This week, I was working with a service manager to create a bundled service package and he started talking about one of the most important fundamental elements in our business. It struck a nerve and made me want to write about it: It costs so much more money to GAIN a customer than it does to KEEP a customer.
The same principle is true whether you are selling Pizzas or Chevrolets; if you don’t take care of your customer someone else will. AND you must spend more to create a customer than you do to maintain a customer. Once you gain a customer, it is easier to retain a high level of satisfaction in their eyes by standing by your dealership, your brand and your people. Dealers argue over the difference in a good customer and a bad customer, but at the end of the day, they will all spend money with you.
Everyone will be fighting for your business and trying to steal your customers away from you.
That is the very foundation of my business and what Mike Strong built STRONG AUTOMOTIVE MERCHANDISING on in the last 3 decades: Creating traffic, stealing customers who intend to buy from one store and taking them to another.
In a tough economic market – these people can be the difference in profit and loss on your financial statement.