By
Joe Marconi
Marketing Strategies to Attract and Retain Your Ideal Auto Repair Customers
By Joe Marconi
I had one main objective when I opened my repair shop in the fall of 1980: Acquire customers. Being a startup, gaining customers, any customers, was essential. Without them, business survival would not be possible.
With limited knowledge of marketing, I did what many new companies do, I ran mass advertising promotions in local newspapers offering huge discounts. Did this type of marketing work? Well, that depends on how you define success. I can tell you that It did bring in customers, and a lot of them. But what I found out was that it didn’t bring in enough of the customers I wanted. Even early on in my business career, I wanted to create a company that catered to consumers who appreciated the total car care approach. With coupons in hand, most customers wanted only the discounted offer and nothing more.
I remember one particular customer who came in for his discounted oil change that included a free tire rotation. I noticed that his wiper blades were ripped, broken, and digging into the windshield. When I offered to replace them, he shouted, “Don’t touch the wipers, just change the oil, rotate the tires, and let me be on my way!” I quickly learned that while my strategy did attract consumers, marketing to the masses was not going to be the way to grow my young auto repair shop. It’s not that I am against all forms of discounting. I am not. However, the better approach to growing an auto repair shop is to create a business strategy that attracts and retains those customers who are aligned with your business model and culture.
In business, attempting to be everything to everyone is not a sustainable strategy. It is far better to narrow your focus, understand your key profile customers, and do all you can to gain more of them. In this article I will outline strategies to identify and market to your ideal customers, and why these strategies will help you achieve long-term success.
Why Define Your Profile, Ideal Customer?
As mentioned above, trying to be all things to all people is not a business model that works for the long term. If you are a startup company or need to increase car counts quickly, offering discounted services and repairs will fill your bays. And depending on the situation, this may be a viable option. However, in most cases, this should not be a long-term strategy. Kim and Brian Walker, at Shop Marketing Pros, recommend that auto repair shop identify their customer avatar, stating that “The most successful auto repair shop owners have a clear idea who they’re targeting.”
Let me ask you a question. What type of customers do you want to work for? Wouldn’t you rather work for those customers who throw their keys on the service counter and say, “Don’t bother calling me, do what you need to do, and I’ll see you at 5 o’clock.” Well, those people are your ideal customers. They trust you, are loyal, and say YES to your service recommendations! Which also makes them your most profitable customers. And let’s not forget that dealing with these ideal customers is a lot less stressful for you and your entire team.
Defining Your Profile Customer
Defining your profile customer begins with understanding your business model and defining your vision, your mission, and your culture. What are the types of services and repairs you will offer, and the type of vehicles you prefer to work on? Also important is balancing the type of jobs offered to your clientele to ensure that you sell enough profitable work. While we may love what we do, we have a responsibility to be profitable. Knowing your profile customers will help ensure you achieve profitability.
Creating the actual profile of your ideal customer will take a little bit more work. Start with what I call the “key droppers.” As mentioned earlier, those are the customers who don’t question your recommendations or your price, and they trust you. They literally drop their car keys on the counter, preapproving the work, basing their decision on earned trust. These customers will give you the foundation to build your customer profile.
After that, run a report from your business system identifying your top 100 to 200 customers. Most systems sort this list by revenue per customer. In addition to the dollars spent per customer, what you are looking for is certain common criteria. Those criteria include length of time as a customer, visits per year, type of vehicles, where they live, and the type of repairs and services performed on their vehicles.
You will find that your top-profile customers are the ones who follow your service and repair recommendations. Again, it’s the trust factor. For more extensive demographic customer profile building, marketing companies, like Shop Marketing Pros, have tools that can help with this process.
After performing your due diligence with the initial list, you will end up with probably 50 to 100 customers that you will define as your key profile ideal customer. The next step is to build your marketing plan.
Marketing Strategies to Gain More Profile Customers
Once you have your customer profile, do all you can to cater to their needs. Listen to them, speak to them, and find out all about them. Their hobbies, birthdays, community involvement, the local newspapers they read, the local radio station they listen to, and their profession. Also, do they have children and pets? These things are important. Asking a customer about their child or pet, or remembering their birthday, goes a long way in building relationships, a key component in customer retention.
But there’s another reason why this is important; and that is, to align your marketing and advertising strategy around your profile customers. Let me give you an example. Let’s say you find out that most of your profile customers are heavily involved in the community, such as fundraisers, or local youth sports activities. You then need to get involved with these local community events. Let your profile customers see that you are a business that cares about the community. Focusing your marketing efforts in areas where your profile customers will notice you will accomplish two things: it will reinforce your brand to your existing customers and will help you attract more of the same like-minded customers. A goldmine opportunity.
The Rewards of Building an Auto Repair Shop Model Based on Your Ideal Customers
It’s hard to deny the rewards of building a marketing strategy and business model around your profile customers. You’ll save on advertising costs by targeting your ad dollars, rather than using a shotgun approach, marketing to the masses. You will build a stronger and more loyal customer base, improve customer retention, increase sales, and generate higher profits. You will also build a powerful brand. The best part, you will lower the overall stress for your employees.
Conclusion
If you are an auto shop owner looking for innovative ways to enhance and grow your business, Elite Worldwide can help. At Elite, we have world-class, experienced coaches who understand your business. Our coaches have lived in the trenches and built amazing, successful companies. Elite also has sales and management training, and peer groups that can take you and your business right to the top. No matter where you are in your business career; startup, growth mode, or looking to retire, Elite can guide you and help you achieve your goals and build a more profitable and successful business.
About the author – Joe Marconi – With over four decades of industry expertise, Joe is a seasoned professional whose accomplishments include owning and operating one of America’s most successful auto repair companies. A graduate of the Automotive Management Institute, Joe is a recipient of the CARQUEST Excellence Award, served on industry panels, and played a role in developing the ASE Engine Performance Certification test. As a former columnist for Ratchet & Wrench Magazine and co-founder of AutoShopOwner.com, Joe has been a keynote speaker at the Ratchet and Wrench Conference. After selling his automotive company in 2021, Joe now dedicates his time to giving back to the industry as a Top Shop 360 Business Development Coach with Elite Worldwide and serves on the board of directors for the Service Stations Dealers of Great New York. Joe, a Bronx native now residing in Patterson, New York, enjoys family time, community involvement, and pursuits such as tennis, golf, and woodworking.
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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
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