Fix Customer Retention for FREE!

This article is not written for the dealers that are convinced they are going out of business, it is for the survivors. The ones that are positive, get it done, do whatever it takes dealers – in other words, the winners. We have all had to change our business models lately, cutting back on staff, pay cuts and chopping expenses that we never thought we would have to cut…but we have all had to do it and deep down I can tell you that we will all be better off doing it. I honestly believe that.

As I said, this article is for the winners. The ones that get it, that understand that no matter what, you still have to advertise, you still have to motivate your people and you still have to keep your focus on customer satisfaction and customer retention if you want to continue to survive in the future. You know – the basic good business stuff.

A lot of good, solid dealers have gotten distracted by the short term immediate issues and have slipped away from thinking about long term solutions like customer retention. Don’t let that be you. Dealers that continue to increase customer retention will be the big boys of the future. Think about this – with all of the dealers going out of business, there will be more customers that need service and vehicles in the future. The true survivors will be the stores with strong service departments that focus on customer pay work, convenience and being competitive. They will be the ones that are open nights and weekends. These stores will reward customers for doing business with them and they will be the ones with very little turn-over of customers or employees. That my friend, is what real customer retention can do for you. So, before you drift into a coma reading this article I better get to the good stuff – the stuff that brought you here and got you to read this – you know, the title – fix customer retention for FREE.

You’ve probably heard the old line, “the best things in life are free”. Things like sunshine, the ocean, life – a nice walk in the park. Sometimes those free things or the concept of free things transition to business – especially the car business. What I am saying is sometimes we think that if a product or program isn’t expensive it must not be any good or it must not work. In the next few paragraphs I am going to tell you about one of the best customer retention tools I have ever seen…and it is totally FREE. It’s not the only tool you will need to increase customer retention and service traffic – but it is a good one, so please read on…I promise you wont regret it.

Whether you like it or not, and whether it is true or not – new and used vehicle buyers typically think dealer service departments take too long, charge too much and are just too inconvenient – especially when they can just go to a “quick” lube shop for an oil change – which is what most people do, unfortunately.

Some dealers have tried to fix this by getting the sales department to introduce vehicle buyers to the service department, by setting 1^st service appointments or by offering their 1^st oil change for free. It doesn’t work. They don’t get introduced, the appointment is set for the wrong time based on estimated mileage and the customer forgets about the 1^st oil change free or decides the inconvenience just isn’t worth it and goes to the “quick” lube shop. All of these stink.

Don’t fret. There is an answer and it is a good one. Remember the old days when every new car had to have a break-in period inspection at 1000 miles? Motorcycle manufacturers still do this today – so why don’t you? Give each vehicle buyer a 1000 Mile Break-In Inspection Voucher at time of purchase. Tell them that when their car reaches 1000 miles to stop by for a quick 5-minute, 1000 mile vehicle break-in inspection and that they don’t need an appointment. Tell them they can wait in the car while your service team double checks lug nuts to be sure wheels are tight, checks under the hood for any fluid leaks and looks for any adjustments that might need attention. Again remind them that this is important to do at 1000 miles, that they can wait in the car because it only takes 5 minutes and that your service advisor will be glad to answer any questions about the vehicle - questions about setting the clock or operation of any other component they have a question about. They will show up – trust me!

Now, think about what just happened. The customer feels like they have to return to the dealership at 1000 miles and they have a voucher to add credibility for the inspection. They get to meet the friendliest service staff they have ever seen and they make a new friend – at a convenient time for them. They get in and out fast…even waiting in their car. They get the chance to have someone answer questions about their vehicle they didn’t even think about at time of delivery. They don’t spend a dime and they now know how to enter the service department. They will tell everyone they know about this wonderful experience! You have just dispelled all of the bad myths about dealer service departments, increased the chances for customer retention and future maintenance sales and it didn’t cost you a thing!

The 1000 mile thing works – I promise. But don’t think you are done. Increasing customer retention is a never ending job. This is just the first impression you have made to the customer…and it was great one – but don’t stop there. Make sure that every customer that arrives is greeted enthusiastically, and fast. Make sure there is a positive aura in your shop and service drive; customers can feel tension from a mile a way. Make sure you hold weekly or even daily service sales meetings that coach your team on how to get more customers in on the phone, how to sell more on the drive and how to do an active delivery that ensures customers will return. Offer some kind of reward program to give customers a reason to do business with you and stay in touch with direct mail and email so they don’t forget about you and go somewhere else.

There are a ton of customer retention programs out there – look at them all and see what fits your needs best – but whatever you do – do something. Some are expensive, some are affordable and some, like the 1000 mile inspection are FREE.