If you are going to build a long-term relationship with customers, then I suggest you start referring to them as your clients. When I hear customer I think of someone who buys from you with no real relationship, like when you go to the grocery store.

On the other hand, a client is someone who knows and trusts you for advice, like you would your doctor or your attorney. They are two different ways of having a business relationship. Customer implies buying without emotional contact; client implies a long-term trusting emotional relationship. Isn't that what you want - a long-term relationship with your clients? One in which they will only trust you with their vehicle and refer their friends to you. You are the trusted car guy to your clients.

So let's talk about your clients. How much do you really know about them? Do you know where they live, what do they drive, where do they work, how do they take care of their vehicles, what are their hobbies and interests, what are their personalities like?

Do you have a database, customer list, mailing list, or whatever you want to call your list of names of all your past customers? If you don't have a client list, then I want you to start building your customer list and a profile of them now. Your customer list is the most valuable asset your business owns. You should also have a list of all the names of the people who you wrote estimates for, but did not give you the business. You will also need a list of all your non-client names that may be sending you work. We will use these lists of names to start your referral generation systems, so get it together.

Hint - ACT 2000 is a software program that makes it easy for you to build a database. It's easy to install and use, and if you need help, there are consultants in every major city who will get you up and running at a reasonable cost. Once they are in your ACT file, mailing and faxing them is easy.

Step Two: Find out how much a new client is worth!

In step one you figured out who your clients and friends are, and compiled your list of their names. Step two is to find out what is a new client worth to you and how much are you willing to invest to get one. What is the average net money-in-your-pocket value of a new customer for the first time? That means how much are they worth to you? Are they worth $200, $500, or maybe $1000? How about the lifetime value of a new client. How much is that? How many times do they come to your shop? How many people do they refer to your shop? You need to figure this out too.

Right now let's just focus on the first time sale, net value of a client. Let's say your new clients are worth $500 the first time. How much, then, are you willing to invest to get a new client in the door? Do you know what it is costing you right now to get a new client? Would you be willing to invest $50 to get $500? That's only a 1000% return on your money. Even if you invested $100 to make back $500, this would be a 500% return. Where else can you get that kind of return on your money? So instead of saying that you will invest a certain percent of sales in marketing, let's say that you will invest up to $50 to get a new client. This way you have an unlimited marketing budget because you're paying for results, not just spending money.

Step Three: Find out who's your buddy!

Do you know exactly where your business is coming from? Are you asking everyone who referred them to your shop, and why? If you are not asking people why they are using your shop or who sent them, then you don't really know how much about your business is referrals do you? Sure you can guess, but if guessing is the way you're doing your marketing, I can guarantee that you're wasting a lot of time and money on things that don't make you any money. You need to know where all of your business is coming from: referrals, the phone book, drive-bys, past customers, or from your advertising.

Starting today, ask every prospect who referred them to your shop. I think this should be mandatory information to gather when you are getting their personal information for their estimate. This is critically important information, as it allows you to increase marketing efforts that are working and to stop or change what is not working.