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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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.”

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