Re-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.