Mike Gorun

Company: Performance Loyalty Group, Inc

Mike Gorun Blog
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Mike Gorun

Performance Loyalty Group, Inc

Dec 12, 2013

Would Your Customers Get a Tattoo Of Your Brand?

Would your customers get a tattoo of your brand?

A recent article on Forbes told the story of Swiftwick, a sock company that had such a fervent following that customers had been getting their logo tattooed on themselves. According to the article, this company does little to no advertising. It acquires new customers mostly through recommendations and word-of-mouth advertising. The writer interviewed Chris Cooper, the first customer to get the logo tattoo to find out why. His answer was that it wasn’t only because he loved the socks but that he also connected with the company. “Most of the people I work with… wouldn’t know what my tattoo stood for. But I have a connection to the product. I know the people behind it, their attitude, and I like the company”, said Cooper. The article goes on to explain how Swiftwick “visibly support(s) charities, events, and trade shows that move their employees and their customers.”

An interesting statement that was made in the article by Swiftwick CEO Mark Cleveland was an extension of the saying we’ve all heard countless times… “People do business with people they like.” His take on creating a company that resonates with its customers begins with this philosophy but extends it to “People do business with people they like, so hire people who are worth liking!” In addition, the article illustrated how Swiftwick protects their company culture no matter what it costs.  “Culture is the most difficult thing to build and the easiest to tear down. It takes years to acquire and you can lose it in 10 seconds,” says Cleveland.

Getting to the point in which your customers are so connected with your company that they are willing to get a tattoo of your logo is a spectacular vision. You don’t have to be a huge company or brand with millions of fans to accomplish this. Before you look for that customer, ask yourself if any of your employees would get your logo tattooed on them. Even before that, would you get your own logo tattooed on your body?

Companies and brands like Apple and Disney have millions of fans worldwide because their focus is on everyone that is involved with or connected to their company – from their CEO to their employees to the consumers – they understand that to truly create a culture and experience that engenders a cult-like loyal customer base you must have buy-in from everyone.

Swiftwick seems to have captured the essence of their customer base by ensuring that they have a clear vision of their culture, hire people who compliment and support it, create high quality products which they then deliver to their customers with exceptional service.

By making their vision reality, they’re able to create clearly defined core values to compliment their mission, vision and culture. The “About” page on their website says it all in the “Living It Out” section:

1. We have fun, enjoy our jobs and make Swiftwick a company that is easy to do business with.

2. We display positive attitudes and hearts of service internally and with our customers.

3. We are a company that is ready, willing, and able to quickly adapt to change.

4. We value the growth of our team by training, teaching, and coaching so that everyone understands their responsibilities.

5. Whatever the job, we show initiative in our work and finish what we start.

6. We value good communication by listening attentively to our consumers, our distribution partners and to members of our team.

7. Each person at Swiftwick is empowered to identify problems, discover the solution and follow it through to completion.

8. We bring to market high quality, innovative products with technology and features that set us apart from our primary competitors.

9. Protecting our assets is the responsibility of everyone at Swiftwick.

10.Working safely takes priority above getting the job done.

When you can define yourself and your culture this clearly, you’re well on your way to earning the privilege of seeing your company’s logo tattooed on a customer’s body.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1550

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Dec 12, 2013

Would Your Customers Get a Tattoo Of Your Brand?

Would your customers get a tattoo of your brand?

A recent article on Forbes told the story of Swiftwick, a sock company that had such a fervent following that customers had been getting their logo tattooed on themselves. According to the article, this company does little to no advertising. It acquires new customers mostly through recommendations and word-of-mouth advertising. The writer interviewed Chris Cooper, the first customer to get the logo tattoo to find out why. His answer was that it wasn’t only because he loved the socks but that he also connected with the company. “Most of the people I work with… wouldn’t know what my tattoo stood for. But I have a connection to the product. I know the people behind it, their attitude, and I like the company”, said Cooper. The article goes on to explain how Swiftwick “visibly support(s) charities, events, and trade shows that move their employees and their customers.”

An interesting statement that was made in the article by Swiftwick CEO Mark Cleveland was an extension of the saying we’ve all heard countless times… “People do business with people they like.” His take on creating a company that resonates with its customers begins with this philosophy but extends it to “People do business with people they like, so hire people who are worth liking!” In addition, the article illustrated how Swiftwick protects their company culture no matter what it costs.  “Culture is the most difficult thing to build and the easiest to tear down. It takes years to acquire and you can lose it in 10 seconds,” says Cleveland.

