In the competitive landscape of automotive sales, Buy Here Pay Here (BHPH) dealerships stand out for their unique customer relationship model. Unlike traditional dealerships, BHPH businesses have the advantage of frequent interactions with their customers due to the nature of in-house financing and collections. These interactions are not just transactional; they are opportunities to build a lasting relationship that can significantly impact the success of the dealership.  In this blog, we we will look at the importance of cultivating customer loyalty at various steps with CRM in BHPH auto sales.

Create a comfortable environment before the car sale.

The initial communication with prospects is crucial; it sets the expectations for the BHPH customer experience throughout the loan period. Dealers must strive to be welcoming and transparent, ensuring that customers feel informed and respected. This phase is about more than just selling a car; it’s about establishing trust and a positive rapport that will carry through future interactions.

Maintain a positive relationship during the collection process.

Delinquency, while not desired, is a reality in the BHPH sector. How a dealership handles these situations can make or break customer loyalty. It’s essential to avoid creating a hostile environment when taking payments.

Customers should never feel unappreciated or confronted with aggression. Instead, a solution-driven approach that addresses the customers’ concerns and offers flexible solutions can foster a cooperative atmosphere. This approach not only encourages repeat business but also enhances the likelihood of referrals, which are invaluable for dealership growth.

Negative experiences can deter customers from becoming repeat buyers and can even impede the collection process itself. Dealerships must remember that every interaction is a chance to reinforce a positive relationship, even when dealing with late payments.

Reduce advertising costs through good CRM habits after sales.

One often-neglected aspect of CRM in the BHPH sector is the engagement with clients who have completed their vehicle payments. Such clients have proven their commitment by adhering to payment schedules and fulfilling their loan terms. Consequently, they are ideal prospects for expanding your loan portfolio. Regularly connecting with these individuals via diverse marketing and promotional efforts that encourage repeat business can broaden the scope of your CRM strategy and enhance the prospects for portfolio growth.

In conclusion, the way BHPH dealers manage customer interactions from the outset can define the trajectory of their business. By fostering a welcoming environment at the sale and maintaining a supportive approach during collections, dealers can cultivate a loyal customer base. This, in turn, increases the chances of growing their portfolio with clients who have demonstrated their commitment and ability to honor their financial obligations. The key is consistent, respectful, and empathetic engagement with customers at every touchpoint.