Are you kidding me?

Are you kidding me? 

That was my response to Steve, a good friend of mine, when he told me that some of his Independent Tire & Service clients sell oil club programs in hopes that the customer DOES NOT redeem them.

Yes – You heard that right!

I told Steve that strategy made no sense.   Especially when you take into consideration that it takes approximately $350 to gain a new customer.   The main reason to sell club programs is to encourage loyalty and repeat business.

To make sure we are all on the same page, an oil club program is a program that sells multiple oil changes at a significant discount,  trading future gross for loyalty and repeat business.  I also like idea of selling alignment policies and “super coupon” programs.

You should probably know by now … I am a Big fan of just about anything that encourages customer growth!

Key Point it’s not how MUCH its How MANYHow much a customer spends every time they service their vehicle with you is less important in the long run then how many times a customer has their vehicle serviced at your  dealership.

WARNING! Relying too heavily on the “Dollars per Car” KPI (Key Performance Indicator) can lead to stagnate or declining customer growth.

Always track customer count vs. prior month/year & Total units/Sales!

So –  for the few dealers that are crossing their fingers in hopes that that the customer that they just sold an oil club program to for $50 bucks won’t  return – lets step back and look at the big picture!  Focus your team and advertising dollars on repeat customers and total sales.

If you haven’t read my “Post it Note Philosophy for improving Customer Satisfaction” article from last year, I recommend you read it now.  It is definitley worth the five minute read.

To help you drive your customer growth and track club programs, I also recommend you check out the RTS Loyalty  Rewards Plus Marketing Program.

Good Selling!

 

About Patrick Murphy

I have spent the past eighteen years producing, coaching and mentoring retail teams. The past six have been in support of Independents across Western US. Although, I have worked most of my career in automotive retail, It hasn’t and never will be about “cars and trucks.” What it has been about is the challenge and satisfaction of helping people with all types of backgrounds to realize their potential.
I am very proud that many of my former teammates have gone on to do some pretty terrific things with their life. Several are currently running their own groups and a few have even opened their own businesses.
My assignments with Bridgestone Firestone and TBC Corporation has offered me the opportunity to work in and become familiar with many markets across the country. From my hometown of Philadelphia, to Boston, Arizona, Dallas, New Mexico, Florida and Southern California. Each market has presented its own unique set of challenges, but at the end of the day, it always came down to three things: people, process and execution.