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Your CRM is Causing Bad Ripple Effects
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Jessica Quattro
Most people have a love-hate relationship with their CRM tool. In fact, Accent says only 13% of sales teams are satisfied with theirs. That’s because the traditional CRM tool creates bad ripple effects for dealerships.
Between the stress of giving customers a great experience, finishing daily tasks, and meeting goals, your dealership’s CRM tool can greatly impact the way your team operates every day. How and if your team utilizes the CRM tool can be the difference between success and failure.
Let’s dive into some of the bad ripple effects your CRM creates that affect your team’s daily processes.
1. The Never Ending Cycle of Tracking Down Information
Your sales team uses their personal phones to communicate with prospects… sending texts, pictures, and videos. The prospect information is saved in their personal phone and nothing is added into the CRM except the actual appointment (maybe).
When the customer arrives, the salesperson jots down the vehicle the customer wants on a piece of paper. He runs to track down the vehicle and scan the customer’s driver’s license – leaving the customer waiting alone.
On the test drive, the customer determines the route and barely scratches the surface of the features available that would ‘wow’ them.
The salesperson grabs you (his manager) to help save the deal, but nothing was entered into the CRM. You know nothing about the customer, his dealership history, or what he’s looking for.
Before you can help, the customer has already walked out the door and you lost the sale.
2. The Unorganized Follow-Up Process
A prospect came to the dealership to test drive a vehicle. After the test drive, he wanted to discuss the purchase with his wife.
Your salesperson made a note of that in the CRM and scheduled a follow-up call for the next day. Reviewing his daily work plan the next morning, his follow-up call to that customer was near the bottom of his list behind two birthday messages, an anniversary message, and a three month check-in email.
Once he finally gets to the most important call of his day, the customer says he needs more time. Your salesperson makes that note and schedules another follow-up for next week.
Before you know it, he isn’t answering the calls and your salesperson lost the sale.
3. The Chaotic Demand to Close Deals
You’re pulled in seven directions at any one time. You don’t know how salespeople are prioritizing prospects. You don’t know whose turn it is to take an up. You don’t know who’s on a test drive or whose customer is ready to walk.
You only know your assistance is needed when a salesperson seeks you out, which is often too late, with the customer walking out the door before you even get a chance to help.
At the end of each day, you review goals and reports and wonder how your team is going to sell more cars and hit more OEM incentives.
The Cost of Bad Ripple Effects
Your store is losing sales and profit opportunities because:
Your CRM tool is underused and leads to poor results.
Processes and data entry aren’t automated costing you productivity.
Information isn’t readily available when you need it leading to wasted time and money.
Your CRM tool functionality doesn’t meet your team’s needs so daily tasks aren’t completed and sales are lost in the chaos.
These problems cause ripple effects in how your team works, how your customers make decisions, and how your dealership meets goals and makes a profit.
The only way to overcome these issues is by starting at the root of the problem: your CRM tool.
Redefine for Good Ripple Effects
You need to redefine what your traditional CRM tool is and what it enables your team to accomplish.
Stop forcing salespeople to use a CRM that slows them down with tedious post-action, manual data entry. Give them a solution that makes their job easier with automation and full access to information the moment they need it.
Keep your sales team from repeatedly prioritizing their tasks and follow-up based on what’s chronologically first on the list. They need to prioritize prospects based on buying likelihood and be able to automatically schedule tasks based on real results.
Quit managing only when your help is requested or even after the fact. You need to know who’s doing what, the status of deals at various stages of the sales process, who’s on track to meet goals and who isn’t (and why), all in real time.
Only by redefining your CRM, will you achieve these good ripple effects, putting your team in a position to be more efficient, productive, and ultimately win more deals.
About the Author
Jessica is product planning manager at Reynolds and Reynolds for sales based applications.
Connor Wolanski, Reynolds and Reynolds
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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. 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.
- 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.
- 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. Businesses can grow revenue between 4% and 8% when they prioritize better customer service experiences.[9]
- 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.
Connor Wolanski, Reynolds and Reynolds
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Leverage Technology in F&I to Increase Revenue
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Mike Pishner
There are many reasons why a dealership invests in a digital solution for their F&I department – to cut down on paper, increase efficiency, maintain compliance, or speed up CIT time. Regardless of the main reason, I want to talk about a benefit many dealerships often forget – leveraging customer experience to increase revenue per customer.
