You earned their business. Keep it.
The average dealer will spend $630 on customer acquisition for every new car that they sell.
That’s about 10 times what it costs to retain an existing customer. Despite this, most dealers prioritize winning new business over marketing to more profitable return customers.
Businesses in other industries have the luxury of relying on the strength of their product will bring their customers back. As a car dealership, your product doesn’t differ greatly from what your direct competition sells. You have to find another reason to make them choose you.
The number one driving factor for differentiation today is customer experience.
- Are you spending at least as much to keep current customers as you are to win new ones?
- How much could improving the experience you provide increase your retention rates?
- Are you using the information available about your customers to create a marketing experience that brings them back?
Few things are more annoying than a barrage of advertisements for items that don’t interest you. Targeted online advertising and remarketing improves the shopping experience by reducing digital noise. Show your ads to customers who have shown interest in your dealership and what you have to offer.