How to Use Existing Customers to Increase Auto Sales

Auto dealerships face intense competition in the market. With dealerships on every corner, customers have many options—so why should they choose your business? Our latest series has featured many ways to boost auto sales and stand out from the competition. Our topic for today is about using existing customers to increase sales. The strategies on this list are a mix of customer retention ideas (how to create loyal customers and keep them coming back for more) and techniques for using your existing customers to gain new ones. Check it out below!

6 Ways to Use Existing Customers to Boost Auto Sales

Research indicates that acquiring a new customer can cost five times more than retaining an existing customer. In addition, when you create raving fans, your loyal customers can help bring new prospects and customers into your dealership. Here are a few important ways auto dealerships can maximize their relationships with existing customers.  

1. Upselling and Cross-Selling 

Upselling and cross-selling are two powerful strategies that auto dealerships can use to increase sales and revenue from existing customers. Upselling involves offering customers a more expensive or advanced version of the product or service they are already interested in purchasing. Meanwhile, cross-selling involves offering customers additional products or services that complement their original purchase.

Here are some tips on how auto dealerships can effectively use upselling and cross-selling to increase sales:

• Train Your Sales Team: A knowledgeable and skilled sales team is key to successful upselling and cross-selling. Ensure that your team is trained to understand the full range of products and services your dealership offers and that they can communicate the benefits of upselling or cross-selling to customers clearly and persuasively.
• Understand Customer Needs: To effectively upsell or cross-sell, you must understand the customer’s needs and preferences. Listen to their questions and concerns, and use this information to make recommendations to enhance their experience and satisfaction.
• Bundle Products and Services: Bundle complementary products and services together, such as a maintenance package with a new vehicle purchase or a discount on accessories with a service appointment. This can make it easier for customers to see the value of the additional product or service and increase the likelihood of making the sale.
• Highlight the Benefits: Make sure customers understand the benefits of upselling or cross-selling, such as increased safety, improved performance, or greater convenience. Emphasize the value that the additional product or service will provide and show how it will enhance their overall experience.

2. Use Testimonials and Case Studies 

Testimonials and case studies from satisfied customers can help bring new customers into the dealership. Prospects looking for a car are usually very interested in the experience of others. They’ll turn to reviews, social media, dealership websites, and other places to get the inside scoop. By encouraging existing customers to leave reviews and gathering their feedback in surveys to use as testimonials and case studies, you can use ‘social proof’ to your advantage.

Here are some ways you may use testimonials to boost sales:

• Share customer testimonials and case studies on your website and social media pages.
• Use customer quotes and stories in your email marketing and ad campaigns.
• Display customer testimonials in your showroom or waiting area.
• Create a dedicated page on your website for customer success stories.
• Use video testimonials featuring satisfied customers on your website and social media pages.
• Provide customer success stories to salespeople to use in their sales conversations with potential customers.

3. Create a Referral Program 

Referral programs are a great way to incentivize existing customers to refer their friends and family to your dealership. These programs can offer discounts, cashback, or other rewards to customers who refer new business to the dealership. A successful referral program helps you increase your customer base and build a network of satisfied customers who can vouch for your products and services.

Here are some tips for building your auto dealership referral program:

• Make it easy for customers to refer their friends and family to your dealership. Provide them with a referral form or an online referral link that they can easily share with others.
• Incentivize referrals by rewarding customers who refer new business to your dealership. Rewards could include discounts, cashback, or other incentives that motivate customers to refer others.
• Make the referral program part of your overall marketing strategy. Promote the program on your website, social media pages, and email marketing campaigns.
• Set clear expectations for the referral program, including how rewards will be given and when they will be distributed. Ensure the referral program’s terms are easy to understand and follow.
• Use the referral program as an opportunity to strengthen relationships with existing customers. Thank customers for their referrals and make them feel valued and appreciated.
• Monitor the success of your referral program and make adjustments as necessary. Track how many referrals you receive and how many result in new business. Use this data to refine your referral program and make it even more effective.

4. Integrate Car Sales with Maintenance and Service 

Integrating car sales with maintenance and service is a powerful strategy for auto dealerships to increase sales from existing customers. By incentivizing customers to get their maintenance done at your dealership, you help them keep their car in great condition and establish a relationship with them that can lead to future sales opportunities.

Offering a free oil change or other maintenance services as a reward for getting their maintenance done at your dealership is a great way to incentivize customers who have just purchased a vehicle. This can encourage them to return to your dealership and also make them more likely to recommend your dealership to their friends and family.

Moreover, selling maintenance and service packages can also increase your sales opportunities. By bundling maintenance and service, you can offer customers a discounted rate for routine maintenance and repairs. This can help them save money while providing a convenient and hassle-free way to take care of their vehicle.

Finally, sending text message reminders about maintenance and service appointments can ensure that customers never miss an appointment. This proactive approach can help customers stay on top of their vehicle maintenance needs and keep them coming back to your dealership. With DealerPhones? VoIP, you can send SMS and MMS messages to customers and even integrate your phone system with your CRM/DMS.

5. Create a Loyalty Program 

Creating a loyalty program can be a smart move for auto dealerships looking to increase sales from existing customers. By rewarding customers for their continued business, you can encourage them to remain loyal and increase their spending over time. A well-designed loyalty program can also help differentiate your dealership from competitors, attract new customers, and build a strong brand image.

Here are some tips on creating your loyalty program:

• Offer Points-Based Rewards: Develop a points-based system where customers earn points for each purchase or service appointment. These points can be redeemed for discounts on future purchases, free maintenance services, or exclusive merchandise. This is an effective way to incentivize customers to spend more money and remain loyal to your dealership.
• Provide Personalized Offers: Use customer data to tailor rewards and offers to individual customers’ needs and preferences. For instance, if a customer has a history of purchasing SUVs, offer them discounts on SUV-related products and services. Personalized offers can make customers feel valued and appreciated, increasing their loyalty and likelihood of repeat business.
• Collaborate with Partners: Partner with other businesses, such as car rental companies or car washes, to offer joint rewards or discounts to customers. This can increase your loyalty program’s perceived value and give customers more reasons to remain loyal to your dealership.
• Use Technology to Your Advantage: Implement a mobile app or online portal to track loyalty program progress, offer personalized rewards, and communicate with customers. This can streamline the process of earning and redeeming rewards and make it easier for customers to stay engaged with your dealership.

6. Continue Building the Relationship After the Sale  

Building a strong relationship with existing customers is a key strategy that auto dealerships can use to increase sales and drive long-term business growth. By focusing on customer retention rather than solely on acquiring new customers, dealerships can create a loyal customer base that is more likely to make repeat purchases and recommend the dealership to friends and family.

• After a customer makes a purchase, follow up with a personal message, phone call, or survey to let them know that your dealership values their business. 
• Keep in touch with customers regularly through emails, text messages, and social media, so your dealership stays top of mind.
• Offer exclusive discounts, special offers, and perks to existing customers to create a sense of exclusivity and belonging.
• Invite existing customers to events like open houses, test drives, and exclusive previews, so you have opportunities to connect in person and build a sense of community.

Customer Retention Means More Sales Opportunities!

In conclusion, customer retention is a crucial strategy for boosting auto sales. By implementing these strategies, you can build relationships with existing customers, drive loyalty, and generate new business too. Stay tuned for next time when we finish our series on strategies for boosting auto dales with a discussion of digital marketing.

To learn more about the author, visit https://clarityvoice.com/