It is every company’s goal to increase revenue yearly. To do that, a company has to have growth. Depending on the company, growth can get measured by an increase in profit, market shares, or it can also get increased in sales. That is why it is essential to keep customers satisfied and loyal to a company by keeping them engaged. Customer engagement and loyalty can help the car dealership get a steady stream of new customers thru referrals and repeat business. 

Why is it important?

With customers engaged it's more likely they are to promote the use of a product to other people. With so many car dealerships offering the same service, the level of customer engagement is what will differentiate a company from the rest of its competitors in the same market. Not only that, but existing customers can also bring in new clients or customers for the company. 

How Engagement leads to success?

Being adaptable to the changing world is one way to keep engagement active. Customer service is no longer confined to people talking with somebody over the phone. With the growth of the digital age, customers are always on their smartphones, tablets or computers. They expect that companies can provide the same level of service thru whatever mode of communication or platform they chose to use. 

To boost engagement, car dealership should provide a consistent experience. Whether they are dealing with receptionist, service advisor, shuttle driver, chat representative and in social media. The quality of service has to be the same. Empower and train everyone in the dealership to provide one resolution. And that has to be the mindset regardless of how the customer interacts with them. Keep customer engaged as well thru the social media channels, build communities, create forums, sponsor events and share relevant information. When people join these kinds of activities, they feel that they will be given a voice and a chance to belong in the online community. Boosting engagement is also the perfect avenue to drive customer referrals. Don't forget to incentivize referral activities because it can speed up the process of getting new leads. 

Ways to measure engagement

a. Customer Effort Score - it measures the ease of experience by asking how much effort was required to use the product or service. “Companies create loyal customers by helping them solve their problems quickly and easily.”

When to use the Customer Effort Score:

  • Immediately after an interaction with a product that led to a purchase or subscription.
  • Shortly after an interaction with customer service.
  • To measure the aggregate experience someone has with your brand or product in general.
    Note: CES surveys need to refer to a specific event instigated by the customer

Pros:

  • The strongest predictor of future purchase behavior
  • The strong predictor of referral likelihood
  • Highly actionable

Cons:

  • Does not provide information regarding the customer’s overall relationship with your business.
  • Lack of segmentation by type of customer

b. Net Promoter Score – measures how likely your customer is to recommend you to a friend or colleague. NPS will help companies understand the customer’s overall perception of the product or service. 

When to use Net Promoter Score:

  • To know the customer’s overall sentiment about your Company.
  • To know the Company’s strengths and weaknesses.
  • To track changes or trends 

Pros:

  • Management can easily use and track this.
  • Results can be easily interpreted and acted upon.
  • Globally recognized the system of measure.

Cons:

  • It is not specific enough.
  • Subject to misinterpretation if not used properly. 

c. Customer Satisfaction Survey (CSAT) – measures the customer’s level of satisfaction with a particular product or service. CSAT enables companies to quickly act upon the survey received. 

When to use the Customer Satisfaction Survey (CSAT):

  • Once the customer uses the product or service.
  • Do spot checks on customers.
  • To determine areas for improvement.

Pros:

  • Flexibility to use various rating scales that will fit the need and audience like using thumbs up, emojis or stars.
  • The response rate is high because the questions are short and simple

Cons:

  • The potential for cultural bias as people of different nationalities tends to rate on extreme sides.
  • Subject to personal interpretation of what a good or bad score is.
    Only reflects the last touchpoint or the last time the customer interacted with the company.
  • Misinterpretation of result due to the customer not leaving comments for dissatisfied or neutral surveys. 

Depending on what will work for the company the critical thing to remember is that customers are the lifeline of the business. People nowadays value customer experience above anything else. Therefore, understand who your customers are, connect with them and act on feedbacks in real time. 

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