On average, 54% of purchases made through the RevolutionParts platform come from return customers. This is a significant percentage of the parts department’s typical customer base, making it essential for dealers to implement strategies that increase revenue growth, specifically from return buyers.
The best way to do this is to implement cross-selling and upselling techniques that maximize revenue potential, build effective sales tactics among your parts staff and help foster customer retention.
What effective upselling and cross-selling techniques can your parts department implement today?
Parts and Accessories Bundle Deals
This should come as no surprise, but bundle deals are excellent ways to drive more revenue. Bundling auto parts and accessories is not a new concept for most dealerships. However, it’s surprising how many dealers neglect to put bundle offers in place, especially for returning parts buyers.
This strategy works to elevate the perceived value of the customer’s purchase. By offering combined packages of related products at a slightly discounted price, like a set of tires with an oil change, or a car battery with spark plugs, customers feel they are receiving more for their money. This technique boosts your revenue and strengthens your position as a customer service leader, effectively fostering repeat sales.
Personalized Recommendations at Checkout
The eCommerce space is booming with personalization and customization. Most online retailers have some sort of personalization on their platform, and the best ones offer personalized recommendations at checkout.
You’ve probably seen this before. You get to your shopping cart online, and a list of recommended products pops up next to your cart total. These recommendations are specifically chosen for you based on the items in your cart, your purchase history, and related products with rave customer reviews.
This is an extremely effective online sales tactic that will help drive up order value!
Plus, it helps your customers get the parts and accessories they’re looking for, and it also shows your dedication to improving the customer experience by getting them to consider additional, relevant purchases that they may not have known they needed.
By providing personalized recommendations at the time of checkout based on customers’ cart items, purchase history, and high-rated products, you not only help your customers find what they need but also generate more revenue.
Loyalty Programs
Another key upselling technique is offering a loyalty program. It might seem like a no-brainer; after all, loyalty programs have been around since the dinosaurs, haven’t they?
The fact is, many retailers don’t take advantage of loyalty programs as often as they should. Loyalty programs can help you in two ways.
One, they can help you identify which customer segments are best suited toward loyalty programs. These are the customers who are likely to spend more at the parts department and make repeat purchases on a consistent basis. Two, they can help you grow your return customer base in the future. With a strong loyalty program in place, you can better cater to your customer’s needs and build strong customer relationships, resulting in higher incentives to continue buying from you.
Implement a loyalty program that rewards customers for making repeat purchases. For example, offer customers a discount on their next purchase after they’ve spent a certain amount of money at the dealership. This can incentivize customers to return to the dealership for future purchases and increase the lifetime value of each customer.
Limited-Time Offers
What happens if your customers aren’t interested in the exclusivity of loyalty programs? Maybe they’re not big spenders even when offered a bundle deal? What then?
Limited-time offers are a great sales technique to get those on-the-fence customers to flock to your dealership. They create urgency among your customer base and get parts buyers to act fast. This allows your dealership to speed up the buying journey for your customers and gain their interest quickly.
Create limited-time offers or promotions that encourage customers to make a purchase fast. Offer a discount on a specific product or service for a limited time or while supplies last. This can create a sense of urgency and encourage customers to make a purchase sooner rather than later.
Add-On Services
Add-ons are also a great way to customize and personalize the buying journey. Add-ons that complement existing purchases make customers more likely to think of your dealership in the future. Offering add-on services can also help streamline operations between the parts department and the service lane. Faster processes between the two will help boost revenue and customer satisfaction rates.
If a customer purchases a part that’s difficult to install themselves, offer them a discounted installation for that part at the service lane. This can increase revenue and also improve customer satisfaction by ensuring that their purchased parts last longer. It also solves additional pain points for them, making the process easier.
Customer-Centric Strategies Are True Drivers of Success
Implementing the right cross-selling and upselling tactics starts with having the right customer-centric strategies. Understanding where your customers are in their buying journeys, how they engage with your dealership, and what parts they buy most often is key to having steady sales growth in the parts department.
How can you dial in your sales strategies for your customers? Here are five customer-centric strategies to help you deliver a high-quality buying experience for your auto parts customers.