Getting to the point in which your customers are so connected with your company that they are willing to get a tattoo of your logo is a spectacular vision. You don’t have to be a huge company or brand with millions of fans to accomplish this. Before you look for that customer, ask yourself if any of your employees would get your logo tattooed on them. Even before that, would you get your own logo tattooed on your body?

Companies and brands like Apple and Disney have millions of fans worldwide because their focus is on everyone that is involved with or connected to their company – from their CEO to their employees to the consumers – they understand that to truly create a culture and experience that engenders a cult-like loyal customer base you must have buy-in from everyone.

Swiftwick seems to have captured the essence of their customer base by ensuring that they have a clear vision of their culture, hire people who compliment and support it, create high quality products which they then deliver to their customers with exceptional service.

By making their vision reality, they’re able to create clearly defined core values to compliment their mission, vision and culture. The “About” page on their website says it all in the “Living It Out” section:

1. We have fun, enjoy our jobs and make Swiftwick a company that is easy to do business with.

2. We display positive attitudes and hearts of service internally and with our customers.

3. We are a company that is ready, willing, and able to quickly adapt to change.

4. We value the growth of our team by training, teaching, and coaching so that everyone understands their responsibilities.

5. Whatever the job, we show initiative in our work and finish what we start.

6. We value good communication by listening attentively to our consumers, our distribution partners and to members of our team.

7. Each person at Swiftwick is empowered to identify problems, discover the solution and follow it through to completion.

8. We bring to market high quality, innovative products with technology and features that set us apart from our primary competitors.

9. Protecting our assets is the responsibility of everyone at Swiftwick.

10.Working safely takes priority above getting the job done.

When you can define yourself and your culture this clearly, you’re well on your way to earning the privilege of seeing your company’s logo tattooed on a customer’s body.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1550

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2013

Setting Something Free Doesn’t Mean It’ll Come Back

I am sure many of you will have heard the saying “If you love something, set it free. If it comes back, it’s meant to be.” While this may be good advice for relationships, it’s certainly not good advice for business. A recent whitepaper examined how many companies focus too much on share-of-market and the resulting damage. Market share has always been the leading measurement of success. The article examines why using only this measurement is faulty, and why a focus entirely on market share is actually bad economics.

The focus on market share, according to the article, is a result of feeding our egos. It’s certainly an easy measurement. One could assume that capturing market share is an indication that their business is not only successful, but also growing. As I, along with countless other experts have said in the past, it is much less expensive to retain and sell to current customers than it is to acquire new ones.  In addition, existing customers spend 67 percent more with a business than new ones do, according to Inc. magazine. If it costs up to five times more to make a sale to a new customer; yet it’s easier to sell to an existing customer; and they also spend more; why do we continue to focus on new customer acquisition?

According to the article, there’s a feeling of accomplishment in market share growth and new customer acquisition, whereas “focusing our attention on customer relationships often makes us feel like we’re doing less – even though we’re usually accomplishing more.” Marketing to new customers is actually the “fun” part and acquiring new customers often generates more income for sales reps than retaining existing ones.

Customer retention, on the other hand, is considered the “trench work.” There is less sense of satisfaction in upselling an existing customer and, typically, the compensation is lower for sales reps. Therefore focus and quotas tend to be based on new customer sales, rather than on customer retention sales and actions.

Have you ever examined your fixed ops revenue to find out what percentage is derived from existing customers versus new ones? How much of your sales are from repeat customers or referrals from them? By focusing your marketing efforts and growth strategy on new customer acquisition, you are leaving money on the table. Your existing customers are the “low hanging fruit”, according to the whitepaper. It’s certainly understandable for salespeople to focus more on new sales than retention. It’s much easier to be fed leads and wait for ups to come to the dealership than to follow-up with past customers. Yet, the truth is that by following up with your existing customer base, your success ratio will increase. Assuming the customer had a great experience at your dealership, you’ll have already established rapport and trust with them and will typically see higher gross profits than you would from a new customer.

