I am quite sure that most of you reading this post will agree that life is sometimes to hectic and we all need a break from working the excruciatingly long hours demanded of our time by this business, Saturdays being no exception. Personally I hate Sunday shopping, I believe Sundays are a day to spend and reconnect with family. Saturday is also the day that everyone in the automotive repair industry wishes they had off as well.
Saturday service is unfortunately a MUST for most dealerships as the mindset of consumers is such that if you are closed on Saturdays, your customers will just go elsewhere for routine servicing and minor repairs. The reality is this, if your customers go elsewhere and like the service they receive, they might not come back to your establishment.
Due to the hectic pace of life, commutes to and from work, balancing the needs of family, work and the upkeep of the household and the family automobile have become a daunting task. There just are not enough hours in a day to accomplish all the tasks that life presents to us. Therefore, Saturdays in most households is spent cleaning, shopping, fixing, finding and yes, taking the family vehicles in for service. Let’s face reality, Saturdays may be the only day some people have to get their vehicles routine servicing done or repaired due to a breakdown.
Some of you might say, “Saturdays are not profitable” and you may be right due to your unique circumstances, demographics and your offerings in services to your customer base. Unfortunately when you are closed, your customers are going other places to fill the need. The damaging factor is that when your customers go elsewhere they are being up sold in most cases and you are missing out on opportunities. Plus, the truth is that most vehicles out there have at least one to two other issues that could potentially become bigger repair jobs for your facility.
I treat Saturdays as the loss leader day, meaning we are open for all types of work yet we cater to those in need of routine servicing. Routine servicing doesn’t add to the building of bottom line GP, albeit the courtesy inspections provide the tool to up sell and create GP potential. Monday callbacks of Saturday declined services usually reap benefits in booking future mechanical repair appointments.
If you implement Saturday rapid lube service by having two C technicians working together on each vehicle you can turn around an oil change in 30 minutes or less including the courtesy inspection. Once the inspection is complete the advisor can attempt to up sell the additional found items and turn the repair over to an appropriate technician to facilitate the repairs. This is how you can turn your average Saturday into a rewards Saturday! If the customer declines the repairs your BDC should be calling these customers off your declined service log and book them back in for a future repair appointment.
The return of declined calls that book appointments is usually between 25% and 45% in most cases. Therefore Saturday service can be a benefit IF you formulate processes to sell more work and follow up on your declined services. You MUST be prepared to do what it takes to keep your customers at your facility!
To keep moral higher on Saturdays and to give your employees something to look forward to, try having breakfast at break time for your service employees, bagels, donuts and coffee can go a long way to keep spirits high as well as profits. A little bonus can sometimes go a long way in promoting team as well as putting a little zing in everyone’s step.
The best dealerships in the world recognize that Saturdays are a necessity yet they also realize that rewarding their employees with major holidays off, speaks volumes. Major holidays are a time especially set aside for families and friends, giving your employees these days off during the year will not only energize your employees it will ignite more passion in them upon their return.
My fear is that we are heading for Sunday service in the near future and this I oppose as most people in this industry work exceptionally hard the full six days we are currently open. Sunday service will surely help in providing gross profit to struggling stores yet we have enough employee burn out with the hours already logged in the average work week.
Make Saturday profitable and continue reaping the rewards of a closed Sunday!
David
Sunday, December 19, 2010
Sunday, December 12, 2010
Expense Sampling & Cost Cutting Measures
Dealerships couldn’t survive without a network of suppliers or vendors to perform work that would not normally be done by a dealership employee. Some examples of dealer vendors are listed below;
Auto glass installers Leather and fabric repair
Alarm installations Window Tinting Installers
Auto-Start Installers Rim Refurbishing
Dent Removal Body-shops
Tow Companies Hardware Vendors – Nuts Bolts…
Oil Companies Recycling Companies
Garbage Company Paper Shredding Companies
Lojack
The list goes on and on and on…
Have you performed a sampling to see if your expenses have increased or crept up over time? You may have originally hammered out a deal with each individual vendor for pricing but have you checked up on the pricing recently or any time since. You may be presently surprised to find out that some of your vendors have taken advantage of your businesses time constraints and snuck a few fast ones by you. Run a report month over month and compare your expenses for each vendor with services received. Look for discrepancies and you will follow and find the money trail.
We are all looking for ways to increase our dealership profits and this method is one way to help save money from bleeding out of your profits! For example most dealerships employ paint-less dent removal companies to offer customers another amenity as well as raising gross profit. If you do not have a written contract of WHAT you are paying per panel or per dent you may end up paying more as time goes on. Should this happen to you and if you have never raised the price you are charging your customers, you are effectively lowering the GP percentage.
Another way to ensure you are able to properly measure your numbers is by sitting with your body shop manager and hammer out a deal on price per panel. Yes, price per panel! I have an agreement with the body shop manager that any panel that has minor scratches and needs repainting is done for $125 per panel, even bumpers. If the panel needs bodywork we are adding an additional $75 to the $125 bringing the cost to $200. This is a great way to measure and estimate a vehicle right on the service drive which ultimately leads to more sales. All this takes place because your advisors KNOW what the price cost per panel is so they will automatically add a 30% markup. Now you can make money and your service staff won’t be afraid to quote pricing to your customers.
Be on the lookout for price creeping, inaccurate pricing, pricing terms, over inflated transportation charges and surcharges. These types of pricing inaccuracies lead to lowered gross profits which ultimately chew into your ability to achieve higher fixed absorption numbers. The goal is not to save to profit, however you MUST be diligent in examining the price you pay for outside vendor services or you might be taken to the cleaners without ever realizing your true profit potential.
One way to stay on top of your vendor agreements is to secure all written agreements in one file drawer where they are easily accessible for an on the spot review of any vendor pricing. If you have a vendor prospect looking to do business with you, don’t chase them out the door, see what they have to offer and find out what pricing they charge.
Perform cost comparisons and keep your current vendors in check! If you find a cheaper price for the same service, meet with your current vendor and restructure the cost pricing. Do not be afraid of negotiation, negotiation leads to opportunities for you and the dealership.
If you find during an audit of your vendors that you have been paying more then you agreed to, do not be afraid to ask for a refund check! The vendor will certainly think twice before trying to pull another fast one during your watch. Be on the lookout for surcharges that were not part of the original agreement, should you find discrepancies again ask for the refund and stick to the original signed contract. Yes, get contracts with each vendor showing the dissection of charges and how each charge is applied.
The benefits to keeping a watchful eye on all your vendors can be summed up as;
1. Prevention of overcharges improves overall profitability!
2. Your confidence with your suppliers/vendors improves with a regular audit!
3. Auditing information is useful in selecting future suppliers & vendors!
4. Vendor/supplier compliance improves with regular auditing processes!
5. Internal employee compliance using designated suppliers will increase and you won’t be taken advantage of with vendor/supplier kickbacks to your current employees!
Performing a quarterly supplier/vendor audit will ensure compliance with pricing and employee utilization of outside products and services as well as yielding significant results in gross profit retention!
David
Auto glass installers Leather and fabric repair
Alarm installations Window Tinting Installers
Auto-Start Installers Rim Refurbishing
Dent Removal Body-shops
Tow Companies Hardware Vendors – Nuts Bolts…
Oil Companies Recycling Companies
Garbage Company Paper Shredding Companies
Lojack
The list goes on and on and on…
Have you performed a sampling to see if your expenses have increased or crept up over time? You may have originally hammered out a deal with each individual vendor for pricing but have you checked up on the pricing recently or any time since. You may be presently surprised to find out that some of your vendors have taken advantage of your businesses time constraints and snuck a few fast ones by you. Run a report month over month and compare your expenses for each vendor with services received. Look for discrepancies and you will follow and find the money trail.
We are all looking for ways to increase our dealership profits and this method is one way to help save money from bleeding out of your profits! For example most dealerships employ paint-less dent removal companies to offer customers another amenity as well as raising gross profit. If you do not have a written contract of WHAT you are paying per panel or per dent you may end up paying more as time goes on. Should this happen to you and if you have never raised the price you are charging your customers, you are effectively lowering the GP percentage.
Another way to ensure you are able to properly measure your numbers is by sitting with your body shop manager and hammer out a deal on price per panel. Yes, price per panel! I have an agreement with the body shop manager that any panel that has minor scratches and needs repainting is done for $125 per panel, even bumpers. If the panel needs bodywork we are adding an additional $75 to the $125 bringing the cost to $200. This is a great way to measure and estimate a vehicle right on the service drive which ultimately leads to more sales. All this takes place because your advisors KNOW what the price cost per panel is so they will automatically add a 30% markup. Now you can make money and your service staff won’t be afraid to quote pricing to your customers.
Be on the lookout for price creeping, inaccurate pricing, pricing terms, over inflated transportation charges and surcharges. These types of pricing inaccuracies lead to lowered gross profits which ultimately chew into your ability to achieve higher fixed absorption numbers. The goal is not to save to profit, however you MUST be diligent in examining the price you pay for outside vendor services or you might be taken to the cleaners without ever realizing your true profit potential.
One way to stay on top of your vendor agreements is to secure all written agreements in one file drawer where they are easily accessible for an on the spot review of any vendor pricing. If you have a vendor prospect looking to do business with you, don’t chase them out the door, see what they have to offer and find out what pricing they charge.
Perform cost comparisons and keep your current vendors in check! If you find a cheaper price for the same service, meet with your current vendor and restructure the cost pricing. Do not be afraid of negotiation, negotiation leads to opportunities for you and the dealership.
If you find during an audit of your vendors that you have been paying more then you agreed to, do not be afraid to ask for a refund check! The vendor will certainly think twice before trying to pull another fast one during your watch. Be on the lookout for surcharges that were not part of the original agreement, should you find discrepancies again ask for the refund and stick to the original signed contract. Yes, get contracts with each vendor showing the dissection of charges and how each charge is applied.
The benefits to keeping a watchful eye on all your vendors can be summed up as;
1. Prevention of overcharges improves overall profitability!
2. Your confidence with your suppliers/vendors improves with a regular audit!
3. Auditing information is useful in selecting future suppliers & vendors!
4. Vendor/supplier compliance improves with regular auditing processes!
5. Internal employee compliance using designated suppliers will increase and you won’t be taken advantage of with vendor/supplier kickbacks to your current employees!
Performing a quarterly supplier/vendor audit will ensure compliance with pricing and employee utilization of outside products and services as well as yielding significant results in gross profit retention!
David
Sunday, December 5, 2010
Service Department Reviews Sell the Next Vehicle
Is your service department hurting your sales departments ability to sell more vehicles? Most dealer owners, GM’s and GSM’s would say yes! In most cases the sales department sells the consumer their first vehicle, with that said the service department either sells the next two vehicles or breaks the chain. The service department has the ability to increase your sales departments total unit sales, yet in a lot of cases underperforms in giving the exceptional experience and the fixed right the first time statistics.
The problem goes back to old saying, “Doing the same thing over and over again expecting different results is the definition of insanity”! Most service departments are doing the same old things the same old way and haven’t grown or expanded with the business. Markets have definitely changed and consumers have changed, so why haven’t some dealership mentalities concerning their customers and the increasing level of services offered changed?
What are you doing right now to send a message to your customers that they are important? Are you sending postcards, mailers, newsprint advertising or web advertising? Are you putting next service stickers on your customer’s vehicles to remind them of the next scheduled service, heck your BDC department should be calling these customers with reminders for upcoming or missed services, state inspections and annual wheel alignment and front end inspections! Think outside the box and watch your customer base rematerialize.
Today’s consumers know WHAT they want! Most want good service, value, best price and ease of serviceability, these items differ from customer to customer, yet one item that remains a constant is the EXPERIENCE! All customers want and require an exceptional experience. The experience is what will keep them coming back in your door! If you keep them coming back they will continue to purchase vehicles from your dealership, AND they will tell others about your great level of service! WOW – FREE MARKETING... You cannot get better then this scenario!
Research done by NADA show that in MOST cases dealership service departments are coming up short on facilitating a truly exceptional service experience, for example over 55% of consumers polled feel that their local independent service facility will provide them with better value and a better experience than that of nationally owned repair chains at 25% or manufacturer repair facilities that come up at a whopping 20% satisfaction rating! The real kicker here is that 46% of vehicle repair customers surveyed FEEL that manufacturer or dealer facilities will overcharge them, this can lead to the negative experience instead of the exceptional experience. Remember perception is reality, therefore your service advisors MUST also show value and benefit to the customer to offset the perceived notion of a higher cost!
You are probably asking yourself, “Ok, how does this impact our sales department”. Well, 75% of all consumers shopping for anything from household appliances to automobiles reported that they regularly read on-line reviews regarding customer service experiences before they commit to a purchase from a particular retailer. That is why it is so important to maintain an unblemished image, especially on dealer rater! Social media can make your dealership profitable as well as it can ruin your ability to attract future clients, social media can make your business fly or make it crash and burn!
Due to the current economic situation, consumers are looking for alternative means to save money or spend the money necessary to obtain that unique exceptional experience, therefore it is imperative to the sales department that customers have the perception of added value and benefit at your service department, as well as receiving the exceptional experience and the fixed right on the first visit experience.
Brand loyalty is on the decline and only you can stop it! Use your GOOD image, CSI, Amenities and value added servicing to show your customers you are head and shoulders above the competition. Marketing from a standpoint of a competitive advantage or position of strength can go a long way to attract new customers and in keeping the ones you already have.
Market and advertise your great CSI. Post customer letters on your website and use your website to market how well you compare to that of your competition. Always market from a position of strength in everything you put out! If you are giving all your customers the experience they want and you show value and benefit you will not only grow your service department, you will grow your sales department, and this is cyclical business building at its best. You will guaranty the future of hourly productivity generation in your service department by helping to generate vehicle sales.
David
The problem goes back to old saying, “Doing the same thing over and over again expecting different results is the definition of insanity”! Most service departments are doing the same old things the same old way and haven’t grown or expanded with the business. Markets have definitely changed and consumers have changed, so why haven’t some dealership mentalities concerning their customers and the increasing level of services offered changed?
What are you doing right now to send a message to your customers that they are important? Are you sending postcards, mailers, newsprint advertising or web advertising? Are you putting next service stickers on your customer’s vehicles to remind them of the next scheduled service, heck your BDC department should be calling these customers with reminders for upcoming or missed services, state inspections and annual wheel alignment and front end inspections! Think outside the box and watch your customer base rematerialize.
Today’s consumers know WHAT they want! Most want good service, value, best price and ease of serviceability, these items differ from customer to customer, yet one item that remains a constant is the EXPERIENCE! All customers want and require an exceptional experience. The experience is what will keep them coming back in your door! If you keep them coming back they will continue to purchase vehicles from your dealership, AND they will tell others about your great level of service! WOW – FREE MARKETING... You cannot get better then this scenario!
Research done by NADA show that in MOST cases dealership service departments are coming up short on facilitating a truly exceptional service experience, for example over 55% of consumers polled feel that their local independent service facility will provide them with better value and a better experience than that of nationally owned repair chains at 25% or manufacturer repair facilities that come up at a whopping 20% satisfaction rating! The real kicker here is that 46% of vehicle repair customers surveyed FEEL that manufacturer or dealer facilities will overcharge them, this can lead to the negative experience instead of the exceptional experience. Remember perception is reality, therefore your service advisors MUST also show value and benefit to the customer to offset the perceived notion of a higher cost!
You are probably asking yourself, “Ok, how does this impact our sales department”. Well, 75% of all consumers shopping for anything from household appliances to automobiles reported that they regularly read on-line reviews regarding customer service experiences before they commit to a purchase from a particular retailer. That is why it is so important to maintain an unblemished image, especially on dealer rater! Social media can make your dealership profitable as well as it can ruin your ability to attract future clients, social media can make your business fly or make it crash and burn!
Due to the current economic situation, consumers are looking for alternative means to save money or spend the money necessary to obtain that unique exceptional experience, therefore it is imperative to the sales department that customers have the perception of added value and benefit at your service department, as well as receiving the exceptional experience and the fixed right on the first visit experience.
