Connor Wolanski

Company: The Reynolds and Reynolds Company

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Connor Wolanski

The Reynolds and Reynolds Company

Oct 10, 2021

The Service Experience Domino Effect

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*


By Jeff Adams


Everyone knows what the ideal customer experience in the service department looks like: quick, convenient, and transparent. Customers expect the focus to be on them, to be in and out quickly, and to feel like they’re getting a fair deal on every transaction.


What often gets overlooked, however, is to deliver an ideal customer experience, you must first perfect the employee experience.


Employees who are perpetually overwhelmed, distracted, or disgruntled by inefficient processes are simply not going to deliver the kind of customer experience that inspires long-term loyalty. A 2018 Gallup poll found 67 percent of employees experience burnout, with 44 percent feeling this at least sometimes and 23 percent feeling it very often or always.


Another study found that 20 percent of engaged employees (“high performers”) reported feeling burned out. And burnout contributes to turnover, costing U.S. businesses between $150 and $350 billion each year.


One example of many is frustration around pricing. What seems like a simple task in your service drive could actually turn into a tedious one when information has to be rekeyed, the system is misquoting, and employees are trying to get prices to match between systems. Imagine what happens when that is compounded on other inefficiencies.


So how can dealers respond? Is there a way to improve your employees’ day-to-day job experience and boost retention that will have a positive domino effect on your customer experience?


The answer is yes. In fact, there’s a common denominator that improves both the employee and the customer experience in your service department: efficiency.


Efficiency Transforms Working in Service for the Better


Consider what happens when you build your service department on a foundation of efficiency.


Sure, one big benefit is you can cut costs and boost profitability by saving time, whether it’s by eliminating misquoting with an immediate pricing tool or enabling instant communication between advisors and technicians via real-time notifications.


And yes, you can also increase revenue by equipping your advisors with more customer-facing tools and requiring them to follow a standardized process, including the upsell.


But, there’s another critical benefit of efficiency that too many dealers miss: You can also transform the day-to-day, 9-5 work experience of your employees by eliminating redundancies and tedious, multistep manual processes.


Those processes are ultimately a result of the system running your service department, as well as the various third-party solutions you have in place that claim to make your business run better. But what is happening under the surface?


Is every one of those solutions in perfect sync with the others? Are redundancies like data reentry, which create unnecessary additional work for your employees and increase the chances of a costly error, built into your existing processes?


Is it possible that in your quest to improve your service department, your various solutions are actually making your employees’ jobs needlessly more complicated? They could be slowing down productivity, pulling employees away from more profitable tasks, and ultimately hurting your bottom line.


It might seem counterintuitive, but implementing more solutions does not automatically equal a better work environment.


Allow me to suggest a better alternative: Streamline your approach by investing in a single system that can do all of the above. In other words, build on a foundation of efficiency.


When a single system can handle, and often automate, the workflows within your service department from start to finish, your employees are free to focus on more profitable activities (namely, customer interactions).


Those uses are also more meaningful to your employees’ job satisfaction and therefore less likely to cause burnout.


Conclusion


Focusing on efficiency can transform the job experience in your service department for the better. It can alleviate the most manual, tedious, and time-consuming tasks for your employees, freeing them up to pursue more rewarding activities that make you, and them, more efficient and profitable. A win-win.


Decide today to invest in the single system approach and perfect your employees’ job experience. The benefits will far outweigh the costs.


About the Author


Jeff Adams is a Product Planning manager for Service applications at Reynolds and Reynolds.

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The Reynolds and Reynolds Company

Jul 7, 2021

3 Ways to Eliminate Distractions for your Advisors

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Jody Huff

Service managers, you know your advisors are busy. You know they play a pretty significant role in your success. In fact, nearly 75% of calls into a dealership are for parts and service. That’s a lot of potential revenue on the other end of the phone!

