autosuccess service november/december 2015
DESCRIPTION
The same success-driven solutions your dealership has always trusted from AutoSuccess — now focused on your service needs.TRANSCRIPT
NOVEMBER/DECEMBER 2015
Hörmann has the solutions
CHOOSINGHigh Performance Doorsfor Service EntranceExit / ‘Other’ Doorways
© 2015 Auto/Mate, Inc. All rights reserved.
It’s in Our DNA
Anne Marie PalmerDealership Experience20 Years
We’re car people. We understand.www.automate.com/car-people877.861.9625
We’re a DMS that’s lived the dealership life.
FEATURED DEALER OF THE MONTH“We were spending $1.3 million in advertising and decided thatwas no way to run a dealership. We cut the ad budget in halfand gave the rest to our customers. It created a loyal customerbase and we gained more in market share. Before we startedthe program only 30% of customers had their vehicles servicedat AutoServ, now we are over 70% and continuing to improve.”
- Dennis GaudetAutoServ
OVERALL CUSTOMER RETENTION
100
90
80
70
60
50
40
30
20
10
0
30%
74%
BEFORE PROGRAM
WITH PROGRAM
NEW& PRE-OWNED
EMAIL MARKETING CAPTURE
100
90
80
70
60
50
40
30
20
10
0
35%
85%
BEFORE PROGRAM
WITH PROGRAM
800.717.4988 | F 866.366.8858 | DealershipForLife.comBALTIMORE | CHICAGO | HOUSTON | OKLAHOMA CITY
ADMINISTRATION TRAINING GRAPHICS REWARDSCUSTOMER CONNECT
#1 IN CUSTOMER RETENTION& MARKETING SINCE 2004.
IN ALL CATEGORIES
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on the cover
service marketing solutions
leadership solutions
service training solutions
CHOOSING High Performance Doors for ServiceEntrance / Exit / ‘Other’ Doorways
12 SallyWhitesell BECOMING AN OUTSTANDING COACH
06 RyanPowers USING NEW SCHOOL TO KEEP IT OLD SCHOOL: Building Better Service Relationships
08 RebeccaKon HOW TO GAIN MORE BUSINESS FROM YOUR MULTITASKING SERVICE CUSTOMERS
13 JackGarrity RETENTION 101
14 DonReed SINCE WHEN IS SELLING A BAD THING?
16 CraigBaumes THE TWO BIG MISTAKES SERVICE ADVISORS MAKE WITH MOBILE TABLETS
17 JeffDodson THREE INEFFECTIVE APPROACHES TO DRIVE SERVICE DEPARTMENT CUSTOMER RETENTION
18 MikePitkowicz “IF YOU GIVE...”
“I’m talking about selling the safety and reliability of needed repairs. I’m talking about selling the customer on the benefits of preventative maintenance and following the manufacturers’ basic requirements and recommendations.”
“Dealerships that have successfully implemented customer loyalty programs find that customers return more often, spend more money and make additional purchases when their patronage is rewarded.”
“Having the ability to confront people with compassion while pointing out areas that need improvement are importantsteps to becoming an outstanding coach. Being able to explain company policies and hold people accountable is abig part of being a manager.”
“Technology and trends will come and go. Even the platform through which your guests want to be advertised to and communicated with will change, but one thing never will. Relationships.”
“What I’ve learned is that the adoption of mobile tablets doesn’t automatically translate to instant success. Tablets take some getting used to, and there are two common mistakes that I see service advisors making on a frequent basis...”
“But, in order to gain more business from the busy crowd, your dealership needs to findways to grab their attention and make their time worthwhile.”
“The customers reach out to you (online, in-store, etc.) and you provide them with something. Hopefully, this will leadto them asking for something else. Unfortunately it’s not as simple as a children’s book, but the process couldbe mirrored in a simple 1-2-3 action plan.”
“If reaching out with your brand works when you do it occasionally with only a few tools, imagine how well it will work when you do it consistently and use multiple tools. Your brand is about you, and you need to be about your brand.”
service training solutionR
yanPow
ers
vice president of marketing & dealer solutions for SoundFox | [email protected]
I’ve had both the pleasure and the burden of growing up in the dealership world. At one time or another, nearly every member of my family has worked in, run, owned or sold to a dealership. As a result, I’ve learned the ins and outs of the business over the years, and I’ve come to love the process. I’ve also developed a keen eye for spotting opportunities for growth and improvement. And, I’ve learned that while nothing is perfect, improvement is about progress, not perfection.
Technology is one key element that has improved immensely over the years. Processes big and small have become easier, more accurate and, often, automated. Does that make management easier? No! This industry grows and adapts so rapidly that only the strong will survive and thrive. What does not change, though? Relationships, pure and simple. Building and maintaining relationships have always been — and will always be — the key ingredients for growth and success.
Studies have shown the No. 1 factor contributing to increasing RO value is the physical face-to-face time spent with a service advisor. That’s correct — it’s about building a relationship based off of time and trust that allows your service advisors to sell more service. If you’re reading this, that shouldn’t come as a surprise. However, understanding and reacting to that fact is only half the battle. The other half relies on what you’re doing to expose more visitors to more profit opportunities. So, what are you doing?
