Latest / Crossroad Conversations with the Lewis Brothers / EP 92 "They Bought Once — Now What? The Retention Machine"
Transcript
- 0:00SPEAKER_03: Same thing on retention.
- 0:01SPEAKER_03: Do you know on average, if somebody goes to a restaurant, 70% of first timers never return?
- 0:07SPEAKER_03: Wow.
- 0:07SPEAKER_03: So even if somebody told you about the restaurant, like, hey, I want to go check out this restaurant in town, 70% of people never go back to that restaurant.
- 0:17SPEAKER_03: Never go back.
- 0:17SPEAKER_03: So that means only about 30%.
- 0:19SPEAKER_03: Now, if you get somebody to come back a second time, that goes from 30% to 42%.
- 0:28SPEAKER_03: Hey everyone, welcome to Crossroad Conversations with the Lewis Brothers, where we aim to share real stories about running a successful family business, working through adversity, and pouring back into the community that keeps our door open.
- 0:40SPEAKER_03: We're your host, Matt Shelby, and Taylor, and we bring you relevant local business advice and automotive insights that are sure to change the way you look at running a business.
- 0:50SPEAKER_03: And maybe even throw in a plug for you to do business with us.
- 0:54SPEAKER_03: All right, welcome back to Crossroad Conversation with the Lewis brothers.
- 0:58SPEAKER_03: And man, do we got a good one today?
- 1:01SPEAKER_03: You know, the title of today's episode is They Bought Once, Now What?
- 1:06SPEAKER_03: The retention machine.
- 1:07SPEAKER_03: Episode 92 today.
- 1:10SPEAKER_03: You know, anybody can sell once, but an 80-year-old fourth generation family runs on repeat families, not just first timers.
- 1:19SPEAKER_03: In fact, did you know it costs five times more to win a new customer than to keep the ones you already have?
- 1:26SPEAKER_03: Yep.
- 1:26SPEAKER_03: The cheapest growth in any business is the customer already in your database.
- 1:31SPEAKER_03: And it's not just about being nice, it's about the systems and the moments that decide if they come back or drift down the road.
- 1:39SPEAKER_01: Yeah, that's so good.
- 1:40SPEAKER_01: Before we dive into that one, episode 91 last week, we talked about the leader's mind.
- 1:45SPEAKER_01: And so we talked about training it, trusting it, feeding it, and all the details of that.
- 1:49SPEAKER_01: So if you haven't, go back and check that one out.
- 1:51SPEAKER_01: That's episode 91.
- 1:52SPEAKER_01: We talked about the mind and all the parts and pieces of that.
- 1:55SPEAKER_01: As always, check us out crossroadconversation podcast.com to see all 92 episodes and LewisSupershore.com for your vehicle needs.
- 2:04SPEAKER_00: Absolutely.
- 2:04SPEAKER_00: And what's in the garage this week?
- 2:06SPEAKER_00: I want to highlight off of what Matt you kind of started on there.
- 2:08SPEAKER_00: So we've got over a thousand vehicles on the ground in the garage to choose from.
- 2:12SPEAKER_00: But what's fun about those thousand vehicles, it's backed by our 80 years of four generations of families, business that has poured into the communities that have done things differently, that continue to do things differently.
- 2:25SPEAKER_00: That is the difference with doing business with Lewis.
- 2:27SPEAKER_00: And that's the difference of what's in our garage versus what you can get down the road.
- 2:31SPEAKER_03: In fact, we put a guarantee with it.
- 2:33SPEAKER_03: Yeah.
- 2:33SPEAKER_03: You know, we put on every single one of those, we put a Lewis guarantee.
- 2:37SPEAKER_03: And the three of us spent years, I'm not going to say a little bit of time, years making sure what we brought to a customer was relevant with our Lewis guarantee where we double the factory warranty, or on pre-owned vehicles, we give up to a five year, 60,000 powertrain.
- 2:51SPEAKER_03: So you actually buy with confidence, and there's no charge for that.
- 2:55SPEAKER_01: You know, it's pretty funny because there was just another program launched uh two days ago.
- 3:00SPEAKER_01: Uh, but then we had had a meeting with another program.
- 3:03SPEAKER_01: These are all from Manufacturer, all from Ford, and they're working on customer retention for brand loyalty.
- 3:09SPEAKER_01: We're gonna fully break that down.
- 3:10SPEAKER_01: But we laugh because they were like, hey, we're offering for a limited time a two-year maintenance package.
- 3:15SPEAKER_01: It's like, check, we've been doing that for zero cost, right?
- 3:19SPEAKER_01: And then they were talking about their CPO program, like, hey, it gets this, I forget what it was, but it was like a four-month 5,000 mile or something at most.
- 3:29SPEAKER_01: And they were like, they get that as a you know, as this standard and all has X amount of cost.
- 3:34SPEAKER_01: And I was like, well, we do that for free, and it goes up to a five year, six year, a 10 year, 120,000.
- 3:39SPEAKER_01: So I was like, check, we already do that.
- 3:41SPEAKER_01: I was like, that's so good.
- 3:42SPEAKER_01: I was like, okay, let's find the next one, the next one, the next one.
- 3:44SPEAKER_01: So we're constantly working on that to say, hey, if you have given us the opportunity, it makes sense, and we're gonna prove to you our work.
- 3:52SPEAKER_03: Yep.
- 3:52SPEAKER_03: You know what I love about that?
- 3:53SPEAKER_03: You're telling me the story when you're meeting with a guy on the certified, and they were so excited because they're like, hey, we've revamped our program.
- 4:00SPEAKER_03: We put so much money and umph behind it.
- 4:02SPEAKER_03: And then you just look to the guy and you're like, well, we do this, that's five times what y'all do.
- 4:08SPEAKER_03: And he's like, Do you charge your customer?
- 4:10SPEAKER_03: He's like, No, it's included.
- 4:12SPEAKER_00: It probably took the wind out of his cell because he thought he had got a fat pitch whenever I'd said, Hey, we mirror our program after your thing because it's the best in the industry.
- 4:24SPEAKER_00: But we provide that at no cost.
- 4:26SPEAKER_00: So a whole lot of a whole lot of value with doing business with us, whether it's buying, selling to us, or servicing, it's unlike anything else you'll find in Northwest Arkansas.
- 4:38SPEAKER_03: I agree.
- 4:38SPEAKER_03: And and it rolls straight into the retention part here.
- 4:42SPEAKER_03: And why that's so valuable in our business is we look at it from the customer's point of view, not just the dollars and cents to us.
- 4:50SPEAKER_03: And we're you've heard us talk about on the podcast before, we're in the long game.
- 4:53SPEAKER_03: It's sometimes we take a short-term loss to equal long-term retention and customers as they go down the road.
- 5:02SPEAKER_03: So that's the same thing with the Lewis Guarantee as we look at, hey, what would we want if we were a customer?
- 5:07SPEAKER_03: What would we want covered?
- 5:08SPEAKER_03: Would we want to be charged for it?
- 5:10SPEAKER_03: So on, so on and so forth.
- 5:11SPEAKER_03: So, hey, core one here.
- 5:12SPEAKER_03: Let's talk about the handoff.
- 5:14SPEAKER_03: You know, the handoff is where you lose them.
- 5:17SPEAKER_03: And you know, you guys think about this the retention leak, nobody watches the sales to service transition.
- 5:24SPEAKER_01: Yeah, that's that's such a big thing.
- 5:27SPEAKER_01: And I'd like to say we're the absolute best of that.
- 5:29SPEAKER_01: We're not, we have room for improvement.
- 5:31SPEAKER_01: Uh, but that's one of those things when you buy from us, you get uh a year-free oil changes.
- 5:37SPEAKER_01: Uh that's something that we register within our system.
- 5:39SPEAKER_01: So when you walk in, it's already covered.
- 5:41SPEAKER_01: So that's our first start.
- 5:44SPEAKER_01: But the idea when we give a tour to a prospect, a customer, or just someone new to our dealership, we introduce them to the service department to show them where the service waiting area is, where the sales waiting area is.
- 5:58SPEAKER_01: It's pretty cohesive and you kind of blend over from one department to the other without even noticing it.
- 6:04SPEAKER_01: And the idea is that you know your point person in sales and service.
- 6:07SPEAKER_01: And the idea generally is that if you have somebody that you love in sales, they can help you with that service without feeling like there was really just a whole departmental.
- 6:17SPEAKER_03: Yeah, that that that's really important.
- 6:18SPEAKER_03: And the reason we bring up the sales-to-service transition, let's give a little context to our listeners here.
- 6:24SPEAKER_03: Well, on average, a customer will come into your service department three times a year, you know, just for oil changes, call it in every 5,000 miles.
- 6:31SPEAKER_03: That's 15,000 miles, which is the average mile somebody drives in a year.
- 6:35SPEAKER_03: So they come to your service department about three times a year.
- 6:38SPEAKER_03: They trade to vehicles, it's it's getting closer to that four-year period, but let's use three for easy math here, about every three years.
- 6:46SPEAKER_03: So that's a nine to one ratio of service over sales.
