It’s common in dealerships to shape service advisor behavior with a pay plan. If there is a gap in performance, managers will often adjust a comp plan or pay a spiff. 

This may be an effective way to get the results you want, but you can’t pay on everything. If you aren’t careful, you could end up with a comp structure that only a CPA could decipher. What is the alternative? How can you get your service advisors to focus on important KPIs without making it part of their pay plan?

I recently worked with a dealership that implemented a scorecard for their service advisor. The advisor is scored once a month on important service KPIs. They are given an opportunity to account for their performance and offer suggestions on how they can improve. This has led to some huge performance improvements.

I spoke with one of the service advisors at this dealership about these metrics. One of the KPIs the service advisor was held accountable for was ASR%: the percentage of additional service revenue generated that was recommended from the MPVI.

This service advisor started telling me all of the activities he had completed to try and improve his ASR%. He had spoken with the technicians on the importance of recommending additional service. He’d posted the ASR% for each technician so they could see how they were performing in relation to their peers.

I asked him what his ASR% was before these recent activities, and his answer really surprised me. It made me think about the other KPIs we could use to measure employee performance without making pay plan changes.

His answer? He told me he had no idea what his ASR% was before this scorecard implementation because he didn’t know what that metric was.

And he’d been working service for 8 years.

This scorecard and monthly review process can be extremely effective in helping service advisors to increase the items that may be in their pay plan: hours per RO and selling gross. By focusing on some of the metrics you can measure that you know will help them sell additional service, you can really help the advisors develop and grow.

Consider implementing a scorecard and monthly review process. It can help you manage your service advisors and give you some great insight on how you can help them improve their performance.



Today, it seems like there are a bazillion sites with dealership reviews. We all know the importance of Google, but how should you determine where you should focus your efforts when your Google Reviews are in a good place? In this clip, Friendemic CEO Steve Pearson and President/CPO Jason Barber give some tips on where your customers are leaving reviews and discuss how to approach where you go next.

Your dealership is all about growth. You may be looking to grow sales, improve your sales or service gross, maybe invest in new points.

Regardless of the growth path your store is looking to take, there are four levels that contribute to organizational and personal growth. In this post we will review and define each level. For an example, I am going to use employee development. Keep in mind that this same logic can apply to different areas in your dealership where you see growth opportunities.

The first level is ad hoc. Ad hoc growth is inconsistent, and has no structure. It is typically controlled by outside forces or just plain hard work. The main problem with ad hoc development is not very efficient.

For example, ad hoc employee development means inconsistent new hire onboarding. An organization may hire ten employees to find and keep two. Managers invent the training that occurs, and too often that training happens “at the desk” when the employee is in the middle of a situation. Performance is tracked is tracked on the sales board. It’s how many service hours an employee generates or how many cars an individual sold.

The next level is manager driven. Organizations that are manager driven take on the personality of their management staff. The Sales/Service Manager defines the processes that are deployed. New employee onboarding involves watching a veteran and modeling how they do it. Managers create and hold the training. Favoritism is rampant in a manager driven growth level. Another issue with this level is the management linchpin. If a manager leaves the organization, all of the training and processes leave with them. The dealership is left with a large vacuum that needs to be filled (usually with another manager and their training and processes.

The third level is dealership driven. This is the minimum growth level your organization should employ. In this level, the store defines and implements the training and processes. The market, time of year, or management does not control the training. Store goals are defined and driven by the executive team.

For example, the store onboards all employees. New employee onboarding means indoctrinating an employee on the “dealership way” of doing things. Training and processes are documented, and management is assigned to deliver the dealership training. Employees are managed based on performance, but the store has established activity metrics that lead to the ideal results with which employees are held accountable.

The final, fourth level is continuous improvement. In this level, growth is ingrained into the organization, and technology is leveraged to automate and scale.

In our employee development example, processes, training, and employee standards are captured in software. Orientation is automated for consistency. Furthermore, training is tied to strategy and uses a standardized curriculum for instruction. Everyone has a defined career plan, and training along with performance expectations are incorporated to advance employees through their career. The organization also executes performance reviews monthly to check in on employee development.

As stated earlier, we used employee development as an example, but you can use these four levels to create a growth in your organization. Inventory management, your service advisor or finance processes, digital retailing, all can use these four levels to help you define success. Take a few minutes to audit your store and determine what needs to take place to get to level three. You will create efficiencies and develop a successful growth strategy.

