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What Your Customers Want You to Know - Training€¦ · customers want than the customers...

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-1- Creating Preference Based Service Version 8.02 W W h h a a t t Y Y o o u u r r C C u u s s t t o o m m e e r r s s W W a a n n t t Y Y o o u u t t o o K K n n o o w w Creating Preference Based Service
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Page 1: What Your Customers Want You to Know - Training€¦ · customers want than the customers themselves. The amazing thing is that the customer is just waiting for a way to tell you.

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Creating Preference Based Service Version 8.02

WWhhaatt YYoouurr CCuussttoommeerrss WWaanntt YYoouu ttoo KKnnooww

Creating Preference Based Service

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Creating Preference Based Service Version 8.02

ACKNOWLEDGEMENT

ABS, Inc., and its participating partners would like to thank you, the automotive industry, for electing

to attend our training classes and for reading this manual. This manual and course material were

developed from the real-world experiences of the author, ABS, Inc., and DLB InfoServices, LLC. We

also thank our supporters and friends, who encouraged the development of this manual and training

course, for their valuable insights.

PUBLISHING INFORMATION

The manuscript for this course and manual were developed and written by Jim Metzger. The manual

was designed, edited and produced by DLB InfoServices, LLC. The manual and course development

was underwritten, supported and administered by ABS, Inc.

COPYRIGHT INFORMATION

All rights reserved. No portion of this course or manual may be copied, reproduced, stored,

transmitted, or distributed in any form without written permission from the author or ABS, Inc.

PUBLISHER’S DISCLAIMER

All information contained in this manual and its related course is believed to be accurate, useful and

proven management information. The author and publisher cannot be responsible for improper use of

this material, cannot be responsible for any typographical errors or omissions, and cannot warrant or

guarantee the level of success for any person or shop applying the principles learned in this material.

Any reference to persons or shops in this material is purely used as example-only references. Any

similarity to any actual person or business is purely coincidental. All graphics used in the preparation

of this manual have been obtained from sources advertised as public domain materials.

Copyright 2001. ABS, Inc. All rights reserved. Printed in the USA.

CONTACT INFORMATION For additional information on this or other courses offered by ABS, Inc., please contact us at:

Automotive Business Solutions, Inc.

12000 N. Washington St. #375

Thornton, CO 80241

Phone: 303-457-9876

Fax: 303-457-1994

Email: [email protected]

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Creating Preference Based Service Version 8.02

Imagine if you could read the minds of your customers. You’d know exactly what they need to hear to make every sale. You could tailor your advertising to their specific needs and your CSI rating would go through the roof.

Until now, we’ve based our decisions on the results of a number of industry surveys. Although most of the information published has been valuable, it has never been specific to your area, your shop, or your customers. The goal of this class is to provide you with a means to get to know the mind of your customers and provide you with customer specific information. This information has been at our fingertips for years, but we’ve never really utilized it. No one can tell you more about what customers want than the customers themselves. The amazing thing is that the customer is just waiting for a way to tell you. Well, here it is. We hope to show you a simple and effective means of enhancing communication between you and your customers. Information is the key to success. Follow the steps we learn tonight and you’ll see a miraculous change in your ability to turn a prospect into a customer. Preference Based Service is a powerful tool that comes out of this survey and which will help you make your business more successful and a more pleasant experience for each and every customer you come in contact with. For years, we have struggled to understand the mind of our customer, but as an industry we’ve had only moderate success.

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About the time we think we’ve got them figured out, a change in technology or the economy creates a change in their needs and desires. Not so long ago two automotive trainers were riding along a rather desolate section of highway considering exactly this issue.

They’d both spent literally hundreds of hours pouring over every survey and sales course they could get their hands on, but still the answer eluded them. How could we know and more importantly, how could our students know exactly, what a specific customer wants?

“Why don’t we ask them?” came the answer. Initially it sounded like a sarcastic remark, but the more they thought about it, the more it started to make sense and by the time they reached their destination, this class was born. More importantly, a tool was born that for the first time truly enabled us to know exactly what a customer wanted. No guess work, no gambling. The piece that makes this whole idea work is the Customer Preference Survey. Let’s look at the one we use at Fictitious Tire & Auto Service as an example:

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Creating Preference Based Service Version 8.02

Fictitious Tire and Auto Service Customer Preference Survey

Valued Customer: It is our goal to make this the most comfortable and rewarding experience you’ll ever have at an automotive repair facility. In order to tailor our service to your specific needs, please take a few moments to complete the following questionnaire.

