Retaining Customers Utilizing LHPH

Tyler Mullen | December 14, 2022

Want to retain customers?

Today, with an increasingly competitive market, it is harder than ever for dealerships to retain loyal customers. And according to the latest research, acquiring a new customer can cost around five times more than retaining an existing one! Research has also shown that sales success is much higher in customers that have previous beneficial experiences with a company. You may be wondering why exactly this is, and how your company can increase its customer retention. The answer is simple; customers want companies that they trust. Utilizing a LHPH program, dealerships will have more opportunities than ever to create a relationship with their consumers, build trust, and keep them coming back. Utilizing the LHPH model will help dealerships keep a competitive edge. To learn more about how companies utilizing LHPH stay competitive, click this link.


 How does it work?

Compared to BHPH, companies that utilize LHPH programs are far more equipped to maintain customer control. Throughout the collections process, there will be much interaction between the company and the customer which helps build relationships between the two parties. Many dealers will include warranties in their contracts that keep the customer making regular visits. Dealers also have the capability to offer trade-up incentives for payment performance allowing a customer to get a new vehicle before their contract comes to full term. When a customer’s lease does come to maturity and they must return the vehicle, dealerships have a considerable chance to either sell the car to the customer or have them lease another vehicle. In summary, these relationship-building opportunities allow dealers to grow their customer retention rates and significantly increase profits. If you would like to learn more about all of the amazing benefits of the Lease-Here, Pay-Here model, download our E-book by following this link!