Thinking of your customers as one-time buyers is a mistake that may cost you in terms of maximizing your profits in Fixed Operations.
Trying to figure out how to hit the sweet spot of a 100% absorption rate means you need to change your way of thinking and start looking at how you can keep your customers coming back.
Increasing retention and earning repeat customers is one of the secrets to success when it comes to seeing the absorption rate you want for your parts and service departments.
It’s easy to say that you want to increase retention and build a customer base. Actually getting started, however, can be a little trickier.
One of the key things to remember is that people who buy a car from your dealership will likely return at least once for their first service (or until their warranties run out).
Once they don’t see any benefit in returning, they’ll begin to look elsewhere. This can mean finding a new place to take their vehicle or figuring out where they can get parts cheaper to make repairs themselves.
Reminding customers of your presence and why they should stay with you is crucial.
It really doesn’t require too much – just take it one part at a time.
Persistent Communication and Delivering Quality Service
93% of auto parts buyers do online research before making a purchase, according to data from Hedges & Company. Establishing relationships with customers can garner you reviews that will have you ranking better in Google searches.
If you perform every service request with 100% quality and take pride in the service you give your customers, they’ll be more likely to come back even if your prices aren’t the lowest in town.
Offering incentives for completed reviews can not only boost your rankings but further strengthen relationships by showing that you care about a customer’s experience. It can be something as simple as $10 off their next service for completing a review and bringing in the confirmation to your dealer.
When it comes to selling parts, of course, offering deals and running promotions is one of the best ways to build a customer base.
If a customer buys one part from you, prompting them to purchase a related part is an easy way to get them looking in other areas. For example, if they purchase oil for their car, it only makes sense to advise them to buy filters too. You can even run simple promotions this way – buy oil, get a filter for 15% off.
Maintaining and building relationships with your customers really isn’t hard. All it takes is some outreach and a focus on customer service.
Of course, you can bring your parts department online to reach an even larger customer base. RevolutionParts is happy to help you with the process.