But to be honest, they are faced with a lot of distractions throughout the day that can have major implications on how well these incoming service calls are handled. From in-person conversations with appointment and walk-in customers, to playing phone tag with customers about their vehicle status, to selling additional work your technicians, it’s a constant battle of trying to balance all of these day-to-day activities.

However, with the right tools in place, their jobs can become more streamlined and less distracting. Follow these three simple tips to better handle phone calls in service.

Automation

Think about how many times your service advisors receive incoming calls from customers asking for updates on their vehicles. Or how many times your advisors have to place outgoing calls for appointment reminders. While these are valuable to your business, your advisors could be spending their time doing much more profitable tasks.

You can automate these cumbersome processes with a 24/7 self-service line for incoming calls and automatic voice notifications for outgoing calls. Customers will be able to stay in the know, on their terms. From parts arrivals and RO statuses to ready for pick-up and appointment reminders…. These manual tasks simply go away, allowing your advisors to focus on building relationships and generating more revenue.

Mobility

How often are your service advisors actually available to take incoming phone calls? We already established that 75% of calls are for service, but here’s a few more facts that will get your wheels spinning. First, it’s important to recognize that 77% of dealership calls are from new customers…. That’s new business. That’s new revenue. This sounds great in theory; but, here’s the kicker, nearly 20% of calls into the dealership are missed or unanswered. That’s revenue down the drain just because the phone wasn’t picked up.

To help prevent missed calls in service, you can “twin” your advisors’ desk phones to their cell phones. “Twinning” is basically mirroring what happens on their desk phone so that it also happens on their cell phone at the same exact time. This is especially useful when advisors are talking with a technician, checking on parts, or even on their lunch break. With new revenue on the line, you can’t afford to miss these calls.

Dialed-In Information

This is probably the most important aspect of the phone call, but it’s often overlooked or taken for granted. Caller ID changed the way everyone navigated the telephone, but you’d be surprised how many dealerships are still operating without it.

A lot of dealerships are still answering calls with basic, impersonalized questions. Not only do you first have to identify the customer (how many Jon Smith’s do you have to sort through to find the right one?), but then there’s additional wasted time trying to identify and sometimes understand what the customer is calling about.

A customer profile screen that pulls directly from your DMS and immediately displays before the phone is even picked up solves all these problems. You should be able to see customer history, vehicles owned, customer lifetime value, upcoming service appointments, and even web and marketing activity that tells you exactly why a customer might be calling based on their recent interaction with your website or emails.

You’d be surprised how far this dialed-in information can take you. It might seem small, but it really changes the big picture for the better.

Next Steps

Phone calls in service are critical. Following these three simple steps using a fully connected phone system will dramatically improve your phone game. If nothing else, consider implementing a service BDC to help with service phone traffic. Having a dedicated team for appointment reminders and follow-up will still allow your advisors to do what they do best: upsell.

About the Author

Jody Huff is the Vice President of Sales Development at Reynolds and Reynolds and has been with the company for over 26 years. Jody’s alma mater is Texas A&M University where he earned a BBA in Marketing.

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The Reynolds and Reynolds Company

Jan 1, 2021

4 Tips for Service Recommendation Videos

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Jeff Adams

Video technology is rapidly growing in the automotive space, with one of the major surges coming from the service department. Why? Ninety percent of consumers claim a video will help them make a purchasing decision, so using persuasive selling materials such as video is critical to capturing additional upsells. Technicians are now using this technology to bring the report card to life to show customers needed service or repairs. However, with this new trend comes a few hurdles, including training and video execution.

Technicians are typically not customer-facing and likely not trained in videography. This means in order to successfully implement a video program, they need guidelines and training to help master this craft.

Here are a few quick tips you can provide technicians to help them send a professional video to customers:

Prepare for the video before recording. 
Make sure the work area is presentable. Technicians should clean up as much as they can and put on a clean pair of gloves. Customers don’t want to see dirty gloves handling one of their largest investments. Also, have the parts or items needed for the video easily accessible.

Credential, credential, credential.
When a technician begins their video, they should state who they are, what they are doing, and confirm it’s the customer’s vehicle. This can be done by having the full vehicle in the shot or by showing the license plate number.

