The art of communication

Examining the role of effective engagement in customer retention


Effective customer engagement in the motor retail sector has become a key differentiator between successful dealers and their less profitable competitors. Loyal customers are the lifeblood of any business and this is of particular significance to car retailers seeking to improve their retention rates, both in terms of new and used vehicle sales, as well as aftersales.

Regardless of market conditions, well planned and executed communication strategies can help dealers improve customer retention and revenue. This is underscored by research from Chrysalis Loyalty into the ratio of cars sold per customer. The study revealed that the most successful dealers achieve one new vehicle sale for every 1.4 customers, compared to one sale for every 10 customers for the majority of dealers and in a minority of instances, just one car for every 20 people contacted. Measured over 18 months, the survey of dealers, representing 17 motor finance brands, found that the average among 2,500 dealers across all the countries in which Chrysalis Loyalty operates was one sale for every 2.8 customers contacted.

Satisfying consumers’ increasing demands and providing effective communication is equally important for us here at Autoglym.

The research revealed that the most successful dealers had clearly defined customer communication strategies and were disciplined when it came to implementing them. The prevalence of PCP-based products among retail customers and the need to ensure communication ‘windows’ are fully exploited when it comes to vehicle and finance contract renewal also presents dealers with the opportunity to improve retention, providing they are prepared to be flexible.

While it is clear that dealers with effective communication strategies are improving their retail sales, research by Yonder Digital Group has found that in the round, the motor industry is falling short of customer expectations when it comes to contactability, specifically, ease of getting in touch and getting problems resolved. Based on a poll of 2,000 UK consumers, almost a fifth (19%) of automotive consumers felt that contactability was poor within the sector, while 24% rated ease of contact as good and 11% said they felt it was poor.

Reflecting the fact that today’s consumers are increasingly accustomed to a quick response across multiple communication channels, research by Yonder Digital Group also found that 81% of consumers would take their business elsewhere if queries are not answered swiftly and effectively by an organisation.

Satisfying consumers’ increasing demands and providing effective communication is equally important for us here at Autoglym.  As a leader in car care for over 50 years, we work with motor retailers across a range of franchises, helping them secure incremental business through LifeShine, our Vehicle Protection System (VPS) by taking advantage of the strength of the Autoglym brand. As well providing the best depth of colour and maximum protection, LifeShine is the most profitable VPS solution for dealers with average increased penetration rates of 8.6%, when switching from another brand.

To discover how LifeShine can generate incremental revenue for your dealership, please call 01462 677766 or get in touch.


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