Customer Centric – A Long-Term Approach to Business Success

Practically all the shop owners I’ve spoken with over the last 24 years told me they planned to have a shop that focused on customers. They were going to be the opposite of the negative and outdated image many have of the auto repair industry. What they were describing was a customer-centric business.

Customer Centric Approach

Instead of focusing mainly on profit, a customer centric business focuses on every aspect of the customer’s journey to make the most of their customer’s experience.

Historically customer centric businesses outperform competitors in revenue and market share in the long term. This is because it takes less money to retain current or repeat customers than it does to acquire new customers.

The relationships and trust a business build earns them more revenue at lower marketing costs. Their customers tend to be loyal and more understanding when things go wrong because of the level of customer service and experience.

The Challenge

Most owners start out with big dreams but quickly find out they didn’t plan for start-up costs and or they didn’t know their market. They don’t have years of owner experience dealing with all the areas of business including sales, marketing, operations, financials, and people.  Some are continuing a family business that may not have had formal systems or processes in place. As a result, the most common approach becomes marketing to everyone in an area with discounts to get people in the door. They need revenue and are so caught up in the day to day, they don’t realize they’ve become a profit centric business. The customer experience becomes secondary because they need sales to support their team and business costs. Many will fall into the trap of believing they are customer centric by providing discounts, while they sacrifice customer experience, relationships, and long-term success.

Customer Centric Environment

Get clear on your core values and your vision for your business. Ask yourself what you want….

• To be known for
• Your reputation to be
• Your team to be like
• Your customers to be like

Keeping this in mind makes it easier to attract and retain a team that aligns with your core values and will understand the importance of their role in the customer’s experience. When your team is aligned, they work together to make for a great customer experience.

Customer Journey Map

From the time they see an ad or are referred to your shop by another customer, what is their journey like? Map it out starting with your website or a phone call, go through each touch point to see it from the customer’s point of view. How can you take it to the next level?

• Initial contact – website, phone, email, text or in person
• Vehicle drop-off
• Inspection
• Estimate
• Approval
• Update
• Job Completion
• Pick Up
• Follow Up

Collaborate with your team for areas of improvement. Continual update as needed.

Accountability

It’s easy to track and measure results. Here are some things to consider.

• Closing rate – Monitor calls to improve customer service.
• Reviews– Take all reviews seriously, respond professionally and be open minded to improve.
• Efficiency – Work smarter not harder to get work done efficiently without sacrificing quality.
• Repeat vs New Customers – People move, get new vehicles, stop driving or pass away.
• Profits – Yes profits will come from focusing on your customers and community.

A customer-centric approach is for long-term growth and sustained success. Owners should consider shifting away from a profit-centric focus/mindset and toward a customer-centric focus/mindset. Assess your shops’ metrics to see the areas to improve the customer’s experience.

I find that good people with good intentions get caught up in the profit centric mindset/trap, which makes your business difficult for someone to manage or for you to sell.

Reach out to a coach, mentor, or industry peer for advice. Don’t allow the thing to hold you back be you because every owner has blind spots. There are many resources available.

Maryann Croce, a certified partner of Todd Herman’s 90 Day Year™, is a coach/speaker and creator of ‘3-Day Weekends’ System. Her company Small Biz Vantage specialized in performance and leadership for automotive and skilled trade business owners. She has been an auto shop owner since 1999. 

You can reach Maryann at (203) 913-7741 or maryann@SmallBizVantage.com Maryann speaks on strategies to achieve work-life fulfillment SmallBizVantage.com