Most savvy shop owners know that it’s better to keep the customers you already have than trying to acquire new ones. Doing so reduces the cost of getting customers into your shop. Plus, loyal customers are more likely to spend more money at your auto repair shop.
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Just consider these statistics:
- You’ll pay five times more to attract new customers than to keep your existing clientele.
- Just increasing customer retention by 5% can bump up your profits from 25–95%.
- Your success rate of selling to a customer you already have is 60–70%, while it’s only 5–20% for new ones.
What should you be doing to make your customers want to drive into your bays every time they need service? What are the not-so-secret ingredients? In this article, we’ll look at some of the tried and true ways you can retain valued customers.
1. Build relationships with customers
One of the foundations of a good customer retention strategy is establishing sound relationships with your customers. Everyone coming into your shop should feel like you’re looking out for their best interest.
There are three levels you can tackle this on:
- Front desk: Your front desk staff should be courteous and polite. Customers will have questions before bringing their cars into your shop that these employees should respond to promptly. They also need to communicate effectively with customers and inform them of any complications that arise during repairs. Additionally, your front office should be ready to deal with unhappy customers and maintain patience in case something goes wrong.
- Service advisors: There’s no doubt that service advisors are the backbone of your auto repair business—they can make or break customers’ trust in your shop, making it extremely important to invest in their training. Service advisors should have excellent people skills and care for each customer’s well-being in order to build relationships with them.
- Technicians: Generally, technicians don’t directly interact with customers, but they need to be good at their jobs. Even if you hire the best mechanics at your auto repair shop, it’s important to train them to deliver quality service and stay updated with the latest technological trends.
Whether you’re talking with your customers by phone, email, or text, make sure you’re being clear and transparent. What does the customer need? When do they need it? How can you provide them with a solution? Don’t overwhelm them with jargon or buzzwords; use plain language that they can understand. Be empathetic about their concerns. If they’re on a budget, respect that. Listen to what they’re saying and aim to help them out.
2. Create brand advocates
Customers who experience service extremes, from poor to excellent, will tell others. According to Shiv Singh, a strategic advisor to Fortune 500 companies and early-stage start-ups, “The purpose of a business is to create a customer who creates customers.”
Everyone who walks through your door has the potential to become a brand ambassador for you, spreading the word about your shop. Referrals are golden! Word of mouth is the best advertising for an auto repair shop, and by providing service that keeps customers coming back, you’ll create the kind of network that will generate more business.
In the auto repair industry, trust is strained, so people are likely to visit shops where others have good experiences.
3. Ask for business
It’s important to ask customers for their business since this makes them feel valued. Similarly, it’s good practice to ask your existing customer base to refer your shop to their friends and family.
Getting repeat visits
Customers have busy lives and it’s easy for them to forget to bring their cars in. As an auto repair shop owner, understanding this is critical to success. It’s your job to follow up with customers and ask them to come in for scheduled maintenance.
- Reach out to customers: Are you notifying customers when their vehicles are due for maintenance? A good automotive repair shop software can help out. With built-in auto repair scheduling functionality, you can notify customers when they’re due for a service via their preferred contact mode (phone or email). You can also schedule automatic appointments before customers leave your shop. For example, if they’re coming in for a spring tire change, set up a time for their winter tire changeover.
- Ask them for their other cars: There are an average of 1.88 cars per household in the US, according to the US Department of Transportation. By asking customers about their other cars and requesting that they bring them to you for service, you can double the money you make from each customer.
When customers reach out to you directly, it’s important to respond in a timely manner. Studies show that 82% of customers expect a business to respond to their inquiry within minutes, not hours. If someone wants their vehicle serviced, they don’t want to wait!
Catering to a new audience
Anyone looking to grow their auto repair business needs to look for ways to get new customers. One of the most effective ways to do this is to ask your existing customer base to refer your business to their friends and family.
According to Extole, referred customers have a 37% higher retention rate compared to those who come across your shop on their own.
4. Improve quality
As Peter Drucker says, “Quality in a service or product is not what you put into it. It is what the customer gets out of it.”
Even if your shop is already doing a great job, there’s always room for improvement. Here are some checklist items to keep crossing off:
- Deliver the best service for customers during every visit. Implement new procedures to improve safety and the overall customer experience
- Invest in training for your technicians and front office staff
- Keep customers updated about the status of their cars
- Maintain transparency with customers even when things go wrong
Customers feel confident and comfortable when they know they can always expect to be treated like royalty and receive good value. To accomplish this, keep even the smallest conveniences in mind. Make it easy for them to charge their cellphones while they wait, or offer them a free ride home. If you can provide a loaner vehicle while their cars is in the shop, they’ll appreciate it. Minor gestures like these will keep them returning for their next appointment.
5. Use technology
Embracing technology can be a game-changer for your auto repair shop. Your business will definitely benefit from having the latest automotive repair software, but that’s not all. Here are some ways technology adoption can help:
- Appointment scheduling: Using technology to schedule appointments can help you plan the day for your techs and ensure you’re working on enough cars to stay profitable.
- Customer follow-ups: Reaching out to customers occasionally with tips for their car maintenance and information about their maintenance schedule can help increase brand recall and encourage repeat business.
- Digital vehicle inspections (DVI): Tools such as digital vehicle inspections (DVI) are an excellent way to build customer confidence and increase your average repair order (ARO) size. You can send pictures, videos, and voice memos with details of what work a customer’s car needs.
Concluding thoughts
Whether you’ve just started your shop or have many years in the business, it’s always good practice to improve your customer retention efforts. Doing so can help with developing a network of satisfied customers, which can result in creating advocates.
