Improved customer satisfaction could increase dealer profits by $106,315
Everyone knows that making customer satisfaction a top priority can help a dealershipês bottom line. Now a new study from MaritzCX puts a number to that theory. The average dealership could earn an extra $106,315 in gross profit per year by emphasizing customer satisfaction. Hereês the breakdown.
The average dealership sells 726 vehicles a year. By increasing satisfaction by one level for example, from very satisfied to completely satisfied the average dealer would sell an additional 329 vehicles. If a customer returns to the dealership to buy another vehicle and increases satisfaction by one level over the lifetime of the vehicle, the dealership could earn more than $64,000 every year in additional sales profits. The increase in service profits from moving to the next level of satisfaction would be an extra $41,646 per year, for a total of $106,315.
When dealerships consider investing in improvements to their customersê car-buying experience, this model will help them understand exactly what financial benefit they can expect, said Chris Travell of MartizCX.
The company also analyzed the effect of customers moving down one level of satisfaction and found that the downward move could result in a potential decrease in gross profit of $191,624 per year.Download Bulletin PDF