What is the true value of a customer?
Posted: October 23rd, 2009, 3:03 pm
I just recently left the corporate office world and started windshield repairs about 4 months ago and completely forgot about “customer value” what this means is how much is a customer worth to you over the course of the life cycle and how much are you willing to spend to get that customer. Sometime we would spend 300% of the first projected order to get a customer because we knew the value of the customer of the life cycle.
You’re going to have to do some research for your own area these number shows for my area.
Average Household has 3 vehicles
Average Vehicle get 2-3 repairs annually (let’s say 1)
Average time in same house 5 years
The math:
3 vehicles x 1 repair per vehicle per year = 3 repairs per house hold per year X 5 years in the same house = 15 repairs per life cycle X $50 per repair = $750.00 is the value of that customer.
So how do you maximize the Value of The Customer?
If you’re not using a CRM “customer relation management” software then either get one now or stop working for yourself. I recommend Zohoo because it’s free and has so many other tools.
Collect everything you can from the customer; email, phone, fax, address everything you can, and then use them all cold call to see how their doing send out a mailer and email them something of value
Invest in a static cling sticker for the windshield similar to the ones you see for lube and oil places. Saying this window is protected by “your company and phone number” Custom printed 500 cost $250 online buy more save more
I was thinking about selling windshield wiper blades, but now my next direct mailer that goes out will give them away FREE to the first 100 people my cost is about $15 per vehicle not bad over the long haul when that customer will always remember the guy that fixed his windshield and gave him a set of good quality windshield wiper blades for FREE.
Send an email every month include coupons to other automotive shops in town you can find their coupons online or in the paper then call the shop say, hey can I distribute your coupons to my customer. They will always say yes then ask can I drop some flyers of to you and leave them on the counter, they will say yes. Remember you’re not competing with tire and lube shops.
With the emails come up with money saving tips like check the tire pressure to save XX miles per gallon whatever just make it so that they want to open your emails.
I think that’s it for me what do you guys think.
You’re going to have to do some research for your own area these number shows for my area.
Average Household has 3 vehicles
Average Vehicle get 2-3 repairs annually (let’s say 1)
Average time in same house 5 years
The math:
3 vehicles x 1 repair per vehicle per year = 3 repairs per house hold per year X 5 years in the same house = 15 repairs per life cycle X $50 per repair = $750.00 is the value of that customer.
So how do you maximize the Value of The Customer?
If you’re not using a CRM “customer relation management” software then either get one now or stop working for yourself. I recommend Zohoo because it’s free and has so many other tools.
Collect everything you can from the customer; email, phone, fax, address everything you can, and then use them all cold call to see how their doing send out a mailer and email them something of value
Invest in a static cling sticker for the windshield similar to the ones you see for lube and oil places. Saying this window is protected by “your company and phone number” Custom printed 500 cost $250 online buy more save more
I was thinking about selling windshield wiper blades, but now my next direct mailer that goes out will give them away FREE to the first 100 people my cost is about $15 per vehicle not bad over the long haul when that customer will always remember the guy that fixed his windshield and gave him a set of good quality windshield wiper blades for FREE.
Send an email every month include coupons to other automotive shops in town you can find their coupons online or in the paper then call the shop say, hey can I distribute your coupons to my customer. They will always say yes then ask can I drop some flyers of to you and leave them on the counter, they will say yes. Remember you’re not competing with tire and lube shops.
With the emails come up with money saving tips like check the tire pressure to save XX miles per gallon whatever just make it so that they want to open your emails.
I think that’s it for me what do you guys think.