Provide clear shots and context behind recommendations.
When technicians are recording the video, they need to hold the camera still on the item they are speaking about to provide a clear shot for the customer. While speaking about the item, they need to provide some context behind why the item is being recommended. This could be done by providing the minimum standards, showing what the part should look like by having a new part ready to show, or by highlighting the potential outcomes of declining the recommendation.

Wrap it up with next steps.
You don’t want technicians telling the customer what needs done and then providing no avenue to make sure it’s accomplished. When the technician has completed the recommendations, they should always conclude the video by letting the customer know the next steps to complete the repair process. Always let the customer know how to buy.

With these pointers and practice, your technicians can help customers make their purchase decision and drive more revenue toward your store, and into their pockets. For even more tips, check out this training video from Reynolds and Reynolds.

About the Author

Jeff Adams is a Product Planning manager for Service applications at Reynolds and Reynolds.

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Dec 12, 2020

5 Ways to Prevent Distrust in Service

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Jeff Adams

It’s no secret some consumers have a sense of distrust when it comes to dealerships and dealership service departments. The major pain point: the fear of being overcharged and underappreciated before they hand over the keys. This distrust is often perpetuated by article after article that portrays dealerships in an untrustworthy light. So, how can you gain community trust and still be profitable?

One of the best ways to get new and repeat customers in your service department is through transparency. Although this is a familiar term, it’s important we translate this into your service department by making the process as predictable as possible. You create this atmosphere when you:

Display honest pricing.

Nobody likes it when restaurant menus don’t show pricing for meals or drinks. Customers feel the same when they can’t see the cost of your services. Having to guess the cost of their visit automatically makes their guard go up. Be as upfront with them as possible from the first interaction – whether online or at the advisor’s station.

Provide a fool-proof greeting process.

Part of transparency is knowing what to expect. This means a regular customer or a new customer can easily walk through the greeting process and receive the same treatment repeatedly. If a new customer pulled into your lot today, could they easily find your service drive? Once they get there, do they know the next steps for getting checked in? Your dealership should either have enough signage and online information to get a customer to the correct place, or your greeting staff should be ready at the door so the customer isn’t lost or confused. The next time the customer visits, they should be able to go through the same steps they did previously and know exactly what to expect – a menu presentation, a rundown of the multi-point inspection process, and next steps for their appointment.

Make sure customers see what they are signing.

When customers sign a paper document, allowing them to read the fine print is easy. However, with paper comes a lack of integration and the potential for the document to get lost or destroyed, and impossible to reference. With a digital RO comes the easy integration into your system and electronic file storage, but having a customer sign a signature line with no context instead of the actual RO is not transparent. It’s important your dealership has the best of both worlds with a greeting tool that allows the customer to see and sign a digital RO, creating transparency and trust.

Keep customers fully informed about their vehicle state.

Customers need to know about the state of their vehicle, which means sharing more than just the red items on the multipoint. If a technician marks something as yellow, the customer should know:

  • How long it can make it without another check-up. 
  • What the repair entails. 
  • The cost of the repair.

Many times for yellow items, you can advise the customer this is something to keep an eye on for their next appointment. This lets the customer know something will need to be fixed in the future and your dealership is one they can trust their vehicle with.

Don’t forget to also mention or praise the green items. Let them know these items will likely need repaired at some point, but currently look great and are not a concern.

Let customers easily refer to their previous service history at your dealership.

Make previous items easily viewable for the customer. This can be through a printed report they keep for their files, or in their online account for service scheduling. They can walk into your dealership without worrying about being blindsided by repeat recommendations, and they can easily refer to this information to schedule their next appointment.

It is possible for service departments to overcome the stigma of distrust, but it’s not as simple as having personable advisors. Create processes that make the customer feel informed and comfortable to build trust and gain repeat business.

About the Author

Jeff Adams is a Product Planning manager for Service applications at Reynolds and Reynolds.

