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Customer Retention in the Automotive Industry

By Paula Schleider

More and more when we speak with car shop owners, we hear that one of their main pain points is their ability to maintain their relationship with their customers, once they had left the car shop. The big old customer retention challenge. The car industry can be unique in some aspects, but in regards to customer retention, the automotive industry is no different. It is 5 times more expensive to acquire a new customer than to retain one. Yet, in so many cases, businesses are not investing enough in keeping the customers they already have. 

Today’s market demands strong relationships with your clients. From acquisition to retention, the growth of your business depends on keeping them engaged with your company. The more familiar you are with your clients, the more you can answer their needs. According to research that was done by Bain&Co, increasing customer retention rates by 5% increases profits by 25%. Another interesting fact to consider is that an existing customer is 50% more likely to try your new products compared to new customers. 


Investing in retention can pay off long-term   

Among the most frequent ways to retain customers in the automotive industry, you can find the use of loyalty programs, email campaigns, satisfaction surveys to measure Net Promoter Score (NPS) and social media. Loyalty programs increase the chances of a customer to become an advocate and recommend your business. 

A year has 365 days, and on average, a customer is visiting a repair shop 2-3 times per year, with an average visit duration of 3-4 days. This means that for the rest of 355 days of the year, the mechanic has no ears and eyes on what is going on with his or hers customers’ cars, and what they get or do with the competition.   

What if the situation was different? What if you were able to know the full condition of your customers’ car, at all times, and be able to interact with them in case their car has some kind of faul? We are living in a world full of smart things.  You could stay connected with your customers and monitor their cars all year long. Wouldn’t it be great to work in a more organized and technological way?

If you are not using a CRM system yet, it is time to start evaluating the option to integrate one. A CRM will keep your customers organized and it will make many processes simpler for your team and for your clients. Additionally, it is proven that a CRM can increase your profit. When the information of your client is more organized and you automize messages, communication becomes easier. It even allows you to target them for specific services or special offers. 

Engie has an interesting and affordable option, where you will be able to see your customers’ car data in real-time and to contact them easily. 

Benefits of a CRM

  1. Profitability
  2. Minimizes costs and processes
  3. Improves customer service
  4. Improves client relations (engagement)
  5. Tracks and runs marketing campaigns
  6. Better decision-making

What would be a winning formula to choose a CRM?

1. Understand what you need and what you expect to solve with the use of a CRM.


2. Small businesses tend to take more time until they adopt new technology platforms. Many times and due to the team’s organization, roles are too specified and therefore, we recommend to assign someone to manage the implementation of the software and to lead it throughout the way.


3. Evaluate CRM options that offer a complete solution. It should integrate sales, clients’ detailed information and customer service categories. 

= Success



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