Customer Loyalty in a Changing Market: Finding the Keepers in the Sea of Change
by Dan Gleason, AASP-MN Mechanical Division Director
As we approach another change in seasons and an uncertainty in the political landscape, we look for some things that have not changed.
AAA is still reporting an increase in the average age of America’s fleet on the road. The average for cars and light duty trucks is 12.6 years – a trend we are glad to hear is continuing, because we know it means job security and more opportunities to continue to grow your customer base and business.
With more vehicles needing service and potentially large repairs, have you reviewed your marketing to make sure you are casting your nets in the right spots? Navigating the four generations of customers that are out there is challenging. Understanding the differences between them will help you choose the right kind of lures to catch your target. Your old trusty mailings are still working to snag the older generations. But you may need a whole new tackle box to hone in on the younger generations who might focus more on blogs, videos and other social media platforms.
Most of us have a mixed bag of generations around our shops, but sometimes the demographic can be very lopsided. So, you’ve got to read the fishing report to know how to spend your money to get the most return. Partnering with a good marketing company that knows our industry is very helpful. They will help you uncover what types of consumers are in your area. And you can decide who your ideal customers are. Keeping your team sharp so they understand how to handle all different types of customers will help keep them coming back and being loyal.
You’ve got a bite! Now, how to land a lifetime customer? Just about everywhere we go, from the grocery store to coffee shop or gas station, has a loyalty program. It may be an app or a punch card, but it’s some tangible thing that gives you a small discount or incentive to return to them. The fact is, it works. We seek out a deal; it is part of human nature. We may even drive a little further to continue the incentive program. This isn’t a new idea, but maybe it has been a while since you implemented it or gave it a fresh look. Several companies now offer apps for automotive shops. No more keeping track of punch cards – it’s all digital. It tracks reward points and much more. When the customer hears you say that they have earned enough rewards and their oil change is free, that can be the hook set that keeps them coming back.
Going beyond rewards points, you can really stand out with appreciation marketing. It can be small things like freshly baked cookies, a little thank you note or all kinds of promotional products. In a recent podcast on Ratchet and Wrench Radio, Lauralee Schmidt talks about going the extra mile to stand out. She started small, spending time getting to know her customer base, and grew it into a full-time position in their repair shop. The role included getting small gifts for every customer, recognizing life events and holding customer events like a Mom’s night, or inviting all the customers that owned Honda Odysseys in for a fun evening. The possibilities are endless, but not all of us have the budget and staff to start this big.
It is hard enough to just get the cars in and out and fixed right the first time, but it can result in growing a loyal customer base where there is no limit.
Want more? Check out the November 2024 issue of AASP-MN News!