Brand loyalty is on the decline and only you can stop it! Use your GOOD image, CSI, Amenities and value added servicing to show your customers you are head and shoulders above the competition. Marketing from a standpoint of a competitive advantage or position of strength can go a long way to attract new customers and in keeping the ones you already have.
Market and advertise your great CSI. Post customer letters on your website and use your website to market how well you compare to that of your competition. Always market from a position of strength in everything you put out! If you are giving all your customers the experience they want and you show value and benefit you will not only grow your service department, you will grow your sales department, and this is cyclical business building at its best. You will guaranty the future of hourly productivity generation in your service department by helping to generate vehicle sales.
David
Saturday, November 27, 2010
Mr. Common Sense
A friend of mine from Canada sent this to me and I thought I would post it for all to see. The story made me think about some employees and some customers I have dealt with over the years. Hell, even some decisions I have made throughout my life! The one think that struck me is how the new young recruits both you and I hire have a general lack of common sense, reason and a sense of responsibility for ones actions. I hope you agree this is a huge problem to overcome, enjoy.
Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape.
He will be remembered as having cultivated such valuable lessons as:
- Knowing when to come in out of the rain;
- Why the early bird gets the worm;
- Life isn’t always fair;
- and maybe it was my fault.
Common Sense lived by simple, sound financial policies (don’t spend more than you can earn) and reliable strategies (adults, not children, are in charge).
His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.
Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.
Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn’t defend yourself from a burglar in your own home and the burglar could sue you for assault.
Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement. Common Sense was preceded in death, by his parents, Truth and Trust, by his wife, Discretion, by his daughter, Responsibility, and by his son, Reason.
He is survived by his 4 stepbrothers; I Know My Rights, I Want It Now, Someone Else Is To Blame, and I’m A Victim.
Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, join the majority and do nothing.
Author Unknown
David
Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape.
He will be remembered as having cultivated such valuable lessons as:
- Knowing when to come in out of the rain;
- Why the early bird gets the worm;
- Life isn’t always fair;
- and maybe it was my fault.
Common Sense lived by simple, sound financial policies (don’t spend more than you can earn) and reliable strategies (adults, not children, are in charge).
His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.
Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.
Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn’t defend yourself from a burglar in your own home and the burglar could sue you for assault.
Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement. Common Sense was preceded in death, by his parents, Truth and Trust, by his wife, Discretion, by his daughter, Responsibility, and by his son, Reason.
He is survived by his 4 stepbrothers; I Know My Rights, I Want It Now, Someone Else Is To Blame, and I’m A Victim.
Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, join the majority and do nothing.
Author Unknown
David
Sunday, November 21, 2010
Loss Leaders Reap Rewards
Have you seen a decline in the amount of vehicles entering your service drive for oil changes and tires? This trend seems unstoppable yet it can be stopped with some aggressive marketing, price adjustments and participation from your service advisors and your suppliers. The loss leader sales of tires and oil changes will bring you more brake and suspension work, this will secure your place within your own market demographic.
Warranty times have decreased within most dealerships for a number of reasons, the number one reason being that vehicles today are built better and most parts last longer, therefore to see more vehicles more often you MUST be willing to have loss leaders to bring customers back into your facility and steer customers away from the aftermarket competitor.
I challenge you to examine the amount of mom & pop or franchise service centers that exist within your market area. Peruse the internet or take a drive around the area where your dealership resides and count the number of aftermarket shops, you will be surprised at how many there really are! It is these service centers that are effectively capturing and retaining your customers for items not covered under the warranty.
If a customer takes their vehicle into an aftermarket facility for their routine oil maintenance they will begin to build a relationship with them and soon your customers will be going there for tire purchases. Tire purchases lead to brake replacement and suspension work, not to mention the alignments that are performed at independent service centers can sometimes triple the numbers the average dealership posts on a monthly basis. This loss in revenue hurts most dealerships ability to be profitable and this leads to layoffs or a shortage of key personnel to maintain the servicing levels required to woo customers into doing business with them.
Don’t be fooled into thinking that your dealership is exempt from the aftermarket segment; they are effectively taking a bite out of your business everyday! The aftermarket industry has become more competitive, aggressive, convenient and yes they have put on a fresh face and therefore look more reputable and convincing to the consumer. The aftermarket sector is essentially eroding the customer base at a lot of dealerships across the country.
Part of the blame rests with the manufacturers for extending the servicing intervals on most makes and models, heck some manufacturers have extended servicing intervals of 10,000 to 15,000 miles and come complete with sealed transmissions, 100,000 mile spark plug replacement and extended life coolant of 50,000 miles. This all results in less traffic for most dealership service departments. Dealerships NEED more customers more often to maintain the income stream needed to keep fixed absorption at or around 100% not to mention maintaining staffing levels to give customers that exceptional servicing experience they all want from their servicing dealer.
For dealers who want to succeed you MUST beat your local AFTERMARKET competition at their own game – SELL TIRES, ALIGNMENTS and OIL CHANGES as LOSS LEADERS. You MUST be open with convenient hours of operation to service your clientele when they need you. Opening full days on Saturdays is a great start to providing convenient hours of operation; you know your competition is open full days on Saturdays. Are you? Market yourself as a service department that sells tires competitively, aggressively market your tires, oil changes and alignments and shop you competition for their pricing. Market your dealership service pricing to your customer base by postcard, email blast, service menu boards. Saturday service needs to be treated like any other day.
Stop your advisors from making negative statements like, “there might be parts issues, we only have half staff or my favorite – we might not have enough time to complete the job today”! You just won them over and got them to frequent your facility and you’re already figuring out a way to get rid of them! Shame on any and all advisors who push customers away with language like this! If you are open – DO BUSINESS! Why give your customer the opportunity to think he/she has made a mistake by choosing to service at your facility?
Everything you send out should show you are in business to sell tires, alignments and oil changes. Just because your competition is one price doesn’t mean you must match their pricing because most independents or franchised service facilities do not offer loaner cars, shuttle rides or bright spacious waiting areas with wifi.
Market your amenities as well as your pricing! Your internet or yellow page advertisements must be also placed under the headings of tires, alignments and oil changes. Statistics show that four out of every five customers will purchase tires from the first service facility that show them they need tires, are your service advisors actively checking and inspecting tires on the service drive? If not you are missing the tire sales and probably so many other repairs associated with getting the wheels of the vehicle! STOP leaving money on the table!
Having low prices on oil changes, tires and brakes gives customers perceived value. The other interesting factor here is that because customers perceive the loss leaders as value, when you present them with an estimate for additional work they automatically assume that the rest of your service pricing lineup is packed with value as well! Make it easy for the customer to say yes when you propose the estimate!
No matter what a vehicle comes into my service facility for, every vehicle has a 27 point courtesy inspection performed. The service advisors MUST present any additional up sell work to the customer giving the customer a reason to perform the work while maintaining a sense of value the customer can easily recognize. Make sure you are aggressively marketing, even at the service advisors desk!
Remember; Check your competitors pricing on a least a quarterly basis. Maintain your own value pricing. Treat each customer like only they exist. Be open for business with hours that make sense. Facilitate the perception that your facility is packed full of value added bonuses. Sell oil changes, tires & alignments as loss leaders. Pay your advisors spiffs on alignments and watch the amount of alignments increase immediately.
Get serious about your service department and get excited about making things happen. Help your service team sell more work and show your advisors how to make more money and have more fun. By using loss leaders you will increase your business and that of your bottom line!
David
Warranty times have decreased within most dealerships for a number of reasons, the number one reason being that vehicles today are built better and most parts last longer, therefore to see more vehicles more often you MUST be willing to have loss leaders to bring customers back into your facility and steer customers away from the aftermarket competitor.
I challenge you to examine the amount of mom & pop or franchise service centers that exist within your market area. Peruse the internet or take a drive around the area where your dealership resides and count the number of aftermarket shops, you will be surprised at how many there really are! It is these service centers that are effectively capturing and retaining your customers for items not covered under the warranty.
If a customer takes their vehicle into an aftermarket facility for their routine oil maintenance they will begin to build a relationship with them and soon your customers will be going there for tire purchases. Tire purchases lead to brake replacement and suspension work, not to mention the alignments that are performed at independent service centers can sometimes triple the numbers the average dealership posts on a monthly basis. This loss in revenue hurts most dealerships ability to be profitable and this leads to layoffs or a shortage of key personnel to maintain the servicing levels required to woo customers into doing business with them.
Don’t be fooled into thinking that your dealership is exempt from the aftermarket segment; they are effectively taking a bite out of your business everyday! The aftermarket industry has become more competitive, aggressive, convenient and yes they have put on a fresh face and therefore look more reputable and convincing to the consumer. The aftermarket sector is essentially eroding the customer base at a lot of dealerships across the country.
Part of the blame rests with the manufacturers for extending the servicing intervals on most makes and models, heck some manufacturers have extended servicing intervals of 10,000 to 15,000 miles and come complete with sealed transmissions, 100,000 mile spark plug replacement and extended life coolant of 50,000 miles. This all results in less traffic for most dealership service departments. Dealerships NEED more customers more often to maintain the income stream needed to keep fixed absorption at or around 100% not to mention maintaining staffing levels to give customers that exceptional servicing experience they all want from their servicing dealer.
For dealers who want to succeed you MUST beat your local AFTERMARKET competition at their own game – SELL TIRES, ALIGNMENTS and OIL CHANGES as LOSS LEADERS. You MUST be open with convenient hours of operation to service your clientele when they need you. Opening full days on Saturdays is a great start to providing convenient hours of operation; you know your competition is open full days on Saturdays. Are you? Market yourself as a service department that sells tires competitively, aggressively market your tires, oil changes and alignments and shop you competition for their pricing. Market your dealership service pricing to your customer base by postcard, email blast, service menu boards. Saturday service needs to be treated like any other day.
Stop your advisors from making negative statements like, “there might be parts issues, we only have half staff or my favorite – we might not have enough time to complete the job today”! You just won them over and got them to frequent your facility and you’re already figuring out a way to get rid of them! Shame on any and all advisors who push customers away with language like this! If you are open – DO BUSINESS! Why give your customer the opportunity to think he/she has made a mistake by choosing to service at your facility?
Everything you send out should show you are in business to sell tires, alignments and oil changes. Just because your competition is one price doesn’t mean you must match their pricing because most independents or franchised service facilities do not offer loaner cars, shuttle rides or bright spacious waiting areas with wifi.
Market your amenities as well as your pricing! Your internet or yellow page advertisements must be also placed under the headings of tires, alignments and oil changes. Statistics show that four out of every five customers will purchase tires from the first service facility that show them they need tires, are your service advisors actively checking and inspecting tires on the service drive? If not you are missing the tire sales and probably so many other repairs associated with getting the wheels of the vehicle! STOP leaving money on the table!
Having low prices on oil changes, tires and brakes gives customers perceived value. The other interesting factor here is that because customers perceive the loss leaders as value, when you present them with an estimate for additional work they automatically assume that the rest of your service pricing lineup is packed with value as well! Make it easy for the customer to say yes when you propose the estimate!
No matter what a vehicle comes into my service facility for, every vehicle has a 27 point courtesy inspection performed. The service advisors MUST present any additional up sell work to the customer giving the customer a reason to perform the work while maintaining a sense of value the customer can easily recognize. Make sure you are aggressively marketing, even at the service advisors desk!
Remember; Check your competitors pricing on a least a quarterly basis. Maintain your own value pricing. Treat each customer like only they exist. Be open for business with hours that make sense. Facilitate the perception that your facility is packed full of value added bonuses. Sell oil changes, tires & alignments as loss leaders. Pay your advisors spiffs on alignments and watch the amount of alignments increase immediately.
Get serious about your service department and get excited about making things happen. Help your service team sell more work and show your advisors how to make more money and have more fun. By using loss leaders you will increase your business and that of your bottom line!
David
Sunday, November 14, 2010
Increasing Dealership CSI in 30 Days
With dealer incentive money playing a crucial role and providing much needed revenue to dealerships during this economic downturn it is imperative to increase and then maintain your Customer Satisfaction Index.
One way to perform this function relatively quickly is to TARGET your dealership response rate directly at the source, "Your customers". It is imperative to collect and capture as many customer emails as possible within both the sales and service departments. You will still always have those customers who you will never truly be able to please no matter what you do, expectation levels are different with each and every customer, yet you can control the amount of positive surveys that are filled in and returned to your manufacturer.
I DO NOT provide ways to cheat the system nor do I advocate this type of behavior, what I do incite is the need to have your BDC contact customers on a daily ON GOING basis. The customers you want to call are the ones that you know you gave an exceptional purchase or service experience to and will willingly fill in the survey and return it to your manufacturer.
Here is how it is done:
1. Create a spread sheet in excel for the sales department and create one for the service department. This sheet should be designed as follows;
Customer Name - Vehicle – Contact Tel – Contact Email – RO or Deal # - Contact Yes / No
The sales and service consultants MUST fill this sheet out for each customer in which they know the customer received an exceptional customer service experience. Each morning the dealership BDC retrieves the individual lists and calls the customers with the following script;
2. Good (morning, afternoon or evening) my name is ___________, I am calling from (Name of Dealership), is now a good time to talk? Wait for answer. (If not) What is a good time to call back? ______ Great, the reason for this call is to remind you that (Name of Manufacturer) will be sending you the CSI questionnaire by email, this survey is our report card to (name of manufacturer) of our level of service and commitment to quality we have to our valued customers, may we count on your support to fill in the questionnaire and return it to the (Name of Manufacturer)? Wait for answer. If the answer is no, ask “May I inquire if there are any unresolved issues at this time”? Wait for answer. If the answer is yes, write the concern down and inform the customer that the appropriate manager will contact them shortly. If the answer was yes and they will fill out the questionnaire and return it to the manufacturer, the BDC dealership representative MUST state;
On behalf of our dealership we thank you for your support and look forward to providing you with exceptional customer experiences in the future. Thank you for choosing (Name of dealership) and have a wonderful day.
If you do this religiously for thirty days I guaranty that your CSI scores will be MUCH higher than they are today. Once you start this program make sure you maintain the process to stay ahead of your competition. Once your employees start seeing the CSI level rise they will as well be committed to the process and more aware of WHAT it takes to continue to provide outstanding exceptional service experiences to ALL customers.
David
Sunday, November 7, 2010
Dealership Marketing Strategy
When trying to decide where you will center your marketing and advertising campaigns do not ignore your most valuable target, this is your current customer list contained in your DMS. If you study this list carefully you will begin to see critical areas in defining new markets. Below are some key market segments to consider:
1. Customer’s gender – It is no secret today that women have become a major purchasing force within the automotive sector. You don’t have to look too far to see how much and how often auto manufacturers are targeting women in their television advertising. In today’s new recessionary world, vehicle manufacturers consider women to be 50 percent of the new car market, and they also consider woman to be more involved with family vehicle purchases and repairs, meaning that woman make up more than 50 percent of the decisions pertaining to purchases and decisions affecting fixed operations.
2. Customer’s age - Why would you want to target a specific age group for purchases or servicing? Many excellent reasons include but are not limited to: their ability to pay. Your older customers tend to perform more preventive maintenance and repairs associated with keeping the vehicle running in top shape. Younger drivers are more apt to install accessories and in certain instances cannot afford to maintain the vehicle. Therefore younger customers tend to perform the most basic of servicing, like oil changes only! Don’t judge a book by its cover when it comes to age. A study done in 1998 by the aftermarket segment concluded that older drivers with stable incomes spend more money on maintenance and repairs then their younger counterparts.
3. Customer’s income level - This should be one of your highest priority target market segments. Drivers earning higher incomes drive high end types of vehicles, they perform more regular services and repairs. As a general rule of thumb this class of customers don't mind paying for value and quality. One cautionary note, this group is much more selective and they normally demand an exceptional servicing experience coupled with value, ease of service and quality. Middle and lower income drivers are far more likely to own vehicles out of warranty and need to keep the family car in road-worthy condition longer, this provides you with a large segment that you must market VALUE ADDED servicing to keep them within your sphere of servicing influence.
4. Customer’s family circumstances – Your customer’s marital status, the size of their family and the ages of their children play an important role in their vehicle purchases and their servicing ability. In today’s fast paced world, larger families ussually have more vehicles within any given household. Parents and teenagers each need repairs and servicing, many families remain loyal to one repair or servicing dealership. Market to these families as VIP families, offering benefits to this segment.