I’m here because of:

Advertising (please tell us what ad you saw) ___________________________________

Recommendation (please tell us who told you about our shop)

___________________________________

Past Experience

Location

I normally service my vehicle:

Every 3 months or 3,000 miles Every 6 months or 6,000 miles Every 12 months or 12,000 miles Only when it breaks down

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In general, I prefer to perform maintenance services on my car:

Never, I’ll wait for a breakdown before paying for repairs Seldom, usually only when my car is in for other repairs Often, I see the value in maintaining my vehicle

When dropping off my car for service I’ll usually need:

Nothing, I’ve arranged my own ride A rental car Shuttle service to home or work A comfortable place to sit

While waiting I prefer:

Coffee Tea Water Soda

In the customer lounge I’d like to read:

Local newspaper National newspaper Novels Current magazines (Please list a few favorites)

_______________________ _______________________ _______________________

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When my vehicle is in for service, I would like the Comprehensive Maintenance Inspection (CMI)* performed (I understand there will be an additional charge for the inspection):

Every time Never Sometimes, please ask me each time my vehicle is

serviced * Please ask us if you are uncertain as to what this service is.

I would like to be notified of Technical Service Bulletins and Recalls specific to my vehicle:

By e-mail By mail By fax By phone I prefer not to receive these notices

I would like service reminders specific to my vehicle and time or mileage to be sent:

By e-mail By mail By fax By phone I prefer not to receive these notices

I would like to be notified of specials or coupons:

By e-mail By mail By fax By phone I prefer not to receive these notices

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Creating Preference Based Service Version 8.02

I would like to receive the newsletter:

By e-mail ___________________

By mail

By fax

I prefer not to receive these notices

I usually keep a car for:

1-3 years 3-5 years 5-7 years Longer than 7 years

When selecting an automotive service facility, I look for:

Someone I can trust The cheapest prices Location only Brand names Warranty coverage

I prefer to pay for automotive service by:

Fictitious Tire Card Credit Card 90 Day Same as Cash Plan Personal Check Cash

- End of Survey. Thank you for your time. -

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Looks pretty simple doesn’t it? The magic lies in the questions and what you do with the answers. Each question (and all the possible answers) have been carefully considered and composed to gather some very specific information. It may not be apparent on the surface, but this single document can reveal almost everything you need to know about this customer. Utilize the information you gather and you’ll be able sell more, keep your customers happy, and create an extremely effective advertising and follow-up system. Let’s examine the form in greater detail and you’ll see what we mean. Start thinking about what your version might look like as we go along. Make your own notes on these pages so you’ll remember what you were thinking when you review this later.

The Introduction

Valued Customer: It is our goal to make this the most comfortable and rewarding experience you’ll ever have at an automotive repair facility. In order to tailor our service to your specific needs, please take a few moments to complete the following questionnaire.

As you can probably guess the point of this paragraph is to give your customer that warm fuzzy feeling. We need to let them know that we are genuinely interested in their answers, and that we honestly want this to be as pleasant an experience as possible. You’ll also notice there is no place for the customer’s name, address or phone number. It seems like an oversight, but its actually intentional.

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You should already have the customer’s information on the repair order, so writing it here would be an unnecessary inconvenience for the customer. Also, people tend to be more honest and direct with a degree of anonymity.

The Advertising Question

II’’mm hheerree bbeeccaauussee ooff::

Advertising (please tell us what ad you saw) ___________________________________

Recommendation (please tell us who told you about our shop)

___________________________________

Past Experience

Location

Let’s face it, advertising is expensive. Wouldn’t it be helpful to know exactly which advertising piece brought this customer to you? With that kind of information you could expand successful advertising and eliminate ineffective advertising. This is an effective way of evaluating your marketing dollars.

