Brand loyalty is a key factor in the automotive industry and customer experience management is a driving factor behind customer retention. Industry data has shown that the brand retention rate in automotive is an estimated 43.9% — meaning just 43.9% of customers will return to purchase from the same brand. Additional research by Cox Automotive has estimated that a 1% increase in customer retention for a brand could generate an estimated $700 million in revenue. Brands and dealerships that want to learn how to improve customer retention in automotive may want to take a closer look at customer experience management platforms, like boostCX.
5 Ways To Improve Customer Retention in Automotive
To stop the loss of customers to independent repair shops and other dealerships, automotive brands can leverage advanced Customer Experience Management (CXM) tools to create a more consistent and enjoyable customer journey. By implementing data-driven analytics and automated platforms, dealerships can transform periodic customer transactions into a long-term customer relationship.
Implementing a strategy focused on these five key areas ensures that your customers feel valued long after they drive off the lot and has the potential to turn one-time buyers into lifetime customers.
1. Improve the Customer Experience to Build Trust
Trust is the currency of customer retention, and it is earned through transparency and consistency at every customer touchpoint. By streamlining processes — such as offering transparent service pricing and digital vehicle inspections — you demonstrate respect for the customer's investment and eliminate the anxiety that can go hand in hand with car maintenance.
2. Communicate Proactively
Silence is the enemy of retention. You must stay top-of-mind without being too forward or intrusive. Employing automated systems to send timely service reminders, recall alerts, or lease-end notifications shows customers that you are managing their vehicle's health for them, shifting your role from a simple salesperson to a trusted automotive resource.
3. Create Customer Loyalty Programs
Incentivize customers to choose your service lane over cheaper independent service shops by offering loyalty rewards. Well-built loyalty programs that offer points for maintenance visits, discounts on accessories, or exclusive perks create a more loyal ecosystem where the customer has a financial motivation to return to your dealership or service center.
4. Employ Innovative Tech Solutions
Modern problems require modern solutions, and relying on outdated spreadsheets or basic CRMs is no longer enough to improve the customer experience and drive retention upward. By employing innovative customer experience management tools, dealerships can collect and analyze customer data to predict defectors, track customer sentiment in real-time, and personalize engagement based on specific vehicle history.
5. Engage with Customers on All Channels
Your customers are talking about you online, and you need to be part of that conversation to build a community around your brand. Active social media engagement — responding to comments, sharing user-generated content, and addressing reviews quickly — humanizes your dealership and keeps you relevant in the minds of your customers.
READ MORE: How To Improve the Customer Journey in Automotive
In the end, understanding how to improve customer retention in automotive requires a shift from a transactional mindset to a relationship-driven mindset. By employing technology, like customer experience management solutions, to build trust and communicate effectively, you can secure the long-term loyalty of your customer base.
Contact boostCX today for a demo and shift your retention strategy into high gear!