Are you keeping them informed about all that you have to offer? How? Through what means are you engaging your guests? How are you influencing positive behavior? I sure hope you aren’t just scheduling appointments via the phone or your online scheduler, and then taking these appointments, letting them sit in your waiting room and then thanking them for their business as they leave. If you are, then you are missing the boat. You are missing the opportunities to expand profit center exposure, to foster relationship building between your service advisors and guests, and to collect quality opt-ins for retargeting.
You want to look at your dealership with the same mindset and creativity as your marketing and advertising team does with your Website. Everyone who visits is coming in at a different stage of the sales process and, many times, have a different “customer persona.” Your job is always — and will always be — to ensure the following chain of events (and all are equally important):
Attract > Convert > Close > Delight
Running in parallel to this are the lifecycle stages of people in your store.
USING NEW SCHOOL TO KEEP IT OLD SCHOOL:Building Better Service Relationships
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service training solution
Rya
nPow
ers
vice president of marketing & dealer solutions for SoundFox | [email protected]
Strangers > Guests > Prospects > Customers > Promoters
• Strangers are fresh and new. They are coming in thanks to a referral or were attracted by something from your marketing efforts (great job!).
• Guests have visited before or are at least familiar with your brand. They like something about what you have to offer, so they have returned. You’ve peaked their interest and they likely already have or are developing a need that you can fulfill.
• Prospects are leads in a purchasing position. They know and trust you enough to want to give you their business.
• We all know who customers are.
• Promoters are your fans — your loyal following. They are the people who rave about their experience and who refer anyone and everyone they know to you.
Take a minute and figuratively walk through your store from start to finish as a visitor. Starting on the phone, waiting on hold. About 70 percent of your future floor traffic originates from the phone, so that’s a great starting point.
How are you greeted when you arrive? What are you greeted with? What do you see and hear inside the service lounge. How are you being engaged? What is the dealership showing you? What are you watching or listening to? When you leave, what did you leave with? Are you more informed about what differentiates this dealership from the one down the street?
I’d be willing to bet that after going through this hypothetical exercise, you’ll see ample opportunity to create more opportunities and excuses to get customers in front of a service advisor. I’m confident that you’ll find a multitude of reasons to introduce them to areas of your store they may not otherwise be thinking about. Just because a guest is coming in for one purpose doesn’t mean they only have one interest. Use your service lounge as a hub to promote cross-channel marketing. Take advantage of the time you have to talk to them about what makes you unique — including social media, mobile marketing, community outreach, opt-in on mobile coupons, online surveys, future courses or service clinics.
Technology and trends will come and go. Even the platform through which your guests want to be advertised to and communicated with will change, but one thing never will. Relationships.
“Everyone wants to go where someone knows their name.”
introducing
The same success-driven solutions your dealership has always trusted
from AutoSuccess — now focused on your service needs.
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07
service marketing solutionR
eb
eccaK
on
communications specialist for ActivEngage | [email protected]
Do you ever have those days where you have a million-and-one things to do, and haven’t the slightest idea how to get it all done other than to do multiple things at once?
If you answered “yes,” you might not be surprised to learn that your service customers have this problem, too. Time is of the essence, and we’re all busy, busy, busy.
But, in order to gain more business from the busy crowd, your dealership needs to find ways to grab their attention and make their time worthwhile.
So how do you accomplish this?
It’s simple. You offer your customers ways to get their other tasks done while they are trying to take care of a service, and as a result, you win their business.
Let’s take a look at a few ways for how your dealership might effectively execute an automotive marketing strategy to win more service appointments from today’s multitasking customers:
Have a “Friend Day”In order to appeal to the busy socialite and bring in more service business for your store, it’s important to realize that some of your customers probably have friends who need oil changes at the same time.
I recommend trying out a promotion in your marketing emails or on social media called “Friend Day.”
Tell your customers that if they bring a friend with them to get an oil change, they get half off their service. Or maybe both the customer and their friend get half off because, well, you don’t want to start any fights due to unfairness.
Everyone wants to help a friend and make time to hang out with them at the same time; your dealership can help them do both by offering this type of oil change special.
Offer Unique Multitasking AmenitiesOffering free Wi-Fi and snacks for the busy worker is becoming common in service departments these days (although it’s never underappreciated).
In order to stand out even more from their competitors, some dealerships are now offering multiple and unique amenities to help their
customers multitask. These amenities have become part of their main selling point for their service department.
Here are some examples of amenities you could offer:• A restaurant or coffee shop on property, so if a customer is craving a latte or wanted to get an
oil change on their lunch break, it’s right there. This is also a great example of cross-marketing — partnering with other, familiar brands (such as Starbucks) to offer products and services that your multitasking shoppers will love to take advantage of while they are at your store. This also helps convince shoppers that you are the dealership of choice because you align with other brands that they love.
• Complimentary manicures for the busy woman (or man — we’re not judging) who wants to get dazzled up for their night out while having their car fixed during the day.