Don’t wait for sales to decrease before you begin retention and loyalty marketing. Ignoring your existing customer base will increase your defection rate and detract from any growth you may have experienced through new customer acquisition. It’s your loyal customers that keep your business in the black when sales are down. If you fail to pay attention to them now, they may not be around when you need them.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1430

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Nov 11, 2013

Setting Something Free Doesn’t Mean It’ll Come Back

I am sure many of you will have heard the saying “If you love something, set it free. If it comes back, it’s meant to be.” While this may be good advice for relationships, it’s certainly not good advice for business. A recent whitepaper examined how many companies focus too much on share-of-market and the resulting damage. Market share has always been the leading measurement of success. The article examines why using only this measurement is faulty, and why a focus entirely on market share is actually bad economics.

The focus on market share, according to the article, is a result of feeding our egos. It’s certainly an easy measurement. One could assume that capturing market share is an indication that their business is not only successful, but also growing. As I, along with countless other experts have said in the past, it is much less expensive to retain and sell to current customers than it is to acquire new ones.  In addition, existing customers spend 67 percent more with a business than new ones do, according to Inc. magazine. If it costs up to five times more to make a sale to a new customer; yet it’s easier to sell to an existing customer; and they also spend more; why do we continue to focus on new customer acquisition?

According to the article, there’s a feeling of accomplishment in market share growth and new customer acquisition, whereas “focusing our attention on customer relationships often makes us feel like we’re doing less – even though we’re usually accomplishing more.” Marketing to new customers is actually the “fun” part and acquiring new customers often generates more income for sales reps than retaining existing ones.

Customer retention, on the other hand, is considered the “trench work.” There is less sense of satisfaction in upselling an existing customer and, typically, the compensation is lower for sales reps. Therefore focus and quotas tend to be based on new customer sales, rather than on customer retention sales and actions.

Have you ever examined your fixed ops revenue to find out what percentage is derived from existing customers versus new ones? How much of your sales are from repeat customers or referrals from them? By focusing your marketing efforts and growth strategy on new customer acquisition, you are leaving money on the table. Your existing customers are the “low hanging fruit”, according to the whitepaper. It’s certainly understandable for salespeople to focus more on new sales than retention. It’s much easier to be fed leads and wait for ups to come to the dealership than to follow-up with past customers. Yet, the truth is that by following up with your existing customer base, your success ratio will increase. Assuming the customer had a great experience at your dealership, you’ll have already established rapport and trust with them and will typically see higher gross profits than you would from a new customer.

Don’t wait for sales to decrease before you begin retention and loyalty marketing. Ignoring your existing customer base will increase your defection rate and detract from any growth you may have experienced through new customer acquisition. It’s your loyal customers that keep your business in the black when sales are down. If you fail to pay attention to them now, they may not be around when you need them.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1430

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2013

Sometimes Loyal Customers Come In Small Packages

There are countless articles on how hard it is to create a truly loyal customer and how easy it is to lose one. Creating customer loyalty is a challenge that all businesses face. There are many techniques and strategies that can assist you along this path but, at times, we’re presented with opportunities that can accomplish this instantaneously.

Earlier this year, a young boy went shopping with his father and managed to lose one of his Lego mini-figures after his father had told him not to bring them since – surprise – he was likely to lose them. Well, turns out the boy actually did. The boy had saved all of his money to purchase a Lego set that cost upwards of $80, so he was very upset. The father then suggested that the boy write a letter to Lego to see if he could get it replaced. This was the letter:

“Hello.

My name is Luka Apps and I am seven years old.

With all my money I got for Christmas I bought the Ninjago kit of the Ultrasonic Raider. The number is 9449. It is really good.

My Daddy just took me to Sainsburys and told me to leave the people at home but I took them and I lost Jay ZX at the shop as it fell out of my coat.

I am really upset I have lost him. Daddy said to send you an email to see if you will send me another one.

I promise I won't take him to the shop again if you can.”

– LUKA

Lego could have handled this any number of ways but this is how they chose to:

“We are very sorry to hear about you losing your Jay minifigure but it sounds like your dad might have been right about leaving it at home. It sounds like you are very sad about it too.

Normally we would ask that you pay for a new one if you lose one of your minifigures and need to have it replaced.

My bosses told me I could not send you one out for free because you lost it but, I decided that I would put a call into Sensei Wu to see if he could help me.

Luka, I told Sensei Wu that losing your Jay minifigure was purely an accident and that you would never ever ever let it happen ever again.

He told me to tell you, "Luka, your father seems like a very wise man. You must always protect your Ninjago minifigures like the dragons protect the Weapons of Spinjitzu!"

Sensei Wu also told me it was okay if I sent you a new Jay and told me it would be okay if I included something extra for you because anyone that saves their Christmas money to buy the Ultrasonic Raider must be a really big Ninjago fan.

