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A successful marketing strategy depends totally on how well-defined your target is.
Expanding a company’s customer base is a challenge all business owners face. For collision repair shops, this has become mandatory, not necessarily to grow, but just to maintain profitability.
The concept of “owning the customer” is a business-marketing model that hinges on the premise of providing exceptional service; there is no reason to go anywhere else.
This works extremely well when you clearly identify the specific target market. However, for collision repairers, the ideal target audience is not clearly defined. The question then becomes, not “Who owns the customer?”, but “Who is the customer?”.
This isn’t something that can be answered in a simple manner, because the answer will vary from facility to facility. In your case the customer may be an insurance company. For your competitor it may be a group of dealerships or the vehicle’s owner. Some shops may have customers from two or more of these groups. In any case, it is up to you to determine who has the most value for your business.
Deciding who your customer is will allow you to serve them better. The “lean consumption” theory says that customers are the heart of every business, and their happiness is key (please see the following issue for a full discussion on the topic).
Understanding exactly who your customer is, what they want and how to achieve that efficiently will lessen the costs associated with of shooting in the dark. And in some cases, make your life easier, if in fact you decide to fire them. Yes, you can fire your customers; passing on bad customers is considered a competitive strategy!
Two trends seem to be taking place, from coast-to-coast and across North America. Car dealerships are paying more attention to their service areas as they attempt to own the customer from original purchase, ongoing service right through to trade-in and new car purchase. This has a big effect on collision repairers, as the ideal time to talk new car sales is when the old one is out of commission.
Also, consumers are ready to be wooed and wowed. Pent up frustration from years of not making claims, they want excellent service and they want the insurance companies to pay…without question. Today’s consumers are more educated than ever and are beginning to expect from repairers, the same commitment to quality they receive elsewhere in their lives. More importantly, they are ready to vote with their wallets...willing to switch brands, repairers or insurance companies at the drop of a hat.
Savvy repairers are taking advantage by targeting dealerships as a link to a broader spectrum of new customers. Referrals are a strong and usually effective marketing tactic. For those who don’t already have strong dealer ties, it may be worthwhile to put them on your marketing radar.
It may be a tougher market than it was a few years ago, but there are really only two options: sit, wait and complain or take charge with an aggressive marketing strategy. Time spent establishing your customer base is time well spent. Going Out FOR Business is a definite cure to keep you from going out of business.
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