- 6:50SPEAKER_03: So if your handoff is not well in service, you lose connection with that customer for three years.
- 6:57SPEAKER_03: If you can have a great handoff there and they develop that relationship, the stats show that they're 80% chance more likely to purchase their next vehicle from you because you've done a great job with them at service.
- 7:10SPEAKER_01: One of those things, you know, we always talk about with a customer do they know you, like you, trust you.
- 7:15SPEAKER_01: And that's our number one goal.
- 7:16SPEAKER_01: They understand that we are so much more than trying to just sell you.
- 7:20SPEAKER_01: Know you, like you, and trust you.
- 7:22SPEAKER_01: And that is super important that I say, hey, Matt, do you have somebody my dishwasher's mess up?
- 7:27SPEAKER_01: Do you have somebody or hey, I need my yard mode or whatever.
- 7:29SPEAKER_01: Like, I got this guy.
- 7:30SPEAKER_01: Yeah.
- 7:30SPEAKER_01: Well, I know you, like you, and trust you.
- 7:33SPEAKER_01: And if you know and like and trust this person, I don't have to go through that.
- 7:36SPEAKER_01: That's a referral, and you've already earned that trust.
- 7:39SPEAKER_01: And then you quickly understand that that you know them and you like them now.
- 7:43SPEAKER_01: It's the same thing with a consumer.
- 7:44SPEAKER_01: What we want to do is tell people that at any point in time we have over 30 brands and 90 different models of vehicles so that they know us, like us, and trust us well enough that they say there was one too, say the guy was like, Hey, you guys have always taken care of me.
- 8:01SPEAKER_01: I need two Toyota forerunners.
- 8:03SPEAKER_01: Like, yeah, I can do that, right?
- 8:04SPEAKER_01: Because the trust is already earned there, they don't have to start fresh at a new dealership, right?
- 8:09SPEAKER_01: Same thing in service.
- 8:11SPEAKER_01: Uh matter of fact, just had this question from marketing team who's like, hey, can you work on all makes and models?
- 8:17SPEAKER_01: Because there's that no like in trust and that convenience factor.
- 8:19SPEAKER_01: It's like, absolutely.
- 8:21SPEAKER_01: So we try to build that in so that a customer, once they've got that relationship, we can be that multi-tool that you're able to handle all those things.
- 8:30SPEAKER_03: You know, in today's age where we talk about social media and no matter what platform you talk about in the digital age and this and that, I don't know who even came up with this, but this is so far from the truth that some of the old school, I'm gonna call it, of networking and referrals gets thrown out the window.
- 8:52SPEAKER_03: In fact, that's so far from the truth.
- 8:54SPEAKER_03: It's just a different platform it's on.
- 8:56SPEAKER_03: Because how many times have you been on social media and somebody said, Hey, I'm looking for somebody to fix a roof?
- 9:02SPEAKER_03: I'm looking for somebody to do plumbing, I'm looking for somebody to repair my car.
- 9:06SPEAKER_03: So that network of exactly what you're saying, that people are looking for advice, not just from online reviews or an influencer that did a video of it on YouTube, but people that they know they like and they trust, that's so important.
- 9:20SPEAKER_01: It really is.
- 9:20SPEAKER_01: And it's funny, I got a reference back to this.
- 9:22SPEAKER_01: You said the cost to acquire someone is five times more.
- 9:26SPEAKER_01: So I gotta give you some data, some facts.
- 9:28SPEAKER_01: The auto industry customer acquisition cost based on research is an average of$903 per custom.
- 9:38SPEAKER_03: So what you're saying there is in order for me to sell somebody a car, it's costing on average a little over$900 to sell you a car the first time.
- 9:47SPEAKER_01: Yeah, and so I need to break that down even more.
- 9:50SPEAKER_01: It's it has nothing to do with the cost of the vehicle and profit or loss in there.
- 9:55SPEAKER_01: It is the idea of taking the no one knows anything about your company.
- 10:00SPEAKER_01: And so on paid search and targeted search and retargeting search and social media, all those things that you actually spend physical dollars with an ad agency to say, look at me, look at me, look at me, look at me, to get them to create an appointment and show up to the store and actually sell them a car on average is$903.
- 10:20SPEAKER_02: Wow.
- 10:21unknown: Wow.
- 10:21SPEAKER_01: You know, so that that continues to go up and up and up and up because they don't know you like in trust you.
- 10:26SPEAKER_01: So once you do grab that opportunity, that's why it's so important that you hold on to that customer, that customer, 80-year customer, that repeat customer that you continue to kindle that fire and stay in front of them.
- 10:39SPEAKER_03: You know, and I think that's where it comes up next is where customers fall through the cracks across five different rooftops.
- 10:46SPEAKER_03: And what we designed here in Fayetteville, we tried to reduce that as much as possible by familiarity and uniformity between the stores.
- 10:57SPEAKER_01: Most certainly the design of the flow, but one of the big things that we have that hardly any, and I don't know why anyone else, I guess because they don't want to clean it up accounting-wise or in the back end.
- 11:07SPEAKER_01: I don't know why anyone else doesn't do this, but our people have the ability, our employees, to be able to sell from any rooftop.
- 11:15SPEAKER_01: So the familiarity is already there.
- 11:17SPEAKER_01: They're just the inventory somewhere else.
- 11:19SPEAKER_01: Guess what?
- 11:19SPEAKER_01: I can go there, I can help here.
- 11:21SPEAKER_01: Like, think about if you had a really good plumber and you needed help with the roofing, he's like, I can help with that.
- 11:27SPEAKER_01: Right?
- 11:28SPEAKER_01: Or they're like, hey, I need an electrician, I can help with that.
- 11:31SPEAKER_01: You already know I like them and trust them.
- 11:33SPEAKER_01: And you're gonna use them.
- 11:35SPEAKER_03: So to make it feel comfortable too, because you were just talking about we sell all brands, and at the Ford store, you may buy a pre-owned Jeep Wrangler, let's say.
- 11:45SPEAKER_03: And then let's say you're you're you're not, you don't just need routine service, but let's say the check engine light comes on.
- 11:50SPEAKER_03: Like it's a it's an engine issue that we need to address.
- 11:54SPEAKER_03: It may make more sense to have one of our certified Jeep technicians than look at it.
- 11:58SPEAKER_03: Well, so then you're going to another service department that's at the other store owned by the same company.
- 12:03SPEAKER_03: We want that to feel familiar and confident so it doesn't go between the cracks because we've started off great and the handoff even between service departments needs to be there as well.
- 12:13SPEAKER_01: And if a customer is not here yet, generally the trained person, the properly flowed person will no different than if I ask one of you guys for referral, you know, they'll say, Hey, that Wrangler I've got, it needs an old change.
- 12:26SPEAKER_01: I need to check, have them check in the check engine.
- 12:29SPEAKER_01: So perfect.
- 12:29SPEAKER_01: I'm gonna set you up in my Jeep store, I'm gonna shoot you a text with my advisor over there.
- 12:34SPEAKER_01: And so I'm gonna do a group chat with me, the customer, and that advisor.
- 12:38SPEAKER_01: Hey, this is my buddy, he's got a Wrangler, he needs an oil change, and he needs a check engine light looked at.
- 12:43SPEAKER_01: Uh, this is my best advisor at Chrysler.
- 12:46SPEAKER_01: We hook him up.
- 12:47SPEAKER_01: And so that chain happens.
- 12:48SPEAKER_01: So then it's family, right?
- 12:50SPEAKER_01: It's the idea of okay, I'm in good hands, I've got their cell phone number, they're gonna get me set up.
- 12:55SPEAKER_01: When they show up, they already know who you are, what's going on, and they say, Oh, hey, Steve, good to see you, man.
- 13:00SPEAKER_01: Check out Wrangler in today.
- 13:02SPEAKER_01: It is that basic and simple.
- 13:04SPEAKER_01: No different than when you get a network referral, that's what happens, right?
- 13:08SPEAKER_01: And that keeps it from falling to the tracks.
- 13:11SPEAKER_03: You know, that's referred to as multiple different things in the industry.
- 13:15SPEAKER_03: You some people call it a soft handoff, some people call it a warm introduction, but it's something to let your team members merge into traffic at the same speed and go, here's where we are with this customer, here's who this customer is, please take it from here instead of starting over.
- 13:33SPEAKER_03: It's we've all been on these, but yesterday I was on an online chat, all right, to try to diagnose an issue that I had going on on my internet motor.
- 13:44SPEAKER_03: And I was on it for 45 minutes as I was working on other things.
- 13:49SPEAKER_03: And every time I got past, when I finally got past AI and I got past the chatbots, and I got to somebody, they kept re-asking me the same questions.
- 13:59SPEAKER_03: And I was what I just typed in there, very nice and professionally, will you please read what's already been discussed above?
- 14:06SPEAKER_03: And this went on and on and on, and they kept asking that.
- 14:10SPEAKER_03: That's not a good handoff to start back over.
- 14:13SPEAKER_03: But if you'll take, what's that take?
- 14:16SPEAKER_03: 30 seconds, 45 seconds, five seconds with with that text and go, Shelby's coming in today.
