What is aftersales?
Aftersales consists of all efforts made by the dealership after selling a vehicle (automobile, agricultural equipment, truck, motorcycle or bus) in order to satisfy the customer, with the objective of achieving future recurrent sales.
Outstanding aftersales service can help convert each buyer into a lifetime customer, the Holy Grail for any company. In addition, excellence in aftersales is a great differentiator against the competition.
By contrast, deficient aftersales efforts thwart lasting relationships. And worse… statistics show that an unhappy customer will share their negative experience with 11 colleagues and family members.
Today, with the ease and willingness of customers to inform themselves via the Internet, their loyalty is increasingly difficult to keep. A quality Aftersales Department is the best barrier against the competition, who today are only a few clicks away.
Customer lifetime value
The term “customer lifetime value” represents the total amount of money a customer will spend throughout their relationship with the dealership. It is estimated to be seven times the price of the vehicle they purchase.
If we can improve our customer retention rate, we increase the chances that the dealership will keep that lifetime value. In addition, studies show that over the course of time customers buy more expensive vehicles, and recommend the dealership to friends and family. A 5% increase in customer retention increases lifetime value by 75%.