With all of the work involved in running a dealership, it’s easy to overlook the impact that failing to follow up on leads can have on your business. In fact, despite 80 percent of all sales occurring on or after the fifth contact with a customer, it’s estimated that less than 30 percent of prospective sales are ever followed up.
As an automobile dealer, your number one goal should be to monitor each lead your business attracts. Rather than being considered just another annoyance during the sales process, following up with prospects and customers should be seen as an opportunity to offer value, build brand loyalty, and gain referrals. Below are a few key reasons that follow-ups should be a major part of your sales strategy.
They help build better customer relationships. Your relationship with the customer doesn’t end with the closing of the deal. Happy customers provide value in many ways, long after a sale has been made. For one, satisfied buyers are likely to return to your dealership in the future. Customers who have had a good buying experience at your dealership are also more likely to refer you to their family, friends, and associates.
They boost your profits. Successful dealers know that retaining existing customers is more cost-effective than prospecting and qualifying new ones. By following up regularly with customers who have made a purchase at your dealership, you not only uncover new opportunities to up-sell or cross-sell, but you also avoid losing sales to your competitors. According to a study conducted by Forrester Research, following up with your leads can generate 50 percent more sales-ready prospects at a 33 percent lower cost.
They earn you repeat customers — for life. It’s estimated that 35 to 50 percent of sales go to the vendor who contacts the customer first. Following up regularly with your customers is a great way to stay one step ahead of their needs. Checking in with your customers every now and then to see if they would be interested in learning their car’s value or trading it in will create a steady stream of repeat business for your dealership.
They help you build a good reputation. Today, a dealership’s online reputation can make or break the business. Dissatisfied customers are likely to leave negative comments about your dealership in message boards, on Google, and on reviews sites like Yelp, destroying your brand with a few clicks of a mouse. Remember, a car purchase is a one-time experience. Your ongoing relationship with your customers is what builds brand loyalty. Following up with your customers to ensure satisfaction with their purchase will help you identify issues while keeping your dealership’s good image intact.
Following up with leads is an essential component of any successful dealership’s sales strategy. Whether it’s once a month, quarterly, or once a year, checking in with your client base will pay off for your business in many ways — even after a sale has been made. Diamond Media is here to help you with all of your lead follow ups, whether it be direct mail, email, or a ringless voicemail. We are here to help!