Renewals Are The Answer But What Is The Question?

Customer Retention and Loyalty what do we do?

As of June 2017 there were 39.975 million drivers in the UK, well those with a UK driving licence, which does not allow for foreign drivers or those that have a licence but don’t drive.

Allowing for these two unknowns, let’s say 42 Million drivers in the UK. Given that last year 2.6 million new cars were sold and 8 million used cars, we can guestimate that ‘people’ change their car every 4 years on average. Accepting this is fundamental to the next part of this blog.

A sales department then will see a customer (if it retains the customer) once every four years, so how do you keep them on-side until the change moment happens, and more importantly how do you make sure when the chrysalis event occurs they come to your automotive business?

Preservation of customer loyalty is a key marker of a Motor Trade business’ success, a high retention signifies high levels of customer service and more significantly more opportunities to sell.

So what is the life cycle of retention?

Year 1 - The honeymoon year.

The customer touch points, barring any issues with their new car, are likely to be few and far between. Reality is that most customers expect a call from ‘customer services’ within a couple of weeks of purchase and then again from the Service Department when the service is due. Other than that any other calls, will be out of the blue and as such must have some value. Dealers that get this right, make sure the call is both well timed and well received. This might include something as simple as timing and the caller. Noting what time of day the car was originally handed over might show when a customer is available to take a call, and really the original sales executive should make the call.

Year 2 – First signs of enthusiasm fatigue.

This year for many customers both the shine and the new car smell have gone, but given that most are only 12 months into a finance agreement, the ability to change is non-existent regardless. So this year is vital. Many businesses forget that this IS THE TIME to check in with customers, and more regularly. Dealers that get this right either employ someone who has direct responsibility for this, a retention manager and we’ve seen an increase in these positions over the last three years; or they have the sales manager make the call. Whatever, you do, making the call is imperative.

Year 3 – May have lost a few by now.

Customers in this year, will have already thought about their next car, some may have even taken a test drive or two. Any calls made in this year need to be invitations, invitations to come into the business and discuss the options they have open to them with your brand.

Year 4 - Gone What were you doing?

You had 1,095 days and now it’s too late, potentially.

Retention is all about positive, proactive and professional contact. Having the right person make the call and discussing the right thing. If you want to take this seriously, why not make a call….

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