Customer Lifetime Value: 3 of 3

Home/marketing/Topical/Customer Lifetime Value: 3 of 3

Are you earning your customers’ loyalty?

A friend of mine gave up with his Mercedes car dealership service department when he asked them to look at his squeaky brakes. After their sharp intake of breath, (you know the type) they tried to sell him new pads and discs all round ..Oh, that we will be, well, £734 + VAT.”

He went to Basingstoke Car Centre (BCC) for a second opinion. They said, “You don’t need new brakes for another 7-10,000 miles. We’ve fixed the squeak. No charge.”

In the event, he didn’t need the new brakes for another 22 months!

He immediately booked in his car at BCC for an MOT. They told him that the tyres were low and proved it. Then, the clever bit. They directed him to the display (in the picture) and made it clear there was little difference in quality. (Tyres duly bought for £84 each).

For the hell of it, he checked his Mercedes Dealership for their price. “You need a pair of Michelins sir.  They’re £189 each; I’m afraid.”

“I can get them cheaper.” “Well….we could go to £149, sir.”  The price has just dropped by £80 in a gnat’s breath. In this situation, what would your next move be?

Soon after, the Mercedes dealership conducted a survey and asked him why he hadn’t booked a service with them for three years. He told them the story about the brakes and the tyres. Their answer was “Yes, quite understand, but we’ve had a few staff changes, and now that shouldn’t be a problem.” What an admission!

He went back to BCC for the brakes 22 months later and paid £320

Just like BCC, I believe that you should never miss a sales opportunity …’make it to my benefit, make it easy to buy, make the message simple, let me see the value for myself.’

Given that example, and those in the other two mails on the subject, how are you developing your customer value and loyalty?

If you want to work through some ideas, let me know.