Customer Loyalty is Born, Not Bred


The data doesn’t lie – not everyone is a top-value customer, and the highest level of customer loyalty can’t be created with even the best marketing.

How Do You Achieve Customer Loyalty?

Outsell conducted a study with RXA to discover the nature of top-value customers, their importance to dealers, and how to capitalize on them while keeping them loyal to stores and groups.

Drawing data from 26 OEM brands, 841 dealerships, and more than 14.5 million consumers, the results conclude that while you cannot create top-value customers from thin air, you can smartly focus resources on better keeping the ones who are worth the most to your dealership. Top-value customers do not become low-value customers; and vice versa, low-value customers do not become high-value customers. So instead of flooding low-value customers with low-value marketing tactics ($20 oil change coupons) who will never become top-value customers, dealers should focus on tailoring their customer experience and marketing efforts towards their loyal customer segment.

Who Are Your Top-Value Customers?

Top-value customers are the ones who engage more, spend more, and who ultimately carry the dealership through the worst of times – if they remain at the same store/group.

A few highlights from the study found that:

  • Over the next 3 years, 30% of your existing customers will account for 80% of total gross profit
  • Top-value service customers ​are 6X more likely to repurchase
  • In 2020, 20% of a dealer’s top customers represented 89% of returning servicers

We also know that two years after a sale, less than 60% of VINs will have been serviced in the past 6 months. Given the data of which customers end up being worth the most over time, sales needs to reinforce service and service needs to reinforce sales; the two go hand-in-hand.

Outsell offers Service-to-Sales communications powered by artificial intelligence that populate recommended VINs from your lot to your customers based on organic behavior. Someone who you might not otherwise know is in the market for a car is served up a VIN based on what they clicked on in other communications and their subsequent activity on your site.

Through our study, we found that customers who purchase a vehicle that was recommended to them have a 106% higher likelihood of service, and a 67% higher future repurchase score. These vehicle owners also have a 119% higher three-year value.

This isn’t just great for the customer, who’s getting information about a vehicle they’re already likely interested in, but good for you both in the long and short-term. Recommended vehicles are on your lot for 19% fewer days and have been shown to sell for a 26% higher gross profit.

Customers spend more – at the time of sale and over the years to come – if they feel valued and understood.

What Can You Do Now?

Keep your top-value customers – those who spend and engage most consistently and frequently – by communicating with them the right way and see the returns for years to come.

Here’s how to start:

  1. Clean your data – and consolidate it
  2. Examine your distribution to find top-value customers​
  3. Change how you communicate by using personalization​
  4. Stop blasting top-value customers – engage them

See more about our recent study with RXA in this infographic.