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Numbers That Count

Numbers That Count

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Regular, Casual or Player? YOU NEED ALL OF THESE CUSTOMERS – BUT TREAT THEM DIFFERENTLY

Dennis McCarron

How many customers visit your location once and never come back? A quarter of them? Half of them? More? It is critical that you know that number and who those people are.

The good news is, this information is right inside your point-of-sale system. In fact, nearly any point-of-sale system can use its database to determine how often customers visit and how many are “one and done.”

You may need a third-party vendor to extract the data, but it isn’t difficult to do. Once you have that information, developing a plan to service that customer is critical.

And that plan requires a lot more than just allocating a few thousand dollars towards advertising.

Let’s look at the three most common “customer types,” including their spending habits, and what it will take to get their attention and pull them into your store:

This is a unique customer, and any gesture you make needs you on Instagram, but this customer cares. However, this person advertising campaign, a friend’s recommendation — any of those things may pull this customer away to give another business a shot to see if they are better than you.

You need to use a steady stream of inexpensive marketing to remind these customers that you exist. This could take the form of social media posts, radio — if you do that in your market — or anything that reminds them that you are here to serve them.

Once this customer is in your store, your employees must execute so that the experience is memorable and seared into the casual customer’s brain. This can be difficult in our industry.

Casual customers make up the bulk — 50% of more — of your customer base. They visit two or three times a year and make basic purchases, maybe a brake job with some front-end work thrown in. The lifetime value of this customer is huge, especially as a demographic, so advertising to get them to visit and then

The Regular knows the name of everyone who works for The Player sees automotive maintenance as a game. They you, actually likes the coffee in your waiting are not interested in a relationship and room and understands that business is a might even see you as an adversary. In their two-way street. It’s OK to ask a regular to bring his or her With regulars, the trust mind, doing business with you is merely a transaction. And that’s OK. Without these car in on another day because your store is factor is high on both sides. customers, you would struggle to pay the already busy. Regulars — who typically make bills. Just do not “over-promise” when it up 10% to 20% of your customer base — get comes to servicing their vehicles. it and will absolutely show up on that other day. Because this type of customer tends to be vocal with complaints,

This customer is a partner and understands the give-and-take many businesses try and fix everything for them. But bending of business. over backwards will not pay off. Just treat the business you receive

With regulars, the trust factor is high on both sides, and very from this customer for what it is: a transaction. little advertising or spend is needed to get this person — and usually Don’t be flippant, though. Any transaction is worthwhile. Make more than one car that they own — to show up when scheduled. sure your business 100% performs according to agreement and

But you need to make this person feel special and follow be very clear with standards, but only meet this person half-way. through on your promises. Maybe you hold some kind of in-store And don’t get trapped into discounting everything to make customer appreciation event or program for your regulars? Or players happy. Their happiness does not equal loyalty. maybe you put a basket together of gift cards from other local Pick a service that will appeal to them, but pick just one. Do businesses and a few coupons from yours and deliver that to the not be the cheapest alignment, the cheapest brake service and the customer’s front door? cheapest tire at the same time. Pick one thing and maximize it.

to match that uniqueness. It is far more profitable and easier to convert a casual customer

The Casual Customer is interested in your dealership. He or Focus your marketing efforts on the casual, but don’t entirely she may not have liked your Facebook page or actively follows ignore the regular or the player. You need all of them. ■ making their experience memorable is worth the investment. into a regular than it is to move a player into the casual category. is not a crusader for your business. The casual customer is fairly loyal, but also is at a high risk Dennis McCarron is a partner at Cardinal Brokers Inc., one of the leading brokers in the tire and automotive industry (www.cardinalbrokers.com). of being steered away from your business. A new shop, a fancy To contact McCarron, email him at dennis@cardinalbrokers.com.

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