5. Demographic and geographic location – When studying purchasing and servicing trends, historically the dealership location has been the first mark of walk-in business success. Today the tech savvy mobile diverse customer has evolved to the point where location is not as important as price, added value, dealer repair quality and dealership reputation. You no longer have to restrict your markets to within a one- or two-mile radius of the dealership. Today’s consumers will go the extra mile to find truly unique value added purchasing and service experience.
6. Deciding where to concentrate on marketing – Track your current customers, break down your results into categories that you can quantify. Multiple vehicle households, woman, high income earners and middle class families, target each with different campaigns to increase your floor traffic. Offer incentives to each different category to draw them in the door. The object of your marketing is to keep your name in front of your customers all year long, offering them a reason to continue to do business with you.
If you keep your name front and center, you give your customers no reason to go anywhere else, providing you are giving them an exceptional customer experience. When you continuously offer your complete customer base an exceptional experience, these customers you currently service will ultimately begin to market for you by telling friends, co-workers and family members how great you are. What better way to market your business then to receive continuous FREE 24/7 marketing?
David
1. Customer’s gender – It is no secret today that women have become a major purchasing force within the automotive sector. You don’t have to look too far to see how much and how often auto manufacturers are targeting women in their television advertising. In today’s new recessionary world, vehicle manufacturers consider women to be 50 percent of the new car market, and they also consider woman to be more involved with family vehicle purchases and repairs, meaning that woman make up more than 50 percent of the decisions pertaining to purchases and decisions affecting fixed operations.
2. Customer’s age - Why would you want to target a specific age group for purchases or servicing? Many excellent reasons include but are not limited to: their ability to pay. Your older customers tend to perform more preventive maintenance and repairs associated with keeping the vehicle running in top shape. Younger drivers are more apt to install accessories and in certain instances cannot afford to maintain the vehicle. Therefore younger customers tend to perform the most basic of servicing, like oil changes only! Don’t judge a book by its cover when it comes to age. A study done in 1998 by the aftermarket segment concluded that older drivers with stable incomes spend more money on maintenance and repairs then their younger counterparts.
3. Customer’s income level - This should be one of your highest priority target market segments. Drivers earning higher incomes drive high end types of vehicles, they perform more regular services and repairs. As a general rule of thumb this class of customers don't mind paying for value and quality. One cautionary note, this group is much more selective and they normally demand an exceptional servicing experience coupled with value, ease of service and quality. Middle and lower income drivers are far more likely to own vehicles out of warranty and need to keep the family car in road-worthy condition longer, this provides you with a large segment that you must market VALUE ADDED servicing to keep them within your sphere of servicing influence.
4. Customer’s family circumstances – Your customer’s marital status, the size of their family and the ages of their children play an important role in their vehicle purchases and their servicing ability. In today’s fast paced world, larger families ussually have more vehicles within any given household. Parents and teenagers each need repairs and servicing, many families remain loyal to one repair or servicing dealership. Market to these families as VIP families, offering benefits to this segment.
5. Demographic and geographic location – When studying purchasing and servicing trends, historically the dealership location has been the first mark of walk-in business success. Today the tech savvy mobile diverse customer has evolved to the point where location is not as important as price, added value, dealer repair quality and dealership reputation. You no longer have to restrict your markets to within a one- or two-mile radius of the dealership. Today’s consumers will go the extra mile to find truly unique value added purchasing and service experience.
6. Deciding where to concentrate on marketing – Track your current customers, break down your results into categories that you can quantify. Multiple vehicle households, woman, high income earners and middle class families, target each with different campaigns to increase your floor traffic. Offer incentives to each different category to draw them in the door. The object of your marketing is to keep your name in front of your customers all year long, offering them a reason to continue to do business with you.
If you keep your name front and center, you give your customers no reason to go anywhere else, providing you are giving them an exceptional customer experience. When you continuously offer your complete customer base an exceptional experience, these customers you currently service will ultimately begin to market for you by telling friends, co-workers and family members how great you are. What better way to market your business then to receive continuous FREE 24/7 marketing?
David
Monday, November 1, 2010
Service Department Action Plan to Rev Up Gross Profit
During this economic slowdown dealerships need to be aggressive in finding new business and continuously marketing to the existing customers in their DMS. Some handy tips on revving up the gross and keeping your shop full of vehicles are listed below. If you stay on top of this list daily you will be ahead of the game and dollars will chase you instead of you chasing the dollars.
1. Call all customers the day before they’re scheduled to bring their vehicles in to confirm their appointment.
2. Review your DMS and call those customers whose state inspection sticker or emissions certification is due to expire.
3. Review your “Estimates” file for work that was never performed, track your declined services, and people who would have had work done but hadn’t found the time to come in.
4. Call all customers with recommended repairs listed on previously closed repair orders – again tracking your declined service work is a great source of future potential revenue..
5. Call customer “no-shows” from previous days. Often these customers simply forgot, or an important issue arose.
6. Notify customers of special order parts that have come in and book their appointment.
7. Make “Thank you for your business” phone calls the following day.
8. Call customers regarding maintenance and repair of the second or third (or more) vehicles in their
household, “We Service Your Other Vehicles Too”.
9. Review repair orders for factory or shop warranties due to expire, offer to perform a FREE courtesy inspection.
10. Call all customers with vehicle leases due to expire and recommend an inspection prior to turning their vehicles in.
11. Estimate current mileages on the vehicles in your DMS and determine upcoming vehicles due for various services such as oil changes and other scheduled maintenance items. Then call those customers.
12. Request that your employees personally refer work to the shop, ALL employees should have a business card.
As well, call the following and advise them that you can provide them with priority service on any day that’s not full on your appointment schedule:
1. Vendors.
2. Local used car lots.
3. Local Body shops.
4. Any and ALL fleet customers.
5. AAA Automotive
6. Local Towing companies.
David
1. Call all customers the day before they’re scheduled to bring their vehicles in to confirm their appointment.
2. Review your DMS and call those customers whose state inspection sticker or emissions certification is due to expire.
3. Review your “Estimates” file for work that was never performed, track your declined services, and people who would have had work done but hadn’t found the time to come in.
4. Call all customers with recommended repairs listed on previously closed repair orders – again tracking your declined service work is a great source of future potential revenue..
5. Call customer “no-shows” from previous days. Often these customers simply forgot, or an important issue arose.
6. Notify customers of special order parts that have come in and book their appointment.
7. Make “Thank you for your business” phone calls the following day.
8. Call customers regarding maintenance and repair of the second or third (or more) vehicles in their
household, “We Service Your Other Vehicles Too”.
9. Review repair orders for factory or shop warranties due to expire, offer to perform a FREE courtesy inspection.
10. Call all customers with vehicle leases due to expire and recommend an inspection prior to turning their vehicles in.
11. Estimate current mileages on the vehicles in your DMS and determine upcoming vehicles due for various services such as oil changes and other scheduled maintenance items. Then call those customers.
12. Request that your employees personally refer work to the shop, ALL employees should have a business card.
As well, call the following and advise them that you can provide them with priority service on any day that’s not full on your appointment schedule:
1. Vendors.
2. Local used car lots.
3. Local Body shops.
4. Any and ALL fleet customers.
5. AAA Automotive
6. Local Towing companies.
David
Sunday, October 24, 2010
Hiring and Training Winners Attract More Winners
The next time you are hiring to fill a position within your facility you need to examine the scenario that opened the position in the first place, did the past employee fail you or did the facility training level or support system fail the employee? Do you have clearly defined policies and procedures that outline WHAT you want accomplished on a daily basis or is your department run with a policy of every person for them self?
Winners like to work for establishments where the goals are defined and the procedures to attain the goals are clear, concise and achievable. Only when you have clearly identified the issues that brought you to the point of hiring a replacement can you move forward with a plan to hire a viable body to help you achieve the department goals?
The basis for hiring a new service advisor or technician should be as follows;
1. Ask the candidate to bring with them their advisor reports or technician reports from their current or last place of employment.
2. You want to see more than just their personal statistics; you want to review where they rank within their current dealership of peers.
Ask for your candidates advisor or technician reports and look over the effective labor rate, hours per RO, dollars per RO, open repair order list, flat rate units, available hours vs. produced hours and really drill down on each candidate to see where they currently rank within their existing employment. STUDY THE NUMBERS!
Examine the advisor or technician reports of your candidates and make sure they ranked at the top of their current employment. The reason I say this is if they were ranked number four out of five advisors or seventeenth out of twenty technicians what will they bring to your dealership that is unique? Hiring winners means they were ranked number one or two in their current employment, not the middle or the bottom of the pack.
If you want more of what you currently have keep hiring the way you always have! Should you really wish to succeed then start hiring smarter more ambitious people who will lead in your facility and help attract more talent to enable you to grow?
Excellent service advisor candidates do more than just take orders from your customers! Excellent service advisors, called winners consistently up sell recommended services and up sell items recommended by technicians. Excellent service advisors continuously keep the lines of communication open with their individual customers ensuring them an excellent servicing experience. Excellent service advisors check over their own individual open RO list throughout the day, closing work-orders that are completed and calling their customers to have the completed vehicle picked up in a timely manner, this is done to counter parking lot congestion and maintain the loaner vehicle fleet with available vehicles for the next customer.
Your ability to have available parking and loaner vehicles is your facilities ability to facilitate more appointments thus making more revenue. The excellent service advisor is more than just an average service advisor, to be an excellent service advisor means being a consultant to customers. The consultant advisor has the mentality that each customer is his or hers within the dealership and strives to maintain that customer long term by building a relationship of trust and integrity. The advisor who turns each customer into a repeat pattern with little or no attention to the customer’s needs is just and order taker. Order taker advisors belong at Jiffy Lube not in a dealership setting.
Excellent technicians are those that consistently apply themselves to the training requirements and strive to build their own income stream within your facility. The excellent technician produces more hours than the forty hours he or she is in the building, having a fixed first visit ratio of ninety-five percent or higher with minimum comebacks. Excellent technicians use their time wisely while in the workplace and will inspect each vehicle properly prioritizing up sell repairs in terms of need analysis.
Before you hire your next candidate decide WHAT you NEED and HOW you will interview for it! Make a point to itemize the qualities you are seeking and review your own department numbers to better understand where you currently are and where you want to be! You will never achieve 100% fixed absorption unless you hire and train your employees to be better each and every day! You will also continue to make minor inroads with your CSI until you hire and train your employees to be consultants with each and every customer they come in contact with. I ask you this, “Do you want more of the same or do you want to initialize and transform your dealership into a revenue stream that is unstoppable even in the current economic climate”? The choice is yours!
Stop waiting for something positive to happen, execute the positive change NOW and you will be better prepared to start really making a difference on the bottom line today!
David
Winners like to work for establishments where the goals are defined and the procedures to attain the goals are clear, concise and achievable. Only when you have clearly identified the issues that brought you to the point of hiring a replacement can you move forward with a plan to hire a viable body to help you achieve the department goals?
The basis for hiring a new service advisor or technician should be as follows;
1. Ask the candidate to bring with them their advisor reports or technician reports from their current or last place of employment.
2. You want to see more than just their personal statistics; you want to review where they rank within their current dealership of peers.
Ask for your candidates advisor or technician reports and look over the effective labor rate, hours per RO, dollars per RO, open repair order list, flat rate units, available hours vs. produced hours and really drill down on each candidate to see where they currently rank within their existing employment. STUDY THE NUMBERS!
Examine the advisor or technician reports of your candidates and make sure they ranked at the top of their current employment. The reason I say this is if they were ranked number four out of five advisors or seventeenth out of twenty technicians what will they bring to your dealership that is unique? Hiring winners means they were ranked number one or two in their current employment, not the middle or the bottom of the pack.
If you want more of what you currently have keep hiring the way you always have! Should you really wish to succeed then start hiring smarter more ambitious people who will lead in your facility and help attract more talent to enable you to grow?
Excellent service advisor candidates do more than just take orders from your customers! Excellent service advisors, called winners consistently up sell recommended services and up sell items recommended by technicians. Excellent service advisors continuously keep the lines of communication open with their individual customers ensuring them an excellent servicing experience. Excellent service advisors check over their own individual open RO list throughout the day, closing work-orders that are completed and calling their customers to have the completed vehicle picked up in a timely manner, this is done to counter parking lot congestion and maintain the loaner vehicle fleet with available vehicles for the next customer.
Your ability to have available parking and loaner vehicles is your facilities ability to facilitate more appointments thus making more revenue. The excellent service advisor is more than just an average service advisor, to be an excellent service advisor means being a consultant to customers. The consultant advisor has the mentality that each customer is his or hers within the dealership and strives to maintain that customer long term by building a relationship of trust and integrity. The advisor who turns each customer into a repeat pattern with little or no attention to the customer’s needs is just and order taker. Order taker advisors belong at Jiffy Lube not in a dealership setting.
Excellent technicians are those that consistently apply themselves to the training requirements and strive to build their own income stream within your facility. The excellent technician produces more hours than the forty hours he or she is in the building, having a fixed first visit ratio of ninety-five percent or higher with minimum comebacks. Excellent technicians use their time wisely while in the workplace and will inspect each vehicle properly prioritizing up sell repairs in terms of need analysis.
Before you hire your next candidate decide WHAT you NEED and HOW you will interview for it! Make a point to itemize the qualities you are seeking and review your own department numbers to better understand where you currently are and where you want to be! You will never achieve 100% fixed absorption unless you hire and train your employees to be better each and every day! You will also continue to make minor inroads with your CSI until you hire and train your employees to be consultants with each and every customer they come in contact with. I ask you this, “Do you want more of the same or do you want to initialize and transform your dealership into a revenue stream that is unstoppable even in the current economic climate”? The choice is yours!
Stop waiting for something positive to happen, execute the positive change NOW and you will be better prepared to start really making a difference on the bottom line today!
David
Sunday, October 17, 2010
Key Attributes of Success Include the Law of Attraction
The key attributes of success can be summed up in the following statements! I have a burning passion and desire to succeed. I am persistent in my venture to reach my goals and I use communication skills and strategic goal setting skills to obtain results. I take action and I create my own self discipline. I manage my time extremely well and I persist in stretching myself and others everyday to grow beyond what we are today. I use my selling skills to sell myself and my products. Selling me literally means I have a strong following therefore people readily climb on board with new ventures or changes to improve publicly and privately. I believe in the good and the benefits that our business brings to others. I enjoy the role of quarterback, making plays and executing ideas, I bring a new dynamic to the playing field.
All of these items MUST be in your core drivers for you to succeed in business, as a manager or as a leader. I believe these core drivers are the chemical makeup of who we are. What percentage we use our attributes defines our levels of success as a private citizen and as a leader in the public eye. What would you say if I told you there is one more component to success? This is a vital component to success that most people don’t realize exists or they are blind to the fact that they use it every day of their lives without knowing? I’m talking about the law of attraction!
Every single day, we as humans think! We have the ability to envision and create alternate realities within our own mind, we think therefore we are. What do you spend most of your time thinking about? Have you really listened to your own thoughts? Stop and pay attention to what is really going on in your head and you will begin to realize that what you think about you bring about, literally!
If you are a manager who thinks about how badly your department performs you will get exactly more of what you are thinking about, a bad or under performing department. If you are a manger who see’s that effective change is the only way to succeed and you focus on the changes, training, coaching, mentoring and hiring better qualified candidates to fulfill your business commitments, this will be exactly what you bring about.
To move ahead you cannot dwell on the negatives or think about yesterday and what went wrong. Moving ahead means eyes up, walk straight and pay attention to opportunities. Think positive, act positive and project positive thoughts! Stay focused on the things you really want, get emotional about it in a positive way. The more positive energy and emotion you bring to bare on your thoughts, the quicker and easier you will attain what you really desire and what you think about.
People become the sum of their thoughts therefore you are what you think! Do you want to become backwards or poor in thought, poor in money, poor in friends, poor in success? If you do, think poor thoughts and this will be your reality. If you want great things in your life – THINK GREAT THINGS! See yourself with the end result, over and over and over again.