So, I hope you enjoy your Jay minifigure with all his weapons. You will actually have the only Jay minifigure that combines 3 different Jays into one! I am also going to send you a bad guy for him to fight!

Just remember, what Sensei Wu said: keep your minifigures protected like the Weapons of Spinjitzu! And of course, always listen to your dad.

You will see an envelope from LEGO within the next two weeks with your new minifigures. Please take good care of them, Luka.

Remember that you promised to always leave them at home.”

– RICHARD, LEGO

These figures retail at $2.99. The thoughtfulness and creativity involved in this Lego representative’s response was above and beyond anything he was required to do. Not only did he replace the figure with a better one but he also included an additional one for the boy. All things considered, this ~$5 investment by Lego probably created a loyal customer out of this 7-year old. He will not only continue to enjoy Legos through his childhood, but more than likely introduce them to his children, and maybe even grandchildren. In addition, this act of generosity and great example of customer service went viral with numerous blog articles (including this one) being written, as well as national media coverage.

Creating a loyal customer isn’t hard if you’re paying attention. 

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1577

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2013

Sometimes Loyal Customers Come In Small Packages

There are countless articles on how hard it is to create a truly loyal customer and how easy it is to lose one. Creating customer loyalty is a challenge that all businesses face. There are many techniques and strategies that can assist you along this path but, at times, we’re presented with opportunities that can accomplish this instantaneously.

Earlier this year, a young boy went shopping with his father and managed to lose one of his Lego mini-figures after his father had told him not to bring them since – surprise – he was likely to lose them. Well, turns out the boy actually did. The boy had saved all of his money to purchase a Lego set that cost upwards of $80, so he was very upset. The father then suggested that the boy write a letter to Lego to see if he could get it replaced. This was the letter:

“Hello.

My name is Luka Apps and I am seven years old.

With all my money I got for Christmas I bought the Ninjago kit of the Ultrasonic Raider. The number is 9449. It is really good.

My Daddy just took me to Sainsburys and told me to leave the people at home but I took them and I lost Jay ZX at the shop as it fell out of my coat.

I am really upset I have lost him. Daddy said to send you an email to see if you will send me another one.

I promise I won't take him to the shop again if you can.”

– LUKA

Lego could have handled this any number of ways but this is how they chose to:

“We are very sorry to hear about you losing your Jay minifigure but it sounds like your dad might have been right about leaving it at home. It sounds like you are very sad about it too.

Normally we would ask that you pay for a new one if you lose one of your minifigures and need to have it replaced.

My bosses told me I could not send you one out for free because you lost it but, I decided that I would put a call into Sensei Wu to see if he could help me.

Luka, I told Sensei Wu that losing your Jay minifigure was purely an accident and that you would never ever ever let it happen ever again.

He told me to tell you, "Luka, your father seems like a very wise man. You must always protect your Ninjago minifigures like the dragons protect the Weapons of Spinjitzu!"

Sensei Wu also told me it was okay if I sent you a new Jay and told me it would be okay if I included something extra for you because anyone that saves their Christmas money to buy the Ultrasonic Raider must be a really big Ninjago fan.

So, I hope you enjoy your Jay minifigure with all his weapons. You will actually have the only Jay minifigure that combines 3 different Jays into one! I am also going to send you a bad guy for him to fight!

Just remember, what Sensei Wu said: keep your minifigures protected like the Weapons of Spinjitzu! And of course, always listen to your dad.

You will see an envelope from LEGO within the next two weeks with your new minifigures. Please take good care of them, Luka.

Remember that you promised to always leave them at home.”

– RICHARD, LEGO

These figures retail at $2.99. The thoughtfulness and creativity involved in this Lego representative’s response was above and beyond anything he was required to do. Not only did he replace the figure with a better one but he also included an additional one for the boy. All things considered, this ~$5 investment by Lego probably created a loyal customer out of this 7-year old. He will not only continue to enjoy Legos through his childhood, but more than likely introduce them to his children, and maybe even grandchildren. In addition, this act of generosity and great example of customer service went viral with numerous blog articles (including this one) being written, as well as national media coverage.

Creating a loyal customer isn’t hard if you’re paying attention. 

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1577

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013

The Science Behind Customer Loyalty

One challenge all businesses face is creating loyal customers. As business owners, we try to analyze our customers to figure out what methods we can use to build that base of customers which is so important to future growth. Without loyal customers, your efforts at customer acquisition quickly go from growing your business to replacing defecting customers.

