Customer retention is critical to an automotive brand’s success. This is particularly evident during a climate of prolonged economic recovery, in which each new-vehicle sale or automotive service is vital to a dealership’s bottom line.


A 2010 J.D. Power and Associates survey, conducted to measure repeat vehicle purchases within a brand, found that customer retention had remained stable from 2009. In 2010, 16 of the 34 ranked brands improved their customer retention rates from the year prior. Of the remaining brands surveyed, customer retention either dropped or held steady over the same period.


So how can your dealership retain your customers? Service.


After the purchase of a new vehicle at the dealership the responsibility for continued interaction with that customer falls on the service department. Their ability to continue engaging a customer in service—and whether or not these same customers will purchase from your dealership again—will serve as a vital cog in customer retention efforts.

How To Improve Dealership Retention? Try Service (blog)

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