12-21-2016, Mobile Electronics -- There are plenty of marketing campaigns and techniques designed to attract new customers. But once those customers arrive, make their purchase and leave, how can they be enticed to return?

A first impression is the beginning of everything and the first step in customer retention. Upon entering a store, everything that’s seen is compiled in the mind to create the customer’s first impression—shop presentation, initial interaction with sales staff, whether the customer’s needs are anticipated and more.

Marcel Newell, founder of retail design company, AVIDWORX, noted the importance of the first impression as well as “putting forward a professional appearance and backing it up with friendly and professional customer service. You need to win that customer’s trust to make the first sale,” he said. After that, their trust has to be retained, so by the time the customer leaves the store, they have enjoyed their experience and have fond memories. Boosting customer retention means considering a number of different factors and applying logical techniques that keep customers coming back.

Method 1: Shop Presentation

Upon entering the shop, the visitor formulates a first impression based on what they see and whether or not they are greeted in a friendly manner. Jon Kowanetz of Handcrafted Car Audio in Chandler, Ariz. has been in the industry for 19 years. He stressed the importance of authenticity and being genuine with customers. “I think the biggest thing I’ve learned that relates to customer retention is authenticity. Honesty and integrity, doing what you say you’re going to do, do your best work, and always be pushing the limits,” he said.

How the shop looks—whether it’s cluttered or clean, for example—will stick in the customer’s mind. The first impression is the basis for everything that follows. “If anything goes wrong, and it sometimes will when you’re dealing with cars and technology, a happy customer is a lot more likely to give you the benefit of the doubt and a fair chance to make things right,” Newell said. “In fact, most studies show that it’s not the mistakes that matter to customers, it’s the way you handle them.”

With more than a few buying options to choose from, it’s important to make the customer want to come back by giving them a positive shopping experience, according to Newell. Interactions with customers give salespeople a chance to showcase the benefits of other products. “They may not buy today, but you’ll have given the customer something to think about and a reason to come back.”

Method 2: Forge Connections

Ensuring the customer knows how much you care is an essential aspect of boosting customer retention. Newell recommends checking in with customers who’ve made purchases. Ask them how things are going and whether they’re enjoying the product. Also inquire about their shopping experience. Was it positive? Do they feel any aspect of their experience could’ve been better?

“Post-sale, you absolutely need to keep in touch,” Newell advised, stating that an initial email should be sent to thank the customer, along with any information regarding warranties. Included in that first email should be an invitation to take a survey.

“The survey is another way to intercept unhappy customers before they do anything else that could hurt your reputation, as well as a good way to recognize the efforts of your staff,” he explained.

“After that first email, you need to send them regular emails from your store, at least once a month. Let them know about upcoming sales and promotions, new products, and the advantages of the other technology and products that you sell.”

If something negative occurs, it’s important to see what can be done to fix the issue. “We do recommend calling back customers, especially the bigger ticket customers that have more invested financially and emotionally in your products and installations,” Newell said. And if there’s a problem, fix it right away. “Customers are more loyal to the business that go the extra mile to fix things than they are to the businesses that don’t make mistakes.”

Anything that needs to be rectified should be taken care of as soon as possible. Due to the many outlets for sharing concerns and reviews on the Internet, it doesn’t take much for a customer to post and share their disappointments. “They have Yelp, they have Google, and they can have a huge amount of influence on others,” Newell said of unsatisfied consumers. “It takes years to build a good reputation, but a few unhappy customers can destroy it overnight.”

Kowanetz advised shops to do what they can to stay in front of people and keep them coming back. “We’ll do car, bike, and truck shows and invite all our past customers to check out our work,” he said. “We have special deals on those days and manufacturer demos. We find the bulk of our clients are enthusiasts, so they’re not getting it because they need it, but because they enjoy it. They like being kept in the loop on new things and we keep them part of the community and coming to our events.”

Collect customers’ email addresses and send them a newsletter. Hosting an event can be a great way to thank customers and encourage them to come back to take part in vehicle demos or for a chance to win a prize. When a shop is able to successfully demonstrate how much they care, the customer forms a happy memory and is more likely to return.  