Monday, March 23, 2020, Chino Hills, CA--UpdatePromise today announced that it will be helping dealerships nationwide to communicate with their customers and employees by offering its Mass Campaign tool free for the next 60 days.

Inspired by many communities coming together to support each other and help with business operations during the Coronavirus (COVID-19) crisis, UpdatePromise is offering its Mass Campaign tool at no charge for two months to enhance broadcasting communication.

         Within the last few weeks, dealerships have shut down portions of their businesses or their entire operations altogether. During these uncertain times, communicating with their employees, vendors and customers can be problematic and nearly impossible.

“We’re very pleased to be making Mass Campaign available to the industry because we feel like we have an obligation to help if we can,” UpdatePromise Curtis Nixon said. “For the next couple of months, we’re empowering you with tools to send mass email or text campaigns for any major updates and announcements to your customers and employees. Our goal is to help us all as we hopefully return to normalcy soon.”

If you’re an existing UpdatePromise customer, simply access this page to sign up and activate Mass Campaign to start communicating via mass email/text messages to customers and employees

Please do not hesitate to contact us at info@corp.updatepromise.com or call (800) 276-9107 for questions or feedback.

About UpdatePromise

UpdatePromise is a leading technology provider for communication solutions to automotive insurers, repairers, and dealerships throughout North America. Founded in 2009, the UpdatePromise flagship automated messaging system has impacted thousands of businesses and their consumers, delivering unparalleled experiences accumulated through over 200 million text messages throughout the United States. For more information, visit updatepromise.com.

FOUNTAIN VALLEY, Calif., June 25, 2019 – In the next several months, Hyundai dealers across the country that subscribe to Hailer service through CDK Global, Inc. (Nasdaq: CDK) can give millions of owners easy access to Lyft rides while their vehicles are being serviced. Through Hailer™, a first-of-its-kind application developed by CDK in partnership with Lyft, participating Hyundai dealers that subscribe to Hailer service through CDK can now help eliminate transportation barriers by providing Lyft rides for customers, which can either be offered free of charge or at a cost that can be automatically added to the customer’s service bill for seamless payment at each individual dealership’s discretion.

These Lyft rides help address significant customer hurdles around transportation while a vehicle is being serviced or inspected, minimizing time spent waiting at the dealership. Previously, service customers could take the dealer-offered shuttle or loaner vehicle, wait for their car to be serviced or find their own transportation to and from the dealership. Hailer has the opportunity to increase customer satisfaction through a decline in wait times, which reflects an industry shift that has the potential to improve customer experience and business efficiency.

“Hailer provides dealerships with greater efficiencies,” said Mahesh Shah, executive vice president, chief product and technology officer, CDK Global. “We are excited that Hyundai is providing its customers with Lyft convenience at participating dealerships with CDK Drive, while affording its dealers seamless backend integration. We look forward to enabling improved customer experiences through this comprehensive dealer solution.”

As an example, a Hyundai customer calls their service advisor to schedule an appointment at a participating dealership. At the dealership, the service advisor offers a Lyft ride after writing up the work order. The Lyft ride arrives a few minutes later to take the customer to work, and when the work is complete, the service advisor arranges another Lyft ride back to the dealership. The customer gets a text message through Hailer when the Lyft ride is in route, and the rides are automatically added to the customer’s service bill by the dealership. The process is simple for customers and does not require that they have the Lyft app on their smartphone to order rides.

The integration is also easy for participating Hyundai dealers because it allows them to automate billing, set ride spending limits and approve service. The improved Hailer experience simplifies a dealership’s service to customers and ultimately reduces the number of customers waiting in service lounges.

“Our customers are going to really like the convenience of Lyft,” said Barry Ratzlaff, vice president, customer satisfaction, Hyundai Motor America. “Hyundai dealers who are already using Hailer have reported a smooth integration allowing them to call Lyft rides for their customers. Customers can now easily get on with their day while the inspection or service work is being performed on their car.”  

“At Lyft, we’re passionate about providing transportation experiences that enhance customer satisfaction and create a streamlined, more cost-efficient solution for our business partners,” said Gyre Renwick, vice president, Lyft Business, “Hailer has the potential to disrupt and evolve the auto dealership industry, and we’re excited to partner with Hyundai to introduce this solution at scale for participating dealerships across the country.”

