With Rick Knight, President at Performance Administration Corp. Moderated By Mike Bowers, Executive Editor at DealersEdge
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1 How to Measure Then Improve Your Customer Retention Performance How one dealer improved his first year customer retention from 20% to over 55%, resulting in record profit improvement. With Rick Knight, President at Performance Administration Corp. Moderated By Mike Bowers, Executive Editor at DealersEdge 1 Rick Knight, President at Performance Administration Corp. Rick Knight founded Performance Administration Corporation in 1996 to provide personalized customer retention solutions and pre-paid maintenance programs. Rick's years of automotive background have always been customer oriented and service related. Rick left automotive retail in 1994 to accept a position as Director of Aftermarket Services for New Dominion Insurance, Inc. During that period, he conceptualized and developed Certified Maintenance drawing on his experience and every dealership s need to re-direct customers away from mass-merchandisers and back into their businesses. Our fundamental relationship building approach helps dealers secure future sales and service opportunities while controlling costs associated with sales conquest. From the program was piloted through New Dominion Insurance Agency's dealer clients in Ohio and Pennsylvania. In 1998 Rick introduced the program on a national scale, working with a network of highly respected independent marketing agencies. In 1999 Performance Acceptance Corp. was established to act as the fiduciary trust for the service reserves held with Merrill Lynch on behalf of the auto dealers. The program currently provides maintenance programs for more than 700 franchised dealerships and groups nationwide. Our "Current State" customer retention software integrates with Reynolds and ADP dealership management systems to keep clients informed as to their customer retention base and improvements. Rick s automotive background and training include: Master Technician: ASE, Mazda, Subaru and Senior Technician with Nissan Motors Service Advisor/Service Director training: Nissan, Mazda and Subaru Fixed Operations training with the independent consulting firm, ATCON, Birmingham, AL Dealership Management workshop training through various NADA functions 2
2 3 Presenter Background Nissan-Mazda-Subaru Dealership from Tech > Master Tech > Service Advisor > Service Director Realized the need to retain Sales Customers > Service Founded Performance Administration We Provide Customer Retention Administration / Consulting / Process Implementation and Administration to Dealerships > Groups > Insurance Companies and Third Party Administrators 4
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5 9 Maintenance Frequency is declining 1995 Possible Visits First Year Ownership = Possible Visits First Year Ownership =
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11 NO TRACKING NO CONTROL NO CONTACT 21 22
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17 33 The Starting Point Customer Retention Analysis Factory / DMS systems lack retention information. Today Only - Free, No risk, no obligation Current State Retention Assessment for Dealers Edge customers! Our software will analyze your customer s service returns 1. Export three months of vehicle deliveries from last year 2. Export 15 Months of RO s History for the above deliveries. Please send an to sales@performanceadmin.com and be sure to include your DMS brand and we will send you the data Query that needs to run 34
18 We have Query/Data Request for all Major DMS Providers File 1. File Snapshot of 200 Current State Assessments This Group delivered 105 vehicles per month on average. $99.52 $ $
19 Import Dealer A - Current State Results 37 Import Dealer A New Only Results 38
20 Import Dealer A Pre-Owned Results 39 Import Dealer A Today 40
21 GM Dealer B - Current State Results 41 GM Dealer B 12 months later 42
22 GM Dealer B Today 43 GM Dealer B Repurchase Trends 44
23 Retention Metrics So your MFG said your retention is 40% What YOU should ask MFG about your results? New Vehicles, Used Vehicles or Both What do they consider 100% retained? 1, 2, 3 or 4 visits during the measurement period? What is the measurement term? 12, 15, 24 or 36 months following delivery? Do they provide info on the Defectors? Are these metrics involved in MFG Marketing Campaign? 45 46
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