Newell also advised owners and managers to ensure employees are consistent when picking up the phone. “Use a standard greeting like, ‘Thanks for choosing King Audio, the leader in mobile electronics. This is Marcel speaking, how can I help you today?’ It makes your customer interactions more professional.”

This also sets the stage for positioning the brand, another essential aspect of customer retention.

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12-14-2016, Mobile Electronics -- As the mobile electronics industry evolves, 12-volt manufacturers and retailers are constantly addressing the product categories that are most effective, those that are underperforming, and most importantly, the ones which represent where the business is headed.

None of that is lost on Bob Goodman, Director of Sales and Marketing, for Torrance, Calif.-based Rydeen Mobile Electronics, an aftermarket manufacturer that counts vehicle safety and convenience products among its core competencies.

“One of the challenges the 12-volt industry is facing is that we’re getting away from speakers and amplifiers, something we’ve been doing for 40-plus years,” Goodman said. “These days, the challenges of driver safety are becoming far more critical. If you make a mistake on the road or while driving, you could lose lives. If someone’s radio doesn’t work correctly, no one dies. It’s important that we get this right the first time—not the second time.”

Goodman, who considers himself an ambassador of sorts for the vehicle safety category, is trying to get the word out about its importance—not just to retailers, but to the industry as a whole. He may have more of a chance to do that, now that he’s been recently elected to the Vehicle Technology Division board of the Consumer Technology Association (CTA). Its key initiatives are to raise consumer awareness of automotive technologies and installation, and to serve as a leading voice on safe driving and vehicle-related legislative and regulatory issues.

“The challenge for us as a manufacturer is to create awareness within the category,” Goodman said. “The 12-volt retailers have not globally embraced this category, but they are starting to get it.”

In 2015, more than 38,000 people died in motor vehicle crashes, according to the National Safety Council. According to the Council’s annual report on unintentional injuries, the three biggest causes of fatalities on the road included alcohol (30.8 percent), speeding (30 percent), and distracted driving (26 percent).

All of the new technology in vehicles is causing more driver distraction behind the wheel than ever before, but part of it stems from the fact that 53 percent of drivers believe if manufacturers have loaded all this entertainment into their cars, then it must be safe.

Enhancing car security systems for occupants as well as pedestrians has become a greater priority for automakers worldwide. It also presents tremendous potential for aftermarket manufacturers.

 “We have shored up our resources and we’re adding new products that will get traction with consumers,” Goodman said.

Blind Sight

At the Specialty Equipment Manufacturers Association (SEMA) show held last month, Rydeen showcased four new products—three of which represented new product categories for the company.

One of the key introductions, according to Goodman, is the BSS1, the Blind Spot Detection System, with an MSRP of $599. “We have been selling side cameras as a solution for the blind spot issue, but we came up with an alternative in terms of sensors,” he said.

For the most part, Goodman explained, vendors use ultrasonic sensors for these types of blind spot devices that are similar to what is used for parking sensors. It has been the only alternative, until recently.

“Now we’re starting to see more microwave radar systems, which are far more accurate and easier to install for the 12-volt specialty retailer,” Goodman said. Rydeen’s new system employs microwave technology to warn drivers of any vehicles within their blind zones and, Goodman added, is more accurate than competitors’ systems employing ultrasonic sensors. The two compact microwave sensors mount behind the bumper, eliminating drilling into the bumper of the vehicle. Alerts are displayed with mini LED icons on each A pillar and a buzzer mounted behind or under the dashboard.

With installation being less complicated, it may open up more opportunities for the category. “In talking to installers and retailers over the last two to three years, blind spot detection is one of those things that the OE has offered on higher-end vehicles and parts of technology packages,” Goodman said. “The consumer is aware of it and has asked about it, yet many retailers we’ve spoken to have shied away from it because it required drilling into the vehicle. First of all, that can be time consuming, but the other issue was, if the consumer didn’t like the result, if their expectations and what the product actually delivered were not in sync, then they had an issue that there were holes in their vehicle that had to be addressed.”

Read the rest of the article HERE.

Mobile Electronics, 12-1-2016 -- Having natural talent is seen by many to be a blessing. Some people have athletic prowess and capabilities that far surpass their peers. Some with high IQs exceed expectations in fields like math and science. Others, like Jag Rattu, naturally excel at sales. But if you ask him, it takes much more to make his business—Audio House in Napa, Calif.—a profitable enterprise.