- 14:22SPEAKER_03: Here's what's been going on with his Jeep, here's what we've done.
- 14:24SPEAKER_03: We're referring him over to there.
- 14:26SPEAKER_03: Please make sure somebody reach out reaches out to him before he gets here, lets him know, hey, Matt's informed me exactly what's going on with your Jeep.
- 14:33SPEAKER_03: We look forward to being able to get you taken care of.
- 14:35SPEAKER_03: I'll see you here at 315 today.
- 14:37SPEAKER_01: You know what I love that takes that, which is better than 80% of people, and take it the extra 15 to 20 percent, is that it gives you an opportunity to promote both your employee and your customer.
- 14:49SPEAKER_01: Generally can give it a little extra adjective and say, service worker Larry, customer Steve.
- 14:57SPEAKER_01: And I say, Hey Steve, this is Larry.
- 15:00SPEAKER_01: Hey Larry, this is Steve.
- 15:01SPEAKER_01: Hey, Steve is one of my really good customers.
- 15:05SPEAKER_01: Please make sure to take care of them.
- 15:07SPEAKER_01: Steve, this is my absolute best service advisor at the CDJR store.
- 15:12SPEAKER_01: Here's what's going on, and I recap quickly.
- 15:14SPEAKER_01: He's got check engine light, needs his oil change and rotate the tires while you're doing it.
- 15:18SPEAKER_01: Larry, if you'll please take care of Steve.
- 15:19SPEAKER_01: Steve, Larry's gonna answer all your questions.
- 15:21SPEAKER_01: And if he doesn't, please get back with me.
- 15:23SPEAKER_01: It sets the tone, like you said, merging in.
- 15:26SPEAKER_01: Hey, we're doing this speed.
- 15:28SPEAKER_01: Here's what's going on.
- 15:29SPEAKER_01: You can trust him to follow you, you can trust him to lead you, and that is so good that that allows it to happen.
- 15:36SPEAKER_01: It pumps up the person on your team to say, he thinks I'm one of the best.
- 15:41SPEAKER_01: It pumps up the customer to think I'm a really good customer.
- 15:44SPEAKER_01: Yep.
- 15:45SPEAKER_01: Right?
- 15:46SPEAKER_01: And it's so easy, it's so basic and simple.
- 15:49SPEAKER_01: And it also says, hey, I'm getting them off my shoe because this not that I want you off my shoe, but this person is more equipped to handle them than I am.
- 15:56SPEAKER_01: And they're not like, oh, hey, they dropped them on me.
- 15:59SPEAKER_01: And at the same time, it allows you to babysit your team to make sure they're responding.
- 16:04SPEAKER_03: It's so, so simple to do, but so few will do it.
- 16:09SPEAKER_03: And I'm not sitting here saying that 100% of our crew doesn't.
- 16:12SPEAKER_03: We're constantly monitoring that, reminding them to do this on a daily basis.
- 16:16SPEAKER_03: It's just so simple to win there on the basics of that, investing a little bit of time for big payoffs later.
- 16:24SPEAKER_03: And we've already talked about this a little bit, but let's let's wrap up this section with talking about why the first servant service visit matters more than the sale itself.
- 16:35SPEAKER_00: I think it really what it's gonna do is it's gonna signal, hey, they're gonna do what they really said they were gonna do, or not, they were just putting me together in the process, like everyone else does.
- 16:47SPEAKER_00: So you have that one opportunity that their wall is still up, but you're able to go over the wall and make a lifelong customer if you do what you say you are going to do.
- 17:00SPEAKER_00: It is darn near impossible to continue on if you fail like they think you're going to.
- 17:06SPEAKER_01: You know, that's a big thing the manufacturers talk about.
- 17:08SPEAKER_01: They say if you can get a person that buys a vehicle back into your store one time, they're 80% more likely to continue to come back to you.
- 17:17SPEAKER_01: And they're just thinking about it for their brand.
- 17:19SPEAKER_01: They want if you bought four, that you come back to four.
- 17:23SPEAKER_01: You know, so there's some sediment and some loyalty to that brand.
- 17:26SPEAKER_01: We want it selfishly to Lewis because we know we can take care of them at a higher level.
- 17:31SPEAKER_01: And so we realize that.
- 17:32SPEAKER_01: And so that's why we take care of your first year of oil changes.
- 17:35SPEAKER_01: That's why we give you the Lewis guarantee to get you, and with the Lewis guarantee, you get that warranty and no cost.
- 17:42SPEAKER_01: And when you come back to us, it has a dissolving deductible.
- 17:45SPEAKER_01: You go somewhere else, you have to pay the deductible.
- 17:47SPEAKER_01: So those are those little things that we do.
- 17:50SPEAKER_01: And so if you get them back the first time, you're 80% more likely to continue to come back, but the stack continues to fall that if they don't come back, how less and less and less loyal or likely they are to come back to that brand of that store.
- 18:03SPEAKER_03: Absolutely.
- 18:04SPEAKER_03: And we revised our old changes, you know, forever we had done the the first the first time.
- 18:10SPEAKER_03: And to get to that 80% number that Shelby's talking about, you got to get in there multiple times.
- 18:16SPEAKER_03: So then they do hit that 80% chance likely to buy from you.
- 18:19SPEAKER_03: In fact, here are the facts here.
- 18:21SPEAKER_03: If somebody returns for one visit, or at one visit, you've got a 27 to 30% chance that they'll return for the second visit.
- 18:30SPEAKER_03: Okay.
- 18:30SPEAKER_03: Okay.
- 18:30SPEAKER_03: If they return for the second visit, that 27% goes to 50%.
- 18:35SPEAKER_01: Okay, so we're compounding.
- 18:37SPEAKER_03: Yes.
- 18:37SPEAKER_03: And after three visits, we get to 62.
- 18:40SPEAKER_03: Okay.
- 18:40SPEAKER_03: So within one year, one year, if we can, that's why our our oil change package says, hey, a year, it's on us because we gain 62% retention.
- 18:51SPEAKER_01: And what was that first uh if they show up the first time?
- 18:54SPEAKER_03: 27 to 30 percent.
- 18:56SPEAKER_01: So you only have 27 to 30 percent if they show up the first time, meaning that if they don't show up at all, there you go.
- 19:02SPEAKER_03: And remind them how much it costs to get the customer in here.
- 19:08SPEAKER_03: Okay, so let me give you some inside trader information, okay?
- 19:11SPEAKER_03: So remember that 900 number that Shelby just told you.
- 19:14SPEAKER_03: And you're like, well, Matt, you're giving away oil changes for a year.
- 19:17SPEAKER_03: Remember 900, okay?
- 19:19SPEAKER_03: Our oil change package that we charge for those three is just a little bit over$100.
- 19:25SPEAKER_03: Let's call it$150.
- 19:27SPEAKER_03: But at a$150 investment here, we turn them into a repeat customer, which does not cost$900 to acquire.
- 19:36SPEAKER_01: So here's the the behind the scene math.
- 19:40SPEAKER_01: If you didn't know that, you can buy a two-year maintenance package from us.
- 19:42SPEAKER_01: That's going to include most likely four oil changes.
- 19:45SPEAKER_01: If it's a diesel, it's two oil changes.
- 19:47SPEAKER_01: That's behind the scenes under the hood.
- 19:49SPEAKER_01: And you can buy that for$150 generally on majority of vehicles that has a dealer cost to us of$300.
- 19:59SPEAKER_01: Now, at that dealer cost, that is true dealer cost.
- 20:02SPEAKER_01: There's see, we always say 50 cents on the dollar.
- 20:05SPEAKER_01: If you walk in today, an oil change, a works package, I think is$129 or$130 for one oil change.
- 20:11SPEAKER_01: Yeah.
- 20:12SPEAKER_01: So if you times that by four, you're gonna be generally close to$500 that you can five hundred dollars for four years or two years or four uh oil changes, or you can buy a maintenance package for$150.
- 20:27SPEAKER_01: You had a customer that changes his own oil, bought a vehicle from us.
- 20:31SPEAKER_03: And they were so they were in the finance department, and I'm like, listen, you need to look at the oil change package, okay?
- 20:36SPEAKER_03: And in fact, I don't know why I'm talking into this because it loses mean money.
- 20:39SPEAKER_03: Okay, I'm paying you to take this.
- 20:41SPEAKER_03: And he sits there and they're going through all the paperwork, and he said, This is less than I can buy the oil and filter for, and it's also better oil and filter.
- 20:52SPEAKER_03: Less and better.
- 20:53SPEAKER_03: Less and better.
- 20:54SPEAKER_03: So I guess the point there is too, is if you're scratching your head out there in business, going, Why are they giving this away?
- 21:00SPEAKER_03: Are we really giving it away?
- 21:02SPEAKER_03: Because we're using it as a retention tool.
- 21:04SPEAKER_03: No, so we don't have to spend$900 to acquire the customer the next time.
- 21:08SPEAKER_00: Because what I'm really hoping for, and a lot of businesses, I think in their mind may not hope this happens.
