometimes, it really is all about the money. And for many people, solving that issue can be challenging. Discounts and deals, it’s crucial to remember, don’t always indicate loyalty, so hold off on lowering your price just yet!
Strategies to Affect that
Instead of concentrating on price, consider value. Offering clients extra value along with their service will keep them coming back repeatedly, but competing only on pricing is a poor strategy.
a simple method to accomplish that? A customer’s oil change now comes with roadside assistance, tire hazard prevention, and emergency alternate transportation when you partner with a renewable benefits provider like SimpSocial. You’ll never see an oil change the same way again!
3. The Required Services Are Minimal
If your clients bring their automobiles to you, minor maintenance and repairs might be a gold mine for your service department. Additionally, consumers might be less likely to recommend you to their friends and family if the repair is minor enough to be handled by a neighboring company or a cousin.
Strategies to Affect that
It can sometimes be as simple as raising awareness of your services. Make sure your clients are aware that your service staff can assist with any type of maintenance or repair, from minor to major.
Bonus: When it comes to tires, this may be particularly true. Over 20% of customers weren’t aware if their dealership provided tire repairs, according to that same Retention Report. Don’t let poor advertising force you to lose out on valuable clients. Promote it and increase your tire sales by doing so.
4. A More Practical Place
Convenience plays a significant role in determining client loyalty in today’s era of overnight shipping and delivery in an hour or less.
Strategies to Affect that
Unfortunately, you cannot relocate your service department to a more convenient location for each client. What you can do is use local SEO to promote your business so that people in the area know where to go if they need a repair.
Bonus: If you offer your customers dealer-loyal roadside help, their vehicles will come to your dealership for unexpected repairs rather than the shop down the street.
5. A recommendation or referral from a friend
Customers have faith in each other. Even a devoted client of yours might be open to giving a new service department a try if a friend suggests it.
Strategies to Affect that
More referrals for your company come from loyal clients. You’ll be well on your way to building a Rolodex of referrals by giving clients a great experience, better value for their money, and easy access to repairs of any kind. Make sure your pleased customers are inspired to provide online reviews for your dealership as well to optimize this impact.
Stop allowing your clients to leave at will. Put these tactics into practice, and watch your revenue and customer retention soar.
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