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There is a constant stream of advice from industry experts concerning customer loyalty and retention. While most of the advice is on point, a large piece is typically missing in the bigger picture. In order to increase market share, businesses must be aware of what their competition is doing. Turning a blind eye to pricing and marketing tactics of the dealership down the road can easily cost sales or service business. Savvy dealers check out what their competition is doing. But, these mystery shops or research data is usually limited to their franchised competitors, not independent repair facilities, which is a mistake.
A recent roundtable discussion published by Loyalty360 included key executives of some large independent repair franchises. It provides interesting insight into the mindsets and strategies they are using to build customer loyalty and keep customers coming back.
The roundtable included Robert Falconi, CEO and John Wiegand, SVP of Operations with Precision Tune Auto Care; along with Tom Tracy, SVP of Marketing for Monro Muffler Brake & Service; Ralph Yarusso, SVP of Operations and Business Development for Grease Monkey; and Ryan Rose, Director of Automotive Strategy for Clutch. In this roundtable, several questions were posed to the group including:
It is a sad fact that in the eye of the consumer, these independent service departments still have the edge in their ability to provide a complete service experience. The 2015 annual survey of Consumer Reports subscribers found that independents outscored dealership service for overall satisfaction, price, quality, courteousness of the staff, and work being completed when promised.
However, most independents lack the ability to perform major service repairs, or recall work. That being said, it’s very easy to lose sight of just how important quick service type ROs are. These all provide these independents with the opportunity to interact with and touch a customer. Every service performed at an independent versus a dealership is a lost opportunity (and revenue) for a dealership.
So, take note of the strategies that independents are using to attract and retain customers and consider implementing similar strategies to help improve the customer experience at your dealership. Otherwise, you may find your customers visiting less frequently and miss out on a great deal of revenue and countless opportunities.