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Sep 9, 2020

The Wow Factor you Didn't Know was Missing

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Hayley Holmes

You hear a lot about predictive data and how it can help businesses turn higher profits and capture more customers. But what isn’t talked about as much is the customer’s perspective – how predictive data affects their experience.

Have you ever been blown away by someone’s hospitality? The Ritz-Carlton is a great example as they pride themselves on providing an over-the-top experience for every customer. A story recently circulated about some guests who had a son with food allergies. The family had traveled with specialized eggs and milk, but upon arrival, they realized the eggs broke during the trip, and the milk had spoilt. The Ritz-Carlton staff set out to find the specialized foods for the family, but given they were in Bali, finding just the right eggs and milk proved to be a challenge. After searching all over town, the chef had no choice but to call a family member 1,000 miles away to ask if she would fly down to Bali with the ingredients. Sure enough, they made it happen and accommodated specifically to the guests’ needs. This is a defining moment. This is a wow factor. Experiences like this are what turn occasional customers into lifelong buyers.

In your dealership, think of this as everyday customers coming into your service drive for a typical oil change. They are expecting a routine visit, but after a thorough inspection, their vehicle is in need of $1,000 in repairs. Instead of spending the money to repair their vehicle, they could trade it in for something newer and nicer – something they didn’t consider an option before. What a lasting impression that leaves with the customer! People are most satisfied when they least expect it and when it feels like you’re going above and beyond for them. This is definitely apparent when customers arrive in service but leave F&I instead.

Some customers go so far as to share online how satisfied they were with the service they received. Take a look at this example:

Not only was he happy with the outcome of his visit, but he praised the dealership staff’s service along the way – pleasurable, polite, friendly, no pressure. What dealership wouldn’t want to add these qualities to their resume? Customer reviews like this are what online brands are built on. And despite all the technology in the world, word of mouth referrals are still gold.

At the end of the day, do customers notice you’re using data to fine-tune and personalize their experience? Not necessarily, but they do take note of how they’re feeling and their overall satisfaction. Ultimately, providing this Ritz-Carlton level of service means new lifelong customers, a better reputation, and turning that missing wow factor into an integral part of your store.

About the Author

Hayley Holmes is the product planning manager at Reynolds and Reynolds for XtreamService. She formerly served as a marketing specialist and team lead, providing XtreamService to dealerships, and assisting to build and develop the marketing services team.

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Jun 6, 2020

Providing a No-Contact Service Visit

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Jeff Adams

In times like these, making sure customers feel comfortable in your store is paramount to retaining business and driving revenue. But when making customers feel safe includes limiting interactions with employees, how can your dealership provide quality service to customers?

To help customers keep a distance, you can:

  1. Set the standard for an environment where customers understand you are working to keep everyone safe. This can be done by creating a “stand behind” line at advisors’ desks, marking 6 feet waiting places on the floor with tape, having hand sanitizer readily available for customers to use, and displaying reminder signage around the dealership to be respectful of each other’s space.
  2. Provide a self-led greeting option for customers to check in without interacting with an advisor. They can see your store’s service deals and walk through a normal service greeting at their own pace away from other people.
  3. Communicate from a distance with phone or text frequently providing consistent updates as the customer’s vehicle makes its way through the repair process.  Make sure every communication is documented making future interactions much smoother.
  4. Upsell with an online option similar to Amazon or other online retail experiences. By sending additional service recommendations via text or email, the customer feels like they are in control of their service visit and they can review their recommendations anywhere inside or outside of your store.

Overall, dealerships can and should be providing a good experience to the customer in a way that makes everyone feel comfortable. Don’t be afraid to help customers and present additional findings, even from at least six feet away.

About the Author

Jeff Adams is a Product Planning manager for Service applications at Reynolds and Reynolds.

