In a recent Forbes study, it was again confirmed that it can cost a business up to five times more to acquire new customers, as opposed to retaining the ones you have.
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It is startling to see that 44% of businesses still have a greater focus on getting new customers versus 18% that focus on keeping them. Research done by Frederick Reichheld of Bain & Company in fact shows that by increasing customer retention rates by 5%, it increases profits by 25% to 95%.
The Directors at Secunda BMW understand this concept fully and recently celebrated one of their favourite and most loyal customers, local attorney Evert Underhay, who has purchased no fewer than 15 cars from them since 1993.
According to Jacques van der Westhuizen, Dealer Principal and co-owner of Secunda BMW, providing customer service to a buyer on the day of purchase, with some aftersales follow-up and ensuring good service at the workshop are basic rules.
“However, to make sure we keep our customers coming back, we just love giving them the best interaction with us that we can… every.single.time,” he emphasises. “It doesn’t matter if they call any of our employees on a Monday morning first thing, or on a Friday afternoon after we have closed, we always treat them as friends, because that is what they have become.”
Underhay concurs, stating that he cannot fathom being disloyal to Van der Westhuizen and the BMW team. “Just the idea of buying a car from another dealer gives me an anxiety attack,” he told Dealerfloor. “I am a super BMW supporter, had the opportunity to visit the BMW museum in Munich, and I have owned a variety of models over the years, but I can say with all honesty that it is the treatment I receive at Secunda BMW and from Jacques that keeps me coming back.”
The Johannesburg Roads Agency (JRA) announced its participation in the sixth annual Smarter Mobility Africa summit, which kicked of 1 October and continues till the 4 October at the Gallagher Convention Centre in Johannesburg.
South Africa’s first electric minibus taxi model, the eKamva, was launched by a consortium led by GoMetro, alongside an integrated new electric vehicle (EV) business model and charging infrastructure product called flx EV at the Smarter Mobility Africa summit.
A modest increase in passenger car sales in an overall market that continued its downward trend in September 2024 offered hope that the market may be slowly turning, says National Automobile Dealers Association (Nada) national chairperson, Brandon Cohen.
Hyundai Paarl has found a new home. Although the dealership, which is part of Motus, has been around for many years, the showroom and service departments were previously located at two different premises.
Short-term incentives can be highly effective in addressing areas of concern or to improve an already satisfactory performance. These incentives should be in addition to any existing commission or incentive schemes.