When you think you have thought about the end result enough, envision YOU with the WHAT that you WANT and do it all over again and again. You will need to unlearn what you have been taught as a child. We were all taught that ALL good things come with hard work and thats absolutely correct, however learn to work smarter, not harder. Your own thoughts have greater power over your path in life then your physical efforts!
Thoughts are your power to live in misery with more of the same old, same old and thoughts also hold the power to lead you to greatness. The trick is once you have achieved greatness do not let others think for you, their ideas of greatness may not be on the same playing field as your own ideas. This can lead you to second guess direction which could lead to catastrophe. Always project your thoughts to the things you want to happen or items where you want to effect change, do not dwell on the ifs or the woulda, coulda shoulda scenarios because ultimately you will bring about more woulda, coulda shoulda!
The power of positive thinking, the law of attraction and your burning desire to succeed coupled with other key attributes of success can only be realized when you are harnessing these qualities in unison. Practice what you preach and live the life of your positive creative thoughts, leadership by example!
David
All of these items MUST be in your core drivers for you to succeed in business, as a manager or as a leader. I believe these core drivers are the chemical makeup of who we are. What percentage we use our attributes defines our levels of success as a private citizen and as a leader in the public eye. What would you say if I told you there is one more component to success? This is a vital component to success that most people don’t realize exists or they are blind to the fact that they use it every day of their lives without knowing? I’m talking about the law of attraction!
Every single day, we as humans think! We have the ability to envision and create alternate realities within our own mind, we think therefore we are. What do you spend most of your time thinking about? Have you really listened to your own thoughts? Stop and pay attention to what is really going on in your head and you will begin to realize that what you think about you bring about, literally!
If you are a manager who thinks about how badly your department performs you will get exactly more of what you are thinking about, a bad or under performing department. If you are a manger who see’s that effective change is the only way to succeed and you focus on the changes, training, coaching, mentoring and hiring better qualified candidates to fulfill your business commitments, this will be exactly what you bring about.
To move ahead you cannot dwell on the negatives or think about yesterday and what went wrong. Moving ahead means eyes up, walk straight and pay attention to opportunities. Think positive, act positive and project positive thoughts! Stay focused on the things you really want, get emotional about it in a positive way. The more positive energy and emotion you bring to bare on your thoughts, the quicker and easier you will attain what you really desire and what you think about.
People become the sum of their thoughts therefore you are what you think! Do you want to become backwards or poor in thought, poor in money, poor in friends, poor in success? If you do, think poor thoughts and this will be your reality. If you want great things in your life – THINK GREAT THINGS! See yourself with the end result, over and over and over again.
When you think you have thought about the end result enough, envision YOU with the WHAT that you WANT and do it all over again and again. You will need to unlearn what you have been taught as a child. We were all taught that ALL good things come with hard work and thats absolutely correct, however learn to work smarter, not harder. Your own thoughts have greater power over your path in life then your physical efforts!
Thoughts are your power to live in misery with more of the same old, same old and thoughts also hold the power to lead you to greatness. The trick is once you have achieved greatness do not let others think for you, their ideas of greatness may not be on the same playing field as your own ideas. This can lead you to second guess direction which could lead to catastrophe. Always project your thoughts to the things you want to happen or items where you want to effect change, do not dwell on the ifs or the woulda, coulda shoulda scenarios because ultimately you will bring about more woulda, coulda shoulda!
The power of positive thinking, the law of attraction and your burning desire to succeed coupled with other key attributes of success can only be realized when you are harnessing these qualities in unison. Practice what you preach and live the life of your positive creative thoughts, leadership by example!
David
Less is More
As a leader or manager of a department, WHAT you say has an impact on the people you lead. Sometimes the more you try and impress these people with your words the more you may become just a common apparition within the business. The more you speak about common events or non work related topics the less in control you really are.
Only speak when spoken to or when you really have something important to say, do not undermine your authority with trivial banter, you will end up being JUST ONE OF THE EMPLOYEES and your staff may not take you seriously when what you say really counts. The more you speak the more likely you will stick your foot in your mouth and say something out of place or something that makes you look foolish.
Powerful leaders or managers lead by saying less and and doing more in the background, things that can be seen and not heard. When leading or managing – less is more!
David
Only speak when spoken to or when you really have something important to say, do not undermine your authority with trivial banter, you will end up being JUST ONE OF THE EMPLOYEES and your staff may not take you seriously when what you say really counts. The more you speak the more likely you will stick your foot in your mouth and say something out of place or something that makes you look foolish.
Powerful leaders or managers lead by saying less and and doing more in the background, things that can be seen and not heard. When leading or managing – less is more!
David
Friday, October 8, 2010
Dealing With Difficult Customers
Let’s face reality, not all customers can be pleasant to deal with nor are they all reasonable. I have put together a small list of tips to help you deal with stress management induced from the day-to-day interactions and situations that you are bound to encounter.
• Don’t take the criticism and sometimes verbal abuse personally. If someone has a problem with the product or service, don’t make it your own personal problem. If a customer is upset and angry at you and becomes verbally abusive, try and remember that the persons emotions are directly related to the product or service that you represent, "NOT WITH YOU"! When the upset person has left your facility, pull yourself up by your boot strings and remember that the issue wasn’t about you.
• Engage the difficult customer in small talk while working on the problem with the customer. Keeping the customer engaged about the weather, sports or their family eases the pressure and helps open the customer up to a workable solution. Get out of the habit of making the problem the only focus of the conversation, engaging the customer in friendly banter goes a long way in solving perceived issues.
• The next time a customer is on your last nerve and you feel yourself getting angry, redirect your angry thoughts into thoughts of empathy for the opposing person. Learn to tell yourself, “I can see this persons point of view”, instead of, “Man this person is really getting on my nerves”. Attitude is a choice! We choose whether we are angry, happy or empathetic. Make a conscious choice of empathy and watch your customer resolved issue rate climb and your bottom line GP grow.
• Knowing your options helps. Stress is caused by the feeling that you have lost control of a situation. To negate the feelings of stress know what your limitations are, for example – can you give the customer a discount, can you offer a detail or can you offer solutions to bring the issue to fruition. Once you know your options or limitations, you can gain control and counter the stress induced situations.
• If and when you have the angry irate customer in your office or on the phone, ask them straight out, “what is the issue and how can I help you with this”? Customers like a proactive approach to solving their issues. When you are unable to get the perceived issues out in the open it poses a problem to finding a solution. Be proactive with uncovering the issues and you will have better results in solving them.
• Networking with other department managers and your peers builds a support network that increases the control over how situations are handled and resolved. Having a great backstop by use of your team uncovers resources available to you to help solve issues that frequent day-to-day.
• When dealing with customers or employees always remember to use nonthreatening questions. Ask the person for help in understanding the issue. Asking non threatening questions provides you the technique to uncover the issues and as well reduces the amount of stress for both parties during the process. This also allows you to gain control of the conversation and the situation which greatly reduces your own stress level, this technique allows you to make an informed rational decision for the outcome.
• Use positive comments and compliment the customer on their choice of vehicle or how well they keep the vehicle. Remember to always use the customer’s name during the conversation, people like to hear their own name as well as they like to be complimented.
Using these techniques in your day-to-day dialogue will help foster a stress free environment. Once you start practicing these techniques and using them to deal with customers and employees, your employees will start to emulate your tactics to avoid the stressful situations. This is a win-win situation for everyone.
David
• Don’t take the criticism and sometimes verbal abuse personally. If someone has a problem with the product or service, don’t make it your own personal problem. If a customer is upset and angry at you and becomes verbally abusive, try and remember that the persons emotions are directly related to the product or service that you represent, "NOT WITH YOU"! When the upset person has left your facility, pull yourself up by your boot strings and remember that the issue wasn’t about you.
• Engage the difficult customer in small talk while working on the problem with the customer. Keeping the customer engaged about the weather, sports or their family eases the pressure and helps open the customer up to a workable solution. Get out of the habit of making the problem the only focus of the conversation, engaging the customer in friendly banter goes a long way in solving perceived issues.
• The next time a customer is on your last nerve and you feel yourself getting angry, redirect your angry thoughts into thoughts of empathy for the opposing person. Learn to tell yourself, “I can see this persons point of view”, instead of, “Man this person is really getting on my nerves”. Attitude is a choice! We choose whether we are angry, happy or empathetic. Make a conscious choice of empathy and watch your customer resolved issue rate climb and your bottom line GP grow.
• Knowing your options helps. Stress is caused by the feeling that you have lost control of a situation. To negate the feelings of stress know what your limitations are, for example – can you give the customer a discount, can you offer a detail or can you offer solutions to bring the issue to fruition. Once you know your options or limitations, you can gain control and counter the stress induced situations.
• If and when you have the angry irate customer in your office or on the phone, ask them straight out, “what is the issue and how can I help you with this”? Customers like a proactive approach to solving their issues. When you are unable to get the perceived issues out in the open it poses a problem to finding a solution. Be proactive with uncovering the issues and you will have better results in solving them.
• Networking with other department managers and your peers builds a support network that increases the control over how situations are handled and resolved. Having a great backstop by use of your team uncovers resources available to you to help solve issues that frequent day-to-day.
• When dealing with customers or employees always remember to use nonthreatening questions. Ask the person for help in understanding the issue. Asking non threatening questions provides you the technique to uncover the issues and as well reduces the amount of stress for both parties during the process. This also allows you to gain control of the conversation and the situation which greatly reduces your own stress level, this technique allows you to make an informed rational decision for the outcome.
• Use positive comments and compliment the customer on their choice of vehicle or how well they keep the vehicle. Remember to always use the customer’s name during the conversation, people like to hear their own name as well as they like to be complimented.
Using these techniques in your day-to-day dialogue will help foster a stress free environment. Once you start practicing these techniques and using them to deal with customers and employees, your employees will start to emulate your tactics to avoid the stressful situations. This is a win-win situation for everyone.
David
Sunday, October 3, 2010
Time is money – Time is Valuable – Use Time Wisely!
The time you spend coaching and counseling your employees pays off in untold dividends if you are spending the right amount of time with each individual. Time is not something you can ever get back, it is gone so use it wisely and use it to its fullest. Once you think you have trained your employees enough, go back and do it all over again. This method seems redundant however if you are not consistently on top of your policies and procedures training, small items will slip through the cracks leaving you and the business exposed.
If you are working in a facility that needs revitalization or where employees seem to run the show to a certain extent, read on and find out some tips centered on turning the employee mindset around and have your team refocus their abilities to perform at the level you require.
We all give our employees job descriptions and then try to instill the corporate policies by training, coaching, mentoring and counseling. These are great tools in your toolbox and work fairly well when the manager diligently and consistently trains and retrains and trains again. So let’s look at a way to get your employees pumped up to the call of action whereby they perform at the level you need and they go out of their way, above and beyond to raise the bar on their own.
Instead of just simply giving your employees a job description write out very short paragraphs such as:
1. In your own words please describe your employment description or job title in detail.
2. In your own words please provide a description of a typical day, “What do you do”?
3. Please describe in your own words what special qualities you bring to the dealership.
4. (Receptionist) Please describe in your own words WHAT would help to make your job easier to fulfill the expectations of providing each customer a WOW experience along with reaching the companies goals of an exceptional telephone process, calls answered by third ring, on-time for work, politeness, attentiveness, empathetic to customers’ needs and helpful, making each customer feel like they are the only customer who called in today!
4a. (Technicians) Please describe in your own words WHAT would help to make your job easier to fulfill the expectations of providing each customer a WOW experience along with a higher fixed first visit ratio, less comebacks, increased efficiency and productivity numbers.
4b. (Advisors) Please describe in your own words what would help to make your job easier to fulfill the expectations of providing each customer with a WOW experience along with positioning proper detailed estimates, calling your customers twice per day, increasing sales and customer retention along with fulfilling the manufacturer requirements with documented paperwork.
5. In your own words please indicate what resources, policies or procedures would help you to be more effective within the scope of your job duties?
Once your employees completely fill out their own job description sheets, incorporate their ideas into the chemical makeup of your own detailed job description and duties profile. In most cases when the people who work for you are involved with the planning of the process they own it. Once your employees own the process it is easier to establish the policies and procedures to move the needle forward. I have successfully incorporated this procedure into facilities where the results were dramatic and instantaneous.
Below is an actual copy of the advisor and technician job description and duties profile:
Service Advisor Job Description & Duties
On time for work every day, if you are going to be late or cannot come into work you will be required to call into the dealership and inform a manager of your situation.
When speaking with customers use professional language and make sure you speak clearly and directly, do not mumble.
When placing a customer on hold ASK – “May I place you on hold for a moment while I find that information or person” is far better then – “HOLD”.
Greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule at all times. If you see a customer within ten feet of you - you ask them if they have been served.
Continuously maintain a professional attitude, smiling and conversing with each customer and displaying courtesy and respect towards all customers and fellow employees.
Report to management any situation or condition that jeopardizes the safety, welfare, or integrity of the dealership, its employees, or customers.
Service advisors will use the sublet markup spread sheet for each sublet and will print out the sheet for each vehicle when used and attach it to the work order.
Service advisors will write estimates using the electronic estimator which is loaded on each advisor computer. Each estimate will be attached to the work order.
All estimates must be packaged in order to achieve the posted effective labor rate.
Service advisors MUST inform all CP drivability, check engine light or electrical diagnosis customers of the diagnostic charge of one hour minimum = $135.00
Service advisors MUST attempt to secure the repair authorization for a set dollar amount up front when the customer is present during write up. For example – “Mr. Customer, the electrical diagnostic charge is $135.00; would you give me authorization to repair the car if it can be done for $500.00 or less”?
Service advisors MUST use the diagnostic questionnaire (attached) with every electrical or drivability concern.
Our customers are greeted within one minute of entering our service drive or dealership.
Our customers are greeted with eye contact and a smile.
Service advisors perform a damage walk around inspection on every vehicle.
Service advisors perform a walk around on each and every vehicle for the purpose of up selling.
Service advisors check and record tire measurements on every vehicle that comes into our service drive.
Service advisors have the customer sign off on the damage control check sheet.
Service advisors listen to our customers concerns and make detailed notes for the technicians.
Service advisors give each customer their undivided attention and ask open ended questions.
Service advisors demonstrate they are listening and attentive as they restate the concern to the customers.
Service advisors take the time to understand the customers’ needs.
Service advisors ask the customer each time if the mailing address and phone numbers remain the same.
Service advisors ask for the customers email address each and every time.
Service advisors obtain signatures on each and every work order.
Service advisors pre-sell services and have signed estimates on the work orders.
Service advisors call their customers a minimum of two times per day.
Service advisors are neat and organized and have neat organized desks.
Service advisors follow through on commitments made to their customers.
Service advisors find solutions to the customer’s primary concerns.
Service advisors position estimates as primary and secondary concerns.
Service advisors use an estimate template or electronic estimator to make their estimates.
Service advisors document who they spoke with, phone number, time of day and what was authorized on each and every work order and each estimate.
Service advisors check with dispatch to find out the status of their vehicles.
Service advisors ensure each customer vehicle is washed.
Service advisors inspect each vehicle before it is redelivered o the customer.
Service advisors call the customers and arrange pick up times.
Service advisors attempt to get credit card numbers over the phone when arranging pick up times to speed up redelivery and to have all paperwork ready for the customer.
Service advisors explain the CSI questionnaire to our customers along with a detailed explanation of all work that was performed during the visit.
Service advisors obtain signatures from the customer on the warranty and accounting copies of the work orders.
Service advisors inform the customers that if they have any concerns to please contact them immediately to immediately find a solution.
Service advisors thank each and every customer for their business.
Dress code:
• Men and women who have tattoos that may be visible need to cover their tattoos during working hours, especially if they deal directly with the public.
• Men and woman who wear nose, cheek, eyebrow or tongue rings should remove these items during working hours, especially if they directly work with the public.
• Men who work directly with the public should not wear earrings during working hours.
• Men need to be clean shaven unless they have a neatly trimmed moustache or beard.
• Men and women must adhere to strict codes of personal hygiene, and must not exude offensive odors.
• Men and women must have hair that is neat, groomed and clean at all times.
