The #1 Mistake Your Dealership is Making Right Now
You’ve got good inventory, a solid sales plan, a good team, and great customer service but you’re still not increasing sales like you want to or need to. What gives and what else can you do besides pump even more money into your current extremely saturated marketing channels? Refocus on Referrals. Why? Because statistically, you are NOT optimizing on your referral business like you should be and your salespeople are not asking, meaning you're missing out on some of your most profitable customers.
Customers who were referred by loyal customers have a 37% higher retention rate. - Deloitte
83% of consumers are willing to refer after a positive experience... but only 29% actually do. - Texas Tech
Only 15% of salespeople actually ask for referrals. - Texas Tech
And 72% of marketers still do not recognize and leverage the value of customer referrals. - Loyalty360
We have a feeling you may be in the 72% of marketers/companies failing to promote, ask and focus on the untapped potential of your customer referrals but that's okay! We're here to help you start changing that. The first step is acknowledging a common fact, a referred customer is more valuable than any other lead.... yet at this moment in time, you’re focusing all of your marketing efforts into:
So, where’s your focus and budget for promoting positive customer word of mouth, the most effective sales tactic? You may think “We sell great vehicles at great prices, provide quality service and customer care, my customers will always refer their friends and family to my store. I don’t need to focus on “referral marketing”, referrals just happen.” Unfortunately that is not the case, remember.... 83% of consumers are willing to refer after a positive experience... but only 29% actually do. - Texas Tech. Woah… so, what happened to the other 68% of potential lead generators? They got busy and then they forgot. It’s life, especially today in 2017 - we’re busier and we’ve got more content to digest than ever before. So, how do you gain back that 68% of potential missing business back and fight through all of the noise? Refocus on referrals.
Referrals are 4x more valuable than a web lead. - Ken Krogue, President and co-founder of InsideSales.com
Word of mouth is two times more effective than radio advertisements, four times more than personal selling, seven times more than print advertisements.” – Katz and Lazarsfeld
Your customers no longer trust “content by the company”.
"92% of consumers trust their peers over advertising when it comes to purchasing decisions. " - Nielsen
and do you blame them? We're fed so much content in today's digital world that it's hard to decipher what's real and what's a facade and there's nothing more solidifying than a friend's recommendation.
So, what exactly is the #1 mistake your company is making in one sentence? You’re failing to capitalize on and increase your sales through your most effective sales channel, your current customers and employees. Want to learn how you can combat that and start generating more referral business? Click here to download our 5 steps to a successful referral program ebook!