3 Ways Customer Retention Programs Can Increase Profits

When it comes to gaining new customers, the costs can add up. You have numerous forms of advertising to get the word out about your company. You also have sales and promotions that get customers in the door. However, what if your existing customers are so thrilled with your service that they come back and invite their friends? These loyal customers cost substantially less to obtain which means higher profit margins. That is where you need to focus your dollars! So, what goes into a successful customer retention program?

What's in it for the customer?

A tried and true program that has been with us for a long time is a Referral Program. It needs to be an attractive referral incentive for current customers to recommend you to their friends. Once that friend or family member makes the purchase the customer receives the incentive.

Timely Repeat business:

A great customer retention program needs to be timely to encourage repeat business. If the customer will receive a discount on the next car they purchase there needs to be a deadline for that discount. If your typical customer purchases a new car every five years then make the deadline around that time frame. You want to make sure they come back to you for their next car.

Value-added services:

Being a one-stop shop for all your customer's car needs is a huge added value and an opportunity to maintain an ongoing relationship. Example: they can get their tenth oil change free or a discount on other car services your dealership offers. They keep coming back to you for all their car needs and they have the peace of mind knowing who is working on their car. This creates a relationship with the customer, loyalty to the dealership, and a willingness to refer you to a friend.

Remember Price sells the first car; the Service Department sells the next one!

When done properly customer retention programs are a great way to maintain happy loyal customers. They also decrease your advertising costs by providing warm leads to gain more customers. At Dealership Development we'll customize your retention program to earn you the highest rate of return on your investment. Contact us today.