Retaining customers is vital

Aug. 31, 2017
Research done by Steve Schoolcraft and his team at PSG shows the value of a single lifetime customer has reached over $147,000. 

Shock flooded me when I heard Steve Schoolcraft passed away. We lost someone who played an integral part of our business and industry. I met Steve in January 2010 when he was a speaker at one of our Business Council meetings. His presentation gave me a new understanding on how we should be marketing our business. 

Steve was a dynamic speaker and the knowledge he shared was invaluable. As I look back to that meeting, it brought a smile to my face to re-read the feedback he received from the meeting critiques. 

“Awesome presenter! Learned more about customers in the time spent than in the last 3 years!” “Excellent presentation, the information and services is something I feel will really grow my business.”

Steve was a behavioral psychologist who grew tired of counseling individuals and moved into corporate America.  He quit his job to launch his own business because didn’t like how corporations were treating employees and customers. 

He started representing new car dealerships in marketing and subsequently, the collision repair industry grabbed his attention. Steve built Phoenix Solutions Group (PSG) to one of the leading marketing consulting companies in the industry.

Tina Biancalana, Vice President at PSG said, "Steve was an amazing person and a brilliant individual. He had an ability to comprehend and connect things like no one else could, and made a life-long impression on everyone he met. His passion for education & continued growth lead him to a life of helping others be the best they could be. Those of us whose lives were impacted by him know how fortunate we were."

Michelle LaPorte, Strategic Development Manager at PSG wrote, "One of my biggest takeaways from all the time spent with Steve was the importance of people. He knew and stressed the importance of employees, the importance of customers, the importance of relationships, the importance of family. Customers should be treated like respected family members. He designed everything around making employees and customers feel important and valued."

Research done by Steve Schoolcraft and his team at PSG shows the value of a single lifetime customer has reached over $147,000. 

SINGLE CUSTOMER  
Average Repair $2,350
Average Profit Margin 10%
Profit $235
Market Purchase Behavior 7.3 years
Average Driving Tenure 65 years
Potential Lifetime Repairs 8
Present Cash Value $2,350
Future Cash Value $18,857.66
Lifetime Value $21,150
Lifetime Value Profit $2,150
Referrals  
Influence Factor .83%
Potential Lifetime Referrals 53.95
Future Cash Value $126,782.50
Net Profit $12,678.25
Combined  
Potential Value Per Customer (customer and referrals) $147,932.50
Net Profit $14,793.25
Courtesy of Phoenix Solutions Group (PSG)

Research shows customer retention has been the highest ROI in marketing for the collision repair industry.  It all centers around the customer’s repair experience; yet the customer experience starts with fully engaged, happy employees. 

Engaged employees

  • An exceptional customer experience will be a result of first providing an exceptional experience for your employees. Employees who feel cared for an valued will in turn give that same experience to your customers.
  • Employees who understand the "why" of the company, that is the company purpose, can then genuinely communicate that to customers. As Simon Sinek says, "People don't buy what you do; they buy why you do it!"
  • Game time is not the time to practice. If we want to provide an exceptional experience for our customers, it is important we hold practice times with our team to role play and better understand how to deliver that winning experience.

Customer experience

  • If you simply meet the customer's expectations, you will not gain a customer for life; you must exceed their expectations
  • Statistics show consumers encounter an accident every seven years; therefore, the need to educate each customer about the repair process is important to the overall customer repair experience. There has been a tremendous amount of change in the last seven years in regards to how our business handles the repair process in addition to changes in the claims process. Education is key.
  • Customers want to know their input matters and is valued. If you want your customers to take time to complete a survey, they must feel their input is not going into a dark hole. Make sure your team communicates how customer feedback is used to better the overall customer experience. 

Customer retention

  • If a customer gives you a referral and you do not say thank you, do not expect another referral.
  • Repeat business is often taken for granted. Customers want to feel valued and appreciated. You should always thank your customers for their repeat business.  
  • Most customers cannot remember the name of the collision repair facility that repaired their vehicle. This truth necessitates we make an emotional connection with each customer, keep in contact with our customers and express our gratitude in an effective way. 
  • Jeffrey Gitomer, author of Customer Satisfaction is Worthless, Customer Loyalty is Priceless, says, “Word of mouth advertising is 50 times more powerful than advertising.” We must create a WOW experience to get customers talking about our business. 

There are many other valuable truths that I learned from Steve during our years working together; unfortunately, I don’t have room to share them all. My thoughts and prayers are with the Schoolcraft family and the amazing team at Phoenix Solutions Group. 

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