Kirk Franks
gives his advice to dealers looking to stay alert to best practice
in customer retention

Photo of Kirk Franks, UK sales manager, Alphera Financial ServicesA
recent survey by Alphera found that 96% of dealers saw customer
retention as their biggest opportunity in 2012, with 81% citing it
as their biggest challenge. With the UK falling into a second
recession and customers querying whether they can afford that new
vehicle, retention is vital to a dealer’s bottom line. Here are my
thoughts on getting it right:

1. Make
sure your CRM database is up-to-date

For strong customer
relationships, you need the correct contact details. Storing the
wrong details can have a huge impact on the customer’s image of
your business. If they’re moving, or names are changing, be sure to
follow up with them to make sure you have the right details on
file.

2. Make
time for your customers

Ensure you have
regular contact with your customers, and that you’re not just
contacting them out of the blue, or because their agreement is
coming to an end; this will give them the impression that you’re
only looking after yourselves. An initial after-sale check to make
sure there are no teething problems is recommended, and then
targeted, regular contact, delivering the right message at the
right time according to what the customer needs.

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3. Customer
retention must be a three-line whip

If the showroom
floor staff are the only staff prioritising customer retention and
adhering to the strategy of that dealership, it won’t work. In
order to have a successful customer retention policy in place,
everybody from the management team down to sales staff should be
encouraged to follow it.

4. Train
your staff

Having a strategy
in place is all well and good, but your staff must be trained in
how to keep to it and also why it is a fundamental part of your
business success. Showing them how return customers improve the
bottom line will no doubt shift perceptions of its importance. Find
a way to implement tools – such as a lead management tool – to
measure customer retention, and adopt your sales process to include
this in the model.

5. Viable
offers

Make sure there is
plenty of choice and flexibility available for customers. Offer
them the personal touch – take into consideration their needs if
they change, tailor your finance packages to suit changes, and
assure them you’re available to provide financial counsel when
needed. Ensure you’re making use of seasonal offers, e.g. lower
finance rates on convertibles throughout the summer
months.

Retaining customers as lifelong partners can offer your
business so many opportunities. Getting it right will benefit you,
from your reputation right through to sales and retention figures
that your competitors can be envious of. There really is nothing to
it, other than clever people management and keeping a check on
internal processes.

Kirk Franks is
sales manager of Alphera Financial Services