Nearly 20 Years of Customer Retention Success

Nearly 20 Years of Customer Retention Success

As dealerships across the country try to design and implement customer retention programs, many are finding that it’s not easy as it sounds. Ideas such as providing cookies or offering movie nights are being experimented with, but few dealerships are truly successful in retaining the majority of their customers.

It’s well known that it costs far less to sell and service a repeat customer than it does to attract a new one. Beyond the simple cost, it is a much easier transaction and usually more profitable. For this reason, dealerships across the country are looking for ways to keep their existing customers coming back. A successful transition from sales to service is the most likely way to get sales customers to utilize the dealership’s service department throughout their ownership experience, and getting these customers to use the dealership’s service department is the most likely way to get them to return when they are ready for a new vehicle. In a perfect world, this cycle will repeat time and again. Customers are retained and the dealership profits increase. Is it really that simple?


As dealerships across the country try to design and implement customer retention programs, many are finding that it’s not easy as it sounds. Ideas such as providing cookies or offering movie nights are being experimented with, but few dealerships are truly successful in retaining the majority of their customers.

In 1998, Richard Fisher Sr. decided to start a customer retention program in his dealerships. Nearly 20 years later, his program has been and remains successful in all of his Autobarn dealerships in Evanston, Oakpark and Chicago, Illinois. Every new and pre-owned vehicle sold is polished with a chemical that protects the vehicle’s finish from environmental hazards such as acid rain and bird droppings. After taking delivery, customers must return to the dealership twice per year to have the chemical reapplied. This continues for years of ownership until the customer desires a new vehicle. “Our customers see the value in returning for the reapplications,” Fisher said. “They are comfortable with the process and with our service department. When they need other services, they have a friendly, familiar place to go.”Fisher’s dealerships all have a polishing machine, and he just installed a drive-through tunnel with dryers and a polisher into his new service center. The polishers are the central piece of Fisher’s retention program that keep his customers coming back year after year. In each store, his strategy to keep all of his customers visiting at least twice yearly to have reapplications has been successful in retaining more of his customers.
 
The key to bringing customers back into the service department is to provide a service they need in an environment they trust. Fisher has been successful in retaining his customers for nearly 20 years by providing them a valuable service that helps maintain the finish on their vehicles. In addition to retention gains, the trade-ins Fisher gets from his returning customers look great.Retaining customers not only makes sense for this month’s bottom line, but it also sets into motion a path for a dealership to remain successful into the future. Fisher and his family of Autobarn dealerships have solved the modern retention puzzle by providing a valuable service to their customers that keeps them coming back, both to maintain their vehicle’s appearance and for service needs. That keeps Autobarn top of mind when it’s time to begin the cycle again.
Alan Scher

You May Also Like

New Research Reveals Age and Gender Differences in Vehicle Add-On Purchases

Are there certain age/gender demographics with a higher propensity of purchasing any specific set of VPPs? This study sheds light on consumer preferences and priorities when it comes to safeguarding and maintaining vehicles.

study about age and gender differences - man and woman

By Tom Oscherwitz, VP of Legal and Regulatory Advisor at Informed.IQ

When consumers purchase cars at an auto dealer, they often buy supplemental products and services called voluntary protection products (VPPs). These provide additional coverage and protection for certain vehicle components or services not covered by or beyond the manufacturer's original warranty. 

How Generative AI Is Impacting Auto Lending Compliance

What is often left out of recent headlines, is the extraordinary power of AI to reduce harm, including fair lending and discrimination risks.

5 Predictions for Front-Line Chat Solutions

In the next few years, prepare for a chat solution that must act like a personal greeter to every customer who visits your digital showroom.

Maximizing Fleet Uptime: A Dealer’s Guide

This guide provides actionable insights for dealers to ensure their fleets are always on the move.

Your Service Department’s Undervalued Opportunity: Streamlining RO Stories

Consider how much time repair event stories take to write. Now, multiply that by the number of technicians employed at your dealership and you could easily be wasting hundreds of technician hours every month.

Other Posts

Cox Automotive Service Study: Dealerships Losing Ground to General Repair Shops

In 2023, dealerships accounted for 30% of all service visits in the U.S., down from 35% in 2021.

Ways to Save on Credit Card Merchant Transaction Fees

A processor should lessen your workload by handling merchant processing. They should free you up to focus on the customer, while feeling confident that your processing remains compliant and safe.  

How End-of-Year-Sales May Impact Auto Finance Digital Transformation Strategies

We still have a very paper-driven culture but we need to continue to shift focus to digitization to reduce risk and liability.

The ROI of Giving Back

The key place to begin for any type of giving-back initiative is to determine what drives you and inspires you.