• A kid’s lounge to occupy the little ones in case working parents need to be productive while they wait.
• A full gym area with weights and cardio equipment for the health-conscious multitasker who needs to have their vehicle serviced but doesn’t want it to interrupt their typical workout routine.
Of course, these amenities should never take the place of having high-quality technicians in your service department, but they can definitely offer an additional incentive for shoppers who never feel like they have enough time to get every errand done on their lunch hour (including eating lunch).
Take Advantage of The Busy-ness of HolidaysMultitasking service customers also love convenience. They love saving time, and holidays are always extremely busy. To help them with the pain of having to run to multiple places to get everything they need, why not bring what they need directly to them?
Here are some ideas for what to offer (for free or at a discounted cost) to your service customers during holidays as extra incentives to visit your store:• Valentine’s Day — Flowers or chocolates for their sweetheart
• Independence Day — Sparklers and fireworks
• Halloween — Pumpkins and pumpkin-carving station for kids
• Black Friday — Free coffee or Starbucks gift cards (because your shoppers will be sleepy from getting up so early)
• Thanksgiving — Pie! Have a Thanksgiving bake sale or give thanks to your customers by offering them a free pie when they come in to your service department during the week of Thanksgiving. It could save them time baking or shopping during this holiday, and you’ll get bonus points for being so thoughtful.
• Christmas — Christmas trees, wrapping paper, free gift wrapping services, and/or hire a Santa
All of these offerings can save your multitasking service customers time, traveling stress and money during the holidays — which is a prayer answered for some people.
Think outside of the box and add to your offerings based on what you think they might need at any time during the year — including all those crazy winter months. Free winter emergency kit with service? Yes, please!
Remember, there’s a reason that Starbucks still sells newspapers, and it has everything to do with selling more coffee by offering an added convenience that people really appreciate. If you can apply that strategy to your service department’s marketing strategy, you’ll win the hearts of many busy customers who will be loyal to your ongoing generosity and thoughtfulness.
HOW TO GAIN MORE BUSINESS FROM YOUR MULTITASKINGSERVICE CUSTOMERS
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SPINNER IN ANDOUT OF THIS
“Sales have blasted off since we got two spinners.”— Dale Dillon, Tipton Auto Group
“It is Great! You gotta have it. It’ll be the best thing you’ve ever done in your market.”— Jimmy Payne, Owner of Payne Auto Group
“We got rid of newspapers to get three AutoSpins, and WOW what an ROI.”— Charlie Hicks, Owner of Ed HIcks Nissan, Infiniti & Mercedes
“Wish I had this years ago! Wouldn't be without it! Best advertising I’ve ever done!”— David Sloan, GM of Greeley Subaru
Retail automotive dealerships are increasingly choosing high-performance doors for their service areas because of the efficiency and aesthetics they offer, as compared to traditional sectional and overhead roll-up doors. At first glance, everyone is impressed with the look and speed of modern, high-performance doors. A deeper examination also reveals many improvements over traditional doors.
Traditional doors could cause damage to vehicles, had very little insulating value, and required a person to press a button to open them. They were also slow, unreliable, unattractive and lacked the vehicle and pedestrian protection features integral on modern high-performance doors. Today’s high-performance doors have overcome all of these issues, and dealerships across the country are installing them at an ever-increasing pace. Customers and service writers are no longer greeted with blasts of cold or hot air every couple of minutes as vehicles enter and exit the service drive. The high cycling speeds and insulating values of today’s doors have eliminated this problem for good.
It is important to know that, as the doors have changed, so has their place in the planning process. Doors are no longer considered as a construction item to be quoted on halfway through the construction phase, when the bricks have already been laid. Now, architects, retail automotive dealership owners and managers are including their door partner early on during the planning stages of new construction, building expansions and remodels, consulting with them about which high-performance door system will best suit their specific operational requirements. Assisting the architect and owner/manager in choosing the best door system for the structure takes experience. A good door partner will employ retail automotive experts who specialize in working only with the retail automotive industry, and who will personally oversee each individual project. This type of specialized attention by highly experienced individuals provides architects and owners/managers with the peace of mind that the high-performance doors they purchase will be perfect for their application — and well worth the expenditure.
Well-Thought-Out Choice of Door ActivationFor Overall Successful Door Installation A successful installation not only requires the right model of door for the specific location and situation, but also requires the right activation method. Door systems installed in service write-up areas, for example typically have an exterior motion sensor, so that when a vehicle
approaches the door to enter the building, the door automatically opens. Then, after the vehicle enters the building and parks, the door automatically closes after a specified time.
In addition, some dealerships like for their customer service employees in the write-up area to use a remote control transmitter to open and close the door, which is another feasible activation option.
Dealers will often choose to incorporate a vehicle back-up protection system, as well. This system creates a zone between the door and the parking zone in the service write-up area. If the vehicle is not positioned far enough into the building, the door will not close, which prevents damage to the vehicle.
All high-performance door models should have, as standard, a vehicle-protection light grid built into the guide tracks. The light grid beams shine across the door opening and, if a beam is interrupted, the door will stay open to prevent damage to the vehicle or harm to the person. The combination of the standard vehicle-protection grid and the properly selected door activation method makes for a successful door system that functions as an integral part of the service department’s operation.
