"How to score!" Okay, before some of you get too excited, I have
to disclose this article is about how do you score with your
customers...while this article may not be as exciting as you
thought it was going to be, it could be the most profitable article
you read for your auto body shop. So please read on...
In a recent article in Body Shop Business Magazine, a story
pointed out how the average consumer only has a collision once
every 7-years. With this in mind, it makes all the more important
for a collision repair shop to score big on customer satisfaction,
more pointedly, to make a customer more than satisfied, but to make
them a huge fan of your body shop; the kind of customer who will
gladly tell a friend in need of your service "You really should go
to this shop, their service was the BEST!" It's what many business
savvy people now call a "Promoter".
A "Promoter" is more than a satisfied customer; they are
customers who will go out of their way to send you new customers.
When a body shop makes customers Promoters, it not only ensures
customer loyalty, it means your shop is likely to be in the top
tier of growing collision repair facilities in your area. There is
solid research to prove this to be true and is more than just a
feel-good thing for you as an owner or shop manager, it will add to
your bottom line if you can grow the number of Promoters your body
shop builds. Companies such as Dell Computers, e-Bay, Marriott
Hotels and many other big name companies saw their profits grow
once they started measuring how many Promoter customers they were
adding. And here is the best part for all small, locally owned
businesses out there; it doesn't cost any meaningful expenditure to
start measuring and building your collision repair shops "Promoter
Customers".
Many body shops conduct customer satisfaction surveys and like
most well intended surveys, they get way to long and understanding
the results can be even more trying. When one measures their
"Promoters", the results are referred to as the "Net Promoter Score
(NPS)". It's a process where you use a 2-3-question survey and add
and subtract the results based on those whom answer that they are
absolutely willing to recommend your shop to a friend or colleague.
Here's what we would suggest for your survey:
Ask your customers to rate your shop on a scale of 0-10 on how
likely they are to refer others to your shop, then ask them why
they scored you the way they did. Lastly, ask them how they heard
about you. These three questions (visit: our Shop Profit Training
Section for sample surveys and a scoring process) gives your shop
all the information you need to measure how many Promoter Customers
your shop is building, what you do well and or where you need to
make changes. It also let's you measure how much business is coming
from Promoters and will tell you just how profitable your efforts
in referrals are growing. This is very important for an owner or
shop manager to know if this program is really building your
business.
The average firm sputters along at an NPS efficiency of only 5
to 10%. In other words, Promoters barely outnumber Detractors. Many
firms - and some entire industries - have negative Net Promoter
Scores, which means that they are creating more Detractors than
Promoters day in and day out. These low scores explain why so many
companies can't deliver profitable, sustainable growth, no matter
how aggressively they spend to acquire new business. Companies like
Dell are seeing their score at 40+, which explains their continued
growth.
At Web-Est we have been using this program as our road map to
improving our Collision Estimating Software and the results have
been growth of over 300% in one year. Selling body shop software or
collision repair software is really no different than selling
repair jobs. The best way to grow ones business is to build the
number of sales people you have out in the market place. Think
about it, every customer could become a sales person for your body
shop.... and you don't even have to add them to your payroll. Now
that is building good profits for everyone involved!
To learn more about "Net Promoter Score" go to the Web-Est home
page and click on the Profit Center tab.
About the Author:
Eric Seidel is the President and CEO of Web-Est, LLC an online
collision repair estimating software provider. Mr. Seidel has
served as CEO of a publicly traded company that grew from a
start-up to a multi-million dollar operation and he is considered a
serial entrepreneur. He has studied Internet marketing and the
affects on small businesses whom embrace the new media and he is
certified as a Google® Adwords Professional. Mr. Seidel is an
elected public official, serving as City Councilman in his hometown
of Oldsmar, Florida; the community is located on the top of Tampa
Bay Florida.
eseidel@web-est.com