Making customers for life: cultivating loyalty in dealerships

Time 12:32 pm, September 27, 2019

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IT’S no secret that a loyal customer base is a sign of a business running as it should. The same is true for dealerships; retaining customers demonstrates successful business practice and is ultimately better for the dealer’s bottom line.

Loyal customers also have a tendency to be bigger spenders than your average customer, and their loyalty exists for a reason, meaning they’re more likely to make good recommendations to friends and family.
So the question is, aside from simply hoping customers had a good experience and will return in the future, is there anything dealers can actively do to boost retention?

To answer this question, it’s helpful to look at some statistics surrounding customer loyalty, as well as ways that Car Care Plan’s 40 years of experience in warranty protection can be of assistance to dealers looking to improve customer loyalty.

Great customer service can cut lost customers by 67 per cent*
Customer service is obviously a significant reason for buyers to stay loyal. Positive and memorable interactions between customers and staff, alongside speedy problem resolution, can reduce the loss of potentially loyal customers by 67 per cent. One way to create a fantastic customer experience is to help buyers protect their investments.

Car Care Plan offers tailored extended warranty products that give customers peace of mind and award-winning protection for their vehicles.

Dealers can rest assured that they’re doing right by their customers and presenting an enhanced customer experience, going a long way towards creating a valuable service customers will want to return to again and again.

Emotionally connected customers have a 306 per cent higher lifetime value**
Getting customers emotionally connected with either a commodity or with the company selling the commodity can be challenging for many businesses.

Dealers, however, occupy a prime position regarding emotional connections between customer and product.

People generally feel emotionally invested in their car – it’s one of their largest and most valuable possessions, after all. To increase loyalty, dealers can make the most of a customer’s emotional attachment to their vehicle by offering ways to ensure their investment is protected.

Offering Car Care Plan’s warranty products has many benefits, including introducing new revenue streams, enhancing the appeal of vehicles sold and the availability of programmes for both FCA- and non-FCA-authorised dealers.

All this and more helps inspire an emotional connection between customer and car to improve loyalty to dealerships.

Seventy-seven per cent of Brits are members of a loyalty programme***
From this statistic, it’s evident that customers are keen to show loyalty towards brands they like.

This is good news for dealers – if customers are looking to remain loyal, the task to build retention is slightly less daunting. On the flip side of this, however, 47 per cent of disappointed customers stop doing business with a brand.****

How can we keep those customers on the side of loyalty rather than disappointment?

Introducing a loyalty programme can keep customers returning to your dealership, establish relationships and keep disappointment at bay.

Selling warranty products alongside vehicle purchases can also establish loyalty – customers will keep returning to your dealership for repairs and assistance, meaning service goes beyond car sales to establish better customer care.

Evidently, quality personalised contact with each customer can go a long way to improving loyalty among existing customers, in turn increasing profitability. Car Care Plan offers dealers the opportunity to improve customer service and increase profit.

Through tracking when a customer’s warranty is due to expire, sending them a renewal email to extend their policy and offering additional products to help protect their investment, loyalty can be cultivated.

Furthermore, warranty products can be tailored to the needs of each dealership so dealers can offer the best products to buyers and improve retention.

With customer loyalty being such an important part of running a successful business, every effort should be made to ensure that expectations are met and customers leave feeling satisfied.

With unexpected vehicle faults causing stress, frustration and potentially high costs to customers, expert warranty protection offered by Car Care Plan can ease these burdens.

To find out more about award-winning warranty protection products, visit

* ThinkJar Research; ** Motista; *** YouGov and partnership and Mando-Connect; **** Accenture

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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