• Men and women must not wear flip-flops, sandals, blue jeans or clothing that may be ripped or frayed during working hours, especially if they are dealing with the public.
• Running shoes or sneakers should not be worn during working hours, especially for employees that work directly with the public. Technicians can wear safety approved work sneakers while at work, as long as they meet safety standards and are oil resistant.
• Open toe shoes should not be worn in the service facility by employees. This measure will safeguard them from falling objects that may strike their feet.
• Men should wear dress pants, shirt and tie, or summer approved brand polo shirts, dressing business casual, especially if they deal directly with the public.
• Women should wear dress pants, blouses or skirts, or summer approved brand polo shirts, dressing business casual, especially if they deal directly with the public.
• Employees who are required to wear company brand uniforms, must wear them at all times keeping conscious to maintain neat clean appearances at all times, always keeping shirts tucked into their pants.
• Employees must be conscious of moving and rotating equipment, and care must be maintained to ensure that loose clothing such as ties, do not become engaged in moving equipment.
• Clothing that is not acceptable is as follows: Tight fitting, skimpy, revealing, and flashy and other types of clothing that does not fit the image you wish to project to your clients.
• Company issued brand name tags should be worn at all times, especially for employees that deal directly with the public.
The job of the service advisor is exactly what the job title states – To Serve and Advise! Advisors will not pick and choose who they will serve, if you are the next available advisor you will serve the next available customer.
The job of service advisor also includes helping out those customers or clients that you didn’t actively serve, if your fellow advisor is at lunch, away from his/her desk or on vacation all advisors must pitch in and help to promote the exceptional customer service experience for the customer and promote the brand and the dealership. Team work is the only way to survive in this new and challenging economic environment
Positive communication MUST be used with each and every customer this sets the tone of the customer experience and will increase the retention of our customer base.
Below are some examples of positive and negative forms of communication.
POSITIVE
Brief eye contact (3 – 5 seconds)
Smiling
Face the customer
Eyes wide open and engaged
Actively listening
Expressive hand gestures
Nodding in agreement
Remain silent while the customer is speaking
Making open handed gestures
Open body stance
Maintain a professional appearance
NEGATIVE
Attending to matters other than the customer
Minimal hand gestures
Frowning or negative facial expressions
Playing with objects in your hands
Staring with a blank look at the customer
Crossed arms over chest
Pointing objects or fingers at the customer
Interrupting while the customer is talking
Disorganized or dirty work environment
Unprofessional appearance
All (Brand) Employees shall strive to achieve uncompromising levels of integrity and commitment in achieving a 100% exceptional customer experience, this hinges on honesty and trust with peers and customers alike both in and out of the work place setting. Autograph everything you do with excellence, it is your name.
Again - greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule as a five foot rule at all times. If you see a customer within five feet of you - you ask them if they have been served.
Employee Name: _____________ Employee Signature: _____________________
Manager Name:_______________Manager Signature: ______________________
Date: ______________
Technician Job Description & Duties
1. When getting into any customers vehicle once you have the work order, check the vehicle VIN number and make sure you are working on the right vehicle.
2. Verify that the advisor has the right mileage reading recorded as incoming mileage on the RO.
3. Perform an initial road test, check for noise, vibration, shaking, misfire, engine or driveline concerns, make notations on reverse of work order or 27 point courtesy inspection sheet.
4. Check the work order for the customer diagnostic questionnaire sheet for electrical or drivability diagnosis. (Copy will be attached)
5. Verify the customers concern – if the concern cannot be duplicated, have the service advisor contact the customer for further leading information. Always attempt to get more customer input!
6. Check the “Simple and the obvious”.
7. Use electronic diagnosis techniques.
8. Research and analyze.
9. Systematic testing.
10. Pinpoint cause of concern and repair
11. Quality control – road test and evaluate workmanship and vehicle repair condition on every vehicle you work on, no exceptions to this rule.
12. Know when to involve team leader, shop foreman or dispatcher.
13. Know when to write a case to the manufacturer for difficult diagnostics.
14. Attach all required test sheets such as code, battery or test plan procedures to the work-order.
15. Ensure all proper punch times are documented for each line and each procedure on the work-order.
16. Make sure the complete detailed story is written into the work-order. The more detailed the explanation of the diagnostic and repair procedure, the better the chance of billing for more time and retaining the claimed time during an audit situation.
When reading the concern line plan out how the concern is to be verified:
1. In the shop.
2. On a road test, in town or highway driving.
3. What are the specific operating conditions when the vehicle experiences the condition?
4. Ascertain specific drive time until condition presents itself.
5. Ascertain if the condition is present under certain road conditions.
6. Cold or hot operation will determine if vehicle should be left overnight.
7. Warning lights on or off.
8. Warnings lights in red or yellow.
9. Perform proper function tests of affected units by triggered codes.
Technicians should be performing a visual inspection of each vehicle when it comes into the service bay. The items to look for in ascertaining the customers concerns are:
1. Broken or disconnected electrical connectors.
2. Disconnected or broken vacuum hoses and lines.
3. Related fuses, relays and fuse contacts.
4. Obvious vehicle damage.
5. Non factory or not approved add on electrical items or equipment.
6. Outside influences that may have caused damage.
Check vehicle computer systems for related and non related codes, printing and providing test sheets and attaching them to the work order. To ensure a quality repair the technician needs to check on the following items:
1. Check for individual control unit data.
2. Fault code status and possible causes which impaired the functions of the item pertaining to the code or related items affecting a particular system.
3. If no codes are present – check reference sources for a breakdown of system component items that may be involved.
4. Check and consult diagnostic test plan for proper diagnostic test procedures.
5. Converse with team leader or shop foreman when diagnostic repair and or replacement cannot be ascertained.
6. Maximum diagnostic time is one hour. Once one hour has elapsed the team leader or the shop foreman must be brought into diagnostic procedure.
Testing sequence is determined by:
1. Fault codes.
2. Actual values.
3. Actuations.
4. System diagnosis.
5. Test equipment
6. Tools and resources.
7. Experience.
8. Test results.
Ascertain that the concern was not caused by:
1. Electrical overload.
2. Software error.
3. Outside influence or damage.
4. Abuse or neglect.
5. Research history for previous similar concerns.
Team system implementation:
The best system of technician diagnostic time accountability is a one hour diagnostic procedure. (Our advisors have pre sold one to two hours of diagnostic time to begin with). This is achieved by utilizing your shop foreman and two senior technicians as team leaders. For example a technician has one hour invested into a vehicle for electrical diagnosis and the fault has not been ascertained. At one hour the technician will call his team leader over and discuss the concern and the tests that have been performed. The team leader will at this point instruct the technician to perform additional tests and the team leader will be called back to inform the technician of the proper repair procedure or he will instruct the technician to place the work-order on a shop foreman hold.
The dispatcher will then be notified the vehicle has been placed on a shop foreman hold for the foreman to diagnose the vehicle. This procedure allows the shop to stay productive whereby the technician can bring the next vehicle into the shop for repairs. The shop foreman, once the diagnosis has been completed will confer with the technician and team leader and explain how he diagnosed the vehicle and found the problem. At this point the vehicle will be dispatched to the original technician to perform the repairs, once he is available. This method provides training and guidance to all technicians and deletes down time and diagnostic time which enhances your overall productivity and profitability.
All technicians must be resetting maintenance reminder lights or counters and clearing warning lamps due to trouble codes. When a customer leaves with their vehicle thinking the repairs or maintenance have been performed and the light comes on after redelivery, this can lead to upset customers and or lost customers.
If time is money, then the more you, (the technician) spend the fifteen to twenty minutes checking the vehicles over using the courtesy inspection, the more hours you will sell. Time equals hours! More hours sold brings more money to all technicians and to our shop.
Technicians verify the incoming mileage of every vehicle as soon as they enter the vehicle.
Technicians perform an additional walk around of the vehicle before their initial test drive.
Technicians perform an initial road test of every vehicle before the vehicle comes into the shop.
Technicians confirm the customer’s primary concerns first.
Technicians perform accurate punch times for each line.
Technicians accurately punch for the diagnostic portion of a repair line and have separate punches for the repairs on each line.
Technicians will make separate punches for subsequent work within a repair procedure – such as a broken bolt.
Technicians document their stories extremely well for each repair line.
Technicians check for bulletins and open campaigns for the customers concerns.
Technicians utilize the proper diagnostic tools and equipment.
Technicians have full understanding of the manufacturer’s diagnostic equipment.
Technicians utilize the manufacturers work instructions to facilitate the repairs.
Technicians utilize the shop foreman to aid in proper diagnosis when stumped.
Our shop foreman will utilize the manufacturer’s diagnostic center when the diagnosis is unclear.
Technicians will regularly attend manufacturers training classes and or complete on-line learning courses as required.
Technicians are always up to date with the manufacturers required course curriculum.
Technicians are performing the courtesy inspections on each and every vehicle.
Technicians are accurately reporting additional work required.
Technicians are accurately measuring and recording brake and tire measurements on each work order.
Technicians are to provide our advisors with accurate corrective repair measures that meet the needs of our customers.
Technicians are committed to the highest levels of customer satisfaction.
Technicians top up all required fluids on all vehicles as per our policy and procedures to promote excellent customer service and provide a value added service to our customers.
Technicians utilize their time in our work shop productively.
Technicians will strive to be above 100% productivity.
Technicians write into their stories the declined service work on each and every work order.
Technicians prioritize the additional work for our service advisors.
Technicians accurately describe the cause and correction of a failure on each and every line they repair.
Technicians are honest and will inform management when accidents or mistakes are made.
Fixed first visit ratio needs to be above 95% in our shop, technicians will strive to fix each car the right way the first time.
Technicians are committed to keeping our customers vehicles clean and damage free.
Technicians work as a team, assisting the less experienced technicians within our employment.
Technicians work stalls are clean and free of debris and garbage at all times, over tool box tops and under tool boxes should be free from material, parts and debris.
Technicians are on time for work each and every day.
Technicians complete the repairs in a timely fashion and get the next vehicle in the door expediently.
Technicians are not talking on their cell phones or text messaging throughout the day.
Technicians perform a QC road test on each vehicle upon the completion of all repairs.
Technicians are road testing all vehicles a minimum of three miles to ensure quality diagnostics and repairs.
Technicians are compliant with all warranty repair procedures from our manufacturer.
Technicians print off all the required test sheets or data required by the manufacturer and attach them to the work order in order to meet manufacturer compliance.
Technicians are ethical and do not recommend unnecessary work to our customers.
Technicians are ethical and do not recommend unnecessary work under warranty conditions.
Technicians ensure that all customer vehicles are returned without greasy finger marks or hand prints inside the customer’s vehicles.
Technicians perform a visual QC inspection of each and every vehicle upon completion of repairs and look for loose or missing caps, tools, dirt or damage before performing the final QC road test and sending the vehicle to the wash bay.
Technicians are accessible to our customers when a technical explanation is required.
Technicians are capable and have the right attitude to be able to speak with our customers regarding questions or concerns.
Technicians will seek out more information from the advisor when they in doubt about a customer’s primary concern.
Technicians are not wasting time waiting at the parts counter to be served.
Technicians can retrieve a vehicle from our parking lot expediently – our parking lot is organized for ease and efficiency.
Technicians are aware of the policies and procedures and all policies and procedures are clearly defined and posted for all see.
Technicians know the goals of the service department and the goals are clearly defined and posted for all to see.
Technicians seek out the shop foreman to obtain the approval signature for additional warranty work.
Technicians do not change the customer’s radio stations.
Technicians do not use the customer’s vehicle to run personal errands.
Technicians do not use the customer’s vehicles to pick up their lunch.
Technicians have pre planned test drive routes.
Technicians follow the designated test drive routes.
Technicians wear our uniforms and look neat, clean and professional at all times.
Technicians always have their shirts tucked into their pants.
Technicians wash up before road testing a vehicle or speaking with a customer.
Technicians utilize the tools and support the dealership and management staff offers them consistently.
Greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule as a five foot rule at all times. You see a customer within five feet of you; you ask them if they have been served.
All (Brand) Employees shall strive to achieve uncompromising levels of integrity and commitment in achieving a 100% exceptional customer experience, this hinges on honesty and trust with peers and customers alike both in and out of the work place setting. Autograph everything you do with excellence, it is your name.
Employee Name: ___________ Employee Signature: _____________________
Manager Name:_____________Manager Signature: ______________________
Date: ______________
Once you employee this strategy into your dealership you still need to follow up and inspect what you expect however this will now free up some valuable time to look into the finite aspects of your service department and really rev up the profits, retention and CSI results. The following is a great course of action once you have the logistics of policy and procedures nailed down.
The items that require tracking for growth and missed opportunities are as follows:
• Service gross profit
• RO parts gross profit
• Sublet gross profit
• Number or Ro’s opened per month, total and CP
• Labor hours sold
• Hours sold per RO
• Hours sold per advisor
• ELR for store and per individual advisor
• FRU’s produced in entire shop and individual technician
Other additional items to track that affect your bottom line are:
• Overall department CSI results
• Individual CSI results
• Individual CSI survey question results – track individual questions to determine course of action
• Shop and individual technician comebacks – determine training requirements
• Customer complaints – plan course of action for department
• Email procurement and email penetration – needed for effective marketing
• Warranty claims submission time
• Warranty claims rejection rate and rejections as a percentage
• Receivables and dates
• Goodwill amounts and percentage to warranty
• Add on repair lines and percentage of lines within warranty
Typically expenses as a percentage of gross profit are: Service Sales Parts
Personnel Expenses 45% 37%
Semi-Fixed Expenses 17%-19% 13%-15%
Fixed Expenses 13%-16% 10%-15%
Operating profit % of gross profit 25% 40%
Typically gross profit as a percentage of sales are Service Sales Parts
Customer RO’s 70% 40%
Maintenance RO’s 70% 40%
Warranty RO’s 70% 25%-30%
Internal RO’s 70% 25%-35%
Counter Parts sales 35%-40%
Wholesale Parts sales 25%-30%
The items below show some items or ways to repair your effective labor rate:
• Present estimates as a packaged price, “One price selling” – give the customer the total price of the parts and labor combined instead of a break-down of multiple price selling.
• Monitor your labor discounts and find out which one of your advisors is discounting heavily.
• Meet one-on-one with the individual service advisor who is your biggest discount violator showing examples of work orders with huge discounts.
• Make it policy in your service department that only the management can sign off on discounts until you have your effective labor rate problem under control.
• Find out your services or repairs that are severely discounted and adjust the flat rate times by one to two tenths and you will immediately start to see your effective labor rates rise.
Tracking technician time utilization and productivity can be beneficial for finding inconsistencies within the performance of you shop. If your productivity is below one-hundred percent across the entire shop, you may want to examine your department and investigate to find the root cause of low productivity. You may have issues such as:
• Poor work distribution from the dispatcher to the technician.
• Technicians not accurately punching work orders.
• High degree of down time or idle hands.
• Too many technicians for the volume of work.
• Poorly designed workshop.
• Dispatched jobs given to technicians with wrong skill set, skill code.
• Poor test equipment.
• Unclear customer concerns.
• Insufficient parts inventories.
• Insufficient parts process.
• Poor parking lot organization.
• Lack of motivation.
• Technician training.
• Lack of supervisory input from shop foreman.
• Poor compensation plans.
• Improper tools and resources.
• Morning procurement of work
What I mean by morning procurement of work is this - at the end of the day with carry-overs, or additional work, pre-load a certain percentage of your shop. You will need to ascertain that percentage to take into account the waiters during the morning rush. You need to have your shop foreman or porter pull vehicles into the technician’s bay the night before. The morning rush period is usually busy for the service advisors, but there are many times first thing in the morning when the technicians are standing around idle with nothing to do. Technician productivity needs to be tracked daily to understand where you are going. This is the only way you will make more profit for the dealership and the department
There are three factors affecting the profitability of your service department business and you do have a certain amount of control over each of these three factors. These three factors are considered to be variable costs because they increase or decrease as your sales increase or decrease. These three profit drivers are:
• The price you charge.
• The quantity or volume you sell.
• The costs you directly incur in producing the products or services you sell.
