Posted on 10/25/22

Guide To Car Dealership Customer Engagement

Guide To Car Dealership Customer Engagement

Dealerships must be more focused on customer retention strategies, regardless of whether there is increasing online competition or sporadic supply chain problems. When consumers begin actively looking for their next vehicle, it is crucial to building loyalty to your dealership and the brand.

This article will cover the customer journey and the various customer retention strategies that should be considered at each stage. We'll also discuss tactics and ideas for the after-sales period and answer frequently asked questions.

Untapped opportunities in the customer journey

Understanding each step of the customer journey will help you identify new opportunities and overcome roadblocks that can hinder conversions. These insights can be used by sales managers and dealers to improve their operations and change tactics to better serve customers and increase customer loyalty.

Five main stages of the customer journey:

Tips during information gathering

Prospective customers conduct online research during the information-gathering stage and ask for recommendations from family and friends. Autotrader reports that 59% of car buyers spend their time online researching.

Google Ads can be used to reach potential customers searching for vehicles. To answer any questions regarding vehicle models, financing, or contactless delivery options, you should have information on your website.

Tips to help you make contact

Prospective customers visit dealerships online and in person during the second stage. Is it easy to reach your sales team for customers? Is there an online chat option on your website?

It should be as simple as possible for shoppers and other interested parties to reach you. If your CRM is used, ensure that new leads are assigned quickly so that sales reps can contact them promptly. A test drive invitation is an example of a common first touchpoint.

These are some tips for those who want to explore financing

Prospects at the exploration financing stage are looking for trade-in values as well as how to finance the vehicle. Are there any APRs that can help customers reduce their monthly payments?

To share information about financing and special offers, you can email, call, text, or use USPS. Trusting relationships with potential buyers can be built by being honest and helpful throughout the financing process.

Tips for buying and negotiating

Customers and sales representatives can find the buying and negotiating stages both exciting and frustrating. It may take many hours to complete the purchase. Autotrader reported that 56% of the time spent on paperwork or negotiating is spent.

To save time, have the buyer complete some paperwork before they come to the dealership. So that they are prepared for the work, and the timeframe, let the customer know exactly what to expect.

Tips for vehicle delivery

Your customers should have a memorable experience with your delivery. A little bit of dealer swag or a compliment from your staff can make a lasting impression. To ensure that the customer comes back to your service center for future maintenance, schedule as many appointments as possible. This will help you secure future vehicle purchases. Modera reports that customers who regularly service their vehicle at the dealership are 86 percent more likely to buy again.

According to Cox Automotive's car buyer study, the average time it takes to buy a car is 96 days. This is three months you have to build trusting relationships with prospects.

Customer retention activities after the sale

It's not the end of the relationship when you hand over the keys to the customer. This is the beginning of building the foundation for your next sale. This is where you demonstrate your value and build your relationships. Here's how:

  • Multi-media communication. Keep in touch with your customers through welcome emails, maintenance alerts, and monthly newsletters. Invite them to find out more about the features of their new vehicle. You can personalize your messages using data from a CRM.
  • Recognize and reward customers. This shows appreciation for their business and can help you increase your profits. Modera estimates that a mere 5% increase in customer retention could increase profits by 25%.
  • Customer service management. Respond to any compliments or complaints in a consistent manner. If a customer is not acknowledged for a complaint within a reasonable time, they will be frustrated and more likely to take their business elsewhere.
  • Reputation and social strategies. Customers may be active on Social Media. Are you a dealership on any of the major social media platforms? If they do, it's vital to keep track of posts and engage with customers.

For a deeper dive into customer retention strategies for car dealerships, request, How To Defend Your Customer Base.

Common Questions about Car Dealership Customer Retention

What's customer retention?

Customer retention refers to a company's ability to keep customers after a sale. You are keeping a customer if they buy another vehicle from your dealership or take their car to your service center.

How can you keep customers in the automotive industry?

Be consistent with your prospect and customer communications to build loyalty. Also, be sincere. Trust can be built by being helpful and not selling. Be active at every stage of the customer journey.

How can I bring more customers to my dealership?

Marketing communications can be used to maximize the potential of the five stages of the customer journey. Use channels that are used by potential customers, such as Instagram, Facebook, and other social media platforms.

What strategies are there to retain customers?

A customer retention strategy that works is only possible if you communicate with your customers after the sale. You can send out monthly emails, mail cards to birthdays and special holidays, reward loyal customers, and respond to any social media reviews or comments.

What are some of the benefits of customer retention?

It is more economical to retain the customers you already have than to acquire new ones. Customer retention is key to gaining insight into customers' buying habits and needs, building loyalty, increasing referrals, and reducing customer churn.

Expert auto transport can improve customer retention

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