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
Friday, October 8, 2010
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
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