News and Media Navigation
< Back to  Case Studies

Case Studies

Improving Customer Retention

May 07, 2015
Case Study - Customer Retention Programme Our case study on Customer Retention can be downloaded

Re-engaging customers through a communications strategy supported with Dealer education.

The Challenge

Our client had an initiative to increase customer retention and bring lapsed customers back into the network with a service marketing programme. Based on VIN numbers provided by the client, the challenge was to create a programme using the data provided, understanding when to communicate with customers and what offers were suitable.

Research clearly indicates that the main reasons for owners to defect from the Franchised network for service and repair is due to high cost associations. Some Dealers are also of the view that they are unable to compete on price when this is not usually the case. In turn, they don’t communicate with customers who own vehicles of a certain age.

Consequently, workshop effectiveness goes into decline and customer loyalty to the brand weakens leading to potential defection to a competitor brand for the next purchase.

The Solution Taking information from the chassis data which indicates potential upcoming service and repair requirements for specific vehicles, Impetus Automotive worked alongside the UK NSC to develop a communications strategy to re-engage their customers and challenge the Dealers’ own perception of high pricing.

Via an administration team and a team of Field Consultants working with Dealers on engagement and programme benefits, we delivered:

  • A pilot of the programme to produce a clear business case for Dealer participation
  • Customer and vehicle data provision allowing for targeted quarterly hard copy mailers informing customer of potential work due on their vehicle and associated costs
  • Quarterly campaigns to upsell alongside routine maintenance
  • Customer data for call centre follow up activity
  • Cleansed data provision to Dealers for DMS updates
  • Post campaign Dealer reporting
  • Onsite Dealer support for identifying market potential

The Outcome Through the Business Process Improvement function of Impetus, we were able to develop and facilitate the programme on behalf of our client, growing from a 3 person operation to an 8 person operation within 2 years.

Due to the success of the programme, quarterly sales improvement in 2012 averaged incremental revenue of £1.25million from the campaigns which delivered a Dealer Return on Investment ratio of 10 to 1.

 

Our case study on Improving Customer Retention can be downloaded here:

Contact Keith

Head of Service and Warranty

Keith Vipond

Head of Service, Warranty and Audit

Keith is a qualified Management Accountant with over 20 years automotive experience in Contract Hire & Leasing and Franchised Dealer Management.
Find out more about Keith

Email Keith Vipond Forward this page Call Back Request