Increase profits by utilizing 15 relationship-building ideas

1. MTD November 2013
By Richard Morgan
Retainingexistingcustomersaddsgreaterlong-term
proftability, but many tire and auto service frms
pay too litle atention to extending customer life
cycles.Firmsinvestplentyofmarketingdollarstogainnew
customers, yet ignore many of the litle things that turn
customers of once they come through the door.
Everyone expects proper work and prompt service
at fair prices. It takes more than that to atract and keep
loyal customers. Here is a short list of steps a tire and
auto center should consider that help extend customer
retention and increase profts. Many of the steps involve
litle or no extra expense.
1. Nothing beats a friendly, helpful, knowledgeable staf.
Smiles are free and so are many supplier-sponsored
training programs. Invest in industry certifcations,
they nurture customer confdence and help you retain
key employees.
2. Surprise customers with clean, neat facilities, fresh
cofee, TV, comfortable seating, a kid’s corner, etc. Te
extra atention to customer-friendly details will pay of.
3. Use a checklist to help ensure reliable vehicle operation
(and uncover other needs you can satisfy). Go over
the completed checklist but avoid any pressure. Let
the customer decide what actions to take. Performing
the additional check-up is a customer bonus and helps
demonstrate the pride you take in your service.
4.Acknowledgeeachcustomerwithasmileand“I’llbewith
you shortly.” Avoid ignoring a newly arrived customer,
even when they can see that you
are busy with other customers.
5.Tankcustomersfortheirbusi-
ness with a smile, and invite them
toreturn.Omitthisfnalcomment
and invitation at your company’s
peril.
6. Create loyalty programs and
special ofers to encourage return
business. Consider a discount
or extra service to an existing
customer as a business retention
investment.Peoplearemorelikely
to give you their email address if
you ofer incentives to do so.
7.Explaineachinvoiceandcharge
fair prices. Get the customer’s
approval before doing the work
and be sure to point out what is
included. Nobody likes unhappy
surprises.
8.Checkouttheexclusive“Female
Friendly” program by AskPaty.
com for your area. A small annual
fee gives you exclusive “Female
Friendly” certification in your
area,alongwithemployeetraining
andyourcompanypostingonthe
AskPaty.com website.
9. Obtain free education from
your suppliers. Give your staf greater confdence when
selecting and recommending products or services.
10.Giveyourstaftheauthoritytoimmediatelysolvemost
customer issues and monitor the actions taken. Avoid
customer“hassle”overcomplaintsormisunderstandings.
11.Oferfreecourtesyshutleservicetolocalareacustom-
ers. Geting to and from work or home can be a big
concern for employees or busy moms. Look for one or
twopeoplewhoareinterestedinapart-timedriver’sjob.
12.Investindirectmailand/oremailremindersofservice
due, along with winter and summer specials. People
Business insight
Extending customer ‘life cycles’
Increase profts by utilizing 15 relationship-building ideas
It takes more than proper work and prompt service at fair prices to attract and keep
customers.Today, that is expected. It is what you and your team does that goes
above and beyond the competition that creates loyal customers.
68

2. 69www.moderntiredealer.com
forgettomaintaintheirvehiclesuntilthesnowfiesorsum-
mer heat causes a problem. A simple reminder system will
ofen result in additional business from existing customers.
13. Establish a management telephone follow-up plan to
help ensure customer satisfaction. Car dealer follow-up
calls are mandated by manufacturers, proving their value
in building customer service satisfaction. You may want to
set a threshold level to avoid follow-up on very small sales.
14. Invest in a customer-friendly Internet website and keep
it current. Provide education and advertise your specials.
Make your site interactive so prospects can do research
beforecallingyouorcomingby.Today,prospectsusesearch
engines to fnd local dealers, check product features and
availability. When it is possible, many people make service
appointments on-line.
15.DevelopanactivecompanypresenceonFacebook,Twiter,
andothersocialnetworks.Today,abouthalfofallcustomer
communicationsgothroughsocialnetworks.Donotignore
these powerful word-of-mouth marketing tools. Make it
possibleforcustomersto“like”yourcompanyonFacebook.
You might fnd that customers already “tweet” their friends
about their experience with your frm on Twiter.
Relationship building becomes more analytical
More than ever, building and retaining customer relation-
ships is the name of the game. Firms need to invest the bulk
of their marketing time and budget on relationship building
activities. I would venture to suggest a marketing ratio of at
least two-thirds for customer retention and one-third for new
customer development.
Right now, companies like IBM have whole divisions
focused on providing highly sophisticated customer analytics
for other Fortune 500 frms. I clearly see the increasing use of
customer analytics because I am on the board of a small West
Coast frm who owns the patent for what is termed Customer
Relationship Intelligence, a way to measure relationships and
tie them to profts. It is easy to envision a near future when
frms, large and small, will begin to compete based on their
ability to atract and retain long-term customer relationships.
Forward-thinkingcompaniesarefndingnewwaysofharnessing
the massive amounts of customer data that wireless networks
and digital computing power now provide. ■
DickMorganisaCertifedManagementConsultantandaFel-
lowoftheInstituteofManagementConsultantsUSA.Hefounded
Morgan Marketing Solutions Inc. in early 1989 to help leaders
accelerateproftablegrowthbyenhancingateam’sabilitytocreate
anddeployrightactions,rightnow.Morganhasmorethan39years
oftireandretreadindustryexperience,workingwithmanufacturers,
retreadersandtiredealers.Heistheauthorof“MarketingFacets,Te
Market-FocusedGuidetoCompanyAnalysis,”apracticalresource
for those involved in determining the current health of a company
andgaugingitsfutureprospects.Healsospeaksonmarketingand
managementtopicsatindustryconferencesandforstateandlocal
business organizations. Contact Morgan at (972) 931-7993 or
rpmorgan@morganmarketingsolutions.com.
Quik-Link: 800-687-1557 ext. 22144