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.
Share with friends
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.
Secunda BMW Directors Jacques van der Westhuizen (left) and Danny Hanger (right) with one of their favourite clients, local attorney Evert Underhay.
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.”
Department of Trade, Industry and Competition (DTIC) Minister Parks Tau has welcomed the approval of the African Growth and Opportunity Act (AGOA) Extension Bill by the United States (US) House of Representatives.
South Africa will remain as part of the African Growth and Opportunity Act (AGOA) for the time being, benefitting the country’s vehicle and automotive part exports.
Housed in the upmarket, safe and centrally located Ballito Business Park in Moffat Drive, the location is in the heart of the Ballito retail trading business precinct amongst many already established OEM brands.
Within the vehicle retail sector, there are meaningful career opportunities for young people who are interested in sales, customer engagement, administration and dealership operations.
Family-run new car dealerships remain a unique phenomenon on the South African automotive landscape, with their own challenges, particularly in rural towns.