The Six Rules Of Maximizing Customer Retention -

The Six Rules Of Maximizing Customer Retention

We all know that there are many things you can do when it comes to customer retention. The list includes follow-up calls, sending out service reminder notices, ongoing advertising campaigns that keep your name at the top of the customer's mind and scheduling the next visit at the time of car delivery, to name a few.

By Bob Cooper, president, Elite Worldwide, Inc.

We all know that there are many things you can do when it comes to customer retention. The list includes follow-up calls, sending out service reminder notices, ongoing advertising campaigns that keep your name at the top of the customer’s mind and scheduling the next visit at the time of car delivery, to name a few.

Yet, there are some timeless rules that are often forgotten. During these tough, competitive times, I feel I can best help you by reiterating the six most ­important rules when it comes to customer retention.

Rule #1. Create a principle-centered culture.
All great companies realize that getting to the top, and staying at the top, is dependent on having a culture that is based on principles. As a business owner you need to ­ensure that you have a clearly defined Mission Statement, you need to share it with all of your employees and you need to constantly keep it at the forefront of their minds.

Remember, your “goals” are what you are going to ­accomplish, whereas your ­Mission Statement is what you will be doing along the way. For example, a Mission Statement could read, “It is the mission of Elite Auto Service to deliver extraordinary service to our customers and opportunity to our employees, while never compromising our ethics or our responsibility to society.”

Rule #2. Offer and deliver a good value.
I’m not suggesting that you be the lowest priced or the highest priced in your community. But, I am suggesting that you deliver a good value in return for the price you charge. Companies that charge more than they should just ­because they typically discover that their profits will go up in the short term, will lose their customer base at the same time. Great companies are competitive, not greedy, and that is why they become, and remain, great companies.

Rule #3. Hire the Superstars.
The success of your company, and your ability to retain customers over the years, will be dependent on the people who work with you. As I’m sure you will agree, just being good is no longer good enough, so you need to have employees who truly are superstars. I can only hope you bear in mind that whenever someone buys a product, they will always remember the product, but whenever they buy a service, they will always ­remember the people who are providing the service. Simply put, your customers’ impression of your business will be only as positive as their impression of the people who work with you.

Rule #4. Provide consistency in the experience.
Great companies such as McDonald’s, Starbucks and Nordstrom all understand the importance of consistency in service. With any of these companies, before you step into their stores you already have an expectation of what the experience will be.

The top shops understand this rule, and that is why they have clearly ­defined procedures for everything they do, from handling the first-time caller, through the entire repair process, to car delivery. When customers feel there is no consistency in service, they will typically look for an alternative service provider.

Rule #5. Deliver on your ­promises.
Hopefully you can see how this rule ties into your Mission Statement. If you want your customers to continue to ­return, then make sure that all of your employees choose their words carefully when they are making a commitment to your customers, and then ensure that they over-deliver on those ­promises.

Rule #6. Never put money ahead of people.

All world-class business owners understand that money is the result of doing the right things for the right reasons. When you embrace this rule, you will also discover why the world-class businesses will never take their customers for granted. They understand that it’s the trust their customers have in them and their people that is priceless, not their credit cards.

In closing, there are a number of things you can do to improve your shop’s customer retention, but the one promise I can make to you is this: These six rules are timeless ones, and if you apply them to your business, you will see more repeat customers. And, unlike your competitors, you will be building a business that will last for generations to come.

Since 1990, Bob Cooper has been the president of Elite Worldwide Inc.,, an ethics-based company that helps both struggling and successful shop owners take their businesses to new levels through one-on-one coaching from the industry’s top experts. The company also offers shop owners sales, marketing, and management seminars, along with service advisor training. You can contact Bob at [email protected], or at 800-204-3548.

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