Case Study — High-Performance Door SystemInstallation at Tysinger Motors in Hampton, Virginia Tysinger Motor Company, Inc., the leader in Mercedes-Benz sales for their area, purchased two 16’ x 10’ high-performance doors for their new entry/exit doorways when they expanded their service bays in 2010.
The owner selected these high-performance doors over competitive brands because he recognized the superior construction, smooth operation and dependable design. “The insulated foam-in-place panel
CHOOSINGHigh Performance Doors for ServiceEntrance / Exit / ‘Other’ Doorways
The premier go-to door is the Speed-Guardian 4000 Series high-speed security door. The Speed-Guardian 4000 is characterized by a micrograin panel surface finish with hot-galvanized, 1-5/8“ thick double-skinned steel sections for thermal insulation; fast opening speeds of 80” per second; and a vehicle protection light grid built into the guide tracks which, if interrupted, automatically reverses the door, protecting people and vehicles within the door opening.
This is the door commonly specified for service write-up lanes and express service areas, as well as the entry and exit doors to the shop. Choosing the most appropriate Speed-Guardian model depends on many factors, including the region of the U.S. the dealership is located, climate, building specifications and exterior building aesthetics, to name a few.
The 4000 CV-TD-HR is a two-door solution designed for Class 5 hurricane requirements. This configuration combines a Speed-Guardian 4000 CV door with a tandem solid hurricane-rated shutter door. The 4000 CV provides the desired visibility into and out of the building, and if necessary, during a storm, the tandem solid shutter may be closed to achieve Class 5 hurricane protection.
The Steel Ranger 9000 L, a rolling steel door, is a lower cost — but still effective solution — for shop entry/exit doorways, which are normally located on the side or rear of facilities. This is quickly becoming the door of choice over traditional rolling steel doors, because the Steel Ranger 9000 L is springless and opens up to four and a half times faster than a traditional rolling steel door. The faster operation contributes to energy savings and reduced employee wait times on shop entry and exit. The 9000 L standard panel color is the same as the Speed-Guardian 4000 for an aesthetically pleasing and coordinated finished building look.
The Speed-Master 1600 L handles high cycles in car wash areas or may also be used in tandem with existing sectional doors anywhere in the facility.
In these applications, the Speed-Master 1600 L high speed roll-up door is often specified because of its fast opening and closing speeds, ability to handle a lot of cycles and its affordable cost. The 1600 L is constructed of a sectional panel consisting of heavy-duty PVC (fabric) panels and full-width vision areas.
with an R-value of 13.6, along with the double-pane, anti-scratch windows, are big features which the competition was unable to supply,” said Bob Rombs, vice president of the dealership.
Since the doors were installed in November 2010, they have been in constant use in areas that are heated and air conditioned. The fast operating speed provides the energy efficiency and comfortable workplace they were looking for.
In addition to the doors installed during the service bay expansion, Tysinger Motors Company, Inc. also purchased two doors for their car wash area. “The doors have become an essential part of our customer service due to the dependability that is required in the car wash area,” Rombs said. “We need to have a controlled environment, and we need to be able to move cars through at a consistent speed. These doors have fit right into our environment, and we really like the reliable nature of the product.”
The high-performance door system installations at Tysinger Motors Company, Inc. provided the perfect solutions to satisfy the specific needs of their application.
More and more retail automotive dealerships are benefiting from properly applied and installed high-performance door systems for their service and car wash areas. Whether it’s new construction or a remodel, partnering with companies such as Hörmann High Performance Doors allows dealerships to coordinate the door installation through one supplier, with high-performance doors designed to increase their building efficiency and energy savings, as well as enhance employee comfort.
To learn how high-performance doors can help your dealership, email [email protected] for your free copy of “Employee Wait Time Savings Analysis” and a high-performance door value calculator.
Sally
Whitesell
president of SW Service Solutions | [email protected]
leadership solution
Do you think a professional coach would be a great manager in the car industry? Truly great managers are not only able to manage their team effectively, but also coach individuals while leading by example. This may not include throwing chairs or stomping up and down the sidelines — although I have to admire their passion — but it does include taking pride in your team’s development.
There are many misconceptions about what qualifies a person for a management position. Most dealerships’ qualification lists includes the following:• Longevity with the company • Ability to be punctual• High customer satisfaction • Manages his or her time well• Is consistently a top producer
While these are all outstanding qualities, they don’t necessarily signal an ability to coach and manage a team. One of the hardest transitions in moving from a great advisor or salesperson to a strong manager is understanding that you have to hold people to high standards, which can sometimes change the dynamic of your former relationships. You are no longer working as a friend but rather coaching as a leader. If you take this role seriously, you will earn everyone’s respect as they see you are making a full effort to develop great players, which will lead to increased business and production. They will soon understand that you are now in a position of authority — yet if they follow your lead, you will not need to use that position. This can happen by setting clear expectations from the very beginning instead of “waiting for the right time.”
