One Face, One Relation, Deeper Connect – Maximise Customer Value!
Experts believe that probability of up-selling or cross selling to an existing customer is 50 – 70%, while the probability of converting a new Prospect into sale can vary from 5-20%depending on Industry. Existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers. Hence investing our resources in selling more to existing customer base will surely result in higher revenue generation at a lower cost.
Extraordinary challenging situations demand extraordinary approach– It’s Time to expand the universe of your team and wipe out boundaries between departments to leverage full potential of the relationship built between your organization and your customers by your team (Showroom executives, Tele-callers, Field executives, Service Advisors).
Maximising Revenue From Entire customer database (both Inactive & Active Customers)
Currently at dealerships , a customer is contacted by different executives for– insurance, Service Marketing, Extended Warranty and Vehicle Exchange. Each interaction is short, and limited to once or twice in a year. Neither does the Customer recall the person who contacted them nor is the team able to form any relationship with a customer.
To change this, ACS recommends that the complete customer data (including OLD & Currently Active customers) to be assigned to telecallers and sales team using smart data analytics by measuring the Performance, Sales potential & workload of each executive. With the Executive becoming a “Single Point Of Contact”(SPOC) for the customer for all his needs. This will strengthen the bond as the interaction will be frequent and the executive will develop a better understanding of the customer’s need and form a deeper relationship
One Customer – Multiple Opportunities–Each Executive can be encouraged to follow-up on and also create multiple business opportunities like Insurance renewals, Service marketing, Vehicle exchange, Extended Warranty etc. from each customer assigned to them. Eg. Showroom sales executives can be assigned lost customers of insurance and service to do followup and bring them back to the dealership in their free time. The customers can even be encouraged to give references.
Clear accountability for results– The focus is shifted from activity tracking (number of calls / visits made) to results achieved, in terms of revenue growth, repeat business from each customer by the Executives.
Win-Win Situation for Customer as well as for Dealership & Executives– Executives are made accountable and focus on their assigned Customer Data for generating business. Their Performance and Incentives being directly proportional to the revenue and opportunities generated, the realisation from Existing Customer database will increase with many more “In-active” customers being made active. This will result in higher revenue and higher margins for the Dealership. The benefit for the customer will be – a Single Point of Contact, much Superior service and a deeper relationship with the Dealership.
Manpower Cost becomes variable based on Revenue Earned – Keeping an optimum baseline for salary the incentives can be paid based on the revenue generated by the executives. This leads to reduction in “Fixed” manpower, with a higher percentage of this cost becoming variable based on the Executive Performance. This also becomes a motivation for the executive to take better care of their Customers and generate higher revenue from them.
Motivating executives to focus on “Other Dealer Data/ In Active Customers” – Data analysis of some of our customer shows that minimal follow up is done of “Other Dealers/ InActive Customers” for insurance / service / exchange as more efforts are needed in sale conversion . This results in huge loss of business opportunities for the dealership. A fair and smart incentive scheme offered by the management to bring back these customers is mutually beneficial for dealership and its executives.
In our next edition we will share how INFOMAN helps to build a more Profitable & Successful business by focusing on attracting and retaining long-term customers who will become repeat buyers and loyal advocates for your dealership.
Do contact our experts to know more about this transformative , out of the box strategy to leverage your Customer Database better.
Mr Vinoj Xavier
Senior Manager – Business Development