It’s not just good service that will help retain your customers, you also need to keep in contact with them.
You probably know this already, but research generally says that acquiring a new customer can cost five times more than retaining an existing customer.
If you can gain new customers and you are able to keep a high percentage of those new customers for many years, what would that do to your bottom-line, share-price, or any other of your financial performance indicators?
There are not many industries that can adopt an approach where they could possibly attempt to achieve a ‘Customer for Life’ scenario.
However, the automotive Industry is one of those industry sectors that, with a bit of focus and having the correct monitoring process in place, could achieve customers for life. Dealerships can, or should, maintain contact with their customer base, build relationships, and keep them interested for as many years as they can and where possible, get referrals.
If you are reading this and not in the automotive sector, ask yourself, could your business adopt the ‘Customer for Life’ approach?
This isn’t just about Mystery Shopping, there is more to dealer development than just conducting a range of telephone and/or Video Mystery Shopping exercises. Whilst Mystery Shopping is very valuable, there is a significant loss of revenue when it comes to monitoring levels of customer contact through customer feedback and customer satisfaction research that could improve customer retention.
Carry out your own survey around your friends and family members. Ask them how many times they have been contacted by the dealerships where they have purchased their cars from. You will be surprised at their response, or you might not be. It will be a very low percentage of contacts that have been made, in some cases it will be none. We don’t mean the calls you get a few days after taking delivery, we mean the calls over time that attempt to keep you as a customer, build a relationship with you, and try to obtain your future business.
Many people may purchase many cars over a number of years, some very expensive ones. Ask yourself the same question, how often have you heard from that dealership?
The My View Research team has been working with Dealerships, Dealer Groups and Motor Manufactures monitoring all aspects of performance evaluation for nearly twenty years.
My View Research conduct Video Mystery Shopping, Telephone Mystery Shopping and related customer response and customer satisfaction surveys (CSI), and work with many of the world’s most recognised brands.