A Great Manager Will:• Set clear policies and standards while making sure each player understands the goals. • Not accept anything less than their personal best. • Hold individuals accountable to give 100 percent of their effort, not only to improve, but also to
work well with others. • Offer consistent guidance, direction and
encouragement that will educate and motivate.
• Offer consistent training while rewarding personal growth.
• Not be afraid to correct, and even reprimand, poor performance or a reluctance to follow processes.
Having the ability to confront people with compassion while pointing out areas that need improvement are important steps to becoming an outstanding coach. Being able to explain company policies and hold people accountable is a big part of being a manager. No matter how good your numbers look or how educated, experienced or talented you may be, how you treat your team tells all. Remember the words of Maya Angelou: “People will forget what you said and forget what you did, but they always remember how you made them feel.” Take a look around and see if your team is feeling successful.
BECOMING AN OUTSTANDING COACH
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Take back your dealership’s online reputation.Call Today 443-345-5049 or Visit DealerInfluence.com
Don’t take my word for it, read my reviews.
service marketing solutionJa
ckG
arrity
partner at Dealership for Life | [email protected]
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RETENTION101
Every dealership in the United States wants to have great retention. It is no secret that the car business is easier, more profitable and a heck of lot less stressful when working with repeat customers.
There are two basic building blocks a dealership needs to have a successful retention program. You need benefits and rewards. To get the customer involved, you need a brand and a means to deliver your message. And finally, you will need ongoing training and accountability. Sound too simple? It really can be accomplished by following these simple steps.
First, the benefits. Benefits are something that the customer receives just for buying a vehicle from you. This can be lifetime engine or powertrain, oil changes, tire rotations, key replacement, car washes or any combination of these and more. The program term can be anywhere from one month/1,000 miles to 10 year/250,000 miles. You decide on the package of benefits you want to offer and for how long you want to offer them. Next, the rewards. Rewards are what the customer receives by continuing to do business with you after the vehicle purchase. The customer earns rewards when they spend money with you. The more they spend, the greater their reward. It really is this simple.
To get the customers involved and onboard with your program, you will need a brand and a means to deliver your message. Decide on a major benefit you want customers to associate you with to start developing your brand. Do you want to be the “powertrain-for-life” store or the “oil-change-for-life” store or both? Your brand can include a slogan, or just a story about who you are, what you do in the community and how you assist your customers with their automotive needs. Building a good brand is an art form, and you will want to enlist the help of some professionals if you do not feel that you are able to absolutely nail this part. This is how customers will feel about doing business with you.
How do you deliver your brand message? This is the fun part. There really is no incorrect way, other than not doing it consistently with every customer. You must be creative and set yourself apart from the competition. Dealerships have had success with brochures, custom log-in and landing pages, mobile apps, desk mats, banners, posters, Web graphics, addendums, service drive cards, custom email blasts, personalized enrollment membership cards, direct mail, stickers, flyers, Frisbees, postcards, glovebox enrollment cards,… the sky is the limit. If reaching out with your brand works when you do it occasionally with only a few tools, imagine how well it will work when you do it consistently and use multiple tools. Your brand is about you, and you need to be about your brand.
Now for training and accountability. There are some dealerships that have done this internally and had great success. There are many more that have tried, failed and abandoned the idea of a retention program due to lack of implementation and accountability. It’s not normally due to a lack of talent or knowledge of their staff; it just comes down to time and effort invested in your program. Very few managers reading this article right now have the time to train and mentor every employee in the dealership through the metamorphosis that is required to have great success in retaining your customer. Every customer interaction with every employee has to drive retention. Every phone call answered, service appointment made, every sales follow-up call, every desked deal and every service bill paid will have the whole interaction designed to drive retention. Once you have trained everyone on everything, now you have to hold everyone accountable to instill this new culture in your business. Sales managers have been trying to get every customer logged-in for decades — and we know at times they fail. This is where the right retention partner can really help to ensure you are successful.
If you are looking for a partner to assist you in achieving your retention goal, look for a company that is about process and not product. Every company out there will offer some level of training. Bad training, however, is worse than no training. That company might lose you as a customer after a year. Think about how many customers you will potentially lose during that year. Look for a partner who will stay with you and your staff and will assist you every step of the way. You need a partner that will assist you in preparing your brand, make sure you get off to a good start, monitor your program and advise you along the way, but who will also help you stay focused — and avoid all the things that can and do go wrong. Ask any potential partners for references, and ask those references not only about successes, but also about occasions when things might have gone wrong and how the potential partner handled it. True character is shown in times of trouble.
Good luck in undertaking your journey to greater retention. For a free copy of a couple of dealerships’ branding material, please email me at the address provide above.
service marketing solutionD
onR
eed
CEO of DealerPro Training | [email protected]
When I was a dealer working in the retail world, I had this strange notion that increasing sales was a good thing. We trained employees in all departments how to become better salespeople, how to provide our customers with a higher level of service through effective communication and, of course, how to increase gross profits. As a dealer or department manager, how do you expect to increase net profits and earn a reasonable return on the dealer’s multi-million dollar investment if you don’t increase sales? So again I ask my question: “Since when is selling a bad thing?” Allow me to explain my point by sharing with you some real-life examples of what I’m talking about.