Lyft
Lyft was founded in June 2012 by Logan Green and John Zimmer to improve people’s lives with the world’s best transportation. Lyft is the fastest growing rideshare company in the U.S. and is available to 95 percent of the U.S. population as well as in Ontario, Canada. Lyft is preferred by drivers and passengers for its safe and friendly experience, and its commitment to effecting positive change for the future of our cities, as the first rideshare company to offset carbon emissions from all rides globally.

CDK Global, Inc.
With more than $2 billion in revenues, CDK Global (Nasdaq: CDK) is a leading global provider of integrated information technology and digital marketing solutions to the automotive retail and adjacent industries. Focused on enabling end-to-end automotive commerce, CDK provides solutions to dealers in more than 100 countries around the world, serving approximately 30,000 retail locations and most automotive manufacturers. CDK solutions automate and integrate all parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. Visit cdkglobal.com.

Hyundai Motor America
Hyundai Motor America is focused on delivering an outstanding customer experience grounded in design leadership, engineering excellence and exceptional value in every vehicle we sell. Hyundai’s technology-rich product lineup of cars, SUVs and alternative-powered electric and fuel cell vehicles is backed by Hyundai Assurance—our promise to deliver peace of mind to our customers. Hyundai vehicles are sold and serviced through more than 830 dealerships nationwide and the majority sold in the U.S. are built at U.S. manufacturing facilities, including Hyundai Motor Manufacturing Alabama. Hyundai Motor America is headquartered in Fountain Valley, California, and is a subsidiary of Hyundai Motor Company of Korea.

Please visit our media website at www.HyundaiNews.com

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I could make a case that the Service Advisor is the most important job role in the dealership.  We’ve all heard that sales sells the first car and service sells the rest, and the Service Advisor is the linchpin that makes this possible.  In many cases, customers aren’t excited to bring their car in. It could mean hundreds of dollars (or more) in repair costs. Your job is to maximize profit for the dealership and delight the customer so that they want to come back and do business with your store again.

Let’s discuss some of the keys to selling service.  These three critical keys aren’t steps in a process.  Rather, they are built into your entire interaction with a customer.  There are more than these three, but mastering the following keys will increase your engagement and interaction with customers.

The first key is start positive and end positive. When presenting repair recommendations to a customer, start with the green.  Follow that with recommendations, and finish with a positive statement. For example, “Mrs Smith, I have great news.  Overall your vehicle is in really good shape. The brakes are in good condition. You’ve taken really good care of your car.  As you can see this report card shows mostly green. I wanted to bring to your attention, the tires are really worn. I’ve priced some options for you, and replacing them will dramatically help improve the vehicle performance.  Once the tires are completed, Mrs Smith, your vehicle will be back in great condition and back to all green on the report card.”

Next, focus on the customer. They can tell when you’re in it for the money or when you’re there to help.  Never put the money before the customer. Most importantly, focus on the customer and not the car.  This is difficult to do, but will drastically improve your results.

What do I mean?  Let’s talk about transactional versus relationship selling.

Transactional selling is short-term.  The advisor is primarily concerned with the transaction and selling the product with little or no emphasis on the customer needs.  It is based on price and money, with little regard for loyalty.

Relationship selling in long-term.  It involves building a relationship and getting to know the customer.  You focus on their wants and needs. It’s more about lifetime customer value and less about one-time RO value.  This fosters loyalty.

Finally, plant a seed and create a need.  This can impact your current RO, but more importantly future opportunities with the customer.  For example, “when was the last time you performed a coolant flush?” or “ when was the last time you had the air filter replaced?”  By asking this simple question your customer will establish their own need. It also lets them know they may need to be thinking about that coolant flush or air filter.

When selling service remember to start and end positive, focus on the customer, and to plant a seed and create a need. When you are able to consistently achieve these three key touchpoints you will not only be a better Service Advisor, you will create trust with the customer. This will enable you to achieve your end goal, which is to create customers for life.

Traditionally, dealerships have been siloed organizations. Dave Druzynski talks about the value of breaking down those silos and creating a more unified dealership structure.

How well do your departments work together?

Second Phase of Cox Automotive Survey Gives Dealerships Insight into Consumer Preferences and the Need for a Revitalized Service Experience

REDWOOD CITY, Calif. (January 9, 2019) – With consumer expectations quickly rising, dealers are working to get ahead of the curve and build experiences that meet the needs of vehicle owners. Releasing the second phase of its 2018 Service Industry Study, Cox Automotive surveyed approximately 3,550 consumers and 404 franchise dealership employees to gain greater insight into consumer trends and perceptions around the service experience, and help dealerships identify new opportunities to increase retention and enhance profitability.

