So many times I see auto repair shop owners attempting to create a referral program so that they can increase their car counts, but they fall flat because of their offers and rewards.
The typical customer referral at auto repair shops offer discounts. As an example, a typical referral offer states that the customers who send a referral will get a discount off their next service. The offer to the new customer is pretty much the same. The offer goes something like "Get 10% off your next auto service".
Ask yourself, "Would you refer your family and friends for that?" Do you think your customers often wonder or ask themselves how they will ever know if they really got that discount? When it comes to your new customer, how do they even know if your pricing is competitive? You may be giving me a discount off an already inflated price!
Does that sound a lot like your existing customer referral program? To quote Dr. Phil, I have to ask "How's that working for you?".
Look, I know that you're obviously an honest and hard working shop owner and you're doing your best to grow your business and increase your car counts. But you simply are not going to attract new customer referrals without a solid campaign that offers real rewards and benefits.
Take Your Customer Rewards OUTSIDE of Your Business:
Make your rewards something that people want. It doesn't have to be expensive. After all, you're in business to make money, right?
But simple gift cards like $5 or $10 coffee shop cards go a long way to getting your customers to send you referrals.
If you really want to create a bigger program, create a contest around referrals. How many people would compete to get a chance to win a new Bar-B-Q? How about a new Flat Screen TV? What about tickets to an event or concert? You could even use simple 'Dinner for Two' certificates at good restaurants in your area.
The key here is that the reward is not about YOU and YOUR business. The reward has real value outside of your business and people will compete to get that.
Make Your New Customer Offer Clear:
Like I said, giving your new customer (being referred to you) a 10% discount off what they may be thinking is an already inflated price isn't going to get you many referrals. Your offer has to be clear. Your offer must answer the question "What am I getting?". Remember, customers listing to that radio station, WIFM (What's in It For Me?)
Consider clear offers like;
- Get Your Next Oil Change for $7.99
- FREE A/C Inspection
- Get FREE Unlimited Fluid Fills with Every Oil Change
- Create offers tied to Holidays - Buy 'This' and Get 'That'
Don't be afraid to 'test' offers. Because printing is dirt cheap, you can create customer referral cards with different offers. Besides, there isn't anyone on the planet that can tell you what offer is going to work best in your market.
When you're putting together your customer referral program, remember that you're not trying to attract a customer to get a sale; You're trying to get the sale to attract a customer! There is a difference!
You can get a lot more customer referrals for your auto service shop and really drive up car counts when you avoid these huge mistakes. Keep your customer rewards OUTSIDE of your business, no matter what the value and make clear offers to your new customers!
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