If the customer responds to the first question about which ad they saw (and they may not necessarily answer them all), you’ll have exactly the information you need to generate the most effective advertising you can imagine. You also save money by eliminating

the campaigns that don’t bring customers to your door. If the customer responds to the second question about a recommendation, pat yourself on the back. You’ve obviously done such a good job with another customer that they’ve sent in one of their friends. In these litigious times, that’s quite a compliment. That particular customer felt so strongly about the

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quality of service you provide they felt compelled to tell someone. Find out who it is that recommended this customer. We’ve said this before, but “word of mouth” truly is, without a doubt, the strongest advertising in the industry. Encourage it. If you are told who recommended this customer, send them a thank you letter. Better yet, send them a coupon for a free oil change. The referring customer will be even more vocal once they realize they’ll be rewarded for it. By actual measurement, conventional advertising may cost several hundred dollars to bring one new customer to your door. You just got one for the price of a filter and few quarts of oil. Quite a bargain! If your customer responds to the last question, then you know you must be doing something right with the appearance of your facility. If you can, ask them if it was a particular sign, the overall appearance, or that new banner that brought them in. You can fine-tune your signage and stationary advertising in the same way you monitor your outside marketing effort.

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Discussion Items 1. Why are surveys important? 2. When was the last survey performed for your business? Discuss what you were attempting to find out and if it was successful. 3. Can surveys give you any immediate feedback? If so, about what?

NOTES:

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Creating Preference Based Service Version 8.02

The Service Interval Questions

II nnoorrmmaallllyy sseerrvviiccee mmyy vveehhiiccllee::

Every 3 months or 3,000 miles

Every 6 months or 6,000 miles

Every 12 months or 12,000 miles

Only when it breaks down

IInn ggeenneerraall,, II pprreeffeerr ttoo ppeerrffoorrmm mmaaiinntteennaannccee sseerrvviicceess oonn mmyy

ccaarr::

Never, I’ll wait for a breakdown before paying for repairs

Seldom, usually only when my car is in for other repairs

Often, I see the value in maintaining my vehicle

The motivation behind this section of questions should be fairly obvious. We are trying to determine if this customer has already been taught the importance of maintenance service. Look at the wording carefully. The questions imply that if you don’t service your vehicle frequently, it’s more likely to break down. These questions will give you a clear indication of how your customers can be approached about maintenance services while they’re in your shop. Actually, if the customer states they service their vehicle often, then clearly preventative maintenance services are already a priority, and a soft sell may be all it takes.

On the other hand, if they respond that their service is infrequent or only when breakdowns occur, they might just appreciate being told about the value of maintenance services and

their role in eliminating costly repairs and unexpected breakdowns.

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Creating Preference Based Service Version 8.02

The “Seldom” response might also indicate that it’s been a while since anyone has looked at this vehicle. Time to sell the Comprehensive Maintenance Inspection (CMI) package. Or you

may offer a free inspection with a maintenance service. Give it a good once over and you just might find that big ticket repair that always brings a smile to a technician’s face.

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Creating Preference Based Service Version 8.02

Discussion Items 1. What percentage of your regular customers come in for maintenance services as scheduled? 2. Tell how you present preventive maintenance to a customer and how you overcome objections. 3. Do you offer inspections? If so, what do they cover? How much new business do you realize from these inspections?

NOTES:

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Creating Preference Based Service Version 8.02

The Transportation Question

WWhheenn ddrrooppppiinngg ooffff mmyy ccaarr ffoorr sseerrvviiccee II’’llll uussuuaallllyy nneeeedd::

Nothing, I’ve arranged my own ride A rental car Shuttle service to home or work A comfortable place to sit

This one basically tells us whether your customer is planning on waiting for their vehicle while the service is being performed or if they’ll be leaving it with us. The order of the answers clearly indicates what our preference is. We all know there is a much better chance of up-selling the customer if they leave their vehicle with you for the day.

Your customer may not even be aware that a shuttle service or rental car is available. Here’s a clear way of presenting that information along with a subtle hint that we prefer they drop off the car.

You’d be surprised how many people wait for their vehicles simply because they are unaware they have an alternative.

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Creating Preference Based Service Version 8.02

Discussion Items 1. Do you offer a shuttle service or rental cars? If not, why? 2. Of your customers who prefer to wait, what seems to be the length of time they will wait before becoming anxious? 3. Of the cars that customers drop off, what percentage ends up with additional repairs sold while the car is in the shop?