I know you can make a huge impact on all three of these indicators incrementally and with little to no impact to the employees, the changes are not huge, but can be insurmountable if not done in steps. All changes require facilitating teaching, coaching, counseling and mentoring to each individual involved in the process. Use your time wisely and efficiently and you will go places you never dreamed possible.
David Spicer
If you are working in a facility that needs revitalization or where employees seem to run the show to a certain extent, read on and find out some tips centered on turning the employee mindset around and have your team refocus their abilities to perform at the level you require.
We all give our employees job descriptions and then try to instill the corporate policies by training, coaching, mentoring and counseling. These are great tools in your toolbox and work fairly well when the manager diligently and consistently trains and retrains and trains again. So let’s look at a way to get your employees pumped up to the call of action whereby they perform at the level you need and they go out of their way, above and beyond to raise the bar on their own.
Instead of just simply giving your employees a job description write out very short paragraphs such as:
1. In your own words please describe your employment description or job title in detail.
2. In your own words please provide a description of a typical day, “What do you do”?
3. Please describe in your own words what special qualities you bring to the dealership.
4. (Receptionist) Please describe in your own words WHAT would help to make your job easier to fulfill the expectations of providing each customer a WOW experience along with reaching the companies goals of an exceptional telephone process, calls answered by third ring, on-time for work, politeness, attentiveness, empathetic to customers’ needs and helpful, making each customer feel like they are the only customer who called in today!
4a. (Technicians) Please describe in your own words WHAT would help to make your job easier to fulfill the expectations of providing each customer a WOW experience along with a higher fixed first visit ratio, less comebacks, increased efficiency and productivity numbers.
4b. (Advisors) Please describe in your own words what would help to make your job easier to fulfill the expectations of providing each customer with a WOW experience along with positioning proper detailed estimates, calling your customers twice per day, increasing sales and customer retention along with fulfilling the manufacturer requirements with documented paperwork.
5. In your own words please indicate what resources, policies or procedures would help you to be more effective within the scope of your job duties?
Once your employees completely fill out their own job description sheets, incorporate their ideas into the chemical makeup of your own detailed job description and duties profile. In most cases when the people who work for you are involved with the planning of the process they own it. Once your employees own the process it is easier to establish the policies and procedures to move the needle forward. I have successfully incorporated this procedure into facilities where the results were dramatic and instantaneous.
Below is an actual copy of the advisor and technician job description and duties profile:
Service Advisor Job Description & Duties
On time for work every day, if you are going to be late or cannot come into work you will be required to call into the dealership and inform a manager of your situation.
When speaking with customers use professional language and make sure you speak clearly and directly, do not mumble.
When placing a customer on hold ASK – “May I place you on hold for a moment while I find that information or person” is far better then – “HOLD”.
Greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule at all times. If you see a customer within ten feet of you - you ask them if they have been served.
Continuously maintain a professional attitude, smiling and conversing with each customer and displaying courtesy and respect towards all customers and fellow employees.
Report to management any situation or condition that jeopardizes the safety, welfare, or integrity of the dealership, its employees, or customers.
Service advisors will use the sublet markup spread sheet for each sublet and will print out the sheet for each vehicle when used and attach it to the work order.
Service advisors will write estimates using the electronic estimator which is loaded on each advisor computer. Each estimate will be attached to the work order.
All estimates must be packaged in order to achieve the posted effective labor rate.
Service advisors MUST inform all CP drivability, check engine light or electrical diagnosis customers of the diagnostic charge of one hour minimum = $135.00
Service advisors MUST attempt to secure the repair authorization for a set dollar amount up front when the customer is present during write up. For example – “Mr. Customer, the electrical diagnostic charge is $135.00; would you give me authorization to repair the car if it can be done for $500.00 or less”?
Service advisors MUST use the diagnostic questionnaire (attached) with every electrical or drivability concern.
Our customers are greeted within one minute of entering our service drive or dealership.
Our customers are greeted with eye contact and a smile.
Service advisors perform a damage walk around inspection on every vehicle.
Service advisors perform a walk around on each and every vehicle for the purpose of up selling.
Service advisors check and record tire measurements on every vehicle that comes into our service drive.
Service advisors have the customer sign off on the damage control check sheet.
Service advisors listen to our customers concerns and make detailed notes for the technicians.
Service advisors give each customer their undivided attention and ask open ended questions.
Service advisors demonstrate they are listening and attentive as they restate the concern to the customers.
Service advisors take the time to understand the customers’ needs.
Service advisors ask the customer each time if the mailing address and phone numbers remain the same.
Service advisors ask for the customers email address each and every time.
Service advisors obtain signatures on each and every work order.
Service advisors pre-sell services and have signed estimates on the work orders.
Service advisors call their customers a minimum of two times per day.
Service advisors are neat and organized and have neat organized desks.
Service advisors follow through on commitments made to their customers.
Service advisors find solutions to the customer’s primary concerns.
Service advisors position estimates as primary and secondary concerns.
Service advisors use an estimate template or electronic estimator to make their estimates.
Service advisors document who they spoke with, phone number, time of day and what was authorized on each and every work order and each estimate.
Service advisors check with dispatch to find out the status of their vehicles.
Service advisors ensure each customer vehicle is washed.
Service advisors inspect each vehicle before it is redelivered o the customer.
Service advisors call the customers and arrange pick up times.
Service advisors attempt to get credit card numbers over the phone when arranging pick up times to speed up redelivery and to have all paperwork ready for the customer.
Service advisors explain the CSI questionnaire to our customers along with a detailed explanation of all work that was performed during the visit.
Service advisors obtain signatures from the customer on the warranty and accounting copies of the work orders.
Service advisors inform the customers that if they have any concerns to please contact them immediately to immediately find a solution.
Service advisors thank each and every customer for their business.
Dress code:
• Men and women who have tattoos that may be visible need to cover their tattoos during working hours, especially if they deal directly with the public.
• Men and woman who wear nose, cheek, eyebrow or tongue rings should remove these items during working hours, especially if they directly work with the public.
• Men who work directly with the public should not wear earrings during working hours.
• Men need to be clean shaven unless they have a neatly trimmed moustache or beard.
• Men and women must adhere to strict codes of personal hygiene, and must not exude offensive odors.
• Men and women must have hair that is neat, groomed and clean at all times.
• Men and women must not wear flip-flops, sandals, blue jeans or clothing that may be ripped or frayed during working hours, especially if they are dealing with the public.
• Running shoes or sneakers should not be worn during working hours, especially for employees that work directly with the public. Technicians can wear safety approved work sneakers while at work, as long as they meet safety standards and are oil resistant.
• Open toe shoes should not be worn in the service facility by employees. This measure will safeguard them from falling objects that may strike their feet.
• Men should wear dress pants, shirt and tie, or summer approved brand polo shirts, dressing business casual, especially if they deal directly with the public.
• Women should wear dress pants, blouses or skirts, or summer approved brand polo shirts, dressing business casual, especially if they deal directly with the public.
• Employees who are required to wear company brand uniforms, must wear them at all times keeping conscious to maintain neat clean appearances at all times, always keeping shirts tucked into their pants.
• Employees must be conscious of moving and rotating equipment, and care must be maintained to ensure that loose clothing such as ties, do not become engaged in moving equipment.
• Clothing that is not acceptable is as follows: Tight fitting, skimpy, revealing, and flashy and other types of clothing that does not fit the image you wish to project to your clients.
• Company issued brand name tags should be worn at all times, especially for employees that deal directly with the public.
The job of the service advisor is exactly what the job title states – To Serve and Advise! Advisors will not pick and choose who they will serve, if you are the next available advisor you will serve the next available customer.
The job of service advisor also includes helping out those customers or clients that you didn’t actively serve, if your fellow advisor is at lunch, away from his/her desk or on vacation all advisors must pitch in and help to promote the exceptional customer service experience for the customer and promote the brand and the dealership. Team work is the only way to survive in this new and challenging economic environment
Positive communication MUST be used with each and every customer this sets the tone of the customer experience and will increase the retention of our customer base.
Below are some examples of positive and negative forms of communication.
POSITIVE
Brief eye contact (3 – 5 seconds)
Smiling
Face the customer
Eyes wide open and engaged
Actively listening
Expressive hand gestures
Nodding in agreement
Remain silent while the customer is speaking
Making open handed gestures
Open body stance
Maintain a professional appearance
NEGATIVE
Attending to matters other than the customer
Minimal hand gestures
Frowning or negative facial expressions
Playing with objects in your hands
Staring with a blank look at the customer
Crossed arms over chest
Pointing objects or fingers at the customer
Interrupting while the customer is talking
Disorganized or dirty work environment
Unprofessional appearance
All (Brand) Employees shall strive to achieve uncompromising levels of integrity and commitment in achieving a 100% exceptional customer experience, this hinges on honesty and trust with peers and customers alike both in and out of the work place setting. Autograph everything you do with excellence, it is your name.
Again - greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule as a five foot rule at all times. If you see a customer within five feet of you - you ask them if they have been served.
Employee Name: _____________ Employee Signature: _____________________
Manager Name:_______________Manager Signature: ______________________
Date: ______________
Technician Job Description & Duties
1. When getting into any customers vehicle once you have the work order, check the vehicle VIN number and make sure you are working on the right vehicle.
2. Verify that the advisor has the right mileage reading recorded as incoming mileage on the RO.
3. Perform an initial road test, check for noise, vibration, shaking, misfire, engine or driveline concerns, make notations on reverse of work order or 27 point courtesy inspection sheet.
4. Check the work order for the customer diagnostic questionnaire sheet for electrical or drivability diagnosis. (Copy will be attached)
5. Verify the customers concern – if the concern cannot be duplicated, have the service advisor contact the customer for further leading information. Always attempt to get more customer input!
6. Check the “Simple and the obvious”.
7. Use electronic diagnosis techniques.
8. Research and analyze.
9. Systematic testing.
10. Pinpoint cause of concern and repair
11. Quality control – road test and evaluate workmanship and vehicle repair condition on every vehicle you work on, no exceptions to this rule.
12. Know when to involve team leader, shop foreman or dispatcher.
13. Know when to write a case to the manufacturer for difficult diagnostics.
14. Attach all required test sheets such as code, battery or test plan procedures to the work-order.
15. Ensure all proper punch times are documented for each line and each procedure on the work-order.
16. Make sure the complete detailed story is written into the work-order. The more detailed the explanation of the diagnostic and repair procedure, the better the chance of billing for more time and retaining the claimed time during an audit situation.
When reading the concern line plan out how the concern is to be verified:
1. In the shop.
2. On a road test, in town or highway driving.
3. What are the specific operating conditions when the vehicle experiences the condition?
4. Ascertain specific drive time until condition presents itself.
5. Ascertain if the condition is present under certain road conditions.
6. Cold or hot operation will determine if vehicle should be left overnight.
7. Warning lights on or off.
8. Warnings lights in red or yellow.
9. Perform proper function tests of affected units by triggered codes.
Technicians should be performing a visual inspection of each vehicle when it comes into the service bay. The items to look for in ascertaining the customers concerns are:
1. Broken or disconnected electrical connectors.
2. Disconnected or broken vacuum hoses and lines.
3. Related fuses, relays and fuse contacts.
4. Obvious vehicle damage.
5. Non factory or not approved add on electrical items or equipment.
6. Outside influences that may have caused damage.
Check vehicle computer systems for related and non related codes, printing and providing test sheets and attaching them to the work order. To ensure a quality repair the technician needs to check on the following items:
1. Check for individual control unit data.
2. Fault code status and possible causes which impaired the functions of the item pertaining to the code or related items affecting a particular system.
3. If no codes are present – check reference sources for a breakdown of system component items that may be involved.
4. Check and consult diagnostic test plan for proper diagnostic test procedures.
5. Converse with team leader or shop foreman when diagnostic repair and or replacement cannot be ascertained.
6. Maximum diagnostic time is one hour. Once one hour has elapsed the team leader or the shop foreman must be brought into diagnostic procedure.
Testing sequence is determined by:
1. Fault codes.
2. Actual values.
3. Actuations.
4. System diagnosis.
5. Test equipment
6. Tools and resources.
7. Experience.
8. Test results.
Ascertain that the concern was not caused by:
1. Electrical overload.
2. Software error.
3. Outside influence or damage.
4. Abuse or neglect.
5. Research history for previous similar concerns.
Team system implementation:
The best system of technician diagnostic time accountability is a one hour diagnostic procedure. (Our advisors have pre sold one to two hours of diagnostic time to begin with). This is achieved by utilizing your shop foreman and two senior technicians as team leaders. For example a technician has one hour invested into a vehicle for electrical diagnosis and the fault has not been ascertained. At one hour the technician will call his team leader over and discuss the concern and the tests that have been performed. The team leader will at this point instruct the technician to perform additional tests and the team leader will be called back to inform the technician of the proper repair procedure or he will instruct the technician to place the work-order on a shop foreman hold.
The dispatcher will then be notified the vehicle has been placed on a shop foreman hold for the foreman to diagnose the vehicle. This procedure allows the shop to stay productive whereby the technician can bring the next vehicle into the shop for repairs. The shop foreman, once the diagnosis has been completed will confer with the technician and team leader and explain how he diagnosed the vehicle and found the problem. At this point the vehicle will be dispatched to the original technician to perform the repairs, once he is available. This method provides training and guidance to all technicians and deletes down time and diagnostic time which enhances your overall productivity and profitability.
All technicians must be resetting maintenance reminder lights or counters and clearing warning lamps due to trouble codes. When a customer leaves with their vehicle thinking the repairs or maintenance have been performed and the light comes on after redelivery, this can lead to upset customers and or lost customers.
If time is money, then the more you, (the technician) spend the fifteen to twenty minutes checking the vehicles over using the courtesy inspection, the more hours you will sell. Time equals hours! More hours sold brings more money to all technicians and to our shop.
Technicians verify the incoming mileage of every vehicle as soon as they enter the vehicle.
Technicians perform an additional walk around of the vehicle before their initial test drive.
Technicians perform an initial road test of every vehicle before the vehicle comes into the shop.
Technicians confirm the customer’s primary concerns first.
Technicians perform accurate punch times for each line.
Technicians accurately punch for the diagnostic portion of a repair line and have separate punches for the repairs on each line.
Technicians will make separate punches for subsequent work within a repair procedure – such as a broken bolt.
Technicians document their stories extremely well for each repair line.
Technicians check for bulletins and open campaigns for the customers concerns.
Technicians utilize the proper diagnostic tools and equipment.
Technicians have full understanding of the manufacturer’s diagnostic equipment.
Technicians utilize the manufacturers work instructions to facilitate the repairs.
Technicians utilize the shop foreman to aid in proper diagnosis when stumped.
Our shop foreman will utilize the manufacturer’s diagnostic center when the diagnosis is unclear.
Technicians will regularly attend manufacturers training classes and or complete on-line learning courses as required.
Technicians are always up to date with the manufacturers required course curriculum.
Technicians are performing the courtesy inspections on each and every vehicle.
Technicians are accurately reporting additional work required.
Technicians are accurately measuring and recording brake and tire measurements on each work order.
Technicians are to provide our advisors with accurate corrective repair measures that meet the needs of our customers.
Technicians are committed to the highest levels of customer satisfaction.
Technicians top up all required fluids on all vehicles as per our policy and procedures to promote excellent customer service and provide a value added service to our customers.
Technicians utilize their time in our work shop productively.
Technicians will strive to be above 100% productivity.
Technicians write into their stories the declined service work on each and every work order.
Technicians prioritize the additional work for our service advisors.
Technicians accurately describe the cause and correction of a failure on each and every line they repair.
Technicians are honest and will inform management when accidents or mistakes are made.
Fixed first visit ratio needs to be above 95% in our shop, technicians will strive to fix each car the right way the first time.
Technicians are committed to keeping our customers vehicles clean and damage free.
Technicians work as a team, assisting the less experienced technicians within our employment.
Technicians work stalls are clean and free of debris and garbage at all times, over tool box tops and under tool boxes should be free from material, parts and debris.
Technicians are on time for work each and every day.
Technicians complete the repairs in a timely fashion and get the next vehicle in the door expediently.
