Customer retention is essential for any dealership’s success. It costs five times more to attract new customers than to keep existing ones, so dealerships must focus on delivering great service to encourage repeat business.
One of the best ways to do this is by hiring the right employees. Great hires—especially those skilled in customer engagement—play a key role in building strong, lasting relationships.
How Great Employees Build Customer Loyalty
Research shows that dealerships with well-trained, customer-focused employees see higher retention rates. For example, dealerships that hire customer experience (CX) specialists notice big improvements in customer loyalty. A study by CDK Global found that dealerships with a CX manager saw their Net Promoter Score (NPS) rise by 18 points. This impact was even stronger for female customers, with NPS increasing by 25 points.
Loyal customers also tend to spend more over time. According to DriveSure, customers spend 67% more by their third year with a dealership compared to their first.
Why Your Team Matters
Every interaction customers have with your dealership reflects the quality of your team. From salespeople to service advisors, great employees don’t just sell cars—they create positive experiences that build trust and loyalty. This keeps customers coming back for future purchases and services.
- After-sales service: Great service doesn’t stop after the sale. Employees who provide timely maintenance, follow-ups, and seamless service keep customers satisfied.
- Proactive care: Well-trained employees can identify customer needs early, turning satisfied customers into loyal advocates.
How to Build a Team That Drives Customer Retention at Dealerships
To boost retention, focus on hiring employees with the right skills and attitude. Here are some ways to do that:
- Hire customer-focused employees: Look for people with strong interpersonal skills who can handle customer concerns well. Employees who are great at communication and problem-solving can improve the customer experience.
- Invest in training: Ongoing training equips employees with the tools they need to build strong customer relationships. Training on service handling, product knowledge, and soft skills makes a big difference in customer satisfaction.
- Offer rewards for excellent service: Recognize employees who go above and beyond. Referral programs that reward satisfied customers also create a positive feedback loop for your team and business.
Long-Term Benefits of Hiring the Right Team
Great hires do more than deliver short-term results—they set the foundation for long-term success. Happy customers return for regular services, recommend your dealership to others, and choose you for future purchases. This reduces marketing costs, increases profits, and brings in more referrals.
In today’s competitive market, customer retention is what sets dealerships apart. Hiring the right people and investing in their growth builds a loyal customer base that fuels profitability and growth for years.
Want to see how the right hires can transform your dealership? Schedule a call with Autopeople today! Our recruitment experts specialize in connecting dealerships with top talent that makes a real difference.