stay humble, The Costly Mistake of Prioritizing Acquisition Over Retention

The Costly Mistake of Prioritizing Acquisition Over Retention

According to multiple research reports, acquiring a new customer can cost 5-7 times more than retaining an existing one. Yet, many tire dealers continue to pour the majority of their marketing budgets into tactics aimed at attracting new business rather than nurturing the customers they already have.

Even more alarming is that increasing customer retention by just 5% can boost profitability by a staggering 75%, according to D&B. And, loyal customers tend to spend 67% more than new ones. Not only is customer retention more cost-effective, but it also drives significantly higher revenue.

 

 

The Dangers of Neglecting Customer Re-Engagement

In addition to overemphasizing acquisition, tire dealers are often guilty of neglecting their lost or inactive customers. These are the customers who, for one reason or another, have stopped doing business with your business.

Failing to have a strategy to re-engage these lost customers is a missed opportunity. After all, these individuals have already demonstrated an interest in your services – they just need the right nudge to return. Lost customers have already come to know your shops, and you’ve come to know them. By ignoring this segment, especially those with a proven track record, you’re leaving money on the table.

 

Introducing the DRIVE Framework: A Roadmap to Marketing Success

How can tire dealers change course and refocus their marketing efforts? The answer lies in Tread Partners’ DRIVE framework – a comprehensive, five-stage approach to planning and executing your shop’s marketing. Each stage follows the natural customer lifecycle, ensuring that your marketing is waiting to address each stage.

1. Discover

The first stage of DRIVE is all about sparking awareness among potential customers. This involves ensuring your tire or auto repair shops are visible where your target audience is already looking or listening – whether through local SEO, content marketing, or social media engagement.

2. Reach

Once you’ve captured the attention of prospective customers, the Reach stage is about guiding them from recognizing a need to taking the first step toward your business. This could include tactics like website optimization, retargeting campaigns, and providing a seamless online appointment scheduling experience.

3. Invest

In the Invest stage, the goal is to deepen the customer’s interest and commitment to your dealership. By delivering a consistently exceptional customer experience, you can cement their decision to choose your business for their automotive needs. This might include personalized communications, in-store events, and loyalty programs.

4. Value

The Value stage reinforces the customer’s decision to choose your dealership by consistently delivering exceptional service and value. This could involve going above and beyond to exceed customer expectations, such as offering educational content, personalized service reminders, or exclusive offers.

5. Engage

The DRIVE framework’s final stage involves maintaining a dynamic relationship with customers between visits. Fostering enduring connections can encourage loyalty and continued commitment to your business. Tactics in this stage could include social media engagement, referral programs, and targeted communications.

 
, Putting DRIVE into Motion with the MAP Process

Putting DRIVE into Motion with the MAP Process

While our DRIVE framework provides the strategic direction, the MAP (Measure, Adapt, Propel) process is the engine that keeps your marketing initiatives moving forward. This three-step cycle ensures that your DRIVE strategies remain responsive to changing market conditions and customer needs.

1. Measure: Thoroughly assess your current marketing efforts, analyzing customer feedback, reviewing performance metrics, and staying up-to-date on industry trends and competitor strategies.

2. Adapt: Based on the insights gathered during the Measure phase, refine your strategies within each stage of the DRIVE framework, introducing new tactics, optimizing existing initiatives, or realigning your goals.

3. Propel: With your adapted strategies in place, execute your plans with precision and enthusiasm, developing detailed action plans, ensuring team alignment, and maintaining momentum as you launch and monitor the performance of your new initiatives.

 

 

The Power of the DRIVE Framework

By embracing the DRIVE framework and the accompanying MAP process, tire dealers can break free from the costly cycle of over-emphasizing customer acquisition and neglecting retention and re-engagement. Our structured, data-driven approach helps ensure that every marketing dollar works hard to drive sustainable growth.

DRIVE fosters a customer-centric mindset, encouraging tire dealers to deeply understand their target audience, anticipate their needs, and create a seamless, personalized experience that keeps customers coming back time and time again.

 

 

Chart a New Course for Your Tire Dealership

In the highly competitive world of tires, repair, and service, attracting new customers and keeping them loyal is paramount. By recognizing the mistakes of the competition and leaning on the DRIVE framework, tire dealers can chart a new course toward marketing success.

So, what are you waiting for? Start mapping out your DRIVE to marketing success today!

 

Ready to talk shop and grow your business?

Talk with our team to see how Tread Partners can get your business back on track with a free introductory call.

What can you expect?

  • A Consultative Approach
  • A Partner You Can Talk Shop With
  • Complete Marketing Solutions & Know-How