Technicians are not talking on their cell phones or text messaging throughout the day.
Technicians perform a QC road test on each vehicle upon the completion of all repairs.
Technicians are road testing all vehicles a minimum of three miles to ensure quality diagnostics and repairs.
Technicians are compliant with all warranty repair procedures from our manufacturer.
Technicians print off all the required test sheets or data required by the manufacturer and attach them to the work order in order to meet manufacturer compliance.
Technicians are ethical and do not recommend unnecessary work to our customers.
Technicians are ethical and do not recommend unnecessary work under warranty conditions.
Technicians ensure that all customer vehicles are returned without greasy finger marks or hand prints inside the customer’s vehicles.
Technicians perform a visual QC inspection of each and every vehicle upon completion of repairs and look for loose or missing caps, tools, dirt or damage before performing the final QC road test and sending the vehicle to the wash bay.
Technicians are accessible to our customers when a technical explanation is required.
Technicians are capable and have the right attitude to be able to speak with our customers regarding questions or concerns.
Technicians will seek out more information from the advisor when they in doubt about a customer’s primary concern.
Technicians are not wasting time waiting at the parts counter to be served.
Technicians can retrieve a vehicle from our parking lot expediently – our parking lot is organized for ease and efficiency.
Technicians are aware of the policies and procedures and all policies and procedures are clearly defined and posted for all see.
Technicians know the goals of the service department and the goals are clearly defined and posted for all to see.
Technicians seek out the shop foreman to obtain the approval signature for additional warranty work.
Technicians do not change the customer’s radio stations.
Technicians do not use the customer’s vehicle to run personal errands.
Technicians do not use the customer’s vehicles to pick up their lunch.
Technicians have pre planned test drive routes.
Technicians follow the designated test drive routes.
Technicians wear our uniforms and look neat, clean and professional at all times.
Technicians always have their shirts tucked into their pants.
Technicians wash up before road testing a vehicle or speaking with a customer.
Technicians utilize the tools and support the dealership and management staff offers them consistently.
Greet and welcome service customers in a friendly and courteous manner. Employ the ten foot rule as a five foot rule at all times. You see a customer within five feet of you; you ask them if they have been served.
All (Brand) Employees shall strive to achieve uncompromising levels of integrity and commitment in achieving a 100% exceptional customer experience, this hinges on honesty and trust with peers and customers alike both in and out of the work place setting. Autograph everything you do with excellence, it is your name.
Employee Name: ___________ Employee Signature: _____________________
Manager Name:_____________Manager Signature: ______________________
Date: ______________
Once you employee this strategy into your dealership you still need to follow up and inspect what you expect however this will now free up some valuable time to look into the finite aspects of your service department and really rev up the profits, retention and CSI results. The following is a great course of action once you have the logistics of policy and procedures nailed down.
The items that require tracking for growth and missed opportunities are as follows:
• Service gross profit
• RO parts gross profit
• Sublet gross profit
• Number or Ro’s opened per month, total and CP
• Labor hours sold
• Hours sold per RO
• Hours sold per advisor
• ELR for store and per individual advisor
• FRU’s produced in entire shop and individual technician
Other additional items to track that affect your bottom line are:
• Overall department CSI results
• Individual CSI results
• Individual CSI survey question results – track individual questions to determine course of action
• Shop and individual technician comebacks – determine training requirements
• Customer complaints – plan course of action for department
• Email procurement and email penetration – needed for effective marketing
• Warranty claims submission time
• Warranty claims rejection rate and rejections as a percentage
• Receivables and dates
• Goodwill amounts and percentage to warranty
• Add on repair lines and percentage of lines within warranty
Typically expenses as a percentage of gross profit are: Service Sales Parts
Personnel Expenses 45% 37%
Semi-Fixed Expenses 17%-19% 13%-15%
Fixed Expenses 13%-16% 10%-15%
Operating profit % of gross profit 25% 40%
Typically gross profit as a percentage of sales are Service Sales Parts
Customer RO’s 70% 40%
Maintenance RO’s 70% 40%
Warranty RO’s 70% 25%-30%
Internal RO’s 70% 25%-35%
Counter Parts sales 35%-40%
Wholesale Parts sales 25%-30%
The items below show some items or ways to repair your effective labor rate:
• Present estimates as a packaged price, “One price selling” – give the customer the total price of the parts and labor combined instead of a break-down of multiple price selling.
• Monitor your labor discounts and find out which one of your advisors is discounting heavily.
• Meet one-on-one with the individual service advisor who is your biggest discount violator showing examples of work orders with huge discounts.
• Make it policy in your service department that only the management can sign off on discounts until you have your effective labor rate problem under control.
• Find out your services or repairs that are severely discounted and adjust the flat rate times by one to two tenths and you will immediately start to see your effective labor rates rise.
Tracking technician time utilization and productivity can be beneficial for finding inconsistencies within the performance of you shop. If your productivity is below one-hundred percent across the entire shop, you may want to examine your department and investigate to find the root cause of low productivity. You may have issues such as:
• Poor work distribution from the dispatcher to the technician.
• Technicians not accurately punching work orders.
• High degree of down time or idle hands.
• Too many technicians for the volume of work.
• Poorly designed workshop.
• Dispatched jobs given to technicians with wrong skill set, skill code.
• Poor test equipment.
• Unclear customer concerns.
• Insufficient parts inventories.
• Insufficient parts process.
• Poor parking lot organization.
• Lack of motivation.
• Technician training.
• Lack of supervisory input from shop foreman.
• Poor compensation plans.
• Improper tools and resources.
• Morning procurement of work
What I mean by morning procurement of work is this - at the end of the day with carry-overs, or additional work, pre-load a certain percentage of your shop. You will need to ascertain that percentage to take into account the waiters during the morning rush. You need to have your shop foreman or porter pull vehicles into the technician’s bay the night before. The morning rush period is usually busy for the service advisors, but there are many times first thing in the morning when the technicians are standing around idle with nothing to do. Technician productivity needs to be tracked daily to understand where you are going. This is the only way you will make more profit for the dealership and the department
There are three factors affecting the profitability of your service department business and you do have a certain amount of control over each of these three factors. These three factors are considered to be variable costs because they increase or decrease as your sales increase or decrease. These three profit drivers are:
• The price you charge.
• The quantity or volume you sell.
• The costs you directly incur in producing the products or services you sell.
I know you can make a huge impact on all three of these indicators incrementally and with little to no impact to the employees, the changes are not huge, but can be insurmountable if not done in steps. All changes require facilitating teaching, coaching, counseling and mentoring to each individual involved in the process. Use your time wisely and efficiently and you will go places you never dreamed possible.
David Spicer
Wednesday, September 29, 2010
Return Phone Calls Provide Potential Revenue
Have you noticed over the past couple of years people do not readily call back those who left voice mails? Return phone calls are becoming a thing of the past. The sad news is is that this takes place most everyday at most businesses. Customers and potential employment candidates continually leave messages for managers and in a lot of cases the managers will pick and choose who they will call back. Service advisors and parts counterman receive calls all day long and unfortunately they also pick and choose who they will call back.
This is your business! People call into your facility to ask for your professional services, advice, and employment status or for some other justifiable reason. You cannot ignore these potential customers’ calls. There must be a system of follow up put into practice if you wish to survive in this new economy.
Customers seek you out by calling into your dealership! This is potential revenue so make a point to call each and everyone back. Those customers that are calling in to complain may have a legitimate concern, without a return call you will never know and you may never really understand the amount of potential revenue you are sweeping off the table and onto the floor. You may have been able to resolve the issue and move forward, retaining a customer who may purchase or service with you in the future.
When interviewing potential employment candidates it might behoove your managers to call back each person who didn’t qualify for the position but interviewed with these same managers. The reason I say this is because the automotive industry is very interconnected, meaning people who work for other brands in other states know people in your state and possibly at your dealership. When you don’t return calls or keep people in the loop, you are tarnishing your reputation.
Let’s assume we all want to attract WINNERS at our dealership, real race horses with a common goal of continual growth and prosperity and always customer focused. My question is how do you continually hire only these types of quality people if your reputation precedes you, whereby people in the trade perceive your business as uncaring or unethical towards its employees and this factor starts with calling back those that didn’t make the grade during the hiring process.
When managers are calling candidates back, the potential prospects cannot go out and tell their peers I applied at so-and-so dealership, I went for two interviews and now they don’t return my telephone calls… That type of telephone or business etiquette is counterproductive to your future business building plans of acquiring only the best and brightest talent.
Advisors, sales people, managers, parts counterman and receptionists MUST take greater responsibility and call all customers back, they may not know what the call is regarding but so what, it may be future business or future business opportunities. Every return telephone call is potentially an untapped opportunity waiting to be brought to fruition. Remember that the telephone requires operational etiquette so make sure all of your employees and you yourself are always conscious of what you say and how you say it. People won't readily remember what you said however they will always remember how you said the what you were talking about.
CALL-CALL-CALL and over time you will find the telephone is your best tool in your tool box, use it wisely and guide your business to success.
David
This is your business! People call into your facility to ask for your professional services, advice, and employment status or for some other justifiable reason. You cannot ignore these potential customers’ calls. There must be a system of follow up put into practice if you wish to survive in this new economy.
Customers seek you out by calling into your dealership! This is potential revenue so make a point to call each and everyone back. Those customers that are calling in to complain may have a legitimate concern, without a return call you will never know and you may never really understand the amount of potential revenue you are sweeping off the table and onto the floor. You may have been able to resolve the issue and move forward, retaining a customer who may purchase or service with you in the future.
When interviewing potential employment candidates it might behoove your managers to call back each person who didn’t qualify for the position but interviewed with these same managers. The reason I say this is because the automotive industry is very interconnected, meaning people who work for other brands in other states know people in your state and possibly at your dealership. When you don’t return calls or keep people in the loop, you are tarnishing your reputation.
Let’s assume we all want to attract WINNERS at our dealership, real race horses with a common goal of continual growth and prosperity and always customer focused. My question is how do you continually hire only these types of quality people if your reputation precedes you, whereby people in the trade perceive your business as uncaring or unethical towards its employees and this factor starts with calling back those that didn’t make the grade during the hiring process.
When managers are calling candidates back, the potential prospects cannot go out and tell their peers I applied at so-and-so dealership, I went for two interviews and now they don’t return my telephone calls… That type of telephone or business etiquette is counterproductive to your future business building plans of acquiring only the best and brightest talent.
Advisors, sales people, managers, parts counterman and receptionists MUST take greater responsibility and call all customers back, they may not know what the call is regarding but so what, it may be future business or future business opportunities. Every return telephone call is potentially an untapped opportunity waiting to be brought to fruition. Remember that the telephone requires operational etiquette so make sure all of your employees and you yourself are always conscious of what you say and how you say it. People won't readily remember what you said however they will always remember how you said the what you were talking about.
CALL-CALL-CALL and over time you will find the telephone is your best tool in your tool box, use it wisely and guide your business to success.
David
Sunday, September 26, 2010
Springfield Mystery Shop
Two weeks ago I was asked by a friend to call his dealership and perform several mystery shop scenarios throughout the various departments and provide a written report of my findings. The items I uncovered are typical of most dealerships and these items need to be corrected before any dealership can move forward. This particular dealership is VERY good within the sales department to draw customers into the facility over the telephone. The service department however had some blunders that require a firm set of standards, policies and procedures to move forward.
For privacy policy, the names, location and dealership name have been changed to protect the dealership and its employees. We will call this dealership Anywhere Motors and it is located in Springfield in some state, somewhere!
I called the dealership for the first time at 7:22 at night. The telephone was picked up on the 3rd ring, the receptionist spoke rather fast and I couldn't make out her name. I asked if I could speak to someone in new car sales and was told, “Just a moment”. The receptionist should have said, "My pleasure sir, one moment please". At 7:25 PM the receptionist came back on the line and she apologized for the delay and said, “One moment please”.
I was put through to Patricia who was absolutely gracious, she showed enthusiasm, excitement and was very knowledgeable about the product and was also very empathetic to my perceived needs. We discussed Navigation, all wheel drive and she asked me about my trade. She created urgency and the feeling that my buying experience would be exceptional. Patricia indicated to me that my trade would be a great fit and would bring a good dollar towards my new purchase. (Patricia stated that their dealership sells a lot of used vehicles to families that need a great vehicle and cannot afford a new one, she indicated that my Lexus SUV would be a nice addition to a family just starting out) If more salespeople were as excited about their product and as excited as Patricia was about her job, more dealers would sell more metal.
I called at 9:21 in the morning the following day. Amy answered the telephone on the 2nd ring with a great attitude and spoke clearly stating her name, the dealership and she asked, “How may I assist you”. I asked to speak with someone in pre owned sales and she immediately transferred me to John. I indicated I was interested in trading our Lexus SUV and purchase a sedan. I stated that I didn't know much about this particular luxury brand product. John was a carbon copy of Patricia, he was gracious, funny and very knowledgeable about the product, he showed a genuine interest and a sense of care and concern while dealing with me.
I called at 9:40 Am. Amy again answered the telephone and spoke clearly and professionally. I asked to be directed to the service department. Amy put me through to the service department immediately. The service receptionist answered the telephone, yet she spoke so fast I couldn't get her name. I asked her for her name and she said her name was Liz. I explained that I purchased my vehicle from another dealer and my Bluetooth needed to be paired. I asked if I could bring in the vehicle and have the Bluetooth paired to my phone while I waited.
Liz explained that she didn't know and she would ask. I was placed on hold at 9:42 and Liz didn't come back to the call until 9:46. Liz explained that I could bring the vehicle anytime and to see Robert, the service advisor. She said they would pair the phone for me at no charge. I asked what time would be inconvenient to bring in the vehicle; I did not want to wait around! Liz stated that between 12:30 PM and 1:30 PM, "The guys are on lunch", meaning the advisors!
I called at 9:53 Am. Again Amy picked up telephone on the 2nd ring and spoke clearly displaying a great attitude. I stated that I needed to speak with someone in the service department because my check engine light was on. I was immediately put through to the service receptionist. The service receptionist answered the telephone and said, “Service, how may I help you”. I stated I was visiting the city of Springfield on business and my check engine light was on. I asked if I could drop the car off and get a loaner as I still had more meetings this afternoon. The receptionist responded that the service department was quite busy and they probably couldn't get to my vehicle today and she stated that the dealer doesn't have loaners.
I asked to specifically speak with someone who could counsel me on what to do so I asked to speak to a service advisor. The receptionist abruptly said she would check and placed me on hold. I could tell by the tone in her voice that I had inconvenienced her to some degree and I was an interruption in her day.
I was placed on hold at 9:55 and waited until she picked back up the telephone at 9:59. I listened to her state again that my car wouldn't be looked at today and she stated that they had no loaner cars at all. She said I could drop the vehicle off if I wanted. I proceeded to ask the receptionist for her name so I could refer back to our conversation when I dropped off the vehicle. She said her name was Paula. I said I would bring the vehicle around lunch time and she said fine or something to that effect. The conversation ended at 10:02 Am when she hung up.
I called at 11:15 AM. Amy answered the telephone and again she was professional and spoke clearly. I asked to be connected to the parts department. I was immediately transferred through to parts. A parts counterman answered the telephone, "Parts". I asked how much some accessories would be for my 2010 XYZ 350 vehicle, namely the sport muffler and an aerodynamic kit. I asked if he knew if these items were available, he indicated that he knew the muffler was available.
While I was waiting for him to look up the parts I could hear the impact wrench and other shop equipment in the background drowning out his questions. He finally found the items and quoted me the same pricing as what was listed on the XYZ brand website. He stated that the parts are manufactured pre painted and that I wouldn’t have to take the vehicle to a body shop and have them painted after installation.
At this point I asked for his name because at no time did he offer to give his name to me. He said his name was Ken. Ken didn’t offer me the opportunity to have the parts installed at the dealership location, he didn’t ask me, “Would you like a price on installation”. I had to ask if the service department would install them and if they did do this work, could I have a price installed. He said sure, he said he would transfer me to the service department and Ken thanked me for the call.
