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Any one used or heard of this style of sales where you bundle say ten repairs or discounts together and sell them at a one time low price usually good for the year i think. WE have never used this type of marketing to our clients but always looking for new revenue streams and incentives for our customers , in theory i guess you take a hit off the bat , but the goal is it to create loyalty by keeping them coming in and hopefully selling some profitable work along the way . any feedback would be great if someone has used it, did it work ? waist of time? ect ect...

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I've been thinking a lot about loyalty programs as we finish up our renovation and move toward re-opening (lot of down time right now). I've read quite a few white papers on this but am by no means an expert. Here's an example from Stanford: http://www.gsb.stanford.edu/news/research/mktg_viard_rewards.shtml

 

I'll try to summarize it: The purpose of a loyalty program is to change customer habits. For example, setting up a "get your 10th oil change free!" loyalty program would have the goal of getting customers to do oil changes at your shop rather than wherever they felt like going. However, research has shown that the bulk of customers are not swayed by that any more than simply doing a reputable job, good service, and competitive pricing. After all, a "10th oil change free," is only a 10% discount on an already fairly cheap service.

 

Additionally, most loyalty programs reward "loyal customers," which are by definition, customers that are coming back to the shop regularly anyway. This defeats the entire initial goal, which is to change consumer behavior. If they are coming back to the shop anyway, a loyalty program is unnecessary for them. You can still certainly do it for them as a favor, but do not kid yourself that it is what brings them back.

 

In general, the paper summarizes that the loyalty program $$ could be spent much better elsewhere.

 

Again, I am not an expert on this at all ... just something I have been thinking a lot about as we develop our overall marketing plan. There are plenty more research papers out on this.

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excellent points gentleman , and i agree with the price aspect i have never agreed with advertising price this is how i feel we attract the "wrong type of Customer". my thoughts were more toward first timers at the shop or the valued minded consumer, but i can see how it would affect our bottom line if we were not careful. what a tight line we walk > thanks for the insight

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  • 11 months later...

Just got done reading a chapter in a customer service book that touched on 'loyalty/reward programs'. The author mentioned that loyalty programs don't have be tied to discounts. He mentions maybe inviting some of your best customers for an annual dinner party. Or an art show. Or fashion show. Bring in a chef and have him cook for everyone.

 

Just thought I would throw the idea out there

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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