Do You Use Discounts or Brand Awareness Marketing?

[Joe Marconi]

Every shop owners wants to continue to grow their business, and that means that one of the strategies is to attract new customers to replace the customers we lose. 

By the way, all businesses lose customers for a variety of reasons: They move away, buy a car model you don't work on, they may pass away, etc. 

The question is, how do you attract new customers?  Do you use discount coupon marketing or rely on brand awareness strategies, or a combination of both? 

 

 

 

[xrac]

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[Joe Marconi]

Well, you have a few good reasons not to!  Happy to see business is good! 

 

[bantar]

I do a lot of marketing and have broken it into 4 categories:

• Presence Marketing
  • High Visibility Location
  • My Website (poor SEO - no spending on SEO)
  • Two other group websites with great SEO rankings
  • Business cards - Transmission shop and Tire Store referrals to each other (quite effective)
• New Customer Acquisition
  • Monthly Mailers via RedPlum (two sides about 14"x12") Front Quick Lube, Rear Auto Repair
    • Vivid colors, consistent format
    • Marketers say that you must be seen 7 times to be remembered and most effective (Brand Awareness)
  • Targeted Plastic Post Cards mailed to people who have never visited my location. (Quick Lube)
• Retention Marketing
  • Postcards to customers, reminding them to return for service (Quick Lube)
    • Send up to 5 postcards reminding them to return, before giving up
  • Monthly newsletter via email
  • Emailed survey after each visit
• Targeted Online Advertising (this is also new customer acquisition)
  • Google Ads Focused all on Auto Repair

The Quick Lube business is all about the discounts.  Much as I hate it, you have to play the game.   What is interesting is that only about 30% of the customers use coupons.  I'm sure that many do like I did last night.  Grabbed a coupon to use at a new restaurant and then forgot that I had it.  It went unused.  I also take competitors coupons, but cap these at my discount level.   While we are running discounts, they are NOT loss leaders.  The discount is priced into the service.

Auto Repair is not really discount driven.  It's mostly a trust business.  But, there are some that are looking for the lowest prices and we have other local shops advertising to them.  There are always people hunting for a repair shop.   So, advertising is trying to attract them. 

I don't spend any money on Social Media advertising.  The managed services that do this work are very expensive.

All of the above is done thru various marketing companies.  My involvement is mostly limited to picking the strategy.  I do track spending and redemption stats.  As best I can tell, my advertising has positive ROI, but I don't feel that it can be truly proven.  I mix blind faith and some signs that it is working to keep doing it and I'm too scared to try not doing it.

 

 

[Joe Marconi]

Bantar, I think that having a plan, like the one you have, is moving in the right direction. While you identify some of your weak areas, you do have a plan, and it's though through.

One thing I really like is when you say, "Auto Repair is not really discount driven. It's mostly a trust business."  To follow up with this, our best strategy is what we do each and every day, build trust through strong relationships.

Great discussion! 

[newport5]

I agree we are mostly a trust business. Yet most of the articles for service advisors re calling to get approval for additional work is to be ready with a list of benefits, value and safety. I don’t. I tell them what their car needs and why. Sometimes an explanation of how that system works. Maybe a benefit or two. Then I pause. There’s an implied request to go ahead with the work. My mental outlook is: “of course they are going to say yes. The car needs it.” It’s a bit harder for them to say no since I haven’t asked them to do anything. So there’s nothing to say no to. And yes, they trust that I am looking out for their best interest, all while making a profit.

I’ve only worked at shops that specialized in German cars, especially Porsche. Only one offered a discount. And it was 10% off to new customers. Then I remember a regular customer asking: “Why are you giving discounts to new customers and not your good customers?”  Ouch!

[Joe Marconi]

3 minutes ago, newport5 said:

I agree we are mostly a trust business. Yet most of the articles for service advisors re calling to get approval for additional work is to be ready with a list of benefits, value and safety. I don’t. I tell them what their car needs and why. Sometimes an explanation of how that system works. Maybe a benefit or two. Then I pause. There’s an implied request to go ahead with the work. My mental outlook is: “of course they are going to say yes. The car needs it.” It’s a bit harder for them to say no since I haven’t asked them to do anything. So there’s nothing to say no to. And yes, they trust that I am looking out for their best interest, all while making a profit.

I’ve only worked at shops that specialized in German cars, especially Porsche. Only one offered a discount. And it was 10% off to new customers. Then I remember a regular customer asking: “Why are you giving discounts to new customers and not your good customers?”  Ouch!

