Building Customer Loyalty Through Quality Service, Not Low Prices
Service departments are confronted with how to keep customers when the competition charges lower prices. A common misconception is that the only way to be competitive and meet customer expectations, is through lower prices. Competing on price is a losing proposition, you can charge higher prices if you are delivering high quality service. Is your service quality better than the competition?
In the Farm-Equipment.com article, “Building Customer Loyalty Through Quality Service, Not Low Prices”, dealer consultant Bob Clements says, “only 15% of customers care enough about price to stop going to a dealership when they raise their rates.” By setting expectations with your employees, your dealership can maximize profit, create loyal customers, measure success based on service hours sold, and compensate service techs based on their efficiency.
Loyalty grows when employees understand the needs of the customer and work to exceed their expectations the first time. To be successful, dealers need to align all dealership activities to improve the customer experience.
- Actively work to gather customer feedback at all customer touch points: in-person, phone, email, text and survey
- Follow documented processes that produce consistent and high quality work with fewer errors
- Resolve customer issues quickly, document and work the solution back into processes to prevent future recurrence
- Close the loop by communicating to the customer both issue resolution and customer suggested improvements
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