Did you know it costs five times more to attract a new customer than it does to keep an existing one?

What’s more, improving your retention rate of existing customers by just five per cent can boost your profits by 25 per cent.

Why? Repeat customers are likely to buy more from you over time.

So, how do you keep your customers and encourage loyalty? The obvious answer is “good service” – but what does that look like?

Here are six things to include in your customer retention strategy.

1. Exceed customer expectations

Don’t just deliver on customer expectations. Whenever possible, exceed them. Here’s how that might look.

Customer expectation:

• My car will be fixed on time, at a reasonable price.

Exceeding that expectation:

• The workshop staff were enthusiastic and helpful on the phone, and when greeting me at the workshop
• The courtesy car was clean and new
• The final price was under the quote
• They walked me to my car and explained everything they’d done.

2. Prioritise long service lists

Nothing scares a customer off quite like being presented with a huge list of items that need attention.

Sit down with them, go through the list and help them prioritise the issues that are urgent, leaving the not-so-urgent ones for a future visit.

This empowers the customer and builds trust. The customer must feel that you’re on their side, not just trying to make as much money as possible on each visit.

3.  Spell out the options

When you’re asking a customer to spend big money on repairs they don’t understand, take the time to explain the repair. If they’re really struggling to understand why the work is important, use an application to show them how the fault could impact their car.

Once they have a good handle on the issue, then you can present them with their repair options and answer any questions they have.

A little time spent explaining and reassuring now can lead to a lot of repeat business down the track.

4. Make it sound like a great deal

There have been a lot of interesting studies done into the psychology of pricing, but the key thing is everyone likes to think they’re getting a good deal.

A great way to do this is to show the customer the higher specification option next to a cheaper alternative. This could be as simple as pricing the repair using genuine parts.

This gives the customer the feeling you’ve gone to some trouble to come up with a solution that will save them money.

5.  Scheduling the next appointment

Before the customer leaves, have a discussion about when the car should come in next. Then ask them if they’d like to schedule their next service now.

6. Stay in touch

Make sure all customers are continually exposed to your brand by investing in marketing activities, like brand-building campaigns and regular newsletters.

Relationships trump advertising every time

Nothing is more effective in business than building good relationships. Provide a great service at a competitive price and build relationships with every customer, and you’ll have them coming back for years.

How do you build loyal relationships with your customers?