Customer Retention

[ewilso2]

Is anyone measuring customer retention? Are there any benchmarks? New vehicle purchase returned for service. Used vehicle purchase returned for service?

[westover6]

The benchmark is 100%!!!! we are retaining 66% of our new customers. Used we are at about 45%. With internet buying and travelers(we are in a tourist area)12-15% of my buying customers don't live anywhere near our location. Hope that helps a little.

[APM]

Hi, I'm not sure if my post hit the other day. Check with your DPM/DVM about Dealer Pulse Pro. It targets all this type of cr information.

[btk]

I have always measured retention, it is probably the most important tool, that if utilized can really tell you if you are retaining customers or not. It will also tell you where to focus your marketing efforts as well.
Depending on the manufacturer, you will hear service retention numbers of 20-40 % of your PMA, and cars you sold may have a retention number of 50-70 % depending on what programs you offer in finance, pre paid maintenance and such can effect that number.

I personally track my retention by units in operation in your market. If you have 10,000 units in operation in your PMA and you have 2000 active customers in your database, you have 20% retention. That leaves you alot of customers to go after(8000). I also take into account age of vehicles and also look at inactive customers in your datebase. Ideally you are adding more new active customers then you are loosing(inactive). If you have more inactive then active or are loosing more customers then you gaining, i would look at your processes.

[Lhansen]

I was wondering what manufacturer you are with. Chrysler is tying their New 5 Star into retention numbers, so I wondered if you were with a Chrylser, Dodge or Jeep franchise.
btk gave some good info in thier post.

Linda

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Linda Graham Hansen
Auto Dealer Focus
www.autodealerfocus.com