Video Blog/Jeff Sacks: As Sales Show Improvement Now is Time to Tune Up Your Customer Retention Process

Video Blog/Jeff Sacks: As Sales Show Improvement Now is Time to Tune Up Your Customer Retention Process

DealersEdge Headlines

With the somewhat improving economy, dealers are admonished to sharpen their focus on how many new vehicles customers are coming back for in service.

In his video blog posting this week, Jeff Sacks focuses on what happens directly after the sale: does your dealership have a working process for bringing new car customers back into the service department? He suggests this process should bring multiple benefits; the profits to be earned in service plus the increased likelihood that the customer will become a repeat new car customer down the road.


February sales reports were again a very positive sign that some normalcy is returning to the car business. We still have far to go, and some dealers have not experienced any meaningful improvement as yet, but the signs for 2011 and 2012 do predict a steady improvement.

But in Jeff’s Video Blog posting this week he suggests that rather than loosen up on efforts to retain new vehicle customers as service customers, it is time to double down on these efforts.

Jeff suggests that you take an active interest in tracking the number and percentage of new vehicle buyers that return to the dealership within four months for service. This will be your overall report card on efforts to bring these customers back for service. Jeff believes that retaining these customers for service is key to future profits; not only because of the service business to be derived, but because loyal service customers convert to repeat new vehicle customers at a much higher rate.

He further suggests that not only should you track the total dealership performance in this regard, but to make your salespeople more accountable by tracking their individual retention percentages. Let them know that you are measuring this individual performance indicator and, he suggests, they will take service department introductions more seriously.

Bringing these customers back for service work is the first step in earning their future new vehicle business.

Jeff is busy in March with two General Manager Workshops. These 2 ½ day events, one in Atlanta on March 15-17 and another in Harrisburg, PA on March 22-24, will focus on what the dealership’s top managers, Dealers, GMs, Controllers, etc. can do to manage the entire dealership and not just focus on the variable department. You can find additional information on these events by clicking here. You can also contact Jeff’s office directly at 800.867.2160 for additional details and registration.

Also, Jeff is presenting a DealersEdge Webinar today, March 3rd at 1pm Eastern time. For more details and registration.

Even if the webinar has passed by the time you read this, a recording will be available. To get earliest crack at this recording; go ahead and register. You will receive an email with a link to the recording within 24 hours of the webinar’s completion.