Low threshold, high customer retention
Loyal customers who come to you for all their car business: this is a major challenge for every dealership. Customers are slipping away via the insurer and online competitors. Fortunately, there are plenty of ways to bind the customer to you.
The role of the car company is changing. And with that, slowly, the revenue model. The margins on newly sold cars have been small for years, while the low-maintenance electric car gently eats into the workshop turnover. The body shop within the dealer holding company is growing in importance as a source of income. In the meantime, the insurer regularly refers the insured to its own network. Gone damage customer, bye-bye much needed turnover.
Right off the boat
The customer is also tempted from other sides to skip the dealership. You order a Tesla online, and pick it up on location. Sometimes that is directly in the port, where your new car has just driven off the boat. Tesla's indirect message: who needs the car company anymore? Newcomer Lynk&Co offers its cars online via a monthly cancellable all-inclusive subscription. Polestar – also new – operates just like Tesla and Lynk&Co without a physical dealer network. And then there are the online used car providers. Platforms such as Bynco and CarNext are growing rapidly.
Lease and insurance
Dealer holding companies understand better and better how to counter customers 'slipping away'. Online and offline. Through lease constructions and their own insurances, they keep the customer on board. The all-inclusive lease contract – private or business – means the customer always brings his brand new car or solid used car or bicycle to his own dealership for maintenance, repair, or damage. That's where the desired customer retention is. An additional advantage: the car company knows exactly when the lease contract expires. So it can respond in time for the purchase or lease of a new car.
Also effective in improving customer retention is offering your own damage insurance. As soon as the damage insurance is managed through the dealership, the customer will never again call on a body shop outside the holding company in the event of damage.
Customer retention starts with the basics: knowing the customer. You can only really keep customers if you know what services they are looking for. Then it is important to adjust what you offer accordingly. For one car owner, customer-friendliness is a warm welcome in the showroom with a fresh cup of coffee. For the other, a fast and efficient online reception desk is sufficient. The threshold of coming in - physically or virtually - must be low.
As a dealership, you also lower the threshold when the customer sees you as 'the car company around the corner'. That local entrepreneur who knows his customers and gives them personal attention. This is exactly what is missing in the online sale of cars. In short, building your own brand name is just as important as leaning on the good brand name of the models you sell. The customer then enters 'dealership De Vries' and not an almost anonymous Opel, Suzuki, or Audi dealer in his city or area.
Finally, consumers increasingly expect a 'one-stop-shop'. They want the dealership to be the single point for all their mobility requirements. You buy or lease your new car or second-hand car there, go there for maintenance, repair, and damage, but also for insurance and financing. Customers slipping away? That is of no benefit to the dealership or the customer.
Do you want to build lasting customer loyalty? Then make sure that your claims processes also match the level of service that your customers are used to. After all, a bad claims experience can cause your customer to slip away. It is also important to have an understanding of the repair activities within your holding. When you know exactly how much and what type of repair is taking place at which location, you can get more out of your existing business.
Openclaims helps to digitalize and optimize claims and repair processes so that, in case of car damage, the customer is always serviced in a way that fits the standard of the dealer holding or OEM. Want to know more? Do not hesitate to Contact us!