"When we started, it was just me and two other installers. They worked their butts off," Rattu said. "The store was open six days a week. I worked every day, all the time to get the store running. Getting inventory in the computer took forever. There was a lot of stuff I had to deal with."

Since opening his store in July of 2006, Rattu has found ways to increase revenue and grow his customer base. By using his gift for gab and years of 12-volt industry knowledge as a base, Rattu won over customers with his welcoming, non-pressured approach to each sale, and by reaching out to local businesses to build a community eager for new technology.

"We had to advertise and get our name out there,” Rattu said. “Now we're doing 10 to 15 cars a day. Every year we add something else."

Today, 30 percent of the shop's business is window tinting with the other 70 percent spread amongst all mobile electronics categories, primarily car audio.

"All those Carplay stereos from Alpine and Kenwood are the hottest things right now. Selling like hotcakes. JL Audio stealth boxes were previously really hot," Rattu said. "When I was younger we used to build a lot of boxes. We still do custom work, but there are so many applications for enclosures nowadays."

When custom enclosures were the norm back in the 1990s, Rattu was still in school, graduating high school in 1997. While he wasn't an installer, Rattu always had a passion for quality sound systems and good music. He would carry those two elements with him after high school once he got his first job at a local car audio shop.

"I didn't know any brands. I knew cars, loved music, but didn't know too much about car audio," Rattu said. "The first thing I did was introduce myself to installers and started asking questions. The OG salesman took me under their wing. I was so blessed."

After working at Monet Car Audio for a year, Rattu was promoted to store manager when the manager got sick. After running the store for a week, Rattu brought up the sales numbers significantly and caught the attention of the general manager who offered him a full-time position at another of the company's chain stores. He dropped out of college and continued his path as a manager.

After a few years of managing a store and reading management books, Rattu realized he wanted to become a business owner, so he went back to school and earned a business degree. During that time, he changed shops and moved across the bay to work full time for Auto Haus, a four-store chain. Eventually, he bought one of the company's stores and renamed it Audio House.

The building is comprised of 4,800 total square feet. The installation facility consists of a six-car garage in back, a two-car garage on the side of the building for window tinting and a fabrication room with a variety of tools and templates for custom work. The showroom is traditional, with product and displays filling all space, which is deliberate given Rattu's philosophy for a customer's first impression.

"My goal is, when a customer walks in the store, they want to buy something here. There are no empty holes," Rattu said. "I want to make sure my customers can hear this stuff. At the same time, they can see it. If you can't see it, how are you going to buy it."

Read the rest of the feature HERE. 

12-11-2017, Mobile Electronics -- The end of the year brings many tasks for a retail shop. Decisions are made about the success or failure of product lines, promotions used throughout the year, employee growth versus areas for improvement, hiring, firing, profit versus loss on the year and hundreds of other micro issues that can stress out even the most seasoned business owner.

In 12-volt, there are enough categories of product alone to make a person's head spin. That's why for the second year in a row, Mobile Electronics magazine sent out a job satisfaction survey to help retailers identify issues they might be having related to employee satisfaction. This was done not only to help take away the stress of finding out these things themselves, but had the intention of helping take a major category off of their plates when planning for next year.

Each portion of the survey was broken into sections that focused on a different topic. The 47-question survey included questions on career development, work engagement, compensation, relationship management and work environment.

Career Development

The first topic the survey focused on was career development. The majority of those surveyed in total (46 percent) were owners, while lead installers came in second at 11 percent and the installation managers and regular installation technicians came in tied for third at around five percent. Around 30 percent of those who answered about their satisfaction regarding professional growth agreed with being satisfied, while around 19 percent disagreed with 23 percent remaining neutral on the topic.

The neutrals came in even stronger when asked if they are pleased with career advancement opportunities available to them. Around 35 percent of workers were neutral while around 19 percent both agreed and disagreed with the statement. This statistic shows that the majority of those surveyed believe career advancement is limited but may likely not be upset about that fact given the popularity of the jobs themselves. The top answer for how involved employees feel in their work was to strongly agree at being very involved. Similar questions about getting excited to go to work and the level of effort employees are willing to give at work each day were resoundingly affirmative.

