Categories
Dealership Training Economy

Make More Money on Returning Lessees

Contributing Author: Stephen RoennauRe-stating the obvious

  • Consumers held on to their cars much longer than normal during the recession or simply did without.
  • Post-recession consumers slowly came back into the car market. However, they were much more wary. Leases and used cars did better on average than new-vehicle sales.
  • Now, those lease terms are coming to a close, and dealerships can expect an influx of returning lessees, whom they can turn into new-vehicle owners.

What this means for 2014

According to “Automotive News”, General Motors saw those lessees start returning in November and they have only continued to grow.

Returning lessees pose a huge opportunity for dealership profit in 2014. Why? Because you’ve already done the legwork.

You’ve already built an ongoing relationship, bringing these consumers back to the dealership on a regular basis. Lease customers are on the hook, now you just have to reel them in with superior service and products.

What do we mean by service?

First there’s the follow-up. Evaluate your contact strategy for this audience. When do you begin contacting them? What is the contact frequency? What are your messages for this audience?

Remember, you don’t want to spam them, but you do want to stay top-of-mind. This is most easily done with your content rather than frequency. For example, many people, especially first-time lease customers, do not fully understand the process for lease-end. Educating them on the available options and inventory can go a long way toward influencing their purchase decisions.

You can also use your email communication to invite the customer in for a free trade appraisal to see how well the vehicle is holding its value. Simply getting them back to the dealership dramatically increases the chance of retaining lease customers. Remember, the customer who leased three years ago may be able to take advantage of better options. Many captives have stronger lease offers. Residual values in general have increased and the market has stabilized. Also, some lease programs waive the acquisition fee or security deposit on a re-lease or have other incentives for loyal lease customers. All these things add up to a greater opportunity for you to retain that customer.

In addition, it’s important to evaluate their experience in the showroom. You already have a database filled with information about their needs.

  • You know the current make and model of their car.
  • You know how many miles they drive.
  • You know their service history.

With these data points in mind, you can do much more than show them the new version of their car. You can offer suggestions on other makes, products, or financing options that might fit their needs better. When they come in, how prepared is your sales staff to meet their needs and exceed their expectations?

What about those products?

As with every customer in your dealership, returning lessees want the most for their money. After all, that’s the whole reason they chose to lease in the first place. Now is the perfect time to re-evaluate your F&I products and your provider. So, talk to your service advisers. They can tell you how quickly claims are processed, whether your admin is professional and courteous, and how many claims are approved. Those F&I products not only reflect back on you. Outside of the upsell opportunity, they can also help or harm your service drive, depending on how much red tape your service advisors deal with on a daily basis.

EFG Companies knows the importance of customer service combined with superior products. Everything from training to product administration has a single goal in mind – to be your partner for go-to-market success. Our agile product innovation and customization is backed by unmatched partner engagement and industry leading claims administration.

Make EFG your key to driving business. Contact us today.

Categories
Dealership Marketing

Auto Dealership Marketing: EFG Companies Gives You Five Ways to Better Market Your Dealership

Your customers under the age of 30 rarely read a newspaper or magazine article. They consume more than 50 percent of their information electronically. Print advertising is no longer reaching them because, for the most part, they are not seeing it.  It has never been more important to review and revise how you are marketing your auto sales to existing clients and potential customers.

EFG Companies has a full range of added products and services that can help you and your dealership create marketing campaigns that will utilize the Internet and social media sites to notify, recruit, educate and retain existing clients and potential customers. The messaging could promote internet auto sales as well as service promotions offered by your dealership.  Here are five effective ways to market your dealership to new and existing customers:

  • Your website – Do you know what constitutes a good or bad website? Your customers do. Make sure your site is up-to-date and easy to use.  Images of your vehicles in inventory should be high quality, and the site should include plenty of information about your inventory, specials, incentives and reasons to buy from you.
  • Search Engine Optimization – According to a study done by iPerceptions in March of 2011, search engines accounted for 25-33% of the paths used to reach automotive retail sites worldwide last year. Is your site search-engine friendly?
  • Get social – Social media is here to stay. Many auto purchases start with a web search. 45% of new vehicle buyers and 43% of used vehicle buyers used the Internet when shopping for their vehicle, using the web to compare car models across different makes.
  • Use email to recruit and encourage referrals from your current customer database.
    • Create a contest that features a drawing for a popular ticket item (Laptops/iPads) for referrals that result in a sale.
    • Stay in touch with your customers about your service specials and other incentives
    • Be visible.  Participate in your community by partnering with other community businesses to give back.  Sponsor a local sports team or volunteer at a local charity.

It’s a good bet that the costs to implement any of these tips will be less than what you are currently spending in print advertising for auto sales.  While it is not time to abandon print advertising altogether, it is time to reassess and re-allocate your resources to increase your visibility and presence online and in your local community.  EFG Companies creates lifetime customers.  They can assess your current online and traditional marketing programs and assist you in creating a winning solution that will have your customers returning for generations to come.