My approach was similar. If I made a presentation to a customer, they needed it. And for my long time loyal customers, once you will build that trust it's really a matter of "telling" and not so much "selling"

And what a great argument about discounting to new customers! 

[newport5]

Trust from a long time, loyal customer is almost a given. The trick is to create that trust earlier. I believe it takes a few steps to get there.

First, become a friend of your customers. I don’t mean a beer- or coffee-drinking friend, but that is not out of the question. There’s a general belief that friends don’t take advantage of friends. Find out about their kids, their interests, their vacations. That is, find out about them. It helps if you share something about you.  Seek to learn something new at every phone call.

Second, don’t try to sell every repair recommendation now. If you’re worried about no work, there’s probably a customer coming in tomorrow with work you recommended several months ago. This builds huge trust. It shows you’re looking out for their pocketbook (and their family) and not just yours.

Next, transparency: explain everything. I like this loose template. Put in layman’s terms: here’s what’s wrong, here’s how it’s supposed to work, here’s how this will fix it. You aren’t hiding anything nor hiding behind technology or jargon.

There’s more, but let’s end with: demonstrate customer commitment, integrity, quality, respect for people, teamwork, personal accountability, and the like.

In addition to building the all-important trust, all this makes it much easier for them to refer new customers to you.

[Joe Marconi]

2 hours ago, newport5 said:

Trust from a long time, loyal customer is almost a given. The trick is to create that trust earlier. I believe it takes a few steps to get there.

First, become a friend of your customers. I don’t mean a beer- or coffee-drinking friend, but that is not out of the question. There’s a general belief that friends don’t take advantage of friends. Find out about their kids, their interests, their vacations. That is, find out about them. It helps if you share something about you.  Seek to learn something new at every phone call.

Second, don’t try to sell every repair recommendation now. If you’re worried about no work, there’s probably a customer coming in tomorrow with work you recommended several months ago. This builds huge trust. It shows you’re looking out for their pocketbook (and their family) and not just yours.

Next, transparency: explain everything. I like this loose template. Put in layman’s terms: here’s what’s wrong, here’s how it’s supposed to work, here’s how this will fix it. You aren’t hiding anything nor hiding behind technology or jargon.

There’s more, but let’s end with: demonstrate customer commitment, integrity, quality, respect for people, teamwork, personal accountability, and the like.

In addition to building the all-important trust, all this makes it much easier for them to refer new customers to you.

You just outlined the secret to great customer service! With this stratgey, which really isn't a strategy, it's just be a good human being, you will also remove price from the customer's mind. Value up, sales are made, and the price fades from the customer's mind. Great stuff! 

[xrac]

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[bantar]

On 2/28/2022 at 2:59 PM, newport5 said:

I agree we are mostly a trust business. Yet most of the articles for service advisors re calling to get approval for additional work is to be ready with a list of benefits, value and safety. I don’t. I tell them what their car needs and why. Sometimes an explanation of how that system works. Maybe a benefit or two. Then I pause. There’s an implied request to go ahead with the work. My mental outlook is: “of course they are going to say yes. The car needs it.” It’s a bit harder for them to say no since I haven’t asked them to do anything. So there’s nothing to say no to. And yes, they trust that I am looking out for their best interest, all while making a profit.

Great tip!   I shared this with my manger this morning.    We're similar in presentation, but using the power of silence / pause is the real magic that I see.

[Transmission Repair]

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[Joe Marconi]

5 hours ago, Transmission Repair said:

We use YouTube to help sell transmission work because transmissions are usually big money.  I shoot a short 2-3 minute video and either Email or text the link, followed with a .pdf of the final estimate.  Final estimates are always written in stone.  If we find something else that needs to be done, we eat it.  The video is basically a bench sale after a teardown of the customer's transmission to let them know what the parts will run.  They already know the labor.  In only 7 years, I ended up with over 2,200 "Show-N-Tell" videos on my channel. ( https://www.youtube.com/user/LarryBloodworth )  Transparency sells.  Half the time I either get a phone call, text, or Email giving me an indirect approval by the customer asking "When will it be done?"  No conversation needed.  The other half the time I need to handle sales objections, usually over price.  YouTube is our secret weapon for transparency and increased sales.  I like assumptive sales much more than conversational sales because I'm not that good of a talker.

 

I really do believe this type of advertising/marketing promotes overall value. You mention transparency, that too has value to the customer.  We did something very similar, using a company call True Video. The tech would make a quick video of the inspection, which was sent to the customer showing any needed work and why.  In my opinion, anything that engages the customers and moves their mind away from price is a win.