Everyone running an auto repair shop has been there at some point—you looked forward to working on a customer’s car, only for them not to show up. This results in an unoccupied bay and unspent labor hours that negatively impact the business.
This article explores what it means to provide exemplary customer service and its impact on reducing no-shows at your auto repair shop.
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What is customer retention?
Simply put, retention is getting current customers to become repeat business. After all, keeping customers coming back is critical for an auto repair shop. The auto repair industry has unfairly earned a reputation for being untrustworthy. Most of this comes from vehicle owners not understanding why certain repairs are important to keep their cars operating reliably.
Al Wheeler, CEO of ShopPros, a business planning and performance improvement application for repair shops, says that this mistrust is because customers often don’t know how their cars work.
Why is it important to retain customers?
Repeat customers can keep a business afloat. Here’s how:
- Lower cost: Bringing a customer who has already been to your shop costs less money.
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- Larger repair order: Customers are more likely to trust people they’ve already interacted with at your auto repair shop, increasing the average repair order (ARO) size. That’s why recruiting quality employees and keeping your front office staff motivated is important.
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- Efficient repairs: In the auto repair industry, every car that comes into the shop can bring new challenges. However, when technicians fix cars that they’ve already worked on and are familiar with, the process is a lot simpler.
- Increased future earnings: By keeping a customer coming into your shop for a prolonged period, you’ll earn considerably more from them than in a single visit.
How can excellent customer service help retain customers?
A key part of getting people to keep coming back is building customer loyalty—selling an experience, not just services.
Think about it. Every auto repair shop works on the same principle. Cars come in, technicians work on them, and the customer collects them. Why would a customer have to come back to your shop versus the one a few blocks away?
The customer experience is what sets you apart. By delivering a stellar experience, you can differentiate your shop from the competition.
Recently, we learned that successful auto repair shops build emotional connections with their customers. However, this process includes both interpersonal skills and delivering excellent service. Let’s discuss some ways you can develop a base of loyal customers.
1. Get to know your customers
When someone walks into your shop with their car, try to learn more about them. Here are a few things you should talk to them about:
- What they do: With the average American working around 260 days a year, talking about work is something that can help you connect with your customers. Doing so also helps you learn more about them. A white-collared employee is more likely to get everything in their car fixed during a single visit compared to one who lives on a weekly paycheck. This information allows you to offer services according to each customer’s needs.
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- Their family: The best way to develop a relationship with customers is to learn more about their families. Doing so gives you greater insight into what a car owner’s driving habits look like while allowing you to establish a better relationship with them. For instance, if a customer tells you that they go offroading with their loved ones once a month, you can include more frequent tire and suspension inspections into their maintenance schedule.
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- Attachment to their car: Data from Hedges & Company reveals that the average age of vehicles in the US is 12.2 years as of 2022. An eBay Motors survey showed that almost 40% of millennials name their cars. This means they’re attached to their vehicles and are willing to put in the money to keep them in running condition. Add in the increasing cost of new cars because of the recent semiconductor and auto parts shortage, and people are even more reluctant to upgrade to a newer model.Â
2. Provide the best services in town
No matter how good you are at dealing with customers, the quality of your work tells a tale. How do you make sure you’re checking the right boxes? Here are some things to consider:
- Have the right people and processes in place: You need to hire the best mechanics and service advisors at your shop. Good auto repair services combine get work done right the first time round while providing timely updates with full transparency, and the right people can help you achieve that. Hiring self-motivated technicians who take pride in their work minimizes the chances of mistakes. However, things can go wrong, and it’s important to have people who can deal with unhappy customers appropriately.
- Stay updated with the latest trends: Whether you like it or not, embracing technology is the only way to run a successful auto repair shop. Whether it’s safety features such as Advanced Driver Assistance Systems (ADAS) or a transition to a fully-electric automotive future, shops that are ahead of the curve usually come out on top.
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- Invest in the right things: Without the proper equipment, your shop can’t succeed. You need to spend money to make money, and the auto repair business isn’t an exception to this rule. Get the best tools and equipment, and also invest in your employees. Pay them well so that they feel motivated to work and organize training sessions for them to learn new skills so they can deliver better results for your business.
To show people that you’re the best in town, consider getting your shop AAA approved too!
3. Spread word about all the great work you’re doing
Many people underestimate the importance of marketing these days. Imagine a time when decisions are made on the basis of random peoples’ opinions. Doesn’t that sound strange?
Around 65% of people make decisions based on online reviews before visiting an auto repair shop. Unless you’re marketing and getting people talking (positively), it’s difficult to grow your business and customer base. Here are some ways to market your shop:
- Online platforms: Social media is one of the most powerful marketing tools available. The best part is that you can promote your business for free. Similarly, you can choose to advertise your auto repair shop using email campaigns. These include updates about your services, new offerings, and vouchers at a time that will get customers into your shop.
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- Conventional marketing: On the other hand, you could employ conventional marketing campaigns. These could include hosting events at your shop or distributing flyers. Offering a discounted oil change for all Volkswagen vehicles? Partner with businesses in your area to help with distribution!
- Word of mouth marketing: Let your work talk for itself when customers recommend your business to others. If you can establish that level of trust with car owners by looking out for their best interests, they’re likely to become repeat business and spread the word about your shop to their friends and family.
4. Introduce a loyalty program
See your customer retention rates go through the roof by introducing a loyalty program that offers exclusive benefits to repeat customers. You have to be mindful of sustainability, so make sure that you don’t cut into your profits too much!
Customers can get points based on their spending per visit that they can redeem at your shop for gift cards and other discounts.
5. Invest in auto repair shop management software
One way to significantly reduce customer no-shows and increase repeat business is investing in auto shop software like AutoLeap. Here are some benefits of doing so:
- Schedule appointments: You can use auto repair scheduling features baked into software to check the calendar and move appointments around. This allows you to have a clear idea of how to plan out each day and allocate technicians to jobs.
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- Send appointment reminders: Software can help you reduce no-shows at your shop by allowing you to send appointment reminders in advance to confirm whether customers will be coming in. If they cancel their appointment, you can book someone else during that slot, leading to increased profitability.
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- Maintain a customer database: Having a database with contact details and notes about each customer is important. Having this information allows you to create marketing campaigns specific to customer groups and follow up with them. Plus, if customers have certain preferences, it’s easier to keep track of their needs.
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- Follow up with customers: Software allows you to track which customers haven’t been to your shop for a while and who’s due for a service. You can automate reminders for customers to come into your shop for periodic maintenance, allowing for a predictable stream of income even during the slow season in the auto repair industry.
- Use SMS and email marketing: As we discussed earlier, marketing is crucial for any auto repair shop, and software lets you send marketing messages over SMS and email.
Closing thoughts
Use the key strategies summarized in this article to retain more customers and reduce customer no-shows. There’s nothing as important as keeping your existing customer base happy and growing your target audience. In the long run, this effort will make your business sustainable.