James Kane is a behavioral scientist that has advised top businesses about customer loyalty. He studies the brain and what triggers loyalty in people. According to Mr. Kane, there are three triggers that influence loyalty in a person.

A Sense of Trust – According to Mr. Kane, “…trust is obtained by doing the things that people expect you to do anyway…” This is especially important for car dealerships. While people are hoping to be treated fairly and honestly, there is a stereotype that has instilled distrust in car dealerships. This is why it’s especially important to ensure that you treat every customer just as you would expect to be treated in a transaction where you are buying something from Nordstrom’s that costs $30k. You would expect to be treated in a professional manner and to be appreciated for your business. Make all your customers – sales, service and parts – feel appreciated for their patronage and live up to their expectations.

A Sense of Belonging – Businesses build a sense of belonging in their customers “by showing that a business empathizes with the worries that make customers lose sleep at night,” says Kane. Just like you, customers have a lot going on in their lives. They have bills to pay, have kids to take to soccer practice and work long, stressful days. The last thing they want is a business adding to those worries. Whether your service customers arrive for regular maintenance or come in because something is wrong, they want you to help alleviate their worries. Don’t add to them by failing to live up to any promises you’ve made or failing to solve their problem correctly. Your sales customers worry that they aren’t going to get a good deal and that they will spend too much time at your dealership. If they’re at your dealership, they’re obviously in market for a vehicle. Be an actual advisor and help them find a vehicle that fits their needs. Then facilitate an efficient transaction in a friendly manner that is mutually beneficial.

A Sense of Purpose – Show your customers a sense of purpose by operating in a manner that says, “We stand for something beyond just the exchange of money…” Don’t focus solely on what a customer brings to your business. Examine what you can give back to your customers. If you don’t already have one, create a mission statement and display it in your showroom and in your service waiting area. Show your customers that you are committed to them by sharing your organizational beliefs; (they should include customer-centric ideals). Ensure that your customers know that they are more than just dollar signs to you. Demonstrate how you appreciate their business and will do everything in your power to make sure they leave satisfied. Then live up to your promises.

In this industry, we use psychology all of the time without knowing it. We listen to a customer’s needs and help them down the path of the sale. We have sales processes designed to encourage the customer to buy… and buy now… and we have service processes designed to better assist our customers to make choices that keep their vehicles operating at optimum levels. Customer loyalty is imperative in our hyper-competitive industry. Many companies are advising businesses to shift their focus from customer acquisition to customer retention. Not only is it less expensive, but it also ensures that money spent on acquiring new customers is actually leading to growth, rather than the status quo.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

2407

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013

The Science Behind Customer Loyalty

One challenge all businesses face is creating loyal customers. As business owners, we try to analyze our customers to figure out what methods we can use to build that base of customers which is so important to future growth. Without loyal customers, your efforts at customer acquisition quickly go from growing your business to replacing defecting customers.

James Kane is a behavioral scientist that has advised top businesses about customer loyalty. He studies the brain and what triggers loyalty in people. According to Mr. Kane, there are three triggers that influence loyalty in a person.

A Sense of Trust – According to Mr. Kane, “…trust is obtained by doing the things that people expect you to do anyway…” This is especially important for car dealerships. While people are hoping to be treated fairly and honestly, there is a stereotype that has instilled distrust in car dealerships. This is why it’s especially important to ensure that you treat every customer just as you would expect to be treated in a transaction where you are buying something from Nordstrom’s that costs $30k. You would expect to be treated in a professional manner and to be appreciated for your business. Make all your customers – sales, service and parts – feel appreciated for their patronage and live up to their expectations.

A Sense of Belonging – Businesses build a sense of belonging in their customers “by showing that a business empathizes with the worries that make customers lose sleep at night,” says Kane. Just like you, customers have a lot going on in their lives. They have bills to pay, have kids to take to soccer practice and work long, stressful days. The last thing they want is a business adding to those worries. Whether your service customers arrive for regular maintenance or come in because something is wrong, they want you to help alleviate their worries. Don’t add to them by failing to live up to any promises you’ve made or failing to solve their problem correctly. Your sales customers worry that they aren’t going to get a good deal and that they will spend too much time at your dealership. If they’re at your dealership, they’re obviously in market for a vehicle. Be an actual advisor and help them find a vehicle that fits their needs. Then facilitate an efficient transaction in a friendly manner that is mutually beneficial.

