Up Your Business |  December - 2024

Obsolete Marketing or Obsolete Customers?

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“While you can’t go back and make a new beginning, you can start today to make a new ending.”
– Stephen Covey

Is Your Marketing Obsolete?

What if your company’s service offerings and marketing focus have little or nothing to do with the market’s preferences for choosing an auto repair shop? As we approach a new year, it’s an ideal time to reflect on your shop’s market identity.

Is your Mission Statement still relevant or is it possibly obsolete? Have you recently evaluated your Unique Sales Promise (USP), Overt Benefit Statement (OBS), and Slogan or Motto? If not, it may be time for a refresh, or maybe a repurpose of your business. Your past doesn’t have to dictate your future.

During his presentation, Trends Impacting the North American Aftermarket at the AAPEX and SEMA Shows, Todd Campau, Associate Director of Aftermarket Solutions for S&P Global Mobility shared his insights on the key factors influencing the automotive aftermarket.

Campau observed, “With new vehicle sales continuing to hover just under 16M units and scrappage rates continuing to be moderate, opportunities for aftermarket maintenance and repair are expected to abound. The composition of the vehicles in operation has been shifting, and so have the demographics of vehicle owners. To capitalize on available opportunities, retailers and repair facilities will need to be agile in shifting their product and service offerings and adjusting messaging to reach consumers effectively.

“The average age of vehicles in our national fleet is rising and younger consumers are entering the market. It’s essential that the aftermarket responds to changing customer preferences.”

Understanding customer preference is crucial in today’s market. However, personal preferences change over time. The things that customers preferred when choosing a repair shop in the 80s are significantly different today – the market’s preferences are always in flux.

In casual conversations, one question that often comes up is, “Who’s your favorite (fill in the blank)?” Whether it’s a favorite team, actor, or singer, the responses are as varied as the people giving them. Their answer usually comes with a reason explaining why, and the reason typically comes in the form of a story. For example, “My favorite singer is Billy Joel because I can understand the words he’s singing, and his songs remind me of special times in my life.”

Now, let’s pivot this question to a business context. What do people say if someone asks them, “Who’s your favorite auto repair shop?” Their responses and the stories behind them could be the keys to unlocking the secrets for setting your shop apart from the competition.

When potential customers think of their favorite auto repair shop, they’re not merely recalling a name; they’re thinking of an experience, a relationship, and trust. Their answer will often be linked to personal stories – maybe a mechanic who went the extra mile, a service experience that was prompt and transparent, or simply the feeling of being treated like family. This connection is what businesses strive to create but often fall short of achieving.

How are the people in your market answering the question, “Who’s your favorite auto repair shop?” And just as importantly, why? If you can tap into the emotions and experiences that drive their preferences, you can begin to understand the unique service value your shop can offer and develop a plan to consistently provide it.

Reconsider the core focus of your business. Customers assume you’ll fix their cars; the question is “How will they feel about the experience?” What can you do to distinguish your shop from the competition other than with price and quality – the two things most shops talk about?

I introduced the concept of a Unique Sales Promise (USP) in November’s article, Join the WTF Club! Your USP is essential for distinguishing your shop in a crowded marketplace. But equally important is the Overt Benefit Statement (OBS). The OBS answers the question that the USP inspires, “So what?” Ask yourself, “Does your USP matter to the customers, and why?” Your OBS gives your USP legs by explaining how it benefits your customers.

For instance, if your USP states, “We’re the only ATRA shop in Anytown, USA,” the next logical question is: “So what?” This is where your OBS comes in. It might be something like, “This means your transmission is warrantied from coast to coast.”

You establish a connection and a compelling reason for them to choose your shop over the rest by providing a clear benefit that answers your customer’s unspoken question, “So what?”

Many businesses rely on catchy slogans, but too often these phrases don’t align with either the USP or the OBS. A great slogan should be memorable, and it should embody the essence of what you stand for as a business. When a slogan aligns with your USP and OBS, it becomes a powerful tool that reinforces your brand identity.

John Lonas is a friend who owns Autoworks, a shop near my home. Their slogan is “You won’t find jerks at Autoworks.” It’s catchy, but does it truly represent the culture and values of the company? Any “disconnect” between the slogan and the actual service culture can lead to disappointment for customers who expect to find friendly, competent staff, and a “jerk-free’ experience. Fortunately for John, his shop has a reputation for living up to this motto. Although John admitted that it’s been more of a clever slogan than a guiding principle for his team, he’s now making it a part of his team’s training and culture.

Every auto repair shop should have a Mission Statement that acts as a guiding light for its operations. This statement defines your core purpose and principles and should align seamlessly with your USP, OBS, and Slogan. Think of it as a plumb line for your business to ensure that everything you do is aligned. If you’re off even slightly, the outcome will be skewed.

