It is amazing that dealers ignore their own database and default back to that gambling mentality, choosing a shot in the dark versus science and math. If the same 2 percent in your own database purchase every month and the typical store has an active database of 6,000 to 10,000 customers, think about the potential. Then get sick over the fact that you have not created loyalty with these people. Every month, 120 to 200 people from your store purchase and you have done little to say, “Buy from me,” unless they get that generic mailer.
Let’s claim our customers as our own. If you are a gambler, at least play the odds. What makes more sense? Putting all of your money on a 22 percent long shot or at least some of your money on a 60 percent shot with the opportunity to make an extra $900 gross profit per unit?
Here are a few initiatives that you can put in effect immediately at your dealership and experience great results. Let’s start with an example of a customer loyalty program:
• Free lifetime state safety inspections
• Free loaner vehicle with a 30,000 mile service
• Free shuttle service
• Free car wash
• 10 to 15 percent discount on installed accessories
• Loyalty pricing discounts
• Referral program
• 10 percent toward your next vehicle purchase
• “Frequent Flyer Miles” program
Anything your customers do at your dealership should be rewarded. When the customer comes to your dealership to buy parts, have service work done or purchase a vehicle, they earn points for future activities. Therefore, the more they do in your dealership, the more they can earn for future visits. By increasing customer loyalty and retention your dealership will spend less on advertising. After all, if your current customers are happy with the “perks,” then they will tell others which is free (and the best) advertising.
Vol 4, Issue 2