Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Tue Jul 31, 2007 8:49 pm Post subject: Client Satisfaction? Who Is The Competition?
A shop tempted to see a lack of complaints, as client satisfaction, may not realize the full range of alternatives that exist. Being as good or perhaps better than the guy down the street means little. Believing further improvement is unwarranted, as in “good is good enough,” is a very dangerous assumption.
Competition is always present for the services a business offers. Competition comes in traditional and less considered form. For example, a repair shop competes not only with other businesses offering auto repair, but other options a person has.
A client’s options include, but are not limited to:
1.) Not repairing the vehicle at all
2.) Buying a new vehicle
3.) Buying a newer vehicle
4.) Fixing it themselves and so on.
To be chosen, service must represent a better option than the client’s alternatives.
From this perspective a client is loss whenever one of their other alternatives offers more value than auto repair. Price is the deciding factor; Many shops generally accept this. Not totally false, but price relative to perceived value is more accurate.
Average repair invoices might be a good indicator of how clients see a shop as an alternative. More confidence should result in higher average invoices. This due to confidence that the repair is a better alternative to the other options. Two to three hundred dollar averages indicates one level, six to seven hundred dollar averages another.
I feel huge amounts of business are needlessly being loss due to lack of client confidence. A shop that competes only with the business down the street does so at their own peril. A lack of client complaints does not indicate client satisfaction. Continued growth and reasonable profit will always be the indicators.
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Tue Jul 31, 2007 10:45 pm Post subject:
Some place I read that only 1 in 25 people will complain, the rest will just go someplace else. If these numbers are true, we could potentially loose 96% of our business before someone gives us a clue, by complaining.
Another article stated that the person that complains is offering the business a second chance. Treat that person well, address their concerns, empathize with them, admit fault if needed, and fix the problem. Some of a shops best clients may have started out as complainers. Because these people were treated well when a problem arose, they now trust the company. A hand shake (trust) is worth more than an army of lawyers (and legal contracts).
I think that one of the marks of a good business is not how they treat you when things go well, but how they treat you when things go wrong. Many places will smile, shake your hand, and be glad to take your money. But, just wait until there is a problem, then the story changes, the smiles are gone, the problem is someone elses besides theirs, they become masters at dodging the issue.
A lot of things can contribute to or detract from customer confidence. I think trust is the biggest issue. What can we do to raise that trust level?
A shop needs to educate their clients about why they are the best alternative. On the other hand, if the shop is not the best alternative, explain why. Remember it is the clients money and their vehicle, give them the information they need, so they can make an informed decision.
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Wed Aug 01, 2007 7:38 pm Post subject:
Hi Dave,
Dave wrote:
Some place I read that only 1 in 25 people will complain, the rest will just go someplace else. If these numbers are true, we could potentially loose 96% of our business before someone gives us a clue, by complaining.
I have read several different figures, but they all agree the number that complain is small. My thought is, the opposite of a complaint is not satisfaction. It is the lack of a complaint. To me this seems a very neutral position.
I didn't complain when I bought my first 8086 computer, because it was faster than my old Apple II. When I got a 286 the old one would no longer do. The same with the 386, Pentium, I, II, III and so on.
People do not ask for better because they don't know what better is, until they see it. At that point all is loss. I feel we need to innovate, dream up solutions to problems people do not yet realize they have.
Dave wrote:
Another article stated that the person that complains is offering the business a second chance. Treat that person well, address their concerns, empathize with them, admit fault if needed, and fix the problem. Some of a shops best clients may have started out as complainers. Because these people were treated well when a problem arose, they now trust the company. A hand shake (trust) is worth more than an army of lawyers (and legal contracts).
I think that one of the marks of a good business is not how they treat you when things go well, but how they treat you when things go wrong. Many places will smile, shake your hand, and be glad to take your money. But, just wait until there is a problem, then the story changes, the smiles are gone, the problem is someone elses besides theirs, they become masters at dodging the issue.
A great recovery is always a plus and as you say, so much less expensive than the alternatives. I think the best companies invite complaints, make it as easy as possible for folks to complain.
A great company may have as many complaints as a good company. I believe the nature of the complaints will be different. The better a company may be, the more trivial the complaints.
A poor company may have complaints of bolts left loose, etc.
A good company may have, you fixed the car but it's doing it again.
A great company may have, there was a dirty thumb print on my brake drum backing plate.
Dave wrote:
A lot of things can contribute to or detract from customer confidence. I think trust is the biggest issue. What can we do to raise that trust level?
You are a very smart man! Trust is a natural result of acting in a trustworthy manner. There are also many thing that can help.
1.) Bringing worn parts out to show damage without being asked.
2.) Fluid samples and test results.
3.) Fair pricing on parts, inviting clients to compare pricing.
4.) An absolutely no pressure sales approach. "Please have your husband [boyfriend, neighbor, mechanic] stop by, I would love to show them what's wrong.]
5.) Inviting clients into the shop and having the technician tell them the exact same story that you just told [communications]
6.) Credibility, client testimonials, reputation, etc.
Dave wrote:
A shop needs to educate their clients about why they are the best alternative. On the other hand, if the shop is not the best alternative, explain why. Remember it is the clients money and their vehicle, give them the information they need, so they can make an informed decision.
Dave
"Remember it is the clients money and their vehicle, givesell them the information they need, so they can make an informed decision."
What we sell is trustworthy information, it is one of our most valuable assets. Thanks Dave, I very much appreciate the input.
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