Stop! Put down that pen. Don't sign off on another new item for
your business until you have accomplished a key element to increase
sales - meeting customer needs! In the last few articles we have
talked about micro marketing and integrating your message through
every aspect of your powersports dealership. Both strategies are
essential to success yet both rely on a basic building block, that
is, knowing your customer needs. The biggest advertising budget in
the world is worthless if a owner doesn't really know his customer
and his highest level of need. The successful business today, one
who is experiencing the joy of increased sales, is the one who knows
the customer, the need and then creates and integrates programs that
address that need.
Far too many businesses make the mistake of offering programs
that may approach the customer well up front but really do nothing
to satisfy the needs and offer solutions. What's the point of
rewarding your customer with a handy dandy seven-function clock
radio when her real need is to buy one more pair of jeans for her
rapidly growing son? That's just what a large retail store has done
with its program that awards future discounts for customers who
purchase frequently in the children's clothing department. Under the
program, customers' purchases are tracked in a point of sale
computer database until their purchase total reaches a certain
amount. At that point, the customer is rewarded with a percentage
discount on the next purchase. The amount of the discount is
proportionate to the level of purchases accumulated. Result?
Customers are given incentive to buy and save, instead of receiving
yet another radio to find a plug in for! Tracking research has shown
that when customer redeemed their savings discounts, they were
spending more money in the children's department than they had spent
prior to implementation of the program. Challenge yourself to really
meet a customer's need and reward yourself with increased sales!
DISCOVER THE PRIMARY CONSIDERATIONS
Before implementing any promotion or program however, we need to
make sure we can effectively and tangibly meet the need. To do that,
we must identify key considerations or the highest level of need.
For example, the department store was able to define that people who
buy children's clothing want value pricing, item popularity, brand
selection and durability. Are you able to identify the highest
levels of need for your CDM (Central Demographic Model) or in other
words, the customers who have the greatest need for your products
and or services? Typically, customers don't replace or upgrade a
big-ticket item like a speedboat every six months; more likely, a
high level of need will exist in the area of service. Do you know
what it is your customers need and want in service? Is it free pick
up and delivery? Is it on-site service within a certain mile radius?
A regular service check every six months or every 2,500 miles for
the first year after purchase? After identifying and studying the
CDM for an upscale car manufacturer, I helped him improve his
service and increase sales. We implemented the following programs
that satisfied customer needs:
* Free maintenance service for twenty-four months built into the
sticker price as standard equipment.
* Regular maintenance service at 2,500-mile intervals at the
customer's convenience. The customer called the dealership to
request service. A service technician logged the order, arranged to
pick up the car at the customer's home in the evening after work.
The vehicle was then serviced and back in the customer's garage
before leaving for work the next morning.
Simple solutions that meet customer needs and increase sales.
What customer wouldn't love to know his vehicle would be serviced
while he slept and that it would be back in his driveway before the
sun comes up? Can you imagine how sales might increase in the
business where a pre-season and post-season check up were provided
as a bonus with the purchase of a mountain bike? AND… you picked up
and delivered their bike after service! Consider offering a future
purchase savings bonus for customer referrals. For example, if one
of your customers refers another customer to you and a sale is
completed, your original customer receives a special thank you card
in the mail rewarding him with bonus points towards the purchase of
accessory items. Remember, when it comes to customer satisfaction
the key is not to just meet the need, rather to exceed expectations!
MAKE IT TANGIBLE!
It doesn't matter what business you may be in, the target is to
narrow down your CDM, identify the highest levels of need and then
meet and exceed the need. Just make sure the program you use to
accomplish that can be seen in the minds of your customers and then
be tangible. A freebie mini-clock radio just doesn't fit the bill. I
know of a couple whom recently purchased a family mini-van at an
upscale dealership. Not able to purchase a brand new vehicle at the
time, they opted for a pre-owned model. Their greatest level of need
was not a new van, but for a more moderately priced one with the
assurance that repair costs would be minimal. The dealership offers
a warranty program that guarantees for the first six months of
ownership, they pay 50% of any service and repairs. As a result, the
couple ended up buying another vehicle at the same time! Meet the
need - increase sales! Thom Winninger
http://www.winninger.com