Compensation is often a sore spot for many Americans these days, with 12-volt retailers split down the middle on whether they feel fairly compensated. For many in the survey, their love of their work keeps them happier than the pay they receive, which includes business owners.

"As an owner, shop compensation is a bit different than if you are a tech. Everyone always wants more one way or another but as an owner I am happy with my salary," explained one surveyed retailer. "As far as the business as a whole, I mainly just want for the shop to make enough money to pay all of my guys, cover all bills, and make a little bit more each year to invest back into the shop. I don't ever plan on getting rich owning my shop I just want to be comfortable and not stress over paying each bill or employee."

Training is also a major issue for employees, with nearly a quarter of those surveyed believing they don't receive adequate training from their company. One owner said, "We need to do a better job of training people. That’s on me!!" Another added, "I want to go to training to advance my skills but it must be on my time and my money." In contrast, over 50 percent of respondents believe they do receive proper training, including both in-house and training at industry events. 

Read the rest of the article HERE.

Mobile Electronics, December 2016 Issue, 12-7-2016 -- Let’s start with the obvious. An election year typically represents transition and a sense of ambiguity for the country, and most definitely has an impact on the economy. As we voted for a new president in 2016, a man who will usher in a vastly different era, the business outlook for 2017 seems solid, yet uncertain simultaneously. Whether president-elect Donald Trump will actually be able to deliver on his promise to “Make America Great Again” is yet to be seen.

The election is just one factor in the forecast for the year ahead. Analysts look at a variety of industry sources to determine how the economy will fare which ultimately affects how consumers feel and impacts how retailers may fare.

Wage growth, for example, is expected to be slightly up for next year and is increasing faster than inflation. According to projections by Aon Hewitt, a management consulting firm in Lincolnshire, Ill., base pay will be 3 percent in 2017, up slightly from 2.8 percent in 2016.

Jobs are increasing at a moderate pace and more confident consumers, a status that has been the sentiment since last summer, suggests that spending levels will hold steady or may even slightly increase for next year which is good news for 12-volt retailers. While most consumers aren’t spending beyond their means, few are holding back from making purchases—also good news for 12-volt retailers.

While there weren’t too many bumps in the road this year, many retailers were conservative with their buying and managed inventories more tightly. Retailers have also said they’ve been more proactive when partnering with vendors making sure it’s a good fit and that they are not subjected to unrealistic minimums or inflexible terms.

Retail Overview

Throughout the year Mobile Electronics has spoken with both retailers and manufacturers about a variety of topics: partnering with the right mix of vendors, in-store promotions, maximizing store space, training and education for salespeople and installers, driver distraction and safety, the omni-channel shopping experience, and creating or participating in store, local, or regional events.

Stores across the country were asked about their closing thoughts on 2016 and how they plan to accelerate business in 2017. For the most part retailers expressed satisfaction with 2016 and said they would be finishing the year on a positive note. Many had mixed feelings about the election and said it was still too early to tell what impact the new White House administration would have on their businesses.

In the heart of the Northeast, Carlos Ramirez, owner of NVS Audio, based in Linden, N.J., said he was pleased with the results of the year. “We’re still doing $5,000 audio systems,” Ramirez said. “But we’re having a horrible remote start season just like we did last year at this time because the weather has been so warm. The difference for me is that I haven’t done my buying yet so that should help. Last year I sat with product until the spring.”

NVS Audio, named a Top 12 Retailer of 2016 by Mobile Electronics magazine, is also taking a step in a new direction by branching out with its first Groupon. The promotion was scheduled to start right before Thanksgiving and was offering 50 percent off remote start installation. The customer pays for the parts. According to Ramirez, it ends up being a $150 discount.

While business has been healthy for bigger ticket projects, Ramirez is taking a  hands-on approach to entice more cash-strapped customers by redoing the front of his store. “We’ve been struggling to capture that lower-end customer so we’re making it more consumer friendly for those with a lower budget,” he said. “We’re definitely one of the most expensive shops in town, charging $125 an hour while others are charging $70, and we’re doing a lot of more work at the higher end, so we want to be attractive to those with a lower budget.”

Read the rest of the story HERE.