NOTES:

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Creating Preference Based Service Version 8.02

The Waiting Questions

WWhhiillee wwaaiittiinngg II pprreeffeerr::

Coffee Tea Water Soda

IInn tthhee ccuussttoommeerr lloouunnggee II’’dd lliikkee ttoo rreeaadd::

Local newspaper National newspaper Novels Current magazines (Please list a few favorites)

_______________________ _______________________ _______________________

They may seem like fluff, but these are actually important questions. It’s a way of making the customer more comfortable while they wait. The result can be that it’s more feasible to have them wait longer to do a more extensive repair.

It’s also the way your customers will judge the validity of the survey itself. If you get a lot of customers requesting the National Enquirer in the waiting area, then you need to honor their request (besides, how else are you ever going to

find out about the frog-boy born in Uruguay?). By the way, if you provide a TV in the waiting area, make sure it is working and on a suitable channel. Realize even network programming may be inappropriate for some of your customers, especially those with children. (Have you seen any of the Soap Operas lately?)

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Make sure the next time the customer comes in, point out the magazine they requested when you hand them their coffee (two sugars and one cream). You’ll be amazed at the response the first time this happens. It’s nothing short of astounding. It’s a sad reality, but customers in our industry have felt mistreated for years. Little things like remembering that Mrs. Janakowski likes tea in the morning goes a long way toward restoring trust. These are the kinds of extra notations you need to make on each customer’s file, so even if you’re not there, the next employee can react to the customer in a well-informed manner.

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Discussion Items 1. Review the mix of your magazines in the waiting area. Are they appropriate? Are they current? Are they in good shape? 2. Do you have a TV in your waiting area? Is it working and accessible for the customer to change channels and volume if desired? 3. Do you know what type of beverages your customers prefer?

NOTES:

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Creating Preference Based Service Version 8.02

The Inspection Question

WWhheenn mmyy vveehhiiccllee iiss iinn ffoorr sseerrvviiccee,, II wwoouulldd lliikkee tthhee

CCoommpprreehheennssiivvee MMaaiinntteennaannccee IInnssppeeccttiioonn ((CCMMII)) ppeerrffoorrmmeedd

((II uunnddeerrssttaanndd tthheerree wwiillll bbee aann aaddddiittiioonnaall cchhaarrggee ffoorr tthhee

iinnssppeeccttiioonn))::

Every time Never Sometimes, please ask me each time my vehicle is

serviced

You’ll find that almost every customer will answer with the last response, but that’s fine. The point to this one is to make sure every customer understands that you offer this service. It’s a handy reminder in case your counter people forget to ask. Remember, a good inspection program can drive a large portion of your business. It’s important everyone gets asked.

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Discussion Items 1. Why is it important to make sure your customers are aware of your inspection program? 2. How do you remind your customers about inspection services? 3. How often do customers say “yes” when offered inspection services? 4. Do you have a package deal on CMI? What do you include?

NOTES:

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The Marketing Questions

II wwoouulldd lliikkee ttoo bbee nnoottiiffiieedd ooff TTeecchhnniiccaall SSeerrvviiccee BBuulllleettiinnss

aanndd RReeccaallllss ssppeecciiffiicc ttoo mmyy vveehhiiccllee::

By e-mail By mail By fax By phone I prefer not to receive these notices

II wwoouulldd lliikkee sseerrvviiccee rreemmiinnddeerrss ssppeecciiffiicc ttoo mmyy vveehhiiccllee aanndd

ttiimmee oorr mmiilleeaaggee ttoo bbee sseenntt::

By e-mail By mail By fax By phone I prefer not to receive these notices

II wwoouulldd lliikkee ttoo bbee nnoottiiffiieedd ooff ssppeecciiaallss oorr ccoouuppoonnss::

By e-mail By mail By fax By phone I prefer not to receive these notices

II wwoouulldd lliikkee ttoo rreecceeiivvee tthhee nneewwsslleetttteerr::

By e-mail By mail By fax I prefer not to receive these notices

Imagine a world where your mailers never get thrown away. Where every customer on your mailing list wants to receive your mailing so they can respond to it.

