CARFAX Canada Driving Insights

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What Drives Dealership Loyalty?

by Drew Harden, Wed, Jun 10, 2020

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Used car buyers want to come back to your dealership. We found that right after buying a car 64% say that they plan to return to the same dealership for their next car. However, once it finally comes time to make a purchase, only half of these customers actually came back. Winning back these customers who lose interest during the ownership process can be a huge opportunity for you. But what do you need to do to retain a loyal customer base?


What brings customers back?

Maintaining strong relationships is the most important way to keep your dealership top of mind when a customer is searching for their next vehicle. 48% of used car buyers said they purchased from the same dealership because they had a great relationship with the dealership or salesperson. 31% said it was simply easier to return the same dealership, so making the whole experience of buying and owning a vehicle painless will bring your customers back. Finally, 30% came back because they trusted the great reviews that the dealership had received.

 
 

What sends your customers elsewhere?

It’s unlikely that a customer is deliberately being pushed away from shopping at your dealership, but if you haven’t nurtured an ongoing relationship, it leaves the door open for other dealerships to pull them away. These customers will end up picking another dealership because 45% of them found a vehicle they want somewhere else, while 27% said a different dealership gave them a deal they couldn’t turn down.

What can you do?

Building a relationship with your customers throughout their vehicle ownership cycle will create loyal customers who keep coming back. The good news is that they want to hear from you, provided you bring value to their ownership experience. This relationship can help you retain all those customers who planned on coming back, but end up going somewhere else because another dealership had the opportunity to pull them away.

Explore how our research can be applied at your dealership to help you win more business - request a consultation with a CARFAX Canada Rep:

Driving Insights
Driving Insights is an information series designed to help used car dealers better understand the motives and behaviours of Canadian used car buyers. The research, designed by CARFAX Canada and executed by Dynata, is based on the most pressing questions of dealership management and staff across Canada, answered through a national survey of 1,000 Canadians who recently bought a used car from a dealership. If there’s a question you’d like us to address, email insights@carfax.ca and we’ll get you some answers!

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