- 21:14SPEAKER_00: I hope in that first, second, or third opportunity we get whenever we're servicing a customer, a problem happens.
- 21:22SPEAKER_00: And we're able to show how we fix the problem and go forward.
- 21:26SPEAKER_00: Because everyone I think, especially in business, whenever I talk to them now, they're like, man, I hope nothing ever happens.
- 21:32SPEAKER_00: Sure.
- 21:32SPEAKER_00: I hope something doesn't happen, but I know something's going to.
- 21:36SPEAKER_00: And I really want our team to be able to shine and show the difference of hey, whenever that issue happens, not if, but when that issue happens, I'm here to take care of you.
- 21:45SPEAKER_01: If you think about it, like let's forget automotive for a second.
- 21:49SPEAKER_01: If you think about the drinks you drink, you think about all these rewards, people are ate up with rewards.
- 21:57SPEAKER_01: You think about even a credit card that they give you.
- 22:00SPEAKER_01: 3% or 5% cash back.
- 22:02SPEAKER_01: Like, why would they do that?
- 22:04SPEAKER_01: They know that there are so many options of credit cards.
- 22:06SPEAKER_01: And so there has to be some stickiness to stick with them.
- 22:10SPEAKER_01: Same thing as a gas station.
- 22:11SPEAKER_01: They're like, hey, your rewards member, hey, your rewards member, hey, and some people are just wadded up with it.
- 22:16SPEAKER_01: You go to Target and they're like, hey, what's your number?
- 22:19SPEAKER_01: And you're like, oh yeah, I'm earning my points back.
- 22:21SPEAKER_01: They've got you hooked as a customer because they know the cost to get you over to Home Depot versus Lowe's, because you're an orange member or a blue member, they know that's so expensive to acquire.
- 22:31SPEAKER_01: But if they can give you a little bit in return constantly for being a loyal customer, that costs way less.
- 22:37SPEAKER_01: And there's familiarity, it just is dollars and cents.
- 22:41SPEAKER_03: I'm gonna flip to another industry and then we can move on.
- 22:44SPEAKER_03: But just because we we talk just business in here, obviously we talk a lot of automotive.
- 22:48SPEAKER_03: I want to talk restaurant because I was watching a video the other day that made me think about the retention here.
- 22:54SPEAKER_03: Same thing on retention.
- 22:55SPEAKER_03: Do you know on average, if somebody goes to a restaurant, 70% of first timers never return?
- 23:01SPEAKER_03: Wow.
- 23:01SPEAKER_03: So even if somebody's told you about the restaurant, like, hey, I want to go check out this restaurant in town, 70% of people never go back to that restaurant.
- 23:11SPEAKER_03: Never go back.
- 23:11SPEAKER_03: So that means only about 30%.
- 23:13SPEAKER_03: Now, if you get somebody to come back a second time, that goes from 30% to 42.
- 23:20SPEAKER_03: Here's where the big job happens, just like we were talking about in our business.
- 23:23SPEAKER_03: If you get somebody to come to the restaurant for a third time, the retention rate shoots to 70%.
- 23:29SPEAKER_03: So I'm listening to this restaurant owner and he's talking about this.
- 23:33SPEAKER_03: And he talks about, hey, the first time to get somebody in, he might comp them a steak dinner.
- 23:39SPEAKER_03: Yeah.
- 23:39SPEAKER_03: Okay.
- 23:40SPEAKER_03: Now he's got certain color coasters that his waiters put down.
- 23:45SPEAKER_03: So they know to go around.
- 23:46SPEAKER_03: So the manager on duty knows if it's a red coaster that's a first-time guest and they go around and they see that.
- 23:53SPEAKER_03: Then the manager goes back around when it's time for their ticket and gives them the comp for a free cheesecake the next time.
- 24:04SPEAKER_03: Less expensive, gets them back.
- 24:06SPEAKER_03: It then turns to a green coaster the second time.
- 24:10SPEAKER_03: They go around one more time and they get a free ice cream cone or something like that.
- 24:15SPEAKER_03: Like the amount goes down each time, but they had different color coasters.
- 24:19SPEAKER_03: So the entire team knew the game plan to put in place to get people at least there three times.
- 24:25SPEAKER_01: That's super intentional and such a great thing that many people are missing out on to say, hey, wow them on their first time.
- 24:33SPEAKER_01: Make them feel good, make them feel that they earned something extra.
- 24:36SPEAKER_01: Then the second time is like, welcome back, we're so glad to have you.
- 24:39SPEAKER_01: Here's a little bit something more.
- 24:40SPEAKER_01: And the third time is we're so excited that you're still coming here.
- 24:44SPEAKER_01: That's right.
- 24:45SPEAKER_01: Like that, that's so good.
- 24:46SPEAKER_01: And then they start knowing you by name, right?
- 24:48SPEAKER_01: And they're like, oh, okay, we're gonna have the cheesecake again.
- 24:51SPEAKER_01: And then you're like, oh, I like this place.
- 24:53SPEAKER_03: And I think the stat that doesn't even show there, but that's hidden is not just the retention rate of that customer, 70%.
- 25:00SPEAKER_03: You then turn them into a referral machine.
- 25:03SPEAKER_01: Well, yeah, you comp them a uh molten lava cake, there's a pretty good chance you're gonna tell some people about that.
- 25:08SPEAKER_01: Yeah.
- 25:09SPEAKER_01: And that molten lava cake cost them nothing.
- 25:12SPEAKER_03: Three dollars versus however much their acquisition cost was a hive, right?
- 25:16SPEAKER_01: It's a high new restaurants.
- 25:18SPEAKER_01: All right, so let's talk automatically fun fact quiz today.
- 25:21SPEAKER_01: Not a quiz, but just a statement.
- 25:23SPEAKER_01: Uh, the average new car owner keeps their vehicle eight years.
- 25:27SPEAKER_01: Oh, right?
- 25:28SPEAKER_01: Uh do your old change math on that, right?
- 25:31SPEAKER_01: That's up from six years from a decade ago.
- 25:34SPEAKER_01: So 10 years ago would have been uh six years.
- 25:37SPEAKER_01: Every customer you keep is worth more for longer, right?
- 25:42SPEAKER_01: So then you have that opportunity, you're gonna have to make sure you continue to wow that customer.
- 25:47SPEAKER_01: So when they because they'll have more time in between to realize this is still a place I want to take care of.
- 25:52SPEAKER_03: So I think what happens there too, if I had to just guess why that change is, it's just because they're getting more expensive.
- 25:59SPEAKER_03: They're more expensive.
- 26:00SPEAKER_03: Vehicles are more expensive.
- 26:00SPEAKER_01: It's not that people don't want new vehicles, and cars are good and they last longer.
- 26:04SPEAKER_01: They do technologies help that.
- 26:06SPEAKER_01: You know, old long ago, when you used to uh get gas, they checked your oil and they would add oil to it, right?
- 26:12SPEAKER_01: At 100,000 miles, it was done.
- 26:14SPEAKER_01: You toss it.
- 26:15SPEAKER_01: You know, an old RAM, the dash wouldn't make it past a year.
- 26:19SPEAKER_01: She's blown out.
- 26:20SPEAKER_01: Put the carpet on there.
- 26:21SPEAKER_03: Door handles would break off.
- 26:23SPEAKER_03: Do you remember rolling the window down and open?
- 26:25SPEAKER_03: Like you don't see that anymore because the quality is just so much better.
- 26:29SPEAKER_03: If the whole thing was plastic.
- 26:30SPEAKER_00: Yep, so they are more expensive and it's a better product.
- 26:33SPEAKER_00: Yeah, that's good.
- 26:35SPEAKER_00: This, I love this section of it, but the service drive is a real showroom.
- 26:39SPEAKER_00: I think more times than not, we really forget this.
- 26:41SPEAKER_00: And I know a lot of our salespeople forget this, but you think the sales guy has to be the one that has the, you know, the real relationship with the customer because they interact with them more.
- 26:53SPEAKER_00: The truth of it is sales sees a customer once every few years, service sees it in every three to four months, depending on whenever it is.
- 27:02SPEAKER_00: So that handoff has to be so good of me and I took such great care of you, but this is so-and-so in the service department, they're your go-to.
- 27:11SPEAKER_00: If you ever can't get in contact with them, get back a hold of me because I will help get you set up in here.
- 27:17SPEAKER_01: You know, on the flip side, we talk about that, and I don't we still don't spend enough time, but if the frequency is three times as much, and you take that eight year, it's way, you know, it's 24 times as much, 24 times before you sell them a car on based on this average.
- 27:34SPEAKER_01: You have to spend a lot of time, because we've talked about before service advisors has one of the toughest jobs out there because they're dealing with problems and they're dealing with communication.
- 27:42SPEAKER_01: People whine now.
- 27:44SPEAKER_01: You have to spend a lot of time with that service advisor team to make sure they are really good at communication customers, not really good at fixing cars, that's not what they need.
- 27:55SPEAKER_01: The technicians are good at that.
- 27:56SPEAKER_01: Communicating, so the customers are like, hey, this is and it's funny, I was walking through, I spent a lot of time working, walking through all areas, but I was walking through the service advisor area and I saw really good customers of ours.