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The most successful advertising is directed toward your existing customer base. With the information in these three questions you can refine it even further. Rarely will anyone respond that they want a phone call when you have an oil change coupon, they’d rather have you send it to them. Faxes don’t seem to be used as much anymore. At least half your customers will respond they prefer the mail or e-mail choices. Pay attention to the results. If someone doesn’t want to receive these notices, then take them off your mailing list. You know they’ll never read them, so there really isn’t any point in investing in the cost of printing or the stamp.

The e-mail choice is becoming increasingly popular. There are companies that will handle this for you, or there are a number of software programs that make it a simple task to do in house.

If you are in a relatively low-volume business, you can even do it with your standard e-mail program. Cut and paste (copy) the message and add the customer to your address book and even dozens of reminders can be done in just a few minutes. It will require some effort on your part to track the customers that want reminders and those that don’t, but avoid making the mistake of ignoring this information. If someone has requested that you take him or her off your mailing list, do so. Sending a mailer to someone who has requested that you don’t can be quite damaging.

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Discussion Items 1. Do you use a technical information computer system (like Alldata or Mitchell) for looking up Technical Service Bulletins and Service Intervals? 2. How effective is your current mailing program? Have you tracked the results? What is a good response percentage? Can you track new business directly to a mailing?

NOTES:

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The How Long Do You Keep Your Car Questions

II uussuuaallllyy kkeeeepp aa ccaarr ffoorr::

1-3 years 3-5 years 5-7 years Longer than 7 years

You can easily guess what we’re after here. If someone is on a short-term lease your possibilities are pretty limited. You’ll get oil changes, some wiper blades, an air filter, and maybe a front brake job before the vehicle gets turned in.

However, if the customer plans on keeping the car for a longer period (usually a purchase rather than a lease), use this information to your advantage. We are the experts and we know what it takes to keep a vehicle on

the road for seven years. The long-term customer is interested making their car last well beyond their finance term. Chances are, purchasing a new car is the second largest purchase this customer will ever make. They’ll appreciate your help in protecting their investment.

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The Magic Button Question

WWhheenn sseelleeccttiinngg aann aauuttoommoottiivvee sseerrvviiccee ffaacciilliittyy,, II llooookk ffoorr::

Someone I can trust The cheapest prices Location only Brand names Warranty Coverage

Customers are all different. We do know that most share similar concerns when it comes to automotive repairs, but there are still differences and experiences that are unique to each.

Everyone has a magic button, a key to unlock their thinking and their wallet. The answer to the selecting a service facility question should directly and drastically affect your sales presentation. You’ll be able to tailor it to exactly what the customer wants to hear.

If the customer gives you the first response (“someone I can trust”) you can almost guarantee that at some point they’ve felt ripped off by one of your competitors. That’s probably the reason they’re at your shop instead of going back to them. If your customer has a trust issue you want to handle them with patience and kindness. Use the things we learned in the service sales section to remove the distrust. Show and tell is extremely effective, but nothing works better than complete honesty. You might not want to hit this guy with a long list of repairs right off the bat. Instead, be sure and point out some of the things that don’t require service now. Emphasize the warranty you provide on your service work. You do provide a warranty, don’t you?

If they respond about “cheap” prices, think a little more broadly. This response is not as common as you would think, but we’ll address it anyway. Again, this response should shape your sales presentation.

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You may want to talk about using remanufactured or quality aftermarket parts in order to save money. You can also talk about doing combined, or overlapping repairs so the customer can take advantage of the labor savings. Compare this to the cost of

performing the two repairs at separate times. Don’t talk about how low your prices are compared to the other guy; instead, talk about how efficient your shop is at saving time and money by doing the job(s) right the first time, or having experienced, high-end diagnostic technicians, or the finest

equipment available. Also be sure to mention how much cheaper it is, for example, to do the brakes now than to wait and risk having to buy rotors. Just be sure to emphasize the money they’ll be saving by performing the service with you.

The third possible response to this question is about location. You’ll find very few people respond this way, but if they do, their magic button is the convenience of your location. Apparently this customer’s main concern

isn’t price, quality, or trust. It shouldn’t be too hard to make this customer happy. But, if you over-charge them or don’t fix the car right the first time, you won’t see them again. The fourth response is about brand names. It might as well read “quality” because that’s what this customer is telling you. This customer is willing to pay additional money for reputation and perceived quality of well-known components.

