In the first blog of this series, we discussed the role of loyalty in the post-pandemic car-buying environment. On the whole, we found that loyalty perhaps isn’t the major influence it was in years gone by, with the power of the internet to connect customers to dealers nationwide and arm them with all the information they need to make their decision.
However, it still has a part to play from a dealer perspective. Retaining existing customers is far more cost-effective than attracting new ones, alongside the opportunity to build loyalty among younger consumers – who want to shun public transport and enter the car market for the first time.
In a world where the way cars are bought and sold is changing like never before, what actions can dealers like you take to breed loyalty among your customer base? Here are three key tips:
1. Support buyers
Every type of retailer is having to respond to the changes in consumer attitudes resulting from the COVID-19 pandemic, and the economic turbulence that is likely to follow. Car dealerships are no exception to this, and must show that they are willing to put customers first and ensure buyers never feel like their purchase could become a financial burden to them.
J.D. Power’s research into the American automotive market has found that many brands have extended the financial assistance, such as incentives and payment plans, that they’re willing to offer customers. This has helped contribute to an increase in brand-specific loyalty among US buyers, and the same principles apply to dealers in this country. Those that make an effort to be more flexible with their offerings in financially straitened times such as these will be thought of much more positively than those that don’t.
And, while not all may have direct control of the financial incentives on offer, using video to communicate initiatives is a great way to foster some positive feelings from your buyers. With the power of live video, you can proactively engage and discuss your customer’s financial options in a two-way conversation – all of which will help you build trust, rapport and importantly, loyalty, with your clients.
Making contact when a finance agreement is nearing the end is also a great way to encourage loyalty. Creating a personalised video with the new model and an idea of monthly costs is a great way to get a customer to think about upgrading and staying loyal to your brand and dealership when their finance agreement comes to an end.
2. Improve customer experiences
Positive customer experiences are a vital part of how dealers can foster customer loyalty, but merely doing so through face-to-face contact is no longer enough in the current car-buying landscape – especially since the pandemic.
Even outside of the current situation, the benefits of a more digitised customer experience are plentiful – and can help increase the percentage of loyal customers your dealership can rely on.
For example, using a video call to host a face-to-face meeting during the working week – where the customer may not be able to physically visit the dealer – will be much more convenient for them, setting you apart from your competitors. Or, why not send a personalised video in response to an enquiry? This will allow the customer to watch at their own convenience and start the emotional connection they make with the car they are looking to buy.
The customer experience from a dealer perspective starts from the customer’s very first view of a listing on the dealer’s website. Customers are looking for the most comprehensive, up-front and honest set of information they can get on a prospective purchase, across written description and spec, photos and even walk-around video footage of the car’s exterior and interior. A good experience here makes an ideal first impression for the customer to positively engage with the dealer in the future. In a market where there is a lot of competition, it is the dealer that gives the customer the best customer experience who will win the customer’s repeat business.
3. Focus on aftersales
Every good dealer knows that aftersales support is important, but at a time when it’s never been easier for customers to shop elsewhere next time they’re in the market, aftersales should be given even more emphasis.
An introduction to the aftersales department when a customer has recently purchased is a great start to building the ties between the buyer and your dealership. But whatever a customer’s requirements, they will feel more loyal to a dealer if their experiences are efficient, transparent, hassle-free and presented in a way that makes them feel like they’re valued.
However, while a focus on aftersales is important, the communication shouldn’t always be targeting the customer’s pocket. Technology, especially video, can facilitate more altruistic interactions with the customer too – which are particularly important in the first year of the relationship.
Video service reminders for timely maintenance, regular check-in emails or thank you videos, live videos to help the customer with certain features of their car – the possibilities are endless.
However you choose to provide these “selfless acts”, what is certain is they will help move the needle when it comes to your customers’ loyalty levels. The higher % of loyalty you can generate among your customer base, the lower cost of sale you will achieve and the better your dealership will perform.
CitNOW can play a leading role in building loyalty with your customers. Explore our CitNOW Academy webinar sessions for free advice on improving your skills, getting more out of the platform and how you can serve your customers better.