- 28:08SPEAKER_01: And I was like, hey man, how are you, Kyle?
- 28:11SPEAKER_01: Things going good, and he was like, Yeah.
- 28:12SPEAKER_01: I was like, is Jose taking care of you?
- 28:14SPEAKER_01: You know, that was the open forum to say, I need help with this.
- 28:17SPEAKER_01: If it, you know, generally always say, Yeah, yeah, yeah.
- 28:20SPEAKER_01: And I was like, hey, Jose's one of the best.
- 28:22SPEAKER_01: And I was like, Jose, Kyle's one of our absolute best customers.
- 28:26SPEAKER_01: So you better take care of him.
- 28:27SPEAKER_01: And he's like, uh-huh.
- 28:28SPEAKER_01: And I said, okay, how's the super duty doing out there?
- 28:30SPEAKER_01: And he's like, pretty good.
- 28:31SPEAKER_01: I was like, how many miles you got on and out?
- 28:33SPEAKER_01: He's like, it's only got 48,000.
- 28:35SPEAKER_01: He's like, all right, that thing's good for another million miles, right?
- 28:38SPEAKER_01: Like, before I just say, Hey, you ready to trade?
- 28:40SPEAKER_01: Sure.
- 28:41SPEAKER_01: And I was like, hey, and it was three lanes over.
- 28:43SPEAKER_01: I was like, you might be close to needing some tires.
- 28:45SPEAKER_01: I said, did Jose hit you up with a couple quotes?
- 28:48SPEAKER_01: He's like, he hadn't yet.
- 28:49SPEAKER_01: I said, well, I bet that was next on his pitch.
- 28:51SPEAKER_01: I said, Jose, let's take a look at those.
- 28:52SPEAKER_01: I said, now if I know Kyle well enough, he wants a good tire that's gonna be high quality, ride really well, and last a long time.
- 29:00SPEAKER_01: Now, isn't that majority of customers?
- 29:02SPEAKER_01: Right.
- 29:03SPEAKER_01: And he was like, okay.
- 29:04SPEAKER_01: And I was like, Kyle, do you think you'd be interested in something like that?
- 29:06SPEAKER_01: He's like, Yep.
- 29:08SPEAKER_01: And I was like, all right, so Jose, here's what I need you to do.
- 29:10SPEAKER_01: Give me a good, better, best.
- 29:12SPEAKER_01: Now he's gonna focus on the better of the best.
- 29:14SPEAKER_01: I just know Kyle.
- 29:15SPEAKER_01: And Kyle's right there.
- 29:16SPEAKER_01: He's like, mm-hmm.
- 29:17SPEAKER_01: I was like, he's really gonna like a Michelin.
- 29:20SPEAKER_01: We're not going all terrain, am I right, Kyle?
- 29:22SPEAKER_01: And he's like, mm-hmm.
- 29:23SPEAKER_01: I was like, okay, and make sure you take care of him with my style price.
- 29:26SPEAKER_02: Yeah.
- 29:27SPEAKER_01: He's like, okay.
- 29:29SPEAKER_01: And so then I was like, Kyle, if you're picking it up right now, you go ahead and go on your own.
- 29:33SPEAKER_01: He'll text you or call you and get you those quotes.
- 29:35SPEAKER_01: Is that cool with you?
- 29:36SPEAKER_01: He's like, Yeah.
- 29:37SPEAKER_01: And I'm thinking, man, we should have done that in write up.
- 29:39SPEAKER_01: Absolutely.
- 29:39SPEAKER_01: We should have done that in write-up, so we could already got it done.
- 29:42SPEAKER_01: Because the problem is now he's in research mode, which is better than nothing.
- 29:47SPEAKER_01: Right.
- 29:47SPEAKER_01: But then Jose comes to me a couple days later, he's like, hey, here's what we got.
- 29:50SPEAKER_01: He's looking at discount tire.
- 29:51SPEAKER_01: I said, good news is we got promotion going.
- 29:53SPEAKER_01: We will meet or beat anyone's price.
- 29:55SPEAKER_01: And we got a$180 rebate on tire.
- 29:58SPEAKER_01: So that's going to reduce here.
- 29:59SPEAKER_01: He's like, yeah, but he told me discount tire drive across the way.
- 30:02SPEAKER_01: I said, perfect.
- 30:03SPEAKER_01: Get a quote from discount tire, get an alignment, get a mount.
- 30:06SPEAKER_01: He's like, I did.
- 30:07SPEAKER_01: I was like, okay, well that he's like, well, this, this, and I said, okay, what's the problem?
- 30:10SPEAKER_01: I said, do they have four technicians working on their vehicles?
- 30:13SPEAKER_01: Do they road force balance?
- 30:15SPEAKER_01: Didn't they stand behind this?
- 30:16SPEAKER_01: He's like, no, I was like, okay, well, you should have done that in the write-up, then you wouldn't have this issue.
- 30:21SPEAKER_01: But now this is opportunity.
- 30:23SPEAKER_01: Learn not to sell yourself and sell it.
- 30:26SPEAKER_01: You know, but we have to spend more and more time making sure that our service team is on point.
- 30:32SPEAKER_01: That we don't just say, Do you want dessert?
- 30:34SPEAKER_01: We bring out the tray that Brazilian Straight Callus Taylor, they bring the tray what the desserts look like, and they're like, Yep, their sale rate has to be five times higher.
- 30:43SPEAKER_03: It's a constant reminder.
- 30:45SPEAKER_03: It is, and it's one of those areas, too, that you know, we all have to re-look at the data, including myself, of how much activity happens in service.
- 30:57SPEAKER_03: And when you have that, I mean, you know, we're we're talking about on the busiest month we sell 600 cars.
- 31:04SPEAKER_03: They do 5,000 repair orders.
- 31:07SPEAKER_03: 5,000.
- 31:08SPEAKER_03: So why do I bring that up?
- 31:10SPEAKER_03: Because if you have an area in your business that just has this huge massive pipeline of stuff that's coming in, your employees, even the best of them, will gravitate towards being an order taker.
- 31:26SPEAKER_03: Because it's coming.
- 31:26SPEAKER_03: Check, check, check.
- 31:27SPEAKER_03: I've got four people in front of me.
- 31:29SPEAKER_03: I've just got to get this stuff off my plate.
- 31:31SPEAKER_03: I've got to get them in, get them out, get them checked out.
- 31:33SPEAKER_03: And they think in their mind they're doing well because they're clearing off their to-do list.
- 31:38SPEAKER_03: But they need to slow down to your point there and capture those opportunities while they're here, not after the fact.
- 31:45SPEAKER_03: If you're at a restaurant, you don't offer somebody dessert after you've given them the tab.
- 31:50SPEAKER_03: It's not going to work.
- 31:51SPEAKER_03: It's just not.
- 31:52SPEAKER_01: And it's one of those things to realize that if a customer is keeping their vehicle on an average of eight years, they're going to have to spend some more money in maintenance, and they see value in that because they're going to keep their car.
- 32:02SPEAKER_01: So they want to make sure that they get the recommended maintenance, make sure they have a vehicle that's in alignment and the tires that'll go straight down the road.
- 32:09SPEAKER_01: They see value in that.
- 32:11SPEAKER_00: Yeah, we see this more times than not, but this statement just hits you right in the teeth.
- 32:15SPEAKER_00: A bad service visit erases a great sell every time, no exceptions.
- 32:20SPEAKER_00: We have those people that we go through and we think we kill it in the process.
- 32:24SPEAKER_00: They're raving fans, they're on the red carpet, they leave a good review, and then we boom at the first time in service.
- 32:30SPEAKER_00: Cost you$903.
- 32:32SPEAKER_00: We never see them again.
- 32:33SPEAKER_03: That's right.
- 32:34SPEAKER_03: And we just run it.
- 32:35SPEAKER_03: And it's it's about the details.
- 32:37SPEAKER_03: You and you can take service.
- 32:39SPEAKER_03: You can we talked about this in paperwork.
- 32:41SPEAKER_03: We can do a great job selling them a car, a great job in finance.
- 32:44SPEAKER_03: You know, we mess up on their title and their paperwork.
- 32:47SPEAKER_03: That's the last thing they remember.
- 32:48SPEAKER_03: Yep.
- 32:49SPEAKER_03: Okay.
- 32:50SPEAKER_03: Same thing they come in to get their oil change, even though we're paying for it.
- 32:54SPEAKER_03: If it's not a great experience, that's the thing they remember.
- 32:58SPEAKER_03: They don't remember all the rest of the stuff.
- 33:01SPEAKER_03: So service can in any of the areas, a bad experience can erase all the greatness you've done.
- 33:10SPEAKER_03: Same thing too.
- 33:11SPEAKER_03: I'll talk about repeat customers because we've got customers in businesses that a handoff will happen from generation to generation.
- 33:21SPEAKER_03: Or a buyer in a fleet program, a new one comes in.
- 33:26SPEAKER_03: And just because we did an amazing job with that previous generation or that previous buyer does not mean that we don't have to prove ourselves again to that next generation or that next buyer.
