We all agree that Mechanical Workshop growth and profitability is primarily dependant on increasing the number of services performed and parts used. The traditional and preferred method of increasing the number of services performed is to attract “new” customers to the Workshop.
What does Hunting for “New” Customers mean?
The “hunter’s” preferred method of securing new customers to their Workshop is to use what we called the HOPE Sales and Marketing Plan.
A large number of advertisements promoting the Workshops “special offers” are placed in newspapers or flyers over specific time periods. This method of marketing called Shot Gun Marketing usually generates a higher income for media outlets than your workshop.
The business owner HOPES customers will show up and book-in a job, resulting in spare parts sales and services. This happens, they believe, as a direct result of their “Special Offers” advertisements. Often, the jobs coming from these types of advertising campaigns usually end up being low grossing deals after evaluating advertising and promotional costs.
Workshops relying solely on attracting new customers for additional vehicle services have been and still are successful; they do book more services but achieve a lower return on investment (ROI).
Attracting a new customer costs up to 5 times as much as pleasing an existing customer. It can cost 16 times as much to bring a new customer to the same level of profitability as an existing customer.
What are the Rewards for Farming Existing Customers?
Customer Retention is as important as attracting new customers. The smart business operator builds a fence around existing customers before someone else makes them a better offer. One intersesting statistic shows, that over a period, 70 % of customers become INACTIVE because they feel they have been ignored and not appreciated and the business operator doen’t realise they have lost a customer until it is brought to their attention much too late.
Implementing a Customer Retention Strategy is imperative for business success. Customers drive profits in today’s increasingly competitive market. Remember, YOUR CUSTOMERS have many more outside options if they feel neglected in their dealings with you.
You must communicate and build relationships with your existing customers, meeting and exceeding their expectations and satisfying their needs. When you do this, your existing customers are more likely to …
- Stay loyal longer
- Be more receptive to the workshops marketing campaigns
- Book more services and relative spare parts
- Refer friends and relatives to the workshop
- Pay less attention to competing brands and advertising and is less sensitive to price
- Cost less to serve than new customers because transactions become comfortable and routine
Who is the The Farmers silent business partner?
What would your reaction be if someone came to you with the following offer?
- Supply you with an ACTIVE CUSTOMER data base
- FARM your customer data base for you
- MARKET to the workshops lapsed customer base
- Carry out PROMOTIONAL ACTIVITIES in conjunction with the service department.
AND while carrying out these 4 primary tasks, could also contribute 30% efficency to the workshops total gross.
Does this sound too good to be true?
NO! This someone or something exists … its YOU and your hard working SILENT BUSINESS PARTNER known otherwise, as specifically task designed Car Dealerships Software.
Workshop Software is potentially one of the most under utilised marketing tools in the workshop, and is certainly the most cost effective. All that is required on your part, is a commitment and direction to achieve the goal of business growth for your Workshop, increasing profitability by increasing the number of services and spare part sales though maintaining a strong, efficent customer relations strategy.
As the owner, include your Workshop Software in the business marketing strategies. Also surprising is how some of the the better quality packages streamline other areas of the business. An immediate task is to make customer retention programs a part of your business operations culture. Don’t just pay it “lip service”, it needs to be an effective, planned and easily implemented strategy, then Customer Retentions will underwrite your strategies for attracting new customers