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
