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November 2, 2018
How to Use Predictive Analytics for Customer Retention
Your dealership likely knows the value of customer loyalty, but have you thought about how that impacts your bottom line?
Why Customer Loyalty Matters
Fact: it costs seven times more to acquire a new customer than it does to keep an existing one. (Kapost)
Today there are more vehicles to choose from, more ways to buy them, and more power in the hands of the customer, leading to customers who are less loyal to a brand and a dealership. When dealers prioritize customer experience, loyalty increases. This means knowing when and how to reach out to customers, understanding their unique needs, being truly welcoming, and willing to listen. Increased customer loyalty leads to improved customer relationships and increased sales. In short, dealers need to greet each customer that walks through the showroom with a warm welcome, explain the sales process and ask questions about customizing the vehicle. Increased customer loyalty leads to improved customer relationships and increased sales.
The New Buyer Journey 101
Fact: 63% said they’d be more open to sharing their data (location, age, lifestyle, preferences and purchase history) to allow for more personalized, customized experiences according to PwC.
Traditionally, dealers were the first point of reference, but this is no longer reality. Customers considering a car purchase are doing many hours of research before they step foot in a dealership. From there, it is the dealer’s responsibility to provide a dealership experience that leads to a trusting relationship, customer retention, and ultimately a sale. Dealers must acknowledge the research phase and be prepared with data to educate them about their customers the moment they have their first interaction and create a robust customer retention strategy. This allows for a personalized, unique experience for the customer that will keep them coming back to you.
Leveraging Predictive Data Solutions
Fact: less than 1% of customers are satisfied with the current car buying process according to Autotrader. Download this PDF to learn more.
Think about how Amazon and Netflix continually learn and adapt recommendations to customers based on previous behavior – dealerships can also have this ability. Using predictive solutions to better understand customer behavior is more straightforward because dealers know all the basic information, preferences, etc., up front. This paints a complete picture of each individual prospect, including the customer’s service history, personal finances, credit scores, lifestyle preferences, social media usage, driving patterns and more. Dealerships should implement predictive solutions to streamline positive customer experiences and enhance their customer retention program.
How Can automotiveMastermind Help?
Do you have any questions or comments about how predictive solutions can help with automotive dealership customer retention? Contact us today. Our vision is to radically transform the traditional consumer purchase journey.