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The Dealer Profit


Evidence Manuals-Do you use them?


Do you, as a salesperson (or manager), use what is commonly referred to as an "Evidence Manual" or something similar to provide information to your customers during new vehicle delivery? What type of information do you generally cover? Why do you use one? What other things do you use, and why?


They are YOUR customers and you can have them or get them back!

When you drive by a Midas, Jiffy Lube, Wal-Mart Service Center, Grease Monkey, Pep Boys, or whatever in your market and see a vehicle that’s your brand, do you ever wonder?  Wonder if your dealership sold it… and why is that vehicle not in your service department since it is your make?     Maybe you wonder how New Car Dealers could allow enough of their customers to leave them and flock to all that competition. It is true that 100% of the new vehicles sold in the US have to be sold by or through a Franchised Dealer, right? After five years, NADA states that less than 20% return to the selling dealer for service, especially if the customer is paying.   I know some of them moved, but 80%? No, typically 20 to 25% move away or are sold out of market, however many times there are more moving in than leaving. So again why are they not in your service department? If it is a bit puzzling just ask the sales staff or walk b...

Cheater, Cheater...CSI Leader?!?

Who feels that when dealers allow employees to manipulate, gyp, phony up, or outright cheat to enhance or “get” the CSI score that they are only short-changing or cheating the dealership.    What percent of time do you think customers just “give” the highest rating only to help their salesperson or advisors, and then they just go-away because the experience was unacceptable and all trust was lost? What percent of dealerships spend more time and energy trying to cheat the CSI System, rather than focusing on TRUE customer satisfaction?   As a "Dealer Coach" we've seen dealerships use all kinds of incentives to try and get  a high CSI score, even requesting the customer bring in the survey. We've seen customer information changed or modified to protect the store, hold outs on closing and RO for 30 days or more, etc.   I'm not trying to give out any ideas (it's okay to laugh now!) but, who is bra...

Everybody is Talking About It…But Who’s Really Getting It?

I love reading blogs. They are an amazing insight to what is going on in the mind of the writer. So, after reading blog after blog I am impressed and ecstatic that everyone seems to be aboard the customer retention train! Here’s the rub. Everyone (okay, most everyone) would agree that the key to profitability in a dealership is not based on units sold or hours per R.O…it’s based on how many of those sold are retained as customers and refers their friends and family to the dealership. Yet, no one seems to have a real strategy or plan on how to get it. So, for your consideration I would like to share the following suggestion: You have to implement, measure and monitor a process that is done 100% of the time to get your best customer (the one you just sold a car to or completed service for) to keep coming back! Sounds so simple, right? Every dealer has had the “rah-rah!” mentality that gets everybody pumped up, or the CRM System that would basically ...

It's Time to Adjust That Dial-Part II

From we need more customers To understanding that you have enough existing customers to make you a small fortune but you keep ignoring them in the pursuit of more prospects to replace the customers that are leaving.   Today’s existing customer is more important than ever and dealership survival going forward will be determined on how well your dealership understands and capitalizes on its existing customers. A prospect becomes a potential loyal service customer when they purchase a vehicle or maintenance service from your dealership. A dealership that sells one hundred new and fifty used vehicles of their brand per month is generating one hundred and fifty potential service customers per month, however the sales department mostly ignores that fact and does little if anything to insure that first critical service visit. Less than 40% of your vehicle buyers voluntarily visit your service department ever including warranty. After five years most of t...

It's Time To Adjust That Dial -Part I

From “as vehicle sales go, so goes service” mentality To believing that you own 100% of that business and you can capture more of it and grow service regardless of what sales is doing.   From focusing exclusively on generating prospects to replace the customers that are leaving To realizing that nothing is more important or profitable to a dealership than knowing and working its current customers.   From allowing 84% of our customers to leave and go to the competition To implementing and requiring processes that get them stuck on you and coming back again and again.   From less than 40% of vehicle buyers initiating any kind of visit to our service departments To requiring that all vehicle buyers receive an orientation at delivery and have that critical first service appointment established with your dealership.   From being only transactional (If I cut another $2000 will you take it home today?) To realizing that at leas...

Non-Car People Running The Store

It’s referred to as the “car business”, but true car professionals know it isn’t and never has been just the car, the transaction, or the money.  Beyond the negotiating, bargaining, and adversarial activity over the terms, conditions, and other costs of these temporary contacts, it’s the “people”…the personal connections and relational interactions between vehicle buyers and service visitors and frontline dealership employees in those departments.    Routinely dealerships focus everything and everyone on transactional buyers that have little willingness to commit beyond the “current deal”. Relational buyers who are seeking a lasting connection and wanting to become actively engaged with the dealership are more prevalent in today’s market than ever before consisting of up to 80% of new car buyers.   True car “professionals” always managed customer relationships to turn...