- 33:45SPEAKER_00: But in any good business uh transaction, you've got to click back and forth.
- 33:50SPEAKER_00: There's got to be that y'all work together well.
- 33:53SPEAKER_00: I had a guy that had talked about over the years, um, I'd have helped him out with uh getting a spare tire set up on there.
- 34:00SPEAKER_00: But we'd talked through the years, and you always want to hear this.
- 34:04SPEAKER_00: But he said, you know, I've always tried to buy from y'all, and I have some, but I've missed out on some other opportunities.
- 34:09SPEAKER_00: And we got to talking more about that.
- 34:11SPEAKER_00: And I said, well, tell me where I've missed you.
- 34:13SPEAKER_00: He said, honestly, it hadn't been on price, but in my line of work, it's just finding the right guy that you click with that you know, hey, I can call and say, we're gonna do business.
- 34:24SPEAKER_00: And I said, perfect.
- 34:25SPEAKER_00: Well, we're gonna move forward and we're gonna do it that way.
- 34:28SPEAKER_00: And it's amazing whenever you go from that, you go from fighting price-wise to it was just the relationship.
- 34:35SPEAKER_03: I think back to Shelby's point of he was talking about the handoff that he'll do, whether it's in a text or in person.
- 34:42SPEAKER_03: As a business leader, you've got to have that radar on when somebody new gets in a position or there's a generational that you insert yourself back in and do that handoff again.
- 34:53SPEAKER_03: Yep.
- 34:53SPEAKER_03: Yes.
- 34:53SPEAKER_03: You know what I mean?
- 34:54SPEAKER_03: Hey, XYZ company's been a great customer of ours.
- 34:58SPEAKER_03: Shelby is the new representative there, so on and so forth.
- 35:01SPEAKER_03: And that handoff goes again.
- 35:03SPEAKER_03: Hey, we've done business with their family for forever.
- 35:06SPEAKER_03: This is Taylor.
- 35:07SPEAKER_03: He's now taking that over.
- 35:09SPEAKER_03: Yep.
- 35:09SPEAKER_03: Taylor, let me hook you up with you know, with John here, he's got all the ability to do all the special pricing to make sure we get you the right vehicle and we reduce your downtime as well.
- 35:18SPEAKER_03: Yep.
- 35:19SPEAKER_00: So that that handoff has to come again.
- 35:21SPEAKER_00: It's a full alley up of going through there.
- 35:23SPEAKER_00: And you know, the last part of this, we love doing it, and we're always talking about, we've already talked about maintenance plans, why we do it, but we do other things of our free car washes.
- 35:32SPEAKER_00: We love them for everyone loves a tangible item that makes sense, that gets people back into your place of business.
- 35:39SPEAKER_00: But uh free car washes, uh um, you know, free alignment checks that they can be able to come into that we really dive into.
- 35:47SPEAKER_01: You know, one of the things I I think that a good team does, a good personnel does, is understanding that it's not at every moment, at every corner that there's an upset.
- 36:00SPEAKER_01: It's an education.
- 36:01SPEAKER_01: And so I think that's one of those things that a customer comes in, they do that pre-inspection, they walk around the customer, hey, anything else going on?
- 36:09SPEAKER_01: Read me the miles off of it.
- 36:10SPEAKER_01: Let's take a look at your tires, go ahead and turn.
- 36:13SPEAKER_01: It's a proper write-up, which is doesn't happen all the time.
- 36:17SPEAKER_01: But the process to do that and say, hey, it looks like your tires measure 630 seconds.
- 36:22SPEAKER_01: Metal ones 430 seconds on the majority of tires, some are a little bit less, depending on what kind of tires they are.
- 36:27SPEAKER_01: And say, hey, I'm going to recommend next time you come in, we look at some tire options.
- 36:33SPEAKER_01: But this time you're fine.
- 36:35SPEAKER_01: And so it's one of those things saying, hey, I'm not gonna ask you for the money today, I'm gonna educate you.
- 36:40SPEAKER_01: Absolutely.
- 36:41SPEAKER_01: And they're like, whoo, they could have taken money from me today and told me 630 seconds, you need new tires, right?
- 36:48SPEAKER_01: But then say, hey, look, we're gonna do this, this, and this.
- 36:50SPEAKER_01: Next time around, let's go ahead and be looking at the 60k flush.
- 36:54SPEAKER_01: That's gonna keep your fluids on top, that we're gonna look at the tires, we're gonna look at the alignment.
- 36:58SPEAKER_01: So then they have a little bit of a heads up that we want to take care of them, but we're not gonna just take money at every time they come in here so that they feel like, okay, this is an expert that's could have sold me more, but didn't just educated me.
- 37:11SPEAKER_03: The trust that that builds silently is is just enormous.
- 37:16SPEAKER_03: Yeah.
- 37:16SPEAKER_03: Taylor, you you had a remote mechanic the other day that was gonna go out and do some service work for us on some jet skis.
- 37:25SPEAKER_03: Yep.
- 37:25SPEAKER_03: Okay.
- 37:26SPEAKER_03: And you'd send him out there and you're like, hey, get the fluids changed, get all these things up, ready, rock, and roll.
- 37:31SPEAKER_03: And he and he calls you once he gets up there, and what did he tell you?
- 37:35SPEAKER_00: He said, Hey, you don't need the maintenance on this.
- 37:39SPEAKER_00: Everything is good.
- 37:40SPEAKER_00: And he gave me a timeline, like I love that Shelby just done there.
- 37:43SPEAKER_00: He said, You're good for no no spark plugs, no oil changes, anything else for the rest of the season.
- 37:49SPEAKER_00: He said, But let's go ahead and set a time for in the fall.
- 37:52SPEAKER_00: Whenever you're done, we'll get everything done.
- 37:54SPEAKER_00: But for right now, you don't need to spend the money unless you're just wanting to burn money.
- 37:59SPEAKER_01: And he had already driven out his mobile.
- 38:01SPEAKER_01: Yeah, he had bought the product, he had the filter and the oil and had the plugs.
- 38:05SPEAKER_01: He could have very easily, we weren't there to look at it.
- 38:08SPEAKER_01: Yeah, I but he gained some trust by saying, Your oil's still good, your plugs are still good, I'm not gonna charge you for that.
- 38:14SPEAKER_00: Yep.
- 38:15SPEAKER_03: So now not only is he your go-to guy, what happens if somebody else asks you for a mobile person?
- 38:20SPEAKER_01: Oh, right there.
- 38:21SPEAKER_01: I've got it.
- 38:22SPEAKER_01: And you're gonna say, Hey, what else do you work on?
- 38:24SPEAKER_01: Yes, right.
- 38:24SPEAKER_01: So if you have another problem, like, oh, can you handle this one?
- 38:27SPEAKER_00: Yeah, definitely already teed it up for us.
- 38:29SPEAKER_00: I said, okay, great, end of the year, we're gonna look at X, Y, and Z when I was thinking only I'm gonna look at X because he provided that service.
- 38:37SPEAKER_03: All right, question for each one of y'all.
- 38:39SPEAKER_03: Other than service or sales, how do we retain a customer in our business or in other businesses?
- 38:47SPEAKER_03: So again, think about that.
- 38:50SPEAKER_03: Other than service or sales, how do we retain a customer in our business?
- 38:56SPEAKER_01: You know, one of the fun things when we built these new stores, um, which Taylor talked a little bit about, but that I had to hammer home on creating a new culture of this was our car wash.
- 39:06SPEAKER_01: And when we built it, I negotiated in uh because the car wash is a lease because you didn't want to want it because it was a depreciating item that needs a lot of maintenance.
- 39:15SPEAKER_01: So I negotiated in way more washes than we could ever need.
- 39:20SPEAKER_01: But then I wanted to make sure that the car washes were actually happening because it meant we had to do more, and we hadn't been doing it, so the team wasn't used to it.
- 39:28SPEAKER_01: So I created these car wash club stickers.
- 39:31SPEAKER_01: I copied it from someone else.
- 39:33SPEAKER_01: Uh and so I started offering, so it allowed me to inspect did we offer it and did we wash it?
- 39:38SPEAKER_01: And that's one of those free things of retention that we started doing every single Friday.
- 39:42SPEAKER_01: Now, newsflash, you can come in any day and we'll wash a car.
- 39:45SPEAKER_01: You don't have to pay us a dollar, you don't have to be getting anything done.
- 39:49SPEAKER_01: But where we did car wash Fridays, it was a frequency thing, and we get to bring value.
- 39:53SPEAKER_01: So, hey, if you're driving around, it's a Friday or a Tuesday, come on by.
- 39:57SPEAKER_01: We're doing free car washes and we'll clean your car.
- 39:59SPEAKER_01: And that that's another thing to retain the customer.
- 40:02SPEAKER_01: So they'll let me wash my car whenever.
- 40:04SPEAKER_00: Absolutely.
- 40:05SPEAKER_00: Uh, my go-to is our real deal grassroots, and our grassroots can get so deep of everything that we sponsor.
- 40:11SPEAKER_00: But the other day I had a customer come in off of one of our social posts.
