Fewer than 40 per cent of franchise dealers contact customers after car sale

13 September 2004

 

Just 39 per cent of franchise dealers proactively contact a customer within 12 months of selling them a car.

 

This finding comes from research by dealer management systems specialist Pinewood into how dealers make use of the data that they record about customers for marketing purposes.

 

Further figures from these investigations show that a further 41 per cent of dealers only contact the customer when they believe that they will be interested in buying a new car after two or three years of the original car sale - and just 20 per cent maintain regular customer contact.

 

Neville Briggs, Pinewood's managing director, said: "Customer relationship management is one of the buzz phrases of the moment in the motor industry but our research shows that the vast majority of dealers are not taking even basic action.

 

"Once a customer has bought a car, it is good practice to maintain a relationship, to ensure that you capture aftersales business, perhaps gain access to their friends and relatives as prospects, and are the first port of call for their next car.

 

"However, a large number of franchise dealers are recording detailed data about a customer when they buy a new car and then never make any attempt to contact them again. It shows exactly how far motor industry CRM must improve."

 

Briggs said that a direct link between thorough use of marketing data and dealer success was clearly apparent.

 

He explained: "We see this time and again. Dealers that make use of their data and have a professional attitude to CRM tend to be successful while those that don't often have a more marginal existence. This is true almost without exception."

 

The research covered a sample of more than 1,000 franchise dealers, both customers of Pinewood and other DMS systems.

 

 

For further details please contact Simon Wells at
Paperchase Public Relations on 01283 711311
or e-mail simon@paperchasepr.co.uk