A Sense of Purpose – Show your customers a sense of purpose by operating in a manner that says, “We stand for something beyond just the exchange of money…” Don’t focus solely on what a customer brings to your business. Examine what you can give back to your customers. If you don’t already have one, create a mission statement and display it in your showroom and in your service waiting area. Show your customers that you are committed to them by sharing your organizational beliefs; (they should include customer-centric ideals). Ensure that your customers know that they are more than just dollar signs to you. Demonstrate how you appreciate their business and will do everything in your power to make sure they leave satisfied. Then live up to your promises.

In this industry, we use psychology all of the time without knowing it. We listen to a customer’s needs and help them down the path of the sale. We have sales processes designed to encourage the customer to buy… and buy now… and we have service processes designed to better assist our customers to make choices that keep their vehicles operating at optimum levels. Customer loyalty is imperative in our hyper-competitive industry. Many companies are advising businesses to shift their focus from customer acquisition to customer retention. Not only is it less expensive, but it also ensures that money spent on acquiring new customers is actually leading to growth, rather than the status quo.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

2407

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013

How a Life Lesson Was Learned by the World’s Best Bourbon

Life lessons typically come when you least expect them as software coder, Ted Dziuba, discovered. He and his friend went to a bar that served Pappy Winkle’s Family Reserve Bourbon Whiskey that is widely regarded as the world’s best bourbon. While drinking, they talked to the bartender who explained to them its origins and other interesting information about it. He then told them about other drinks that were interesting and they were enthralled with his creativity and mastery at his craft.

Around that time, a man approached the bar and said, “Lemme get a Captain and Coke, brah.” After the gentlemen left, they asked the bartender whether it bothered him to make such a common drink when he quite clearly had demonstrated his expertise. His response was:

"No, it doesn’t bother me. If the customer orders Pappy and can talk about fine whiskey, I’ll pour Pappy and talk about fine whiskey. But if the customer orders a Captain and Coke, I’ll make the best Captain and Coke I can."

Mr. Dzubia learned a life lesson that we could all benefit from. In his words, what he learned was “that barcraft is fundamentally about giving the customer what they want…[and that] the true master obliges both.”

How does this apply to car dealerships? Think about the many different types of customers you see every day come through your dealership in all departments. Dealerships see a wide spectrum of customers from “gear heads” to those who don’t know how to turn on their headlights. Dealerships have certified mechanics that are highly trained, service advisors that know vehicles intricately, salespeople that know every detail of their product and a leadership team in place that, typically, encompasses it all.

I think the lesson learned is applicable to not only “barcraft” but to all crafts. Every position in your dealership should be viewed as a craft. You expect your porters to know how to make a new vehicle immaculate when it’s sold to pass even the most discriminating customer’s inspection because you know a CSI survey is going to ask that question. Your mechanics are trained to do it right the first time and have the knowledge and ability to accomplish that. Your salespeople are infused with the knowledge about your product as well as the ability to assist customers in selecting one that’s appropriate and right for their needs.

Ultimately, all of these positions have exactly the same fundamental purpose, to give the customer what they want.

When a service advisor gets a customer in service that’s a “gear head”, he has the ability to talk the language with them. If their customer knows nothing about cars, he should change his language to speak in a way that the customer understands. In addition, a big part of a service advisor’s job is identifying and recommending additional services to each customer. They can be much more successful in doing so if they adjust their language to match each customer’s.

Great salespeople know to mimic their customers. Not only will they copy their language and speak to that specific customer’s knowledge level but they’ll go as far as mimicking body language. If a customer is interested in a high-performance sports car, the salesperson will sell the vehicle by pointing out all the performance features: how fast it is, how much torque it has, horsepower and speed. If their customer is looking for a family vehicle, the salesperson will focus on the safety, comfort and practical features of the vehicle.

Too often, dealership personnel don’t give the customers what they want. Maybe the service advisor is talking in a language above the customer’s knowledge level or a salesperson is trying to sell a vehicle that’s not matched to the customer’s needs and wants.

Learning to give the customer what they want is a craft in itself. Learn how to listen to your customers. Make sure that you’re speaking in a language they can understand. You’ll offer a superior customer experience while increasing customer retention and loyalty.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

2067

3 Comments

Jeffrey Byrge

Kenny Ross Auto Group

Sep 9, 2013  

Total agreement with this. It is called taking an interest in all kinds of people. When you get right down to it, people are sort of cool......If you don't like people, sales really isn't for you.....

