Dave's Blog

Generation “txt”, the group born roughly between 1980 and 2002, is a unique generation.  Generation “txt” views technology as an extension of themselves and expects it to be available anywhere, anytime.

Generation “txt” is an avid user of text messaging and social networking sites.  99% of consumers aged 18-24 reported having an active profile on at least one online social networking site.  

In the context of purchasing insurance, handling insurance claims and dealing with automotive collision repairs, expect Generation “txt” to negotiate pricing.  The average college senior is graduating with $20,000 in debt.  This will cause tremendous price sensitivity during the years that the members of this Generation are paying off their loans. 

Generation “txt” are extremely skilful negotiators.  Members of this generation are likely to have had parents who developed this skill in their children along with an expectation of accommodation.  Service providers should expect that Generation “txt” will expect and demand accommodations.  The most successful service providers for Generation “txt” will be those with the most flexibility in pricing, schedule, and terms. 
 
It is important to keep the communications channels open with Generation “txt” customers.  Generation “txt” is a strong conflict avoider.  Therefore, Generation “txt” customers may suddenly leave and bring their business elsewhere, without a single complaint or any evidence to the service provider that anything was wrong.   However, Generation “txt” also has a strong need to be “heard”.  Thus, smart companies will find ways to reach out to the Generation “txt” conflict avoiders quickly to capture their opinions and rectify any potential issues before surprise customer losses occur.  A short survey delivered by message text immediately following service provision might be a simple, proactive and powerful way to reach out to Generation “txt” and avoid unnecessary and unexpected customer loss.

Text messaging in the US is a booming business. Between 2006 and 2008, the volume of text messages increased by 450%. Nielsen Mobile recently released a research report that shows the typical US mobile subscriber sends and receives over 350 SMS text messages compared to placing or receiving more than 200 telephone calls in a single month.

Small business can definitely leverage this astronomical increase in SMS text messaging in order to increase their sales or customer loyalty. Customer loyalty is a critical to the success of small business because a loyal customer will not only generate future sales by coming back when they need the same service in the future, they will also recommend the service to others, and thus will help you to grow your business. Furthermore, on average, retaining a customer is much less expensive than finding a new one.

Research indicates that in the increasingly competitive industry of collision repair shops, the single most important factor driving customer loyalty is keeping customers informed. This same research indicates that even if a collision repair service delivers the service late, if the customer is kept informed, that customer is more willing to recommend the repair service than if the service was rendered on time, but the customer did not feel as if he/she was kept well informed. If you use SMS text messages to communicate as the car is serviced, you can rest assured that your customers will feel extremely well informed and you will be well on your way to creating a loyal and profitable customer for years to come.