Long gone are the days when automotive shop owners could simply expect customers to remain loyal for life. Consumers, fed up with paying too much for overly technical, poorly-explained car repairs, have grown distrustful of the industry. Shop owners are also experiencing the fallout from focusing less on customer service and failing to respond to a new generation of customers who don’t shop for repair services like their parents did.
The unfortunate result is that automotive repair centers are now losing 20 to 50 percent of their customers each year, according to some industry estimates. Think about it this way: you’re going to lose a certain percentage of active customers each year as people move away, buy new cars or pass away. But if you add to that count customers who you don’t feel they have a reason to return, then the line of customers exiting your shop is going to be a lot larger than the line of people coming in.
It may seem reasonable to think that you can simply replace your departing customers with new ones, but the truth is, it’s better to stop the flow of customers out the door. Keeping your current customer base is cheaper than acquiring new customers and helps build credibility and new referrals.
Here are some strategies to help you turn the tide and inspire more allegiance from your current customers.
Employ a personal touch
These days, our interactions with customers are often conducted electronically. While that’s convenient, it also doesn’t provide much of an opportunity to engage customers or address concerns. Let’s say a customer doesn’t have a completely positive experience at my shop, but fails to mention anything before leaving. Typically, the customer will receive an automated email from my shop thanking them for visiting, but there’s no guarantee that the email will prompt them to contact me about an issue. So, why not follow-up with a call to increase your chances of getting an honest response? Personal outreach is something we’ve gotten away from in the industry and yet, is still desperately needed. With that one call, I can get a more accurate gauge of how well the visit went and sort out any outstanding issues. This type of communication allows the customer to have a voice and also gives me the opportunity to explain anything that might not have been clear or correct any mistakes. Hopefully by the end of the call, I’ve overcome any issues and proven that my shop is willing to go the extra mile to keep the customer’s business.
I know that the idea of follow-up calls is daunting, but there are software tools that can help simplify the process. Kukui, for example, just added a follow-up module to its software platform that generates lists of customers that should be called for upcoming services. Full disclosure: I serve as a product architect for Kukui, but I can attest that using the product has helped my shop land new appointments. I am also strong believer that these types of personal interactions can make the difference between losing and keeping a customer.
Track your numbers
Many shop owners believe they can just guesstimate when it comes to customer counts. That’s not a great way to figure out how well you’re performing and how severe your retention problem may be. Even shops that are great at tracking and pay close attention to sales numbers and average repair orders, can forget to monitor something like customer frequency. Examining the number of customers who have only visited your shop once, for example, can be a great way to gauge loyalty and measure the effectiveness of your marketing efforts. If you notice a surge in single visits after running a Groupon or aggressive coupon, it may indicate that your offer is priced to only attract “one and done” type customers. However, it might also reveal that your shop isn’t giving customers a reason to return. Either way, if you don’t track these type of figures, you won’t know what kind of action to take. To me, failing to count key numbers is akin to driving a car without a dashboard. Establishing a tracking program should be the first step in any customer retention effort.
Embrace technology
I know there are plenty of shop owners who will claim that they have done business for decades without bothering with social media or search engine advertising. But the fact is, they can’t do business that way any longer. Younger consumers – who will eventually make up the bulk of your customer base – live their lives online. If you don’t have a strong Internet presence, you don’t have a chance of keeping them as customers. So, if you haven’t done so already, make sure you have a search optimized site that is mobile friendly and easy to navigate. Get active on social media and remember to both encourage and respond to reviews. And last, consider search engine advertising to increase your chances of landing customers looking for your services. These measures will help you build loyalty among Millennials and others who depend on technology to guide their buying decisions.
Adopt a holistic approach
Unfortunately, there isn’t one magic bullet when it comes to customer retention. Performing outreach through a variety of marketing channels is your best bet for cultivating long-term support. So, while utilizing technology is absolutely essential, you can’t ignore more traditional marketing methods such as direct mail campaigns. Sending out postcards when a customer is due for service is a great way to stay front of mind. For those customers who you haven’t seen in six to 12 months, finding a coupon in the mail might prompt a response – especially after they receive an email from you or call expressing how much they miss your business. Community sponsorships can also inspire loyalty. Whether you sponsor a local Little League team or provide a large donation to a special cause, remaining active in the community will help you stand out from the crowd and keep your customers from straying to the competition. Last year, my shop gave a car away to a family in need and received great positive exposure from the effort. Staying engaged on as many fronts as possible will increase your brand exposure and improve your ability to retain customers.
Retention is one of the biggest challenges facing shop owners today. Employing the strategies discussed above has helped me maintain stronger ties with my customers and I hope they can do the same for you.
