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Motor retailing faces a challenge from the multiple touchpoints in the customer lifecycle, which leads to an inconsistent experience, Adam Goran, divisional director for customer engagement, Grass Roots, told delegates at the AM Aftersales Conference 2015.

He suggested dealers and manufacturers need to analyse their customer types and then create an experience that is relevant and personal to those types. By creating customer profiles, based on age and family circumstances, their preferences and their attitudes, the business can ask them more relevant questions and tailor its services and communications to them.

“By segmenting the customers, you can know if it’s more likely they’ll engage through an app, email or telephone,” he said.

“There will be a reduction in the number of dealerships and changes to the format of dealerships – the way you build your business back up again in aftersales is to rely on multi-brand coverage.

First, however, the manufacturer or dealer needs to learn about itself and the people in its business. By observing and giving feedback, senior management will understand whether staff see the brand in the same way the customer does.

Truly understanding the customer allows you to engage with them in a relevant way, and that engagement, whether through loyalty rewards or random acts of kindness, will drive a sense of advocacy and community. Ultimately, that will benefit the bottom line. Goran said a 5% increase in customer retention can equate to a 75% rise in a company’s profits.