It seems everyone is discussing how to improve the customer experience. Here is an excerpt from an article that was recently posted on Digital Dealer:
A recent study by Forrester quantified the monetary effect of increasing customer experience scores by a single percent. The results were quite astonishing.
A single one-point increase in customer experience can mean as much as an additional $873 million per year in revenue for auto manufacturers, and incremental revenue per customer of $48.50.
How many customers does your dealership see in a year? What if you could add an additional $48.50 in revenue to each and every one of them? Luxury brands make out slightly better with an increased per customer revenue of $104.16.
Let’s look at a modest store’s traffic and try to quantify that. If a store is selling 100 cars per month, that equals 1,200 cars per year. Add in service traffic and that dealership could easily be talking about 6,000 transactions per year (if you consider a ratio of service to sales customers of 4:1 — and that’s probably on the conservative side). That equates to additional store revenue of $291,000 per year, without changing a thing. I’m sure you can imagine what those numbers would mean for your specific store, based on your sales and service volume.
Now that we know the potential financial implications of a SINGLE-point increase, imagine the exponential increase which could be created with a multiple point rise.
Author: Tim Clay, Chief Revenue Officer, Confident Financial Solutions
If you want increased profits and customer loyalty, start turning every transaction into an experience.