Why engagement is key to customer retention

PARTNER FEATURE: It might sound obvious to suggest that customers need to be engaged to stay loyal, but that doesn’t stop businesses in every retail sector favouring a one-size-fits-all approach to mass communication.

Recent research by McKinsey & Company* has highlighted that blanket email campaigns are not enough to minimise customer churn. According to the study, 71% of consumers expect a personalised experience from companies, and crucially, three quarters (76%) would feel frustrated without it. It’s a fair assumption that a frustrated customer is likely to quickly be-come someone else’s customer, especially when alternatives are just a click away.

With the rise in online research, today’s consumer has more choice for what, when and how they buy. Customer loyalty is fragile, and dealers must employ effective marketing strategies that penetrate the customer conscience quickly and effectively. This isn’t only about new car sales. Customers also now have more options when it comes to aftersales bookings.

A Marketing Delivery study unveiled that two-thirds (65%) of customers would be more likely to book an MOT with a dealer that reminded them of the upcoming deadline. This statistic strengthens the McKinsey & Company findings that personalised customer engagement is the way to drive conversions and loyalty.

Retention is just as important for safeguarding aftersales revenues, and that means dealers should embed lead management in their aftersales strategies. Now more than ever, you can’t rely on car buyers to become aftersales customers.

Focus on the customer

Software developed specifically for the automotive sector, such as Marketing Delivery’s LeadBox, puts the customer front and centre. Not only can the system generate a hyper-targeted database for contact centre use, but it uniquely combines sales and service within the same portal. Marketing Delivery was the first, and is currently the only, software developer to redefine dealer marketing in this way.

LeadBox’s exclusive approach focuses on the customer rather than the touchpoint. This dramatically upgrades the customer experience by creating a personalised and seamless line of communication, fostering greater trust, and driving retention.

Campaigns equal customers

LeadBox augments the effectiveness of dealers’ email and SMS contact plans for both sales and aftersales revenue streams. Driven by conquest leads – including those from websites, Facebook, Instagram – or existing DMS data, LeadBox can automatically identify customers relevant to a campaign and build a ‘call pot’ for follow up.

Marketing Delivery’s managing director, Jeremy Evans, explains: “Digital consumers have more choice than ever before. Leads are short-lived, and dealers have a smaller window of opportunity to guide customer decisions.

“LeadBox saves time by aggregating leads from the DMS, websites and third-parties and underpinning actionable, personalised campaigns for sales and aftersales. Simply put, the system will dictate which customers to contact, when, why and how.”

By Gee Kettle, head of marketing, Marketing Delivery

*McKinsey & Company Next in Personalization 2021 Report