Customer Retention Strategies for Truck Dealers that Work

Bringing new customers through your doors is exciting, but keeping existing ones is what sustains your dealership. Research from Harvard Business School shows that a 5% increase in customer retention can boost profitability by as much as 75%. And according to Forbes, a single loyal customer who makes repeat purchases has more long-term impact than several one-time buyers.

The formula for calculating retention is straightforward: Subtract the number of customers acquired (N) during a given period from the total number of customers at the end (E) of the period. Divide that number by the number of customers you had at the start (S) of the period, and multiply that by 100 to get your retention rate.

Customer Retention Rate = [(E-N)/S] x 100

Once you know your baseline, you can take steps to improve it.

Balance Personalization and Automation

No one wants to be treated like just a number. McKinsey reports that 71% of customers expect personalized interactions with businesses. By tailoring communication, whether it's remembering past purchases, acknowledging service history, or sending targeted offers, you show customers you've been listening. Stronger relationships lead to stronger retention.

At the same time, automation can simplify routine interactions. Tools like chatbots, email and social media autoresponders, automated service appointment reminders, and surveys save time and ensure consistent communication. Just be sure your customers still have easy access to human employees. While chatbots can resolve simple issues, they can't offer empathy when a fleet's facing a costly repair that might sideline operations for days. 

The key is striking the right balance: Let automation handle repetitive or routine tasks so your staff can focus on complex issues.

Ask for Feedback

Hearing what your customers think of their interactions with your dealership — good or bad — is critical. It shows what you're doing right and where you need to improve. Negative feedback, in particular, is an opportunity to correct a problem before customers take their business elsewhere. Thank them for their candor and ask for suggestions on how to improve. 

Reduce Friction

Friction is anything that makes it difficult to do business with you. It can be something as simple as a cumbersome automated phone system that makes it difficult for a customer to speak directly to an employee in a timely manner. The easier you are to do business with, the more likely you are to retain customers.

Offer Support 24/7

The trucking industry is a round-the-clock, which means your customers need access to support at any hour. This is especially critical for your Service department. You don't necessarily have to offer service 24/7, but you do need a system that allows customers to connect with someone at any time, day or night, in the event of a breakdown. Offer next steps for getting their vehicle back on the road to build trust and loyalty. 

Thank Your Customers

Customers need to know that you value them, so make sure you thank them regularly for doing business with you. This can be as simple as a thank-you email following a new vehicle purchase or after a service appointment. It can also be something more elaborate, like a Customer Appreciation Day. 

Invite suppliers to participate in a trade fair where they can display their latest products, offer a free training seminar on a topic of interest, or offer special discounts on any purchases made on the day of the event. 

Use these techniques as part of your customer retention strategy. CDK can help you streamline your business and deliver a superior customer loyalty and experience, boosting your customer retention rate.