How to increase dealership customer retention in 2023

In order to increase customer retention, a dealership must provide excellent customer service. In order to provide excellent customer service, a dealership must employ effective strategies. This time, we’ll discuss three efficient ways to increase dealership customer retention in 2023.

How to increase dealership customer retention in 2023
Increase dealership customer retention in 2023

Benefits of Retention

Dealerships that provide an excellent customer experience and employ tactics to retain customers will be successful in 2023. In this guide, we will outline how to increase dealership customer retention.

  • Some benefits of increased customer retention are increased profits and reduced marketing costs. When a dealership retains a customer, they have an advocate for their business. The customer is likely to recommend the dealership to friends and family, which can result in an increase in business.
  • In order to increase retention, dealerships should focus on building relationships with their customers. This can be done by providing excellent customer service and listening to the needs of customers. Dealerships should also focus on engaging the customer and providing a positive experience.

Modernizing Dealership Digital Experiences

  • Your dealership is in a competitive market, and customer retention is vital for success. In order to keep the customers coming back, you need to offer them a digital experience that is modern and meets their needs.
  • Your customers are used to a certain level of convenience and flexibility from online retailers. They expect to be able to shop online, on their own time, and have their purchases delivered directly to their door. They also expect a personalized experience, catered specifically to their interests and needs.
  • You can meet these expectations by modernizing your dealership’s digital experiences. This includes updating your website, creating a mobile app, and using social media platforms to engage with customers. By providing a digital experience that is convenient, flexible, and personalized, you can increase customer retention and build long-term relationships with your clients.

Adapting Customer Service Strategies

Dealerships need to keep up with the times by adapting their customer service strategies. In 2023, customers will expect more from dealerships in terms of service and convenience.

increase dealership customer retention
To increase dealership customer retention you need to offer convenient and flexible ecommerce option

Some ways that dealerships can adapt their customer service strategies include:

  • Offering express service for urgent repairs
  • Installing self-service kiosks for routine tasks such as oil changes and tire rotations
  • Allowing customers to book appointments and track the status of their vehicle repairs online
  • Offering shuttle services to take customers to and from work or home while their car is being serviced
  • Providing a waiting area with complimentary Wi-Fi and refreshments

Investing in Employee Training and Development

  • You can’t underestimate the importance of investing in your employees. This starts with providing staff training and development opportunities that will ensure they have the skills and knowledge required to provide excellent customer service. It’s important to focus on upskilling existing staff as well as hiring new team members who have specialized experience in automotive retail to best serve your customers.
  • By investing in comprehensive employee training and development, you’ll be able to create a service culture that is focused on creating meaningful relationships with customers. This will help your team understand the value of customer loyalty, as well as how to deliver outstanding service that meets individual customer needs. 
  • Additionally, regular training programs can help your employees stay up-to-date on industry trends, so they are better able to meet customer expectations.

Developing Loyalty Programs for Long-Term Engagement

  • Developing loyalty programs for long-term engagement is an effective way to increase customer retention in 2023. With a loyalty program, customers can easily accumulate points and discounts based on their purchases which will encourage them to buy more often. Loyalty programs are also a great way to reward loyal customers with exclusive offers to keep them coming back.
  • In developing your loyalty program, it’s important to consider things like how rewards are earned, the types of rewards available, and how easy it is for customers to understand and use the program. It’s also important to make sure that the rewards offered are actually beneficial to the customer. Make sure that they aren’t too difficult or expensive for your dealership to provide. Lastly, make sure that there is a clear communication strategy in place for letting customers know about your program and any updates or changes you may have made.

Utilizing Data-Driven Insights to Increase Customer Retention

Data-driven insights are becoming increasingly important for dealerships to understand how customers interact with their business. By comparing customer data to industry trends, dealerships can gain a better understanding of the success of their operations. Additionally, data-driven insights allow businesses to understand their customer preferences and behaviors, which can be used to tailor their offerings and increase customer loyalty.

increase customer retention 2023
Data is the king for dealership customer retention

Dealerships can use data-driven insights to customize their sales and marketing processes. The analysis of customer data can provide insight into which type of customer is most likely to buy a particular product or service, allowing dealerships to allocate resources accordingly. Similarly, dealerships can also assess data to identify which marketing tactics have been most successful in the past. By leveraging past successes, dealerships can invest in tactics that have proven to be effective in engaging customers.


To sum up, following the tips above should help increase dealership customer retention rates in 2023. However, it’s important to remember that not every dealership will have the same results, as customer retention is based on a variety of factors, such as the quality of the products and services offered, the attitude of the employees, and the customer’s overall experience.

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© 2024 Modera Ltd. All rights reserved.

© 2024 Modera Ltd. All rights reserved.