Imagine the impact an engaging, digital F&I solution has from your customer’s perspective. A transparent and interactive experience enables them to feel in control, knowledgeable, and at ease. Sounds amazing right? Here’s the catch: a digital solution is only the foundation. Your F&I managers need to know how to leverage it effectively and purposefully to capture more sales per customer. Here are three common ways customer experience is missed, despite having a digital solution.
1. Buying vs Selling
Your F&I managers have a lot of responsibilities on their plate, including selling enough products to make the sale profitable. However, customers don’t want to be sold products – they want the freedom to buy a product. Having your F&I managers effectively utilize sales tools is crucial in educating the customer on what each product offers and how it will uniquely benefit them. It requires an F&I manager to be confident in the technology to create a confident consumer.
2. Lack of Transparency
Satisfaction drops significantly when customers feel information is being kept from them. When a customer doesn’t want a certain product, the F&I manager must go back to the PC to make the change. The act is innocent enough, but the customer doesn’t know what the F&I manager is doing. If there are multiple changes throughout the process, the F&I manager is continuously going back and forth from PC to customer. Every time this happens, the customer trusts the F&I manager less and becomes less likely to buy. When the F&I manager has the ability to make changes in front of the customer, it puts them at ease.
3. Engagement Throughout
A lot can be done to affect a customer’s perception of time. Constant engagement throughout the whole buying process can make time seem to go by faster. There is often a bottleneck at F&I, especially on busy days, meaning your customer will have to wait. Use that waiting time as an opportunity to keep customers in the buying process by giving an accessory presentation. This helps with their overall experience at your dealership, and reinforces ownership of their car before going in to F&I.
Conclusion
Remember, a customer’s experience is driven by the person they are interacting with. Your F&I managers need to have great tools and be trained to use them effectively. As you dig in to understand and implement lasting improvements, I recommend seeking the assistance of an experienced consultant. Not only is your dealership unique, but so are your challenges. If you have trouble identifying a solution, or even struggle with where to start, a consultant with background in the industry and perspectives from multiple dealerships can take the necessary time to help you.
About the Author
Mike Pishner is accomplished in eBusiness management and strategy, CRM processes, BDC implementation and improvement, and Desk management. He has over 10 years of automotive experience in sales and sales management roles prior to joining Reynolds Consulting Services in 2018.
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What the Super Bowl Means to Your Dealership
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Jody Huff
The Super Bowl is the most watched television event of the year. Of course, OEMs are spending millions of dollars in television advertising dollars during commercial breaks. In fact, 25% of commercials during the Super Bowl are automotive. 1
Thanks to this huge investment, calls to dealerships the day after the Super Bowl have seen an average increase of 513%. 2
A complete phone system fully equipped to take on this increase in traffic can help you make the most of the increased opportunities you receive in a few ways:
Instant customer information. Before you even pick up the phone, you should know name, address, phone number, vehicle information, and appointment, service, and deal history – just to name a few. The more background information you have on a customer, the smoother the conversation will go and the faster you can meet the customer’s needs.
Here’s another example: marketing activity. Especially after the Super Bowl, customers will be browsing your website for inventory and prices. Your phone system should tie to your website so dealership personnel are aware of the customer’s interactions. If the customer was looking at VIN 3C6UR5DJ1KG579495 ten minutes ago, the employee answering the phone will know right away.
- One click away functionality. Customers calling your dealership after the Super Bowl are likely calling about a specific vehicle and wanting to make an appointment. Your phone system should be able to schedule appointments (in both sales and service) and have the customer’s profile transfer automatically to the appointment in your CRM or DMS. You should never have to rekey information. Not only is this wasted time, but you could be transferring information inaccurately. You wouldn’t want a customer to show up for an appointment you weren’t ready for…
- Status availability. Most dealership calls run through a receptionist, who is largely responsible for directing call traffic. Your receptionist should have a view of other employees currently logged in, on another call, or away from their desk. Perhaps the receptionist transferred to the wrong salesperson, but realized her mistake seconds after selecting the wrong one. She should have the option to retrieve the call instead of waiting for it to come back around in the queue. Small things like this help speed up processes and improve the customer’s experience.
- Call forwarding. How often are your salespeople actually at their desks? Your phone system should enable call forwarding to mobile devices so salespeople never miss a call. The more unanswered calls in your dealership, the more likely it is customers are going to call someone else. Call forwarding helps keep customers where you want them – doing business with your store.
