Marketing is generally defined as the activities of a company associated with selling a product or service. It includes advertising, selling and delivering products. Marketing strategies try to get the attention of the target audiences by using slogans, branding, endorsements and general media exposure.
However, many believe marketing is just about advertising or sales. A successful marketing strategy is everything your company does to acquire customers and maintain relationships with them. Even small tasks like writing thank you letters, playing golf with prospective clients, returning calls promptly and meeting with a past client for coffee can be thought of as marketing. The ultimate goal of marketing is to match your company's services to the people who need and want them, thereby ensuring profitability.In seminars I've done over the years, I've used the following statements: "Good marketing strategies are a business investment; poor ones are an expensive cost of business," and "Good marketing strategies are not by luck, but by design."
Keep in mind that marketing initially gets the customer to your door, nothing more. What the customer experiences from that point forward often determines whether they actually "buy from you" or not. This additional sales process to close the sale is not in the scope of this article, but is an important consideration in maintaining a successful business. It's also important to understand how marketing strategies have changed and how they'll continue to evolve.Marketing evolution
For a number of years, shops didn't give a true commitment to a marketing strategy, for several reasons. In the 1970s and early 1980s, many felt there was no need to worry about marketing since business was almost unlimited and life was good. Marketing in those days included Yellow Pages ads and a few sponsorships in publications and schools. Basically, it was a spur-of-the-moment commitment that was based on a call from whoever was selling the advertising.
In the mid 1980s, a branding movement began, where shops improved their appearances with professional looking buildings and offices. New, branded identities led to more advanced advertising medias, such as billboards, radio and cable television.In the late 1980s and through the 1990s, a trend of marketing to insurance agents and other fleet groups began by way of pens, note pads, cookies and other promotional items. Then, the introduction of Direct Repair Programs (DRPs) changed the dynamics of everything. Repairs were split into two basic camps: those with DRPs and those without. In many cases, shops that used to market directly to the customer changed their strategies and marketed primarily to the insurers or other work providers. Also during this time, the introduction of networks and franchising began to gain momentum, and the importance of branding was again reinforced.
Since 2000, little has changed in marketing strategies. The problem is, many have simply forgotten the importance of a marketing plan, and, frankly, do nothing but wait by the fax machine or computer for business to come in. In many ways, these owners have grown disinterested in marketing, which was probably what got them to where they are today. This has provided opportunities for competition to enter into their market areas.Marketing 101
In Marketing 101, the four Ps of marketing are: product, place, price and promotion. The greatest error a shop can make is to believe that quality work is all it takes to gain customers. Many great inventors have starved, despite having the best product on the market.
Product
Unfortunately, quality (which is still important) is just a part of your product. Also included is timeliness and customer experience. Many shop owners may not understand this, however, if they think as a technician, not as a business owner, or if they look at the business through the eyes of a customer.
Quite frankly, some companies today just don't know what customer service is. Many large companies have extensive training programs and implemented systems in place to ensure that all employees meet customers' expectations. Customer service reps are given scripts that empathize and apologize for the experience the customer is going through. I'm sure we've all been placed on hold multiple times, only to be sent through a maze of "customer service specialists" who stated how very sorry they were, but still failed to take care of the issue. Then you go through the same drill again and again. I hope that some day these companies will realize that customer service is not a system to apologize when they mess up, but a commitment to get it right the first time.Place
Place equates to your geographical location and its appeal to the customer. Every customer goes through a decision-making process when considering your shop. Again, marketing's first designed purpose is to attract people to your doors. This appeal varies greatly between genders, races, income levels and age brackets.
You've probably heard, "Location, location, location." Well, it's true and it's becoming increasingly more important to consumers. It does not, however, mean that you must have your business on the most traveled roadway or in the most visible spot. While those aspects can be advantages, they may not be possible, due to zoning restrictions and other red tape. Instead, focus on two things: that your shop can be easily found and that it's easy to get to.
When a customer drives up to your place of business, does it show a welcoming, professional image, or does it seem like a seedy, unctuous business? Whether or not a customer can easily see your office location from the parking lot or the street can be a determining factor in them coming in or heading to the shop down the street.Is the inside of your office friendly? What is your gender mix? Is your staff trained to meet the concerns of females? Do you have the right atmosphere presented? Is your facility clean and well organized? All of these are key factors to consider.
Also, if you're in an area where English is a second language for many, you must be able to properly communicate with this customer base. I've seen many cases where this critical consideration is not addressed, and the facility struggles with increasing their market share as a result.Price
Price in a marketing sense refers to maintaining your pricing to be competitive with others who perform similar services. This is difficult in today's market. Usually, one cannot accurately determine all of a vehicle's damage without dismantling the vehicle or extensively studying the damages. Plus, pricing is often based on the local market, not on the actual cost of doing business.
Many customers will look at price and price alone, not understanding that even though some options dramatically affect price, if the same procedures are performed with the same parts, the pricing will be fairly consistent. Unfortunately, in every estimating seminar I've ever been a part of, the estimates performed by participants are always significantly different.
