ABM_1 - Flipbook - Page 39
OPINION
RETAIL
often lost contact with the customer, and
Ask yourself how your business
are therefore unable to call them in.
currently personalises marketing to suit
We understand that recalls can
individual customers. Do you have a
be unpopular with workshops, for
‘single point of truth’ for customer data
various reasons.
in your systems, or are customer records
But the fact is that repeated analyses
distributed between different platforms,
show that, on average, a customer
each of which is not being updated in a
booked in for a recall represents
timely way. In the US, dealers insist on a
an additional £309 with the dealer
minimum of 15 up-to-date data points
as a direct result of attending the
per customer, and the results are much
appointment.
higher compliance with recalls, higher
Add that up, and franchise dealers
margins, increased customer loyalty and
have missed almost £1bn over the past
better sustained growth.
seven years just by losing contact with
Our view is that the UK is currently
customers whose cars were recalled but
three to five years behind the US in
never seen.
dealer attitudes to customer data,
Some of this is due to a mindset which
and that many dealers will rapidly find
prioritises new car sales and conquest
themselves overtaken as American
business over building lasting and loyal
practices are increasingly introduced by
customer relationships. But 'business
the most switched-on operators here.
as usual' is fast becoming a high-risk
Selling cars is visible and emotionally
strategy, as new
rewarding. Customer
approaches are quietly
retention, database
Time and again cleansing and
being introduced into
the British market
segmentation feel less
we see highly
from the US.
glamorous and more
I’ve spent time in
like spadework. But
significant revenue that’s where today’s
the US and seen how
dealers there recognise
missing revenue and
boosts that anyone tomorrow’s growth lie.
the power of dividing
marketing more equally
If you’re thinking
could replicate”
between sales and
that the status
service. It’s a very
quo is sustainable
smart approach now that the share of
because new and used car sales are
EVs threatens further losses of revenue
going in the right direction, it’s easy to
opportunity, with their reduced need
overlook the attrition as customers drift
for servicing and the volatility of their
elsewhere. But that’s only because the
residual values.
size of the prize goes unappreciated by
But here in the UK, only around 20% of
many dealers.
dealer marketing is aimed at aftersales,
None of this is abstract theory, as
despite that typically being the most
demonstrated by the many dealers who
profitable part of the business.
have embraced it. In fact, a disciplined
In the US they are fanatical about
approach to customer data management
data-led customer segmentation to fuel
is straightforward, repeatable, and can
loyalty and customer retention strategies. even be automated in the background as
With a presence in the UK, via business
a reliable route to sustained growth.
acquisitions, we know that these dataAs Russell Conwell put it in ‘Acres of
led approaches are going to open up a
Diamonds’, the treasure is often found in
significant performance gap between
your own backyard – and for dealers, that
those who stick with business as usual
backyard is your customer database.
and those who adopt the US dataFor many dealers, the next wave of
centric approach.
growth won’t come from new markets
As US-owned groups establish a
or new models – it will come from better
stronger foothold in the UK, these dataserving the customers they already have.
driven models are likely to widen the
If you ever wonder where your growth
performance gap between those who
will come from, the chances are that
maintain business as usual and those
you’re already sitting on it, because it’s
who adapt.
your existing customers. i
Q4 2025 AUTOMOTIVE BUSINESS
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