by robc » Tue Apr 05, 2011 1:12 pm
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%.