To improve the "price" part of your marketing strategy, focus on what customers perceive as the value they receive for the price they are paying. It is not the cheapest price that wins, but the value the customer feels they got for the price they paid.Promotion
Since a typical customer needs collision repair service every seven years, we often forget that even though a customer could've had a great experience with us, they may forget us the next time they're in an accident, or believe that all shops will offer the same experience. Thus, you've got to constantly keep the customer aware of your company. This is often referred to as "top of mind" marketing: when a customer needs a collision repairer, you want them to think of your company first.
Many shops rely primarily on word-of-mouth advertising. We've been told for many years how powerful this form of marketing is, which is true. Unfortunately, word of mouth is not enough. Your business needs other promotional strategies.Plus, there's the flipside to word of mouth. It's often true that a satisfied customer may tell four to eight people about their experience, but an unhappy customer may tell 30. I would not rely on word of mouth alone, because an unhappy customer may never tell you they were unhappy. You cannot just satisfy the customer today. They must be so delighted that they feel your shop is the only place they can go to get great service. Today's customers expect to get a quality repair, on time; you need to "wow" them.
This can be a challenge if your shop is in a transient area where customers often move away. It can also be a challenge in a fast growing community. A constantly changing area can be a difficult obstacle when trying to reach prospective customers. So, you must maintain an ongoing presence in your community or market area.There are hundreds of ways to accomplish this, such as advertising, additional service offerings, sponsorships and being active in community and special groups. Don't randomly select ways to accomplish this, though. It takes a designed promotional plan to consistently obtain results. It's also critical that these strategies are performed in a consistent manner. Most forms of marketing and advertising require a consistent message over a long period of time. Doing a single set of radio spots over a short period of time or advertising for a single event will often have little success. Try sponsoring a few teams in both youth and adult recreation leagues. If you can, sponsor the whole league.
Many strategies don't even take much money, just time. If you specialize in a specific vehicle brand, then be a part of that vehicle's "Car Club" and host and sponsor events and meetings for them. If you want community awareness, be involved in the community boards and chambers. Sponsor car washes at your facility for high schools and other fund-raising events. Hold training classes for what to do if someone has an accident, or how to perform basic maintenance on their vehicles. The list can go on and on and the opportunities are basically endless, but you have to invest the time.
To improve the "promotion" part of your marketing strategy, it's important to focus on your community and find the opportunities that meet your customer profiles. It is critical you commit to these opportunities for the long term and in a consistent manner, otherwise you will be wasting your money.
Budgeting
To be able to consistently keep your business in customers' minds, you must be able to allocate time and money to the marketing process. It's true that it will take more dollars and effort to promote your company to an equal or superior level than it would for a company that's already promoting their business in an effective manner. The first company that commits to good marketing practices typically has the advantage. In fact, it has been estimated that the costs to the first in market are less than half of the competition.
Thus, it's very important to budget for the marketing expenses you're going to incur. Typically, our clients budget 3 percent to 7 percent of their revenues for marketing. We also see that the majority of shops are often below 1 percent. This shows how little value most shops place on marketing, and that opportunities are always there for new shops to come into an area and take market share.
After the dollars are committed, the development of the strategy to best utilize the dollars is required. To do this takes identifying your strengths, weaknesses, opportunities, threats and strategies (SWOTS). It also requires the commitment of your time, your staff's time and even outside support.
For many shops, this is a difficult commitment. You may start with a dollar allocation and not a variable projection based on sales. The most important point is to commit to the costs and follow through. Otherwise it can become an expense and not an investment with an expected return on investment (ROI).
Who is your customer?
In this industry, the customer is not the same from shop to shop or business owner to business owner. There are two main types of marketing approaches. With our clients and training programs, we categorize them as retail and wholesale accounts. The retail approach is typically directed to the vehicle owners and their friends and family, whereas wholesale marketing is directed to companies such as fleets, business-to-business customers and insurers.
If your strategy is to market directly to the vehicle owner and their friends and family, you must consider what they're looking for and what expectations they have. This will include what vehicles they drive, their income levels and their expectations of quality and price. When we work with clients to develop a marketing strategy, these above considerations must be identified and considered. You also have to make a decision as to what business you want to attract.
If your main strategy is with wholesale accounts, your considerations are directed to what these customers are expecting. In both types of accounts the four Ps (product, place, price, promotion) of marketing apply, but may vary as to their primary importance for each customer. If you primarily direct your efforts to the wholesale customer, do you have a company resumé or profile? Do you have a presentation to give? Do you have a special program to meet their needs? If not, someone else will most likely gain their business.
Conclusion
No matter who you market to, you have to prove yourself and be able to perform at a level to which you are committed. Frequently customers are told what they should expect, but the given business delivering the service fails to meet those expectations.
In today's business environment, you often get one opportunity to demonstrate your performance to a customer. Don't take those opportunities lightly. It costs significantly more to attract a new customer than it does to keep one.
There are several supporting documents to assist you with marketing at www.theboss-online.com. Whether you're a subscriber or if you register as a guest, use the keyword search "marketing" to view and download the documents.