In this case, your sales presentation should focus on quality. New OEM parts are appropriate for this customer. Talk about the quality of your people as well as the quality of the parts you intend you use. Talk about ASE certifications, and your on-going training programs. This customer wants the repair done correctly the first time without compromise.

Price is not an issue.

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The last response to this question is concerning warranty. This response is surprisingly common. A customer will respond with this answer if they’ve had a memorable (good or bad) warranty experience before. We all have warranties in place, but how often do we use them as a selling point? Here is your chance. Find the part with the best warranty for this repair; not necessarily the cheapest price. You’ll find this response to be common among people who do a lot of driving. It’s important to them that your shop provides a

warranty that is nationwide. If you don’t already have a nationwide warranty in place, you should look into it. Strong name recognition and marketing affiliation often comes with a national warranty program. It will make this, and if advertised properly, all your sales much easier.

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Discussion Items 1. Discuss how you typically sell your shop: price, location, technical abilities, warranties, etc. 2. A distrusting customer enters your shop. How would you respond to the customer’s questions and concerns? 3. If your shop has a nationwide warranty program, how does it work, and what benefits have you found from this affiliation?

NOTES:

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The Payment Question

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Fictitious Tire Card Credit Card 90 Day Same as Cash Plan Personal Check Cash

You’re probably thinking this one is a waste of time, you’ll find out how they’re paying soon enough. That’s hardly the case. This question has two basic purposes. The first is to determine the

preferred method of payment. The second is to make them aware of the payment options you offer. Your customer may not know about the “Frequent Tires Club Card” or the “90-day same as cash” program.

It is well documented that a customer paying by credit card will spend about three times as much as a customer paying with cash. Check spending is also slightly higher than cash. If a customer is paying for the repairs in cash, the amount they’ll be able to spend on today’s service is limited by the amount of cash they have with them. A credit card is limited only by the amount of credit assigned to that customer. Ideally, all your customers should have your credit card that can only be used at your facility (or facilities). It will never get filled up

with charges for business lunches or Christmas shopping. A new credit card customer tends to spend almost the entire limit of the card on their initial

visit. Have a stack of applications handy.

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Discussion Items 1. Do you offer optional payment plans? Do you visibly advertise your payment options? 2. Do you offer an “automotive” credit card? What spending trends do you notice with customers who use a dedicated card versus those who utilize another method of payment?

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A Few More Thoughts The survey only works if you work the survey. Every customer needs to be asked to fill one out. If it’s been more than a year, have them fill out a new one. Everyone’s priorities tend to change. Make sure to leave the completed survey with the repair order so whoever needs to make the sales presentation can refer to it. Also, be sure to tally the results of all your surveys so you can discover trends in customer preferences, interests, and what their “magic buttons” are. The survey included in this class is a working example. Although it might be a good starting place, it’s important to make the survey your own. There are unique things about every shop.

Use the survey to point out to your staff (and to each customer as the need arises) what you think your customers should know. Come up with questions that will give you the information you need to be more effective in the sales process.

Tracking and storing the information is also crucial. “Fictitious Tire and Auto” has comments section in their customer database where they store the answers. When the customer comes in, the computer reminds them of this customer’s particular needs. A spreadsheet can be helpful in tracking some of the answers. “Fictitious Tire” found this very helpful with the magazine question. Anytime they received 20 or more requests for the same magazine they got a subscription to it. You’ll find it is the small things like this that make your shop a pleasure to visit. Customers see that you care and are responsive to their needs. The information gathered in the marketing portion of the survey is the basis for an effective follow-up system. Use it accordingly. We offer additional classes that show how to create a comprehensive follow-up system.

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Discussion Items 1. Have you ever done a customer survey in your shop or mailed one to your customer base? If so, share some of your findings (good and bad). 2. If you haven’t done a survey, does this inspire you to do one?

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ABS wishes to thank all of you for coming. Hopefully this class will help you reach your goals and create a more positive working environment for you, your employees and your customers. We wish you great success!


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