I have personally spoken to and worked with thousands of dealers across the U.S., Canada, the United Kingdom and, most recently, Poland. I have found that far too many dealers and managers have a great divide within their dealerships. I like to call this divide the “Demarcation Line.” It divides the variable operations (new, used, F&I, special finance) from the fixed operations (service, parts, collision center). When some of these dealers cross over that line from the variable operations to fixed operations, the word “selling” takes on a whole new meaning.
For example, when I ask a dealer, “What would you do with a salesperson who only sells five cars a month?” the most common response is, “Get rid of them and replace them with someone who can sell.” Conversely, when I ask, “What would you do with a service advisor who is only selling 1.0 HPRO?” far too often the response is, “He’s a good guy, everybody likes him and I don’t want him to oversell our customers.”
By this logic, this dealer would fire a salesperson for underselling and fire a service advisor for overselling?
Let’s take this one step further. Using this example, you would fire a sales manager who could only close 10 percent of the sales opportunities coming in the door because he is underselling and losing you thousands of dollars in gross profit each month, and you would fire a service director who is closing 50 percent of the service menu presentations in the service drive because he is overselling and making you thousands of dollars in additional gross profit each month? Really?
Dealers tell me they don’t want to oversell their service customers, and yet they cross over the Demarcation Line to the variable side and tell
me they expect their sales team to maximize F&I revenue PRU with 100-percent turnover from the salespeople, and 100-percent F&I menu presentations with 100 percent finance presentations. They expect a strong closing ratio of 25 to 30 percent on the sales floor with above-average gross profits, 100-percent turnover to a sales manager by the salesperson, minimal wholesale losses from used cars and a 45-day turn on inventory. The managers responsible for achieving these sales benchmarks are usually supported to the max with healthy advertising budgets, professional training programs and full accountability for their end results.
These same dealers cross over the line to the backend of their dealerships and they tolerate far too many underachievers who are losing thousands of dollars in additional gross profits. They have zero walk-around presentations by advisors, zero service menu presentations by advisors and zero turnover of declined repairs to a manager. They have a 10-percent closing ratio by advisors and 60 percent one-item ROs (oil change). They gross below 70 percent on retail labor sales and below 35 percent on retail parts sales, with $50,000 in obsolete parts inventory supported by a minimal advertising budget, no professional training programs for advisors or managers and minimal accountability for performance…. And you’re worried about overselling your customer?
Why would any dealer tolerate this scenario? Why would any dealer think this is a smart way to run a dealership? Why would any dealer want a Demarcation Line in their dealership? Why would any dealer think performance-based pay plans are a good policy for variable operations but a bad one for fixed operations? If 100-percent menu presentations is the right process for the F&I department, then why is it not the right process for the service department?
In my 15 years of working in the field with dealers of all sizes, I have yet to find a single dealer who is overselling their service and parts customers. Of course, we should never sell a customer any product, service, part or repair that their vehicle does not need. That, however, is not what I’m talking about here. I’m talking about the advisor not selling the customer what their vehicle does need. I’m talking about selling the safety and reliability of needed repairs. I’m talking about selling the customer on the benefits of preventative maintenance and following the manufacturers’ basic requirements and recommendations.
Recently, my company did a study based on a dealership servicing about 500 retail customer ROs per month, where the advisors made a menu presentation to 70 percent of the customers coming in the door, based solely on the manufacturer’s maintenance schedule. Here are the results:• Menu penetration was 70 percent• Manufacturer minimum services sold had a 30-percent closing ratio• Additional services sold at 0 percent• Increase in HPRO of .2• Monthly gross profit increase of $12,268• Annual gross profit increase of $147,227
Obviously, the closing ratios above are nowhere near a good job of selling, but .2 HPRO produces a lot of additional gross profit, resulting in increased net profits which provides the dealer with a higher ROI and gives the employee added job security. So again I ask: “Since when is selling a bad thing?”
SINCE WHEN ISSELLING A BAD THING?
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“I’m talking about the advisor not selling the customer what their vehicle does need. I’m talking about selling the safety and reliability of needed repairs. I’m talking about selling the customer on the benefits of preventative maintenance and following the manufacturers’ basic requirements and recommendations.”
service training solutionC
raigB
aum
es
fixed operations support specialist for Auto/Mate Dealership Systems | [email protected]
More than 20 percent of dealerships have invested in mobile tablet technology to improve service department processes and increase customer satisfaction. But, like any technology, the degree of benefits achieved is directly correlated to how well dealership staff is adapting the technology to their processes.
In the last year, I have traveled all around the country training service advisors on how to use our mobile tablet solution in fixed ops — greeting the customer, turning appointments into ROs, performing multi-point inspections, viewing recall information and more.
