All ADM Blog Posts Tagged 'loyalty' (412)

With the auto industry facing a shortage of technicians, it’s important to do what we can to attract young technicians and keep them.

After all, when the front end of the business slows down, it’s the back end that can keep your store afloat and profitable. But there are two main problems…

Price is often a major factor in the purchase of any service or product. But it’s important to separate perceived price and received value. For example, $5 for a bottle of water might seem expensive, but that’s a deal if you’re walking through a desert. And there’s nothing blatantly wrong with paying more for quality (or perceived quality)––just look at…

When my friend, Erica* took her vehicle to the dealer recently, the needed repairs were performed quickly and competently. Yet, when the CSI survey came, she rated her overall experience three stars: “just okay.” Why not five stars: “excellent”? Well, because frankly, they didn’t earn it. This was the result of a couple very significant––and…

Every day, dealers are faced with multiple decisions about various facets of their business. Among them: constantly trying to decide if they should invest in buying leads to conquest more consumers or if they should spend more to retain existing customers.

At the…

How long does it take to build customer loyalty? It might start with a great sales experience, but if a customer feels like they've been taken advantage of in the sales process, it will be hard convincing them to come back for service. True customer loyalty is built over a period of…

For car dealers, the opportunity to create loyal customers might start with a sale, but true loyalty is created in the service department. According to a 2017 IHS Markit study, the average length of car ownership is nearly seven years. That's a long time to maintain a relationship with someone until the next sales cycle.

So, the focus must be…

The good news? To date, automotive sales have remained stronger than many analysts originally predicted, with customers of all ages continuing to buy both new and pre-owned vehicles. Considering some of the earlier ominous forecasts, it’s no wonder numerous retailers are…

Have you ever noticed how the market values dealerships versus how it values Software as a Service (SaaS) businesses that derive income from the same automotive revenue stream? SaaS businesses such as CDK trade at mid-20x P/E ratios while dealers trade at 4-6x operating profit.

One major reason for this disparity is because SaaS business revenues are…

When it comes to sales and service transactions in the retail automotive industry, a main…

I frequently write about how, in my opinion, dealerships would be wise to expand their thinking and change attitudes towards recall customers … and not just recall customers, but all customers

The customer experience is key to building customer loyalty, increasing referrals and securing repeat…

Today one of five vehicles on the road are under recall.

This year alone there have been 46 million vehicle owners notified of a recall; seven million of which are not related to the Takata airbag issue.

Recalls represent a significant revenue opportunity…

Do you know your customers’ lifetime value (CLV)? CLV defines the monetary value of your customer relationship by how much gross profit they have generated for your dealership.

If you divide your customer database into quintiles, you’ll discover that the top 20 percent is responsible for 79 percent of your gross profits, while the bottom 20 percent are net…

There is one common problem most companies run into when they start a content marketing strategy. Frequently, executives have unreal expectations and expect to go from zero to hero in a matter of days. They want an immediate return-on-investment – such as leads, engagement or website traffic. I am afraid that is simply not realistic. Hey, sometimes you can hit gold straight…

Back in the early 1990s, the Internet was in its infancy. As a new phenomenon, not every business was sold on its benefits, or even why they should use it. This posed a problem for Cisco, a company whose main product at the time was routers. Cisco needed to prove that, not only would the Internet save companies money, but also Cisco products were the best choice to help them…

A recent blog article by myKaarma CEO & Founder Ujj Nath, posing a great question, “Are QR codes  a technology asset or failure?” motivated me to respond with my own viewpoint on this matter, as it is a divisive topic for sure!

I have been in this space for a while and seen…

When automobiles were first introduced into society, people didn’t know what to think. For the most part, early automobiles were reserved for the wealthy, while everyone else continued their transportation needs with the use of horse and carriage.

However, people were very curious about this strange new…

Most dealers know how many cars they sell on a weekly, monthly and annual basis. But if I asked you how many new customers you acquired this year, would you know the answer?

On the service side, you probably know how many ROs were closed last month and how much revenue…

Have any of you had success with QR Codes? By some reports they are making a comeback. But, on the other side of the coin, on an episode of Shark Tank late last year, renowned venture investor Chris Sacca commented that QR codes are “the herpes of mobile technology.”

Yes, pretty harsh,…

The automotive industry is changing with self-driving cars, companies such as Uber entering the field and the decline of oil-dependent vehicles.  

To that point, I am sure many of you are familiar with the shocking stories and downfalls of three highly successful companies: Blockbuster, Kodak and Xerox.

So, what lessons can be learned from…

One of the staples for service department is tires, including sales, mounting, balancing and alignments. Tires are a price leader for your dealership and a great way to get customers in, providing you the opportunity for additional service work revenue.

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