To illustrate this point, consider a shop whose mission is to provide education and empowerment for its customers as well as quality repairs. If the team consistently strives to deliver on this mission, every interaction should reflect that commitment. In this case, the mission statement also serves as a foundation for the USP, OBS, and Slogan.

Here’s the Problem. When developing their USP, OBS, Slogan, and Mission Statement, most shop owners don’t consider what’s important to their target customers. Shop owners are so close to their businesses that they fail to see their target customers’ preferences. They think they know, but when it comes to this vital information, you must be certain. Furthermore, what used to work may not be working anymore – it’s become obsolete.

Also, your target customer has likely changed over time, and you might not have realized it. It’s vital that you identify your ideal target customer so you’re crafting your marketing messages to reach and attract the right market segment. You need to adjust as the marketing environment changes – technology, changes in market size, and new competition are all factors that affect your position in the market.

Are Your Customers Obsolete?

One of my clients is Desmond Creighton who owns Prescott Valley Transmissions. He recently told me he thinks some of his customers don’t fit his business model any longer – “They’ve become obsolete.” He’d like to attract transmission work on vehicles that are 2010 and newer. He says anything older isn’t as profitable, and selling jobs to customers with older vehicles is more of a challenge than he cares to deal with. Desmond added, “Older vehicles generally need more than just transmission work, and the cost of the other work often makes fixing them too costly for our customers.”

Before launching a new marketing strategy based on Desmond’s intuition, we needed to figure out what the owners of late-model vehicles want and their preferences. One of the best resources for that information was direct customer feedback, and online reviews hold a treasure trove of insights. What do customers rave about? What aspects of their experience left them dissatisfied?

Reading hundreds of posts revealed the stories customers were telling about Prescott Valley Transmissions. For instance, multiple customers mentioned that they felt safe and informed about their vehicle repair. Conversely, negative feedback showed areas that needed improvement, and guided Desmond in refining services to better meet customer preferences.

But we didn’t stop there. We analyzed competitors’ reviews as well. This offered added insight into what customers like about the competitors’ services as well as where they fell short. Understanding the competition exposed ways for Desmond to enhance service offerings.

Here’s a summary of the key points we discovered as we dissected online reviews.

  • Almost all the 3-Star or lower reviews were from owners of 15-year or older vehicles. Their major complaint was the price was too high – it cost more than the vehicle was worth.
  • Nearly all reviews from people with late-model vehicles manufactured in 2010 or later were 4-Star and 5-Star.
  • The 3-Star and lower ratings were often the result of other problems that came up after the transmission repairs were made – some were coincidental, some showed up later, but in any case, they’re not surprising with older vehicles.
  • Owners of the older vehicles tended to post negative reviews comparing Desmond’s shop to competing shops – primarily on pricing. Desmond will not cut corners or significantly discount jobs and would rather lose the job than cut quality.
  • Desmond observed that it often takes longer to repair the older vehicles because of authorization delays caused by the vehicle owners, parts unavailability, and complications from other problems being discovered during the process. Too much time for repairs was often cited in reviews.
  • Price was seldom an issue or complaint among the owners of the newer vehicles. (Of course, charging the right price is essential to remain profitable.)
  • Special accommodations like same-day appointments, loaner cars, financing options, speed of repairs, and longer warranties were appreciated more often with the late-model vehicle owners.
  • Many raving reviews came from customers who saved thousands of dollars when compared to quotes from dealerships for replacement transmissions. Desmond says, “Many times we can fix problems without rebuilding or replacing. Dealerships tend to sell replacements rather than fix problems, and generally it’s the newer vehicles that go to the dealerships – a happy situation for us.”

Apparently, Desmond was right about narrowing his focus to attract owners of late-model vehicles. We changed his marketing strategy – his USP, OBS, Slogan, and Mission Statement – to be more compelling to his ideal target customers.

Desmond adds, “People with older vehicles still come in, but my new focus makes me more selective. We’re experiencing greater profits, higher morale, improved workflow, and happier customers. What more could I ask for?”

Ultimately, your auto repair shop’s success hinges on the stories your customers share. Their favorite auto repair shop isn’t just a place; it’s an experience, a relationship, a reliable source of support that also aligns with their preferences.

By developing an integrated USP, OBS, Slogan, and Mission Statement, you create a solid foundation for your business. This integrated alignment guides your team’s actions, ensuring they deliver the marketing promises you make.

As you move forward, remember that every interaction is an opportunity to reinforce the story you want your customers to tell. So, who’s your favorite repair shop? The answer may just depend on how well you listen to your customers and how effectively you tell your own story.

Your marketing and your customers’ preferences must be aligned, and neither should be obsolete.