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Mar 3, 2020

Fixing Churn in Fixed Ops

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Cory Coler

If you take one thing away from this article, let it be this:

Customer service matters more in service than anywhere else in the dealership. Here’s why…

New customer acquisition can be 5 times more expensive than retaining your current service customers.[1] The more repeat customers you have, the more you’ll make, because the success rate of selling to repeat customers is 60-70%, and just 5-20% when selling to new customers.[2]

It’s critical to keep service customers coming back to keep operations profitable and cover expenses for the entire dealership. In addition, every dollar that’s not coming back to your drive is being spent at your competition. So, how can you keep customers coming back to YOU?

The best way is to provide an unbeatable customer service experience. 93% of customers are likely to make repeat purchases with companies who offer excellent customer service.[3] There are some key points to focus on when developing your approach to customer service.

  1. 1. Service satisfaction improves by 44 points when a customer is greeted within two minutes of their arrival.[4]

It’s crucial to greet the customer the second they arrive. 12% of Americans rate their number one frustration as “lack of speed”.[5] Whether it’s an advisor or a tool, your customer should be greeted by name when they arrive at your dealership.

  1. 2. Consumers are willing to spend 17% more on a company that has outstanding customer service.[6]

When you offer great customer service, you stop competing solely on price. If your service is fast, you provide better communication, and you create  less of a hassle, your customers will come back to you and be willing to spend more at your store than somewhere else.

  1. 3. 84% of customers said their expectations weren’t exceeded in their last customer service experience.[7]

At 84%, there’s a lot left to be desired. If you can be the 16% exceeding customer expectations in service, you’ll be getting customers for life. If not, that money could be walking out your front door. $1.6 trillion is lost by American companies due to customers experiencing poor customer service and switching to competitors.[8]

So what happens when customer service becomes a priority?

  1. 1. Businesses can grow revenue between 4% and 8% when they prioritize better customer service experiences.[9]
  2.  
  3.  
  4.  
  5.  
  6. 2. 64% of customers believe customer experience is more important than price when deciding to make a purchase with a brand.[10]

Customers come back to your dealership and are willing to spend more money for their experience, meaning better, more sustainable business for you.

The numbers prove the importance of providing effective customer service. Now’s the time to invest in the right tools to help your service drive get to where it needs to be.

[1] Invesp

[2] Marketing Metrics

[3] HubSpot Research

[4] J.D. Power

[5] Statista

[6] American Express

[7] Harvard Business Review

[8] Accenture

[9] Bain & Company

[10] Gartner

About the Author

Cory Coler is a member of the fixed operations product planning team at Reynolds and Reynolds. He began his career in the automotive industry in 2001 at a Toyota retailer, becoming an ASE Certified Advisor and Toyota Certified Assistant Service Manager. In 2005, he joined Reynolds’ Service Price Guides (SPG) department in Tampa, Florida and quickly became a subject matter expert for the product. In 2014, he transitioned to his current role in Product Planning where he is responsible for the enhancement and design of several fixed operations applications.

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Nov 11, 2019

Estimates, Quotes, and the CARE Method

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Cory Coler

Your customers are comparing their dealership experiences to those with Amazon and every other simplified, digital purchasing experience they have. That’s the reality as we approach the end of 2019.

Dealerships are starting to understand the consequences of failing to meet rising customer expectations. Digitization and personalization throughout the car-buying process are trends on the rise, but there’s one area that I still see as a sticking point on the road to a seamless customer experience: the service estimate process.

Too often, customers calling in for an estimate deal with long waits, multiple transfers, and estimates that don’t end up matching the price on the invoice. Compare this with the one-click checkout of Amazon, the ease of using Apple pay, or the estimate process at the local Midas, and you can see why this crucial part of the service process impacts CSI.

Granted, you don’t need to offer a better experience than Amazon – your customer probably won’t ever need a quote for a new set of headphones.  At the end of the day, you need to be the best option among your direct competitors – like Jiffy Lube, Pep Boys, Midas, independent shops, and other dealerships. When customers call for estimates, they often call multiple businesses. That means if you can’t provide an exceptionally simple, accurate, and quick experience, you’re likely to lose their business.