I was transferred back to the service department receptionist at 11:21 and the receptionist answered the call, "Service". I asked if I could speak to a service advisor regarding the cost to install some accessories I had just asked parts to look up. The receptionist listened to my request and said, "Hold on". At 11:23 the receptionist came back on the line and asked, "You already got the parts pricing for the muffler"? I said yes, the muffler and the aerodynamic kit. The receptionist said, "My advisor is checking__ HOLD". She came back on the telephone after another minute and said the install on the muffler is $165 and the install on the kit is $385. I asked, is that it, and she said, "Uh huh". I asked how long it would take to book the car in and she said a week and a half. I asked for her name as a reference and she said Paula. I told her that I will call back later and book the vehicle in, she said, "OK" and hung up the telephone.
I can say that when I gave this report to the owner of the dealership, he was not impressed with some key members of his staff. The report below is the actual report I submitted, only the names have been changed to protect their identity.
The sales people and the main receptionist are fantastic, they show a real zest for their jobs and it is conveyed in how they speak and conduct themselves on the telephone. The service receptionist needs to speak with more CLARITY and SLOW DOWN so people can understand her. The service receptionist needs to answer the phone by stating, "Thank you for calling service, my name is Paula. How may I be of assistance today"? When Paula ends the conversation she needs to ask, "Have I answered all of your questions today, is there anything else I can assist you with"? When the call is terminated the receptionist MUST state, "Thank you for choosing XYZ Motors and have a wonderful day"! The service receptionist is a make or break point for bringing in new business.
My call regarding the Bluetooth issue: I should have not been kept on the telephone waiting for the advisor or manager to tell the receptionist what to say, the receptionist needs to be informed on paper and in a one-on-one meeting what she is empowered to say in certain situations. The goal is to create award winning exceptional customer service by facilitating the needs of the customer. Everyone in your building needs to have a can do attitude! Getting the customer IN YOUR DOOR should be the number priority from each and every telephone contact opportunity!
The receptionist should not be the conduit for the advisors, meaning she cannot replace them. All three times I called into the service facility, I asked to speak to an advisor and I never was put through, again the reason they are called service advisors is because they SERVE and ADVISE. The receptionist’s job is to transfer calls and answer immediate questions that are within the scope of that position.
When I called and conveyed the need for servicing due to the check engine light, I was told the dealership doesn’t have loaners, the website states you offer loaners. Because the receptionist was dealing with me, I was never informed nor offered a rental car or a shuttle ride! The receptionist did not give me any alternatives nor did she give me a reason why I would do business with the facility because she wasn’t helpful or empathetic to my needs!
People want to be invited into a business and see the benefits and value in starting a relationship. Again, receptionists can be a make or break point in the sales process and can KILL the sale over the phone, meaning the customer won’t even come to the store. The receptionist also told me that my car probably wouldn’t get in the repair shop that day! Why not let the advisors do their job and create a relationship with the customer once they are in the door. Why is the receptionist killing the relationship before it has started?
Half the battle a dealership faces day-in and day-out is getting the business in the door. Let the advisor fix the customer first and then fix the vehicle, this won’t happen if they don’t come to your facility. If the customer, (ME) would have been told, come right down and one of our award winning service advisors would be happy to help you, that would have made all the difference in the world. Once the customer is at the dealership the ADVISOR can then fix the customer first by providing a shuttle ride, loaner car if one is available or a rental car. Once the customer is fixed you can then proceed to fix the customers concern and get them on their way!
If I were a real customer I would have phone shopped until someone somewhere had said to me, “I can understand your situation, why don’t you come in and we will do our best to get you on your way”!
Telling me the times that I shouldn’t bring my car in because the GUYS are on lunch doesn’t promote service that will meet or exceed my level of expectations nor a customer’s. The receptionist should have said, "Bring your vehicle in anytime; one of our factory trained service advisors is always available for important customers needs"! This kind of statement gives me an idea of the level of professionalism that exists within the facility; they are always ready, willing and able to look after my needs... “Hmm, I’m going there because they seem to care”!
The parts counterman MUST ask every customer calling in to your store for parts pricing, (except wholesale), if they also require the part to be installed, “Would you like us to give you a price for the installation as well”? This will create selling of hours for the service department. Maybe not a lot of hours over a month but any production of hours nowadays is a welcome blessing in most facilities.
I would individually train each person that has customer facing contact with proper telephone skills and etiquette, the ten foot rule reduced to a five foot rule. I would also work with employees in group settings, listening to the calls that come in and have their own peers critique them. This step makes a huge impact when your coworkers are giving you constructive criticism in a group context.
Employing telephone skills to get your customers into your facility is a key component in revving up your production of hours! Don’t let the telephone get away from you, it is one of the most important tools in your marketing arsenal and in your tool box. Seriously, the telephone can be your best friend and your own worst enemy! Sometimes your nightmare!
For those of you that don’t know the ten foot rule, here goes… The ten foot rule: What can you do to make absolutely certain that every employee in your dealership is doing his or her part to promote an exceptional customer responsive and friendly atmosphere? Does every customer get the impression that this is a dealership in which they are really welcome and their business is 100% appreciated?
One simple implemented RULE is enough to accomplish this task! This is the 10-Foot Rule! Simply stated, every employee is expected to acknowledge each customer with a smile and a verbal greeting.
Each customer with whom an employee comes into contact with, PERIOD! It’s really that simple, it's the 10-Foot Rule. As an employee, if they come within 10 feet of any and all customers, it's their responsibility to follow the 10-Foot Rule. PERIOD! NO EXCUSES!
Implement the 10-Foot Rule in your facility because we all like to do business in a friendly atmosphere where we feel welcome, like only we exist. That's the impression every one of your customers will receive each and every time they frequent your dealership! They will perceive you are the BEST, and you are because you are implementing some of these simple and time tested true practices that don’t cost you a dime but will reap endless rewards.
David
For privacy policy, the names, location and dealership name have been changed to protect the dealership and its employees. We will call this dealership Anywhere Motors and it is located in Springfield in some state, somewhere!
I called the dealership for the first time at 7:22 at night. The telephone was picked up on the 3rd ring, the receptionist spoke rather fast and I couldn't make out her name. I asked if I could speak to someone in new car sales and was told, “Just a moment”. The receptionist should have said, "My pleasure sir, one moment please". At 7:25 PM the receptionist came back on the line and she apologized for the delay and said, “One moment please”.
I was put through to Patricia who was absolutely gracious, she showed enthusiasm, excitement and was very knowledgeable about the product and was also very empathetic to my perceived needs. We discussed Navigation, all wheel drive and she asked me about my trade. She created urgency and the feeling that my buying experience would be exceptional. Patricia indicated to me that my trade would be a great fit and would bring a good dollar towards my new purchase. (Patricia stated that their dealership sells a lot of used vehicles to families that need a great vehicle and cannot afford a new one, she indicated that my Lexus SUV would be a nice addition to a family just starting out) If more salespeople were as excited about their product and as excited as Patricia was about her job, more dealers would sell more metal.
I called at 9:21 in the morning the following day. Amy answered the telephone on the 2nd ring with a great attitude and spoke clearly stating her name, the dealership and she asked, “How may I assist you”. I asked to speak with someone in pre owned sales and she immediately transferred me to John. I indicated I was interested in trading our Lexus SUV and purchase a sedan. I stated that I didn't know much about this particular luxury brand product. John was a carbon copy of Patricia, he was gracious, funny and very knowledgeable about the product, he showed a genuine interest and a sense of care and concern while dealing with me.
I called at 9:40 Am. Amy again answered the telephone and spoke clearly and professionally. I asked to be directed to the service department. Amy put me through to the service department immediately. The service receptionist answered the telephone, yet she spoke so fast I couldn't get her name. I asked her for her name and she said her name was Liz. I explained that I purchased my vehicle from another dealer and my Bluetooth needed to be paired. I asked if I could bring in the vehicle and have the Bluetooth paired to my phone while I waited.
Liz explained that she didn't know and she would ask. I was placed on hold at 9:42 and Liz didn't come back to the call until 9:46. Liz explained that I could bring the vehicle anytime and to see Robert, the service advisor. She said they would pair the phone for me at no charge. I asked what time would be inconvenient to bring in the vehicle; I did not want to wait around! Liz stated that between 12:30 PM and 1:30 PM, "The guys are on lunch", meaning the advisors!
I called at 9:53 Am. Again Amy picked up telephone on the 2nd ring and spoke clearly displaying a great attitude. I stated that I needed to speak with someone in the service department because my check engine light was on. I was immediately put through to the service receptionist. The service receptionist answered the telephone and said, “Service, how may I help you”. I stated I was visiting the city of Springfield on business and my check engine light was on. I asked if I could drop the car off and get a loaner as I still had more meetings this afternoon. The receptionist responded that the service department was quite busy and they probably couldn't get to my vehicle today and she stated that the dealer doesn't have loaners.
I asked to specifically speak with someone who could counsel me on what to do so I asked to speak to a service advisor. The receptionist abruptly said she would check and placed me on hold. I could tell by the tone in her voice that I had inconvenienced her to some degree and I was an interruption in her day.
I was placed on hold at 9:55 and waited until she picked back up the telephone at 9:59. I listened to her state again that my car wouldn't be looked at today and she stated that they had no loaner cars at all. She said I could drop the vehicle off if I wanted. I proceeded to ask the receptionist for her name so I could refer back to our conversation when I dropped off the vehicle. She said her name was Paula. I said I would bring the vehicle around lunch time and she said fine or something to that effect. The conversation ended at 10:02 Am when she hung up.
I called at 11:15 AM. Amy answered the telephone and again she was professional and spoke clearly. I asked to be connected to the parts department. I was immediately transferred through to parts. A parts counterman answered the telephone, "Parts". I asked how much some accessories would be for my 2010 XYZ 350 vehicle, namely the sport muffler and an aerodynamic kit. I asked if he knew if these items were available, he indicated that he knew the muffler was available.
While I was waiting for him to look up the parts I could hear the impact wrench and other shop equipment in the background drowning out his questions. He finally found the items and quoted me the same pricing as what was listed on the XYZ brand website. He stated that the parts are manufactured pre painted and that I wouldn’t have to take the vehicle to a body shop and have them painted after installation.
At this point I asked for his name because at no time did he offer to give his name to me. He said his name was Ken. Ken didn’t offer me the opportunity to have the parts installed at the dealership location, he didn’t ask me, “Would you like a price on installation”. I had to ask if the service department would install them and if they did do this work, could I have a price installed. He said sure, he said he would transfer me to the service department and Ken thanked me for the call.
I was transferred back to the service department receptionist at 11:21 and the receptionist answered the call, "Service". I asked if I could speak to a service advisor regarding the cost to install some accessories I had just asked parts to look up. The receptionist listened to my request and said, "Hold on". At 11:23 the receptionist came back on the line and asked, "You already got the parts pricing for the muffler"? I said yes, the muffler and the aerodynamic kit. The receptionist said, "My advisor is checking__ HOLD". She came back on the telephone after another minute and said the install on the muffler is $165 and the install on the kit is $385. I asked, is that it, and she said, "Uh huh". I asked how long it would take to book the car in and she said a week and a half. I asked for her name as a reference and she said Paula. I told her that I will call back later and book the vehicle in, she said, "OK" and hung up the telephone.
I can say that when I gave this report to the owner of the dealership, he was not impressed with some key members of his staff. The report below is the actual report I submitted, only the names have been changed to protect their identity.
The sales people and the main receptionist are fantastic, they show a real zest for their jobs and it is conveyed in how they speak and conduct themselves on the telephone. The service receptionist needs to speak with more CLARITY and SLOW DOWN so people can understand her. The service receptionist needs to answer the phone by stating, "Thank you for calling service, my name is Paula. How may I be of assistance today"? When Paula ends the conversation she needs to ask, "Have I answered all of your questions today, is there anything else I can assist you with"? When the call is terminated the receptionist MUST state, "Thank you for choosing XYZ Motors and have a wonderful day"! The service receptionist is a make or break point for bringing in new business.
My call regarding the Bluetooth issue: I should have not been kept on the telephone waiting for the advisor or manager to tell the receptionist what to say, the receptionist needs to be informed on paper and in a one-on-one meeting what she is empowered to say in certain situations. The goal is to create award winning exceptional customer service by facilitating the needs of the customer. Everyone in your building needs to have a can do attitude! Getting the customer IN YOUR DOOR should be the number priority from each and every telephone contact opportunity!
The receptionist should not be the conduit for the advisors, meaning she cannot replace them. All three times I called into the service facility, I asked to speak to an advisor and I never was put through, again the reason they are called service advisors is because they SERVE and ADVISE. The receptionist’s job is to transfer calls and answer immediate questions that are within the scope of that position.
When I called and conveyed the need for servicing due to the check engine light, I was told the dealership doesn’t have loaners, the website states you offer loaners. Because the receptionist was dealing with me, I was never informed nor offered a rental car or a shuttle ride! The receptionist did not give me any alternatives nor did she give me a reason why I would do business with the facility because she wasn’t helpful or empathetic to my needs!
People want to be invited into a business and see the benefits and value in starting a relationship. Again, receptionists can be a make or break point in the sales process and can KILL the sale over the phone, meaning the customer won’t even come to the store. The receptionist also told me that my car probably wouldn’t get in the repair shop that day! Why not let the advisors do their job and create a relationship with the customer once they are in the door. Why is the receptionist killing the relationship before it has started?
Half the battle a dealership faces day-in and day-out is getting the business in the door. Let the advisor fix the customer first and then fix the vehicle, this won’t happen if they don’t come to your facility. If the customer, (ME) would have been told, come right down and one of our award winning service advisors would be happy to help you, that would have made all the difference in the world. Once the customer is at the dealership the ADVISOR can then fix the customer first by providing a shuttle ride, loaner car if one is available or a rental car. Once the customer is fixed you can then proceed to fix the customers concern and get them on their way!
If I were a real customer I would have phone shopped until someone somewhere had said to me, “I can understand your situation, why don’t you come in and we will do our best to get you on your way”!
Telling me the times that I shouldn’t bring my car in because the GUYS are on lunch doesn’t promote service that will meet or exceed my level of expectations nor a customer’s. The receptionist should have said, "Bring your vehicle in anytime; one of our factory trained service advisors is always available for important customers needs"! This kind of statement gives me an idea of the level of professionalism that exists within the facility; they are always ready, willing and able to look after my needs... “Hmm, I’m going there because they seem to care”!
The parts counterman MUST ask every customer calling in to your store for parts pricing, (except wholesale), if they also require the part to be installed, “Would you like us to give you a price for the installation as well”? This will create selling of hours for the service department. Maybe not a lot of hours over a month but any production of hours nowadays is a welcome blessing in most facilities.
I would individually train each person that has customer facing contact with proper telephone skills and etiquette, the ten foot rule reduced to a five foot rule. I would also work with employees in group settings, listening to the calls that come in and have their own peers critique them. This step makes a huge impact when your coworkers are giving you constructive criticism in a group context.
Employing telephone skills to get your customers into your facility is a key component in revving up your production of hours! Don’t let the telephone get away from you, it is one of the most important tools in your marketing arsenal and in your tool box. Seriously, the telephone can be your best friend and your own worst enemy! Sometimes your nightmare!
For those of you that don’t know the ten foot rule, here goes… The ten foot rule: What can you do to make absolutely certain that every employee in your dealership is doing his or her part to promote an exceptional customer responsive and friendly atmosphere? Does every customer get the impression that this is a dealership in which they are really welcome and their business is 100% appreciated?
One simple implemented RULE is enough to accomplish this task! This is the 10-Foot Rule! Simply stated, every employee is expected to acknowledge each customer with a smile and a verbal greeting.
Each customer with whom an employee comes into contact with, PERIOD! It’s really that simple, it's the 10-Foot Rule. As an employee, if they come within 10 feet of any and all customers, it's their responsibility to follow the 10-Foot Rule. PERIOD! NO EXCUSES!
Implement the 10-Foot Rule in your facility because we all like to do business in a friendly atmosphere where we feel welcome, like only we exist. That's the impression every one of your customers will receive each and every time they frequent your dealership! They will perceive you are the BEST, and you are because you are implementing some of these simple and time tested true practices that don’t cost you a dime but will reap endless rewards.
David
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