What I’ve learned is that the adoption of mobile tablets doesn’t automatically translate to instant success. Tablets take some getting used to, and there are two common mistakes that I see service advisors making on a frequent basis:
• Rushing Through TheWrite-Up ProcessBy far the biggest mistake that many service advisors make is to rush through the write-up process. Ironically, being able to speed up the write-up process is one of the benefits of a mobile tablet solution. But the benefit becomes a drawback when the customer perceives that they’re being rushed or treated like a “number.”
I understand the problem; there are times when the service drive is busy and customers are waiting. Service advisors want to get the next customer in as quickly as possible, and the
tablet makes it possible to check a customer in and open an RO in minutes. But just because the write-up process can be completed in two minutes doesn’t mean it should be.
When I was a service manager, I always recommended that service advisors take their time greeting each customer. Ask a few questions to make them feel comfortable and get a feel for how much attention they’ll need. These include simple questions such as “I understand you came in today for an oil change — do you have any other concerns or questions about your vehicle?”
Then, take cues from the body language of your customers. Some customers will be in a hurry to leave and others want to explain their problems. For those customers who want the attention, give it to them. Trust me, any impatience they may feel from having to wait 10 minutes will be greatly alleviated with some attentiveness to their needs.
Switching from a manual write-up process to an automated one can feel like slow motion. The tablet makes it easy and fast, so it’s natural to want to speed things up. But remember, the benefit to the customer should always outweigh the benefit to the dealership staff.
• Focusing on the Tablet,Not on the CustomerThe second mistake I see a lot of service advisors make is focusing too much on the
tablet and not enough on the customer. Have you ever been in a meeting — or on a date — with someone who is looking at their phone the entire time? Not only is this annoying, it’s rude. Your customers are spending their valuable time and money to bring their vehicles in to get serviced. The least they can expect is a service advisor who is friendly, makes eye contact and listens to what they’re saying.
Sometimes this problem arises from a lack of training. It’s critical that service advisors be well trained before they start using the technology with customers, including doing several “run-throughs” with other employees. Typical behavior to look out for and modify includes avoiding eye contact and responding to questions with short answers or grunts.
Many times, the problem is simply not being aware or being uncomfortable in that role of greeting and making small talk with strangers. Other times the problem is unfamiliarity with the tablet’s functions, with the end result being too much time looking at the tablet instead of engaging with the customer.
As dealers continue to adopt mobile tablet technology in their fixed ops departments, remember that technology alone won’t guarantee success. Proper tablet usage increases customer trust and satisfaction, paving the way to a better upsell process and increasing revenue. Improper usage increases the risk of alienating customers — so training is key.
THE TWO BIG MISTAKESSERVICE ADVISORS MAKEWITH MOBILE TABLETS
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Click Here to Learn About The Two Biggest Mistakes Service Advisors Make With Mobile Tablets
service training solution
Cra
igB
aum
es
fixed operations support specialist for Auto/Mate Dealership Systems | [email protected]
A strong customer loyalty strategy can increase a dealer’s service revenue significantly, but there’s a gap between companies actually experiencing the benefits and those that are losing profits. The truth is that any dealership’s service department can drive customer retention and boost revenue, but so many continue to struggle. They’re implementing the wrong customer loyalty programs, but don’t want to cease because they fear losing their competitive advantage against dealerships that are successful. Here’s a look at three of the most ineffective — albeit popular — approaches to customer loyalty. You’ll soon see why a more personalized strategy is the one that pays. Customer Retention ProgramsThat Aren’t Working• Free Lifetime Oil Changes — Dealerships
often offer this perk as a way to get customers to return for the promised service — they’ll then splurge on other services because they perceive they’ve already gotten something for free. This strategy isn’t effective, mainly because it doesn’t provide any competitive advantage: Many other dealerships are already taking this approach, so this doesn’t separate you from the pack.
• Scattershot Discounting — This term refers to the concept of sending out discounts to a massive number of recipients without any targeting methodology behind it. Dealerships hope that a significant percentage of these mailers “stick” and bring
customers in the door. The truth is that scattershot discounts are simply junk mail that gets tossed by the majority of recipients.
• Non-Useful Dealer Rewards — Customer rewards programs that aren’t focused on the needs of their clientele are also ineffective. Dealerships gain nothing by offering incentives that customers don’t want or don’t find valuable. The approach is costly to implement and the gains are minimal.
Your Dealership Needsa Robust Approach toRewarding Customer Loyalty Dealerships that have successfully implemented customer loyalty programs find that customers return more often, spend more money and make additional purchases when their patronage is rewarded. There are a few ways the right loyalty program can positively impact profitability: • Dealer-Centric Customer Rewards —
Instead of relying on the original equipment manufacturer’s loyalty program — if one even exists — dealerships are heading up their own plans that are more focused on their individual markets. The result is that the dealer builds a brand, not the OEM. Plus, the benefits can extend across all makes and models, instead of just a few manufacturers.
• Pre-Paid Maintenance Plans — Roughly one-quarter of dealers who implement a PPM plan are selling their own branded
product that offers advantages over the OEM versions. Many have doubled the number of service visits, while reducing the time in between visits. In addition, 75 percent of members enrolled in a PPM plan will actually take full advantage of the benefits — and almost half of them will renew their PPM benefits annually.