So how do you get there? Use the CARE method to evaluate and improve your current process:

1. Complete a competitive analysis

How can you beat the competition if you don’t know what they’re doing? One of the best ways to perform this analysis is through mystery-shopping. Call up a competitor as a customer looking to get your car serviced. Time the process, take notes on how many times you have to repeat information, and count the number of times you get transferred. Call back again and speak with a different service advisor. See if you’re given the same estimate each time.

2. Ask for the business

Frequently, I call in to service departments to get a quote on a repair; and I’m shocked that once they deliver a price, they let me hang up without asking to schedule my appointment to get the service done. If you’re not asking for the business, you won’t get it. If you offer a presumptive close for the appointment, you’ll increase your business immediately. (“When would you like to come in for that alternator, Mr. Smith?”)

3. Run live tests

One great way to check your own process is to call in and see for yourself what it looks like in action. Just like mystery-shopping a competitor, calling into your own dealership and going through the estimate process will give you a glimpse of what your customers are experiencing. Are your people professional? Is the estimate process quick? Are there any transfers? Did they ask for the sale? It’s important to know how your current process deviates from your ideal process so you can pinpoint areas to improve on.

4. Evaluate your tools

If during your tests, you find out there are multiple transfers, the customer is waiting more than a few moments to get a quote, or the estimated price doesn’t match the invoice, it’s time to look at the pricing tools you’re using. Can your tool compile parts, labor, fluids, hardware, taxes, and any other costs into the quote a customer receives to ensure the quote matches the invoice? Can it pull that information in seconds to get the customer a number quickly and eliminate transfers (like your competition)? If not, it’s time to move on to one that can.

That’s it. The CARE method. Four simple steps to ensure you’re offering customers quick, accurate quotes on services they will get performed at your dealership rather than timely, incomplete estimates. If you can make the quality of your process a switching cost for your customers, you’ll drive retention and boost CSI.

About the Author

Cory Coler is a member of the fixed operations product planning team at Reynolds and Reynolds. He began his career in the automotive industry in 2001 at a Toyota retailer, becoming an ASE Certified Advisor and Toyota Certified Assistant Service Manager. In 2005, he joined Reynolds’ Service Price Guides (SPG) department in Tampa, Florida and quickly became a subject matter expert for the product. In 2014, he transitioned to his current role in Product Planning where he is responsible for the enhancement and design of several fixed operations applications.

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Oct 10, 2019

The Secret to Selling Cars in Service

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Hayley Holmes

If you aren’t selling cars from your service lane, you aren’t selling enough cars. Your best customers are already in your dealership, specifically in for service, and there are a few things you need to remember about them:

1. They are buyers. They already own your product or are servicing their vehicle with you.

2. They like you. There are mechanics on nearly every corner. If they didn’t like you, they’d find someone else.

3. Their trade-in has been maintained. Most customers visiting service departments frequently keep their maintenance up-to-date, which is exactly what you’re looking for in your pre-owned inventory pool.

4. They have time. They have already allotted time to be at your store.

Combine these four factors and your service lane is a gold mine. How do you get these customers to buy while they’re in your store?

Data, data, data. Did I mention data?

One of the biggest objections you’ll hear from customers in for service about upgrading is disbelief. When approaching service customers, you need data to fall back on, or even better, jump start the conversation.

You’ve probably heard of Predictive Analytics. It’s being able to predict what a customer is likely to do next based on behavior and historical outcomes of other consumers in similar life circumstances. Predictive Analytics helps determine who to talk to about what vehicle.

A customer targeting tool fueled by Predictive Analytics goes beyond equity and analyzes the profiles of your entire customer database to identify customers likely to buy regardless of – or in spite of – their equity position. Customers you normally wouldn’t approach become a source of profit.

Real-time information.

Not every customer in for service is a scheduled appointment. You’ll often see last minute walk-ins wanting a typical oil change. These customers can be just as valuable, and it’s important they’re not overlooked as potential lead sources.

