One Strike and You’re Out!
A pre pandemic report on the state of customer service found that 72% of Consumers Will Switch Brands After One Bad Experience,
…and the pandemic has only heightened that level of expectation.
“Today’s consumers are unforgiving when it comes to poor customer experience, with 72 percent saying they are likely to switch companies after just one bad experience, 86 percent of them tell others about bad experiences they have with companies, and negative social media posts can quickly spiral out of control.” The Northridge Group noted in its “State of Customer Service Experience” report.” *
This growing trend has definitely had an impact on the status quo of the auto industry, with established century old brands like Ford being out played by upstart Tesla who are modernizing the customer experience and winning over the hearts and minds of the consumer base in the process.
‘Industry wide shortages have caused customers to shop for other brands, prompting industry average loyalty to drop from 54.6 percent in 2019 to 50.2 percent in 2022.”
“The past three years have been a challenge for the automotive industry,” Joe LaFeir, S&P Global Mobility president, said in the statement. “As customers are returning back to market post pandemic and inventory levels have slowly improved from last year’s lows, retaining loyal customers has been more challenging than ever before.” **
The best strategy for overcoming customer churn and declining loyalty is to simply listen to the customer and make the best possible effort to meet their demands. Sounds overly simple, but it proves true again and again. For those dealerships that employ the strategy effectively, the demise in customer loyalty elsewhere can mean the start of that same customer’s loyalty to your dealership as consumers show increasing willingness to switch to those products and retailers that rise to the occasion to provide them with the experience they expect.
Scan the qr code below to learn more about how BDC United can empower your dealership to embrace every lead as an opportunity to begin a long lasting loyal customer relationship. You only get one chance to make a first impression, and with BDC United’s unrivaled service, your dealership can make it one pitch and you’re in rather then one strike and you’re out.
https://www.autonews.com/marketing/how-tesla-overtook-ford-annual-brand-loyalty-awards