• Plans Tied to Location — Geography has a lot to do with the success of a customer loyalty plan. Oil changes and tire rotations are common, but dealers can exceed expectations by offering free snow tire changes in the north or filter replacements in dusty or polluted environments.
As a dealership owner or manager, you can choose to continue with ineffective customer retention strategies that cost more than they bring in — or you can opt for an effective approach to customer loyalty driven by your service department. The right retention program can reduce a dealership’s discount costs by up to 50 percent, so there’s no excuse for hanging onto a strategy that doesn’t deliver results.
THREE INEFFECTIVE APPROACHES TO DRIVE SERVICE DEPARTMENT CUSTOMER RETENTION
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service marketing solutionJe
ffDodson
founder and CEO of Dodson Group Automotive Services | [email protected]
“Dealerships that have successfully implemented customer loyalty programs find that customers return more often, spend more money and make additional purchases when their patronage is rewarded.”
service marketing solutionM
ikePitkow
icz
director of marketing & inside sales for Insignia Group | [email protected]
You may or may not be familiar with the popular children’s book series If You Give a Mouse a Cookie by Laura Joffe Numeroff, yet there’s an interesting connection to a dealership’s “customer lifetime value.” Each book opens with the main character receiving something, like a cookie. Then, in a playful circular and interrelated pattern asking for more until we arrive back to the beginning — when they ask for another cookie.
“If you give a mouse a cookie, he’s going to ask for a glass of milk. When you give him the milk, he’ll probably ask you for a straw.”
Now apply this simple storyline to your customer relationship. The customers reach out to you (online, in-store, etc.) and you provide them with something. Hopefully, this will lead to them asking for something else. Unfortunately it’s not as simple as a children’s book, but the process could be mirrored in a simple 1-2-3 action plan.
“If you sell someone a car, they’re going to need it serviced. When you offer them service, they’ll probably come back.”
A study conducted by the late Art Spinella, president of CNW Research concluded that:• Customers who regularly serviced their
vehicles at the selling dealership became repeat vehicle buyers 86 percent of the time.
• Customers who occasionally service their vehicles at the selling dealership became repeat buyers 46 percent of the time.
• Customers who seldom serviced their vehicles at the selling dealership became repeat buyers 18 percent of the time.
• Customers who never serviced their vehicles at the selling dealership became repeat vehicle buyers only 8 percent of the time.
As we have all heard throughout life, “knowledge is power” and “actions speak louder than words.” I often tell my kids “if you know, then do.” Yet, it’s perhaps a failed process or lack of shared benefit between departments to elevate the importance of showroom to
service conversions. An example is provided after Action Step 2.
For the remainder of this article, let’s assume that this topic is familiar and your dealership management team has discussed the importance of conversion rates, service revenue, customer retention and CSI scores. These are all interrelated and bear impact on profitability. Simply stated, your showroom and service departments are accountable for new customer acquisitions. They conquest, deploy various marketing tactics, source leads and receive training on converting prospects to customers. Often, however, they do not work together effectively, leading us to what is the easiest step in your action plan.
Action Step 1: BackstoryShare specific customer information with the service representative. The sales team accumulates personal information (lifestyle, habits, interests, etc.) to help create a relationship and connection to the vehicle. Providing this to the service representative in advance will help build a comfortable relationship in Action Step 2. For example: “I hear you’re considering a towing package for your boat. I was looking into a new Lund Pro-V.”
As consumers in car-buying mode, we put up our guard. Why? Because at every step in the process we anticipate being sold. So during this transition, you may want to develop a standard elevator pitch for the service department. Think of it as a simple benefit statement that conveys comfort, confidence and purpose that everyone in service knows. Then, build your personal connection with the backstory.
Action Step 2: Personal IntroductionA major challenge with the introduction is timing. Approximately 55 percent of deliveries take place after service has closed. To quickly brainstorm on overcoming this logistical issue, here are a couple of options:1. Create a standard e-mail hand-off template that is sent to your service department from the
sales consultant. Include the customers’ name, number, backstory highlights and “we-owe” information. The service department may then assign a point person to make the “scripted” welcome calls. If the showroom is not trained to schedule their first service appointment, now is the opportunity. I would recommend associating a financial reward to the team for every “first service” appointment scheduled.
2. Offer vehicle personalization before F&I. According to SEMA, the aftermarket segment reached $36 billion in 2014. The demand is clear, and progressive dealerships have implemented a process and dedicated resources to capture their share of vehicle personalization. Accessories purchased at the dealership creates revenue for sales, parts and service. Plus, it’s an ideal opportunity for that first service appointment conversion to install the accessories — even if it’s a floor mat.
Action Step 3: The RelationshipI read a great article in Automotive News entitled “Building a Brand in the Service Department.” It’s centered on the Silko Honda dealership, within the Boston market. To separate themselves from the competition, the owners created a unique, customer centric offering called “SilkoCare.” Their program provides tremendous value to the customer, establishing a long-term relationship while securing a lifetime value for the dealership. In this instance, the program creates showroom traffic and repeat business.
Relationships take time; just make sure they are built on your clock.
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