Predictive Analytics has the ability to analyze the data almost instantly to identify the quality of the lead. Within minutes, you will know the likelihood of the customer upgrading, and what specifically they’ll likely upgrade to.

Show that you recognize them and value their time.

The two most important words are not please or thank you, but instead are your customer’s first and last names. Personalize your approach and show your customer you value their business. If you don’t explain to a customer within the first fifteen seconds why you are talking to them, you are going to lose them.

“Hi Mike. I’m Kent, the used car manager here at Tolson Motors. I see that you’re driving a 2015 Honda Civic. I’d love to purchase your car today. Mr. Wilker, what would you say if I could get you into a new Honda Civic at a similar monthly payment?”

If you get a “no”, follow up consistently.

Hearing a “no” today does not mean you’ll hear a no tomorrow, next week, next month, or even next year. Make it clear to the customer you’re interested in them and their vehicle through automated marketing efforts. You can personalize the message and make it consistent to your original offer. This conveys your professionalism and loyalty to earning their business.

Selling cars in service can be easy with the right tools. Equity mining fueled by Predictive Analytics and automated follow up takes the stress and pain out of the process.

About the Author

Hayley Holmes is the product planning manager at Reynolds and Reynolds for XtreamService. She formerly served as a marketing specialist and team lead, providing XtreamService to dealerships, and assisting to build and develop the marketing services team.

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Aug 8, 2019

3 Ways to Stay Ahead of the Technician Shortage

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Jeff Adams

We’ve heard it, we’ve seen it, and we are just getting started on this nationwide struggle. Right now, it’s harder than ever to find technicians. In fact, according to NADA, the industry will face a shortage of 37,000 techs each year.

With fixed operations nearly surpassing variable operations as a profit center for the dealership, it’s important every bay has qualified technicians to handle incoming work.  So how do dealerships combat this ongoing shortage of qualified talent?

1) Start With Trade Schools and Higher Education

With such a shortage of new talent, it’s important to have a head start wherever fresh talent is available. Your store needs to be the first place that pops into a new technician’s mind when they think of starting their career. Donate to local automotive technology programs, sponsor projects, and visit schools around graduation to encourage them to apply at your dealership. Many trade schools and colleges also have careers fairs you could attend to help bring some new faces into your dealership.

2) Set Clear Goals and Rewards

Its crucial current and future technicians see your dealership as a place to have a career, not just a job. Anyone can give them a paycheck, but you need to give them a place to grow and develop their skills. Make sure your technicians have clear milestones and expectations. For example, help them get new certifications, make sure they are recommending more work on vehicles, and have them complete certain training on the software you provide to make them faster and more proficient. Review in-depth reporting for each technician as well as for the overall department and let them know areas where they can improve or are improving.

Based on those reports, set realistic expectations and reward their achievements. Rewards can include things like lunch or gift cards, specialty tools, awards that highlight their achievements, and monetary incentives. One dealer group is paying the weekly insurance premiums for basic health insurance packages and gave away company stock if the employee stayed for a year and met specific benchmarks.

No matter what, give your employees a reason to stay that they won’t find at other stores. Or, make transitioning not worth it financially.

3) Understand Generational Expectations

Most dealerships have a wide array of technician talent and ages. These various generations have different levels of experience, variations in training, and are used to working with different types of technology. To keep everyone on the same page, standardize processes, enable ongoing feedback, and provide easy to use software tools.

Looking Forward

No matter where your dealership currently stands with its technician supply, you need to prepare to fight for good technicians.  Technicians will easily go from dealership to dealership to get the benefits they want and the workplace they desire. You need to have a unique service drive that attracts the talent you need and technology that makes the technicians’ job easier at the end of the day.

Is your dealership ready?

About the Author

Jeff Adams is a Product Planning manager for Service applications at Reynolds and Reynolds.

Connor Wolanski

The Reynolds and Reynolds Company

Content Marketing Specialist

Connor Wolanski, Reynolds and Reynolds

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