Larry Schlagheck

DrivingSales

Sep 9, 2013  

Mike, having been a bartender through college and now having been in corporate sales for 13+ years I've lived both sides of this story and completely agree. It's not being "fake" it's being "interested". You have to adapt to the current environment. It's not always fun. Sometimes you won't care for the person you have to speak with, but it's business not a cocktail party.

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013  

Thanks for the great comments!

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013

How a Life Lesson Was Learned by the World’s Best Bourbon

Life lessons typically come when you least expect them as software coder, Ted Dziuba, discovered. He and his friend went to a bar that served Pappy Winkle’s Family Reserve Bourbon Whiskey that is widely regarded as the world’s best bourbon. While drinking, they talked to the bartender who explained to them its origins and other interesting information about it. He then told them about other drinks that were interesting and they were enthralled with his creativity and mastery at his craft.

Around that time, a man approached the bar and said, “Lemme get a Captain and Coke, brah.” After the gentlemen left, they asked the bartender whether it bothered him to make such a common drink when he quite clearly had demonstrated his expertise. His response was:

"No, it doesn’t bother me. If the customer orders Pappy and can talk about fine whiskey, I’ll pour Pappy and talk about fine whiskey. But if the customer orders a Captain and Coke, I’ll make the best Captain and Coke I can."

Mr. Dzubia learned a life lesson that we could all benefit from. In his words, what he learned was “that barcraft is fundamentally about giving the customer what they want…[and that] the true master obliges both.”

How does this apply to car dealerships? Think about the many different types of customers you see every day come through your dealership in all departments. Dealerships see a wide spectrum of customers from “gear heads” to those who don’t know how to turn on their headlights. Dealerships have certified mechanics that are highly trained, service advisors that know vehicles intricately, salespeople that know every detail of their product and a leadership team in place that, typically, encompasses it all.

I think the lesson learned is applicable to not only “barcraft” but to all crafts. Every position in your dealership should be viewed as a craft. You expect your porters to know how to make a new vehicle immaculate when it’s sold to pass even the most discriminating customer’s inspection because you know a CSI survey is going to ask that question. Your mechanics are trained to do it right the first time and have the knowledge and ability to accomplish that. Your salespeople are infused with the knowledge about your product as well as the ability to assist customers in selecting one that’s appropriate and right for their needs.

Ultimately, all of these positions have exactly the same fundamental purpose, to give the customer what they want.

When a service advisor gets a customer in service that’s a “gear head”, he has the ability to talk the language with them. If their customer knows nothing about cars, he should change his language to speak in a way that the customer understands. In addition, a big part of a service advisor’s job is identifying and recommending additional services to each customer. They can be much more successful in doing so if they adjust their language to match each customer’s.

Great salespeople know to mimic their customers. Not only will they copy their language and speak to that specific customer’s knowledge level but they’ll go as far as mimicking body language. If a customer is interested in a high-performance sports car, the salesperson will sell the vehicle by pointing out all the performance features: how fast it is, how much torque it has, horsepower and speed. If their customer is looking for a family vehicle, the salesperson will focus on the safety, comfort and practical features of the vehicle.

Too often, dealership personnel don’t give the customers what they want. Maybe the service advisor is talking in a language above the customer’s knowledge level or a salesperson is trying to sell a vehicle that’s not matched to the customer’s needs and wants.

Learning to give the customer what they want is a craft in itself. Learn how to listen to your customers. Make sure that you’re speaking in a language they can understand. You’ll offer a superior customer experience while increasing customer retention and loyalty.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

2067

3 Comments

Jeffrey Byrge

Kenny Ross Auto Group

Sep 9, 2013  

Total agreement with this. It is called taking an interest in all kinds of people. When you get right down to it, people are sort of cool......If you don't like people, sales really isn't for you.....

Larry Schlagheck

DrivingSales

Sep 9, 2013  

Mike, having been a bartender through college and now having been in corporate sales for 13+ years I've lived both sides of this story and completely agree. It's not being "fake" it's being "interested". You have to adapt to the current environment. It's not always fun. Sometimes you won't care for the person you have to speak with, but it's business not a cocktail party.

Mike Gorun

Performance Loyalty Group, Inc

Sep 9, 2013  

Thanks for the great comments!

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