The Value Of Loyal Customers
Repeat customers are by far the best way to really grow your automotive service business. In fact, it can be up to 5 times more expensive to get a new customer than keep loyal customers.
A study done by Bain & Company, working with Earl Sasser of Harvard Business School found a 5% increase in customer retention can increase profits up to 95%! (Source article) For this reason, it’s important shops do everything in their power to build long-lasting, trusting relationships with each and every customer that walks into the shop.
Repeat customers simply trust the business more as they have already given the business their hard-earned money before. These people are more familiar with the business and know what to expect. These people are also much more likely to refer other people to the business, something new customers seldom do.
So How Do You Increase Customer Retention? Show and Tell Them What’s Happening
The reality is, most people are not very knowledgeable when it comes to car repair. Sure some folks may know more than others, but for the most part, drivers rely on the advice from professionals like you.
As you may know, this does not mean they trust you or what you have to say about their vehicle. Drivers are worried about being taken advantage of, and rightfully so. When shops are recommended service, or find unexpected issues a lot of customers often refuse to believe the findings.
Thanks to advancements in technology this concern is a thing of the past at more and more shops all over North America. Seeing really is believing, especially when it comes to auto repair. When armed with digital vehicle inspection software, customers can clearly see what is wrong with their vehicle and why it needs fixing.
Digital vehicle inspection software lets techs include photos and videos highlighting problem areas right on the inspection report. This way the customer sees exactly what the pros see while working on/under their car. Customers can see their mileage, the condition of various parts in their car and more. Techs can highlight what needs attention immediately, what is starting to break and what is in good condition. This gives customers a better idea of what to expect of their vehicle going forward, clearly, and with their own eyes.
This is integral to building a trusting relationship with customers. When the customer sees what’s wrong with their own eyes, they are much more likely to approve big repair orders. They feel like they can make an informed decision (something they’ve been craving since they got their first car.) Not only do they feel informed, they feel like they can trust the auto shop again. When people have trust in businesses, they are much more likely to return in the future.
After showing and telling your customer what’s wrong with their vehicle, and why-customer convenience is king. Learn how to make the whole process as convenient as possible by clicking here.