- 40:15SPEAKER_00: She had seen that we were um supporting this group that we had written a blank check for them that we were giving back to that group.
- 40:24SPEAKER_00: And they said, We knew we needed to come here and see you for a vehicle because the fact that you are pouring into this small portion means all the difference of a corporate store that doesn't do it at all.
- 40:38SPEAKER_00: So our grassroots really is where we dive into and actually being boots on the ground as we talk about, instead of just writing the check to make a difference there.
- 40:48SPEAKER_00: That's where I see a whole lot coming back.
- 40:50SPEAKER_00: Oh, that's good.
- 40:51SPEAKER_01: Absolutely.
- 40:52SPEAKER_01: All right, core number three, we're gonna talk about what if you've messed up?
- 40:56SPEAKER_01: What if you have not taken care of that customer?
- 40:58SPEAKER_01: How do you win it back?
- 40:59SPEAKER_01: Recovering customers, you almost lost.
- 41:01SPEAKER_01: The first thing I'm gonna bring up is the complainer, the whiny one, which no one likes.
- 41:08SPEAKER_01: Right?
- 41:08SPEAKER_01: No one wants to hear it, no one likes.
- 41:10SPEAKER_01: But you're saying dang, or you're saying opportunity.
- 41:14SPEAKER_01: The complainer is a gift, the quiet one that just leaves, that's your danger zone.
- 41:20SPEAKER_03: I have to remind myself that statement that you said all the time.
- 41:27SPEAKER_03: And as soon as I take a phone call or I'm talking to a customer that's complaining, because instantly, you know, we'll we are even if we don't say it, want to back, want to be defensive for our business.
- 41:39SPEAKER_03: I mean, it's our livelihood.
- 41:41SPEAKER_03: We're just saying, you know, and I mean I didn't mess up.
- 41:44SPEAKER_03: We did right.
- 41:44SPEAKER_03: I didn't mess up, but then I need to remind myself, like, hey, they're giving me an opportunity to fix this versus the person that, which is me, and most 99 times out of a hundred, I don't complain, I just don't go back and I don't refer people.
- 42:00SPEAKER_03: Um, so the ones that do bring it up, it's like, okay, here is an opportunity to fix this and to make it right.
- 42:09SPEAKER_01: And I think it's important that you don't just fix that situation, you look and say, okay, did our system allow this to fail?
- 42:17SPEAKER_01: Did our process not cover this?
- 42:20SPEAKER_01: Let's change it.
- 42:21SPEAKER_01: Like, it's okay if you mess up once, but if you waste that opportunity and you just handle that one customer, you're like, oh my gosh, another complaining customer, but you don't change anything in your process or your communication or how we deliver what we said we were going to deliver, then you just either don't care or you just like being kicked in the teeth.
- 42:41SPEAKER_01: Or do you like spending$903 to acquire a new car?
- 42:44SPEAKER_03: To acquire another one.
- 42:45SPEAKER_03: Uh, there's there's usually an underlying issue.
- 42:48SPEAKER_03: You need to have some people close enough around you that will be brutally honest with you to fix things.
- 42:55SPEAKER_03: I I've got a couple business owners here locally, and one of them I was talking to last week and the other one was the week before.
- 43:00SPEAKER_03: We we're just always talking about each other's businesses, and we'll we'll tell each other like when there's an issue.
- 43:07SPEAKER_03: Like, hey, here's an issue.
- 43:09SPEAKER_03: And then each of us will chuckle because it's usually a people issue, an employee issue.
- 43:15SPEAKER_03: And the reason we laugh is not that the situation happened, but because they're dealing with the same thing in their industry.
- 43:21SPEAKER_03: They're like, hey, I know I deal with people too.
- 43:24SPEAKER_03: I just my reception is just left or whatever it may be.
- 43:27SPEAKER_03: Yeah, but we can walk through on like, hey, here's how I would fix that, or here's what I see from an outside looking.
- 43:33SPEAKER_03: I know you can fix that one issue that they forgot to call me about X, Y, and Z, but here's what I really see.
- 43:38SPEAKER_03: That's good.
- 43:39SPEAKER_03: That's really healthy and helps.
- 43:41SPEAKER_03: If it does.
- 43:42SPEAKER_01: Yeah, and as we talked about, a botch repair or a missed expectation is generally the opportunity to become a raving saint.
- 43:51SPEAKER_00: So that's my favorite to dive into.
- 43:54SPEAKER_00: That this is no different than if like you think about a race that you're in hurdles or you're something else, and you straight Fell down.
- 44:01SPEAKER_00: But people remember it because you come on strong at the end of, hey, what happened whenever you fell down?
- 44:08SPEAKER_00: My team failed.
- 44:09SPEAKER_00: My team lets you down.
- 44:10SPEAKER_00: We did wrong here.
- 44:11SPEAKER_00: Do you own up to it?
- 44:12SPEAKER_00: Do you make it right?
- 44:14SPEAKER_00: Do you make sure it's a teaching-learning moment in how you handle the situation?
- 44:19SPEAKER_00: It's not, hey, I'm I'm cussing out my sales staff or anything else or humiliating them.
- 44:26SPEAKER_00: No, are you handling it correctly to teach them and to bring them up?
- 44:30SPEAKER_00: And then are you taking care of the customer?
- 44:32SPEAKER_00: If you do it correctly, you do a U-turn that's so so good that is remembered and creates a raving fan.
- 44:40SPEAKER_01: One of the best things you talk about there that goes one step further is including all parties.
- 44:48SPEAKER_01: You know, so if someone's messed up in the situation of botching that communication or botching the expectations, that's my best way of not hollering or screaming at anyone is by saying, hey, let's all get together.
- 45:01SPEAKER_01: And now at this point, you're the one talking, you're the one actually doing all the work for your side of the team, but you're very clearly giving proper expectations of timeline and work to be performed.
- 45:14SPEAKER_01: And we messed up, and now we're going to go above and beyond and do more than you asked for, but the whole team's involved.
- 45:20SPEAKER_01: Because what happens is you're going to do that anyways.
- 45:23SPEAKER_01: They just didn't have to deal with the customer and their upsetness and their disappointment.
- 45:29SPEAKER_01: And so you're going to involve everyone, and then afterwards, you're going to recap and say, Hey, can you see how we maybe could have and should have prevented that?
- 45:37SPEAKER_01: Do you see how we need to be clear in our expectations?
- 45:40SPEAKER_01: So then everyone is on the same page.
- 45:42SPEAKER_01: It's no different than that soft handoff.
- 45:44SPEAKER_01: We're going to do that handoff again.
- 45:46SPEAKER_01: Hey, it's us in a group text again.
- 45:48SPEAKER_01: Here's what we're going to do.
- 45:49SPEAKER_01: Steve and Larry.
- 45:49SPEAKER_01: Larry understands Steve.
- 45:50SPEAKER_01: Steve understands Larry.
- 45:51SPEAKER_01: Here's what we're going to do.
- 45:52SPEAKER_01: Here's how we messed up.
- 45:53SPEAKER_01: I apologize.
- 45:54SPEAKER_01: We're coming to pick up your vehicle.
- 45:56SPEAKER_01: We're going to do everything.
- 45:57SPEAKER_01: And by the way, we're also going to wash it and deliver it back to you.
- 46:00SPEAKER_01: I know you didn't ask for that, but we messed up.
- 46:02SPEAKER_01: We're going to take care of it.
- 46:03SPEAKER_01: But you involve everyone.
- 46:05SPEAKER_01: Otherwise, you're just in the background fixing and they think they're doing great.
- 46:07SPEAKER_01: And it's not happening.
- 46:09SPEAKER_01: Yeah, they punch you out at five and they're like, yeah, good.
- 46:10SPEAKER_01: And you're in the back, just like, whoa, just getting hammered.
- 46:13SPEAKER_03: And they'll just keep keep doing it.
- 46:15SPEAKER_03: They'll just do it.
- 46:16SPEAKER_03: No, that takes extra time, but it saves time in the future.
- 46:20SPEAKER_01: Yeah.
- 46:20SPEAKER_01: Yeah.
- 46:21SPEAKER_01: Yeah.
- 46:21SPEAKER_01: That's that's how you recover from that.
- 46:23SPEAKER_01: So the recovery playbook, you have to have understand, okay, when problems arrive, when there's an issue, how do you recover?
- 46:29SPEAKER_01: You gotta own it super fast.
- 46:31SPEAKER_01: Yep.
- 46:31SPEAKER_01: Super fast because they are still on the possibility of being one of your customers.
- 46:37SPEAKER_01: Yep.
- 46:37SPEAKER_01: Longer you let it faster, it will not die down.
- 46:40SPEAKER_01: It just becomes more of a problem, whether allowed.
- 46:43SPEAKER_01: Fix it bigger and overly deliver on what's expected.
- 46:48SPEAKER_01: And then follow up after the fact hey, I apologize, we messed up.
- 46:52SPEAKER_01: Now, in the things that we corrected, did everything go well?
- 46:55SPEAKER_01: And is there anything else we could have done?
- 46:57SPEAKER_03: That's such good advice.
