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A recent study by Forrester quantified the monetary effect of increasing customer experience scores by a single percent. The results were quite astonishing.
A single one-point increase in customer experience can mean as much as an additional $873 million per year in revenue for auto manufacturers, and incremental revenue per customer of $48.50.
How many customers does your dealership see in a year? What if you could add an additional $48.50 in revenue to each and every one of them? Luxury brands make out slightly better with an increased per customer revenue of $104.16.
Let’s look at a modest store’s traffic and try to quantify that. If a store is selling 100 cars per month, that equals 1,200 cars per year. Add in service traffic and that dealership could easily be talking about 6,000 transactions per year (if you consider a ratio of service to sales customers of 4:1 -- and that’s probably on the conservative side). That equates to additional store revenue of $291,000 per year, without changing a thing. I’m sure you can imagine what those numbers would mean for your specific store, based on your sales and service volume.
Now that we know the potential financial implications of a SINGLE-point increase, imagine the exponential increase which could be created with a multiple point rise. You may be thinking, “This is all great, but how do I increase my customer experience scores without increasing staff or investing in building improvements?”
Here are a few suggestions:
With the advent and adoption of technologies such as ApplePay, consumers want to pay in the way that’s most convenient for them. Checks and cash are not used as often as they were. In fact, many people don’t even carry cash, preferring to use debit or credit cards. And, there will be times when the customer wants to transact with you – especially for needed repairs – but may not have available credit or cash on hand. Having alternatives such as an OEM credit card or repair financing is simply another way to make it easy for customers to do business with you and increase revenue.
Increasing your customer experience by just one-point shouldn’t be out of the question. It will take effort, buy-in, training and, in some cases, enforcement. However, in the end, your dealership will see increased profits, customer retention and loyalty.