• Automobile dealerships lose 87% of their customer within five years with the highest defection rate occurring during the 3rd and 4th year of ownership.
  • Customers are not obliged to tell you if they are unhappy or if they plan to defect to the competition. More than 65% of your customers are lost through poor customer handling. It’s imperative that you have a timely mechanism in place to seek out and identify customers intending to defect to the competition.
  • Customers say they want and expect personal follow-up soon after the purchase or service experience.
  • Approximately 50% of unhappy dealership customers never complain about dissatisfaction. Because a non-confrontational method for customers to communicate dissatisfaction to top management was unavailable, this 50% simply felt no one cared and defected to the competition.
  • A large portion of dissatisfied customers, 70%, will do business with you again if you are able to resolve the complaint.
  • This goes up to 95% if resolved on the spot and the facts prove that these customers are more loyal than those who never complained are.
    Even 20% of those not resolved satisfactorily will buy again.
  • The average customer will tell approximately 16 people about a problem while only 5 will tell about positive customer treatment or handling.
  • Customer contact alone without processes that address customer problems or concerns in a timely fashion are more damaging than no contact at all. Any dissatisfied customers contacted may become even more dissatisfied when it appears that no process was available to resolve their problem.
  • The following results were revealed to the question of “why do those who have been regular customers over a longer period of time suddenly stop patronizing a business?”
  • 9% Left over price
  • 18% moved, died, found a new relationship
  • 82% because of indifference or discourtesy, poor service, or an unadjusted complaint.
  • More than 55% because of one person and one incident
  • Dealership management rarely measures customer defections and seldom makes an effort to prevent these defections. Middle management doesn’t seem to understand the relationship between customer loyalty on the one hand and cash flow and profits on the other. These managers see no need to invest time or money in keeping your customers returning to buy new vehicles, service their existing vehicles, and referring their friends and family. They just want to spend vast sums of your money attempting to attract new customers.
  • More than 50% of a dealership’s customer will buy again within three years.
    10% will buy a second new or used vehicle
    20% will furnish leads that result in sales
    1 out of 5 new car buyers will purchase a second family vehicle within 18 months
    1 out of 4 used car buyers will do the same.
  • According to the Car Customer Satisfaction Study
    98% of “Completely Satisfied” customers said they would “Definitely Recommend” the dealership.
    Owners that rated the dealers overall performance of service as “Excellent,” 86% said they would “Definitely Return” to the Dealer
    41% who rated the dealers performance as “Good” would return
    Only 4% would return to dealers they rated as having “Poor” service.
  • Satisfied Customers are four (4) times more likely to purchase another vehicle from your dealership.
  • In a loyalty study for a major manufacturer, J. D. Power found that repeat customers spent an average of $1200 more on a vehicle purchase.