- 46:59SPEAKER_03: Where most people fail is on the first piece.
- 47:03SPEAKER_03: Instead of owning it, they get defensive and they're like, no, no, no, I didn't do that, I didn't do that, blah, blah, blah, blah.
- 47:08SPEAKER_03: No way, it was our fault.
- 47:09SPEAKER_03: Whether it was your fault or not, just own it.
- 47:11SPEAKER_03: Apologize.
- 47:13SPEAKER_01: That's this that's the hardest thing.
- 47:15SPEAKER_01: We talk about it all the time.
- 47:17SPEAKER_01: The say, hey, I apologize.
- 47:18SPEAKER_01: That was my fault.
- 47:20SPEAKER_01: And some people just aren't wired that way.
- 47:22SPEAKER_01: Some people in service are like, no, no, no, there's a TSB, da da da.
- 47:25SPEAKER_01: It's like, you didn't even look at my car.
- 47:28SPEAKER_01: You didn't even realize I rode in a bike, and I'm telling you about my car.
- 47:31SPEAKER_02: Yeah.
- 47:31SPEAKER_01: And they're like, no, no, no, no, no, we can't do that.
- 47:33SPEAKER_01: We can't warrant you that we talked about one this morning.
- 47:36SPEAKER_01: And we're like, no, we did all that work on that vehicle.
- 47:39SPEAKER_02: Yeah.
- 47:40SPEAKER_01: Yes, we stand behind it, and it's like, oh my.
- 47:43SPEAKER_01: And it's like, no, it's a reminder.
- 47:45SPEAKER_01: These are people, just like machines, we uh we all have days and we have to be reminded, let's at least care.
- 47:51SPEAKER_01: Let's at least acknowledge they're human, they trust us.
- 47:55SPEAKER_01: We spent a good amount of money to acquire this customer.
- 47:57SPEAKER_01: They don't know it's like us and trust us, but we're on the teeter based on what we say.
- 48:02SPEAKER_02: That's so good.
- 48:03SPEAKER_01: That's so tricky.
- 48:04SPEAKER_01: All right, and the last piece when win back is worth it versus letting the customer move.
- 48:11SPEAKER_03: Win back is worth it when you have listened to the customer, everybody's calmed down, we've got it out, we've had a good resolution, and we continue to move forward.
- 48:26SPEAKER_03: When you let the customer move on, it's when you've taken the time, unpacked it, gone above and beyond, went and picked up their vehicle, got it back, sent it back to them, and then you get a call again the next day, and then they're one loss of wages, and they're one this and they're one that.
- 48:43SPEAKER_03: It's okay.
- 48:44SPEAKER_03: We went above and beyond.
- 48:46SPEAKER_03: We followed up, we admitted to the issue, we we fixed it, so on and so forth.
- 48:51SPEAKER_03: It wasn't even our issue, but we took it on the chin for the long-term gain.
- 48:56SPEAKER_03: We now see that this person is just after to get things paid.
- 49:01SPEAKER_03: Yep.
- 49:02SPEAKER_00: Yep, that's all the big thing.
- 49:04SPEAKER_00: Okay, a couple of quick questions for y'all here.
- 49:07SPEAKER_00: Uh, Matt, what's the single biggest retention mistake you see businesses make?
- 49:12SPEAKER_00: Not car dealership necessarily related, just business in general.
- 49:17SPEAKER_03: When people make decisions to not cover an expense due to principle.
- 49:27SPEAKER_03: Oh, yeah.
- 49:28SPEAKER_03: So many people will not cover a$25 item or a$50 item or comp something because of principle that they know that they're right.
- 49:38SPEAKER_01: Let me give you facts.
- 49:39SPEAKER_01: I just saw this, I haven't even fact-checked it, but it's got to be real because it was on the internet.
- 49:43SPEAKER_01: There was a 15-year Ford employee that I saw who was diabetic and had a low sugar or something, something insulin or something.
- 49:54SPEAKER_01: Insulin sensitivity issue.
- 49:56SPEAKER_01: Went to their break room and they have a no tolerance process, right?
- 50:02SPEAKER_01: Had a low sugar issue, needed some sugar, went and got a cookie, and they apparently have some AI checkout, da da da.
- 50:09SPEAKER_01: He paid for the cookie, but the AI system flagged it and said this person didn't pay.
- 50:14SPEAKER_01: Because they have no tolerance.
- 50:15SPEAKER_01: This guy who's been a 15-year Ford employee on the line, they fired him, and later they found out that he actually did pay for it to the AI system.
- 50:25SPEAKER_01: Uh they offered him$29,000 and lost wages, and he said, No, they've lost my trust.
- 50:32SPEAKER_01: I'll get a job somewhere else.
- 50:34SPEAKER_01: So they made a decision based on principle.
- 50:37SPEAKER_01: Now, do they have to have policies?
- 50:38SPEAKER_01: Yeah, but fact-check it real quick.
- 50:40SPEAKER_01: This is a 15-year loyal employee.
- 50:42SPEAKER_03: Yeah, AI brought it to your attention.
- 50:45SPEAKER_01: Take five minutes.
- 50:46SPEAKER_01: Watch the camera.
- 50:47SPEAKER_03: Watch the camera and then make your decision.
- 50:50SPEAKER_01: They fired him over a dollar and twenty-nine cents for a cookie who had who had insulin sensitivity in the air.
- 50:56SPEAKER_03: So those younger whippers snappers coming in and telling you.
- 50:58SPEAKER_03: We we see entrepreneurs doing this, and some of us we've known of local business owners here.
- 51:03SPEAKER_03: And you may be listening to podcasts right now that would not cover an expense because of principle, and they end up losing the customer for the next decades.
- 51:18SPEAKER_03: Decades because they wanted to be right.
- 51:21SPEAKER_03: And it goes back to that old saying lose the battle to win the war.
- 51:26SPEAKER_03: They were winning the battle, but lost the war.
- 51:30SPEAKER_00: Yeah, that's really big.
- 51:32SPEAKER_00: Uh Shelby, is there ever a customer who isn't worth keeping?
- 51:36SPEAKER_01: Yes.
- 51:37SPEAKER_01: But it's only after you vetted the situation and emotions are not important.
- 51:43SPEAKER_01: Right?
- 51:43SPEAKER_01: You vetted the situation and realize, hey, we can't win no matter what we do.
- 51:48SPEAKER_01: We've fixed the issue, we've fixed some other issues that weren't our issues.
- 51:52SPEAKER_01: Even if we take responsibility, we look into it.
- 51:54SPEAKER_01: This is already had happened, this was already an issue, this vehicle already had damage, this customer is just looking for a free handout.
- 52:03SPEAKER_01: We've gone above and beyond, we actually did this, we've done that.
- 52:07SPEAKER_01: Um, and we can see in the system that they've been to other places and they've already been kicked to the curb.
- 52:14SPEAKER_01: Yeah.
- 52:14SPEAKER_01: Uh, then you can, with not having emotions involved, which is not at the time of communication with that person, say, hey, it's best that we get them a referral.
- 52:25SPEAKER_01: And you're gonna you're gonna fire them nicely with solutions and say, hey, we don't team up well together, and I apologize.
- 52:33SPEAKER_01: That's completely on me.
- 52:34SPEAKER_01: That has nothing to do with you, right?
- 52:37SPEAKER_01: It's me, not you.
- 52:38SPEAKER_01: But here are some companies that I think work very well for you, and this one and this one are ones that you can work with.
- 52:45SPEAKER_01: And so they're not like, you know, how are they gonna leave a bad Google review about that?
- 52:48SPEAKER_01: They're not going to, right?
- 52:49SPEAKER_01: So that's just one of those things.
- 52:50SPEAKER_01: But yes, they're customers that aren't worth because if you keep a morale, it's not, it's not gonna have good morale for your team.
- 52:56SPEAKER_01: They're like, oh, here comes Jerry, here comes Linda, right?
- 53:00SPEAKER_01: Uh, and then they'd be like, Oh, what are they gonna want for you this time?
- 53:03SPEAKER_01: And they're gonna be looking for the hot coffee or the wet floor to slip on this time, right?
- 53:07SPEAKER_01: And that's not good for your team.
- 53:09SPEAKER_01: That's good.
- 53:10SPEAKER_00: No, it's not.
- 53:10SPEAKER_00: Hey, great episode today, diving into all of the things that it takes to keep and retain a customer and why it's well worth it.
- 53:20SPEAKER_00: Um, dive into this episode, episode 92, and all the previous episodes we have.
- 53:25SPEAKER_00: Always remember to check us out at LewisSuperstore.com for the thousand plus vehicles on the ground and crossroads conversation podcast for the 92 plus episodes.
- 53:34SPEAKER_03: Hey, thanks for joining us today, and we hope you enjoyed this episode.
- 53:37SPEAKER_03: Make sure to give it a like, share it with your friends and family, visit our website, and send us some questions.
- 53:42SPEAKER_03: We want to know what you'd like to hear, who you'd like to hear from, and what you want to see, or maybe even some questions for us to answer about either the automotive industry or just business in general.