What is the Lifetime Value of a Client to Your Dealer?

Share this post:

In the commercial and industrial sectors, understanding a client's lifetime value is crucial for both dealers and OEMs. While whole goods sales are a significant part of the business, a client's true value extends far beyond the initial purchase. To maximize profitability and ensure long-term success, it's essential to consider various factors that contribute to a client's lifetime value. Let's explore these aspects and see if we're doing enough to keep our clients happy.

Whole Good Sales: The Initial Impact

Whole-good sales often represent the most substantial initial revenue from a client. For instance, a dealer selling a fleet of outdoor power vehicles to a logistics company would generate significant one-time revenue. However, this is just the beginning of a potential long-term relationship. The key is not to stop the sale but to leverage it as a stepping stone for further engagement and business opportunities.

Parts and Service: The Bread and Butter of Profitability

After the initial sale, parts and services become critical components of the revenue stream. Regular maintenance, repairs, and parts replacement ensure the equipment remains operational and efficient. These services provide a steady income and enhance customer satisfaction and loyalty. Dealers can build trust and encourage repeat business by offering reliable and timely service.

Repeat Business: The Low-Cost Advantage

Acquiring a new customer is often more expensive than retaining an existing one. Repeat business from satisfied clients represents a low-cost advantage that can significantly boost profitability, providing a reassuring sense of return on investment. Regular follow-ups, personalized offers, and loyalty programs help maintain a strong relationship with clients, encouraging them to return for future purchases and services.

Happy Customers and Referral Business: The Multiplier Effect

Satisfied customers are likelier to become brand advocates, spreading positive word-of-mouth and driving referral business. A happy client returns for future needs and brings in new customers through recommendations. This multiplier effect can exponentially increase your client base with minimal marketing expenditure, instilling a sense of hope for your business's potential growth. Ensuring customer satisfaction through exceptional service and support is crucial for harnessing this potential.

Additional Factors to Consider

Beyond the apparent revenue streams, several other factors contribute to the lifetime value of a client:

  1. Customer Feedback and Improvement: Engaging with clients post-sale to gather feedback can provide valuable insights for improving products and services. This proactive approach can lead to better customer experiences and increased loyalty.
  2. Customized Solutions: Offering tailored solutions based on individual client needs can enhance satisfaction and encourage long-term partnerships. Understanding and addressing specific requirements can differentiate your dealership from competitors.
  3. Technology Integration: Implementing advanced technologies for customer relationship management (CRM) and after-sales service can streamline operations and improve customer interactions. However, we understand that this may require a significant initial investment. However, the long-term benefits of higher efficiency and better client experiences can outweigh the costs.

Training and Support: Providing comprehensive training and support for clients ensures they can maximize the use of their equipment. Well-informed clients are more likely to be satisfied and less likely to encounter issues, leading to a smoother relationship.

Are We Doing Enough to Keep Clients Happy?

Given the multifaceted value a client brings to a dealership, it's imperative to assess and enhance client engagement strategies continually. Here are some questions to consider:

  • Are we proactive in our post-sale engagement?
  • Do we offer timely and reliable parts and service support?
  • Are we leveraging technology to improve client interactions?
  • Do we gather and act on customer feedback?
  • Are we providing personalized solutions and exceptional customer service?

By addressing these questions, dealers, and OEMs can ensure they do everything possible to keep clients happy and maximize each customer's lifetime value.


The lifetime value of a client encompasses much more than just the initial sale. Dealers and OEMs can unlock significant long-term benefits by focusing on parts and services, repeat business, customer satisfaction, and referral opportunities. It's not just about making the sale; it's about building lasting relationships that drive sustained profitability. Are you doing enough to keep your clients happy? The answer will ultimately determine your success in the competitive commercial and industrial market.

About Rollick  

Rollick connects manufacturers, dealers, finance, and insurance providers with in-market consumers in the Powersports, RV, Marine, Commercial, and Industrial industries to deliver a seamless customer journey. Rollick's solutions, utilized by over 140 OEMs and thousands of dealers, include new customer acquisition, enterprise lead management, digital retailing, inventory marketing, customer experience/loyalty, and marketing automation. In addition, the company has rapidly built its outdoor recreational vehicle buying marketplace to include a nationwide network of dealers and an affinity partner network with access to over 250 million high-quality customers, including policyholders of major insurance providers, employees at more than 2,000 top U.S. companies, members of the military, veterans and first responders. For more information, visit Rollick.

You might like these too

Browse Related Posts

Power Hour interview with Rollick about the Future of Buying

In our latest podcast, Brendan Bakler of Powersports Business sat down with Rollick's own Chris Yeloushan, VP of Dealer Development, and Jason Nierman, Chief Revenue Officer, to dive into the findings of the Future of Buying study. The discussion highlighted key insights into evolving consumer behaviors, the impact of digital...

Summer is a Poppin’: Is Your Marketing Plan Working?

For dealers and Original Equipment Manufacturers (OEMs) in the commercial and industrial equipment sectors—like skid steers, zero-turn mowers, and mini excavators—staying current with seasonal marketing trends is crucial for business performance. In our industry, consumer behaviors shift with the seasons, and our marketing plans must adapt to capitalize on these...

Subscribe To The Blog