Vehicle Purchase and Service Loyalty Averages

[Karen Ann]

Is there an average % of how many new vehicle purchasers do their vehicle maintenance and repairs elsewhere?

(same question but for used too)

Hoping there is a stat or average out there somewhere!

THX. Karen Ann

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www.stevemarshallfordnanaimo.com

[slapenta]

Karen Ann,
Depending on who you ask, the average number of customer's that defect from their selling dealership after the manufacturer's warranty period has expired is around 70-80 percent!

You may want to perform your own "maintenance visit" penetration analysis to identify how many percent of your customers are returning for their scheduled oil change service. Further analysis can also identify if you are capturing other maintenance services during those visits.
Steve LaPenta

Steve LaPenta

[robc]

I concur with Steve ... the loss is 75%.

When I look at the number I have very tough rules. (1) you don't eliminate people that moved away, totaled their car, etc. The measurement isn't supposed to make you feel good - it is projection value or a measurement of retention. (2) just because you did an oil change 11 months ago on a three year old customer does not mean they are 100% yours. If three years calls for 6 oil changes and you only did 3 of them - then the retention is 50% ... not 100% just because the customer happened to darken your drive half the time they should have. (3) There are a number of customers you will NEVER see and there is NOTHING wrong with that. Don't let anyone tell you there is. Some people are DYI'ers, some people live outside your area, some people have a brother-in-law that has his own shop, etc. People who say that you have to have 100% true retention are dellusional consultants who say things they know the dealer wants to hear.

[Karen Ann]

Thanks guys, that really helps.

We knew it was around there, just wanted to make sure!

Steve, we'll be pulling our data. Watching, as suggested, for the other services and definitely with some different qualifying criteria using your (3) robc.

Karen Ann
ps I love this place, this forum never stops giving!

[texaslp]

How many people even keep their car after the warranty expires?

[APM]

I think your missing the point and hiding your head in the sand if your willing to accept these numbers as acceptable. Flip side is the value of retaining your customers over the full life cycle of ownership.

[Karen Ann]

Is there any difference with the Used Vehicle defection rates?

Is it 70% right away cause there is no warranty?

APM, totally agree, not acceptable... but also, of the new vehicle buyers, like texaslp said, who keeps it?

[APM]

Karen are you using the Dealer Pulse Pro tool. You can dial in on all the data your looking for and it will be detailed to your customers. It doesn't offer stats on used or certified sales retention (I don't think). The figues I hear on used is worse then on new.
But it will tell you to a person who came back...and who didn't.

[Karen Ann]

No, we're not on Dealer Pulse... I've not heard of it... *googling furiously*

Hmmm. Google gets me nothing... tip or a link?

[robc]

Karen - used on makes you sell should be close to new at the age of the vehicle. Sell a three year old car and it is 25%, sell a two year old car and it is 40%.

On makes you don't sell that is totally dependant on your mnarket area and programs. I work with one dealership in the middle of no-where upstate NY. They sell 3 to 1 used-to-new. They retain a most customers with free LOFs for life and that there is less competition. In central NJ, where I live, the retention is honestly limited to policy work.

To continue my rant - everybody certainly would love to find ways to continue to improve retention. That is the goal and I wouldn't say a 75% loss is "acceptable". It is just realistic, with always the goal to improve. It is always better to keep customers than to constantly win new ones.

I just take with a grain of salt anyone preaching/pushing some big number of customer retention when every business has lost customers. My dealer, who offers free loaners, free snadwiches and breakfast, and has a waiting area with computers, video driving range, pool tables, etc. and who I love and trust to death still has not done every service on my vehicle.

If the number does turn out to 75%, I am not ashamed of it. I would be ashamed if I could not find a way to make it 74%.