By Dan Beres, Managing Partner, Recall Masters
Retention is vital for long-term profitability and health, but most dealerships still have a lot of work to do before retention is covered. Sure, offering a great customer experience in service can head you in the right direction, but there’s more involved than many might think. It’s not just free coffee, donuts, or wi-fi access that brings customers back; They return to the dealership because they trust that their vehicle will be adequately serviced at a fair price and made safe for them to drive.
Customer retention is a means of preventing defections (i.e. going to your competition). Retention marketing includes programs and strategies that focus on the growth and retention of existing customers through incentives to lure them back into the dealership for subsequent transactions. These ongoing touchpoints prevent you from losing customers to your competition, saving your dealership money otherwise spent on customer acquisition tactics. Another benefit is that you increase the likelihood that these retained customers buy their next car from you.
Retention marketing programs help you to not only stay in contact with customers but also to deliver valuable information at the same time. Many dealerships subscribe to and deploy a variety of marketing services designed to keep them top of mind. However, many don’t leverage these to inform customers about recalls. Perhaps they think recall information is too broad and won’t apply to everyone. Some likely perceive recall communication as highlighting a negative situation. The truth is, consumers view recalls as an extension of sound safety practices. Consumers gravitate to organizations that look out for driver safety, have product integrity, and practice proactive problem resolution.
Also, recall awareness communications help to elevate your dealership’s profile. Consumers tend to appreciate the effort and reward your dealership by servicing with you.
Many dealerships already have an e-newsletter they send to customers, and it can easily include added information about existing recalls. By using this existing medium to share information about recalls, you reinforce your dealership’s commitment to vehicle safety and build consumer trust for your dealer and factory brand.
Another tool you can deploy is an online scheduler. Most service schedulers require (or at least ask) a customer what vehicle they are bringing in. Nobody likes surprises in the service lane. A service advisor or director can quickly review which vehicles are scheduled for the next week or so, identify those with existing recalls, and call, text, or email the customer this information before their visit.
Imagine a consumer’s disappointment if your dealership failed to catch a recall during a recent visit, and the consumer then independently discovers its existence from another source. These oversights can chip away at your credibility and the customer’s loyalty.
Provide your customers with valuable recall information that affects the safety of their vehicles. Offer them a convenient time to get the recall handled. And at the same time, offer those service coupons you already had planned. You can easily encourage the customer to allow you to do both.
A few simple customer retention strategies in place can help prevent defection and build loyalty. This can also reduce customer churn without spending thousands of dollars every month in acquisition efforts to replace the customers lost the previous month. Recalls are a unique opportunity to win over new customers, retain existing customers, and drive revenue without any need for discounting.
About the Author
Dan Beres oversees Enterprise Services for Recall Masters, which includes OEM and strategic partnerships. Dan has 20 years of experience selling and managing technology/marketing solutions in the auto industry.
