The secret to a dealership’s success is to create raving fans. The benefits of retaining loyal customers extends beyond the automotive sector, and every business should aspire to it.
Why?
“Existing customers are 50% more likely to try a new product of yours as well as spend 31% more than new customers.” (Bernazzani, 2021)
and,
“It costs five times more to acquire new customers than it does to retain current customers” (Bernazzani, 2021)
Gaining loyal customers demonstrates a standard of excellence
Many businesses go to extreme lengths and expense to attract new customers, and in the automotive sector, encouraging loyal customers can be a particular challenge. Purchasing a high-ticket item such as a car is a major decision which most customers do not make frequently. The challenge for dealers is to keep their customers engaged after a purchase, to ensure they make return visits.
Loyal customers save you money
It’s a time-honoured mantra: Why spend money on something new when you can focus on what you already have? Businesses should pay heed to this. Acquiring new customers is costly, therefore spending time and energy on existing customers will increase your customer lifetime value at lower cost and effort.
Loyal customers build your reputation for you
Nurturing existing customers can help you establish brand reputation without having to market your business yourself. After all, customers who are raving about your business are more likely to tell their family and friends, which could lead to glowing referrals.
Are loyal customers the true test of excellence?
At JudgeService we believe that a successful business will encourage a whole host of promotors. We want to help businesses stand out from their competitors, so much so that their customers keep coming back for more. Loyalty has long been judged as one of the most highly prized metrics in the industry. Loyal customers drive sales and build your reputation. Without them, where would your business be? As a measure of success, customer loyalty is certainly a good place to start.
Bibliography:
Bernazzani, S. (2021, December 1). HubSpot. Retrieved from HubSpot: customer-loyalty
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