ADP Lightspeed released a study that compared customer retention for dealers using its Lightspeed CEM (Customer Experience Management) with dealers not using the system. The study compared customer retention rates for parts and service purchase the year after a customer bought a unit.
The study was conducted by Hal Ethington, senior analyst at ADP Lightspeed, and tracked over 300,000 unit purchases from over 800 dealers in 2010. These purchases were then tracked through 2011 to see if customers returned to purchase from the parts and service departments. The results show that dealers using Lightspeed CEM had a 15 percent increase in repeat service customers, a 20 percent in repeat parts customers and a combined increased rate of 18 percent.
“A 15 percent increase in customer returns to service, and a 20 percent increase in customer returns to parts is huge for any dealer,” said Ethington. “Customers vote with their feet. And this study shows that they welcome an invitation to return.”
The full CEM study is available at ADP Lightspeed’s website at http://adplightspeed.com/dataservices/CEM_Study_Download.php.