It’s easy to take loyal customers for granted and get excited about new ones. We’re often lulled into thinking sales growth is built strictly on new customers. That’s rarely the case. Satisfied customers are the backbone of successful performance shops.

 

Studies show, existing customers and referrals are usually more profitable than new clients. They’re usually cheaper to serve, since they need less educating. They know and trust you already and know what they want.

 

And loyal, satisfied customers are more open to cross-selling of your other services. Once you’ve built a relationship with a customer and earned their trust, they are more likely to turn to you for advice on performance parts and services.

 

Every 1 percent that you reduce customer turnover is 1 percent fewer new customers you need to meet your overall sales goals.

 

Most importantly, loyal customers are the most persuasive salespeople your shop can “hire.” Their enthusiasm for your work is genuine and often contagious.

 

Referrals tend to be better-informed, more trusting and ready to buy. And if you treat your customers right, generating these referrals costs you little or nothing.

 

How are you treating your customers? Are you building loyalty?  Are you generating referrals? How can you improve? The answers can help improve your bottom line.