According to the study, while dealers may be leading their competitors in share of service visits, an estimated 70 percent of consumers who purchased or leased from a dealer did not return for service in the past year. This equates to roughly $266 billion in annual lost revenue across all franchise dealers.1

The good news is more than half of consumers reported they would be willing to travel farther and pay more for an enhanced service experience, helping overcome the top two barriers to dealership service retention. This means dealerships that want to grow share in customer-pay service need to be adopting new offerings and technologies, such as online bill pay, minimal-click scheduling via mobile devices and ride-share or valet service.

“With consumer satisfaction and loyalty dropping across all service providers since 2015, now is the time for dealerships to take a closer look at the experience they are providing their customers and upgrade to adapt to changing expectations. This will be particularly critical to retain millennials, who are the fastest-growing generation of car buyers today, but also the most dissatisfied with the current experience,” said Jim Roche, vice president of marketing and managed services at Xtime, a Cox Automotive brand that drives owner loyalty through its one Service Experience Platform. Roche is also author of “Fast Lane: How to Accelerate Service Loyalty and Unlock its Profit-Making Potential” and the upcoming book “Fast Break: Creating A Customer-Centric Operating Philosophy for Automotive Service.”

“Dealerships have a prime opportunity to increase customer satisfaction, and as a result, loyalty and retention,” Roche said. “Dealerships, though, need to develop a better understanding of consumer needs and expectations for the service experience. The insights from this study will help dealerships identify where the customer experience is currently falling short and what can be done to repair it.”

Ultimately, consumers are motivated by a service experience that is convenient and stress-free, revealing the following five opportunities for dealers to meet the demands of today’s consumer and help differentiate their business from third-party service providers.

1. Enable Ease of Maintenance: According to the study, many consumers want the dealer website to be their primary touchpoint for maintenance — approximately 67 percent want to be able to track service history on the dealer website, while 62 percent want recall updates and service reminders with links back to the website for online scheduling and other tools.  Sixty-two percent of consumers also want to view OEM maintenance recommendations  via the dealer website.

1. Provide Price Transparency: Seventy percent of consumers want to view price ranges for various services on the dealer site, while 55 percent would choose one dealership for service over another if it provided online estimates of costs during the scheduling process.

1. Move Offline to Online: Consumers feel moving steps in the service process online will improve the experience — particularly when it comes to online scheduling. In fact, 56 percent of consumers would choose one dealership for service over another if they could schedule appointments online. Despite this, scheduling is still primarily an offline activity due to continued low awareness. Among those who don’t make appointments online, just 35 percent are aware it’s an option their service provider offers.

1. Close the Distance Gap: With location a top reason for not returning to the dealership of purchase for service, dealers need to be willing to embrace mobility solutions to help overcome this hurdle. According to the study, two in five consumers are interested in service mobility concepts, such as valet service and mobile service providers.

1. Service Valuation Analysis: Consumers increasingly want to know the ROI on their service dollars. Two in five want to understand the relationship between services needed and vehicle value, while one in three are interested in getting a trade-in value during the service experience.

“So many people in our industry will find a reason to look at the customer and say, ‘My job isn’t to see it your way but to get you to see it my way.’ But we need to look at everything through the eyes of the customer,” said Steve Nicholson, director of operations at Temecula (CA) Hyundai. “Other dealers want to try to make as much money as they can from every customer, but in parts and service we have the opposite philosophy of that. Rather than take a lot from a few, we want to gain a little from a lot. We want to see the customer more than once.”

The complete report of Cox Automotive’s 2018 Service Industry Study Phase 2 is available here.  The first phase of the Cox Automotive 2018 Service Industry Study can be found here.

1 Estimate based on revenue calculations from 2017 NADA Dealer Profile Data and the 2018 Cox Automotive Service Industry Study.

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using cars easier for everyone. The global company’s 34,000-plus team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with revenues exceeding $20 billion. www.coxautoinc.com

Media contact:

Lisa Aloisio

Lisa.Aloisio@coxautoinc.com

m. 404.725.0651

Jason Knight discusses what dealers can expect when leveraging AI in their marketing. How can you see artificial intelligence aiding your dealership marketing?

Are you pay plans leading to high turnover? Jason makes a case for altering your sales comp.