Bonus point: Consider implementing a BDC. Not only will a BDC help you manage calls during high traffic seasons, but it will help you year round. Salespeople can focus on the customer in front of them or the task at hand while BDC personnel can manage appointments and follow-up.
If your phone system crosses these t’s and dots these i’s, you won’t need to worry about bribing your staff with snacks, drinks, or prizes the morning after the Super Bowl when calls are expected to be heavy. Their job will be easy and seamless from the get-go. That’s what it’s all about – creating an effortless experience the moment the phone rings.
1 Marketing Charts
2 Auto Remarketing
About the Author
Jody Huff is the Vice President of Sales Development at Reynolds and Reynolds. Over his 24-year career with Reynolds, he has achieved Sales Club status over 20 times. Jody’s alma mater is Texas A&M University where he earned a BBA in Marketing.
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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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How to Rescue Leads That Get Away
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Jody Huff
The one that got away — we’ve all experienced it. Enthusiastically jumping in the air to just miss that fly ball soaring over the fence. Going all in at the poker table with a full house and losing to a four-of-a-kind. Waving goodbye to your middle-school sweetheart when they move away. Coming up short is practically a fact of life.
Dealership managers often feel the same way about leads slipping away. With fewer opportunities, every lead makes a difference, but tracking down leads lost to unanswered phones, dropped calls, or even bad customer service experiences can be a headache.
The good news is rescuing lost leads doesn’t have to be a nightmare. Here are some things you need to know about lost leads and how to save them.
Recovering From Bad Customer Service
Research firm Luntz Group revealed 40 percent of Americans dread the idea of buying a new car. Before they even pick up the phone, they’re already cringing. The first impression holds a heavy weight in whether or not a buyer feels comfortable doing business with you.
However, phone conversations don’t always go as planned. A new sales rep might not be fully trained yet, and a flubbed pitch could lead to a frustrated customer hanging up abruptly. That new salesperson will probably just move on to the next lead, and management will be none the wiser. What if you could be notified when these types of calls happen?
Consider deploying a service that listens to and reviews calls happening in your dealership. A team of highly trained professionals can spot mishandled calls and inform you when a caller needs extra attention and follow up, so you can correct the problem. With this approach, your potential customers aren’t left frustrated and telling their friends how unhappy they were with your dealership. Instead, they’ll be impressed you took time to make things right.
Returning Missed Calls
Sometimes customers slip through the cracks. In an ideal world, every call is answered. However, for various reasons, some calls just don’t get through. Since many callers don’t leave voicemails, how will you know who needs a call back?
It’s easy to fall into the trap of thinking a customer will try to call again if they don’t get through the first time, but that next call could be to a different dealership. If your employees aren’t answering calls, customers might think they’re not important to you. At that point, it’s not as simple as a call that slipped through the cracks — callers view lack of responsiveness as bad customer service.
Be sure you have a way to capture call information whether the caller leaves a message or not. Notifications of missed calls also help during a time-sensitive process. You might not know exactly what the customer was calling about, but following up on a missed call lets customers know you care and want their business.
Letting leads slip away is unacceptable in today’s competitive market. Make sure you’re not letting leads slip through the cracks.
About the Author
Jody Huff is the Vice President of Sales Development at Reynolds and Reynolds. Over his 24-year career with Reynolds, he has achieved Sales Club status over 20 times. Jody’s alma mater is Texas A&M University where he earned a BBA in Marketing.
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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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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.
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The Numbers Behind Employee Theft
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Scott Worthington
A lot of dealers think “Employee theft won’t happen to me” or, “I trust my employees.” But the numbers around employee theft tell a different story.
There was an article in Automotive News about a dealer who lost nearly $2 million to embezzlement from his controller. How common is that?
According to the Association of Certified Fraud Examiners, 88% of businesses who experience theft or embezzlement don’t get all their money back. They never see that money again. As a matter of fact, 1 in 4 theft cases resulted in losses of $1 million or more. Furthermore, 51 percent of dealers have confirmed they experienced theft or know a dealer who has. What’s more disconcerting is the 49 percent who think there is no embezzlement at their dealership. But how can you know for sure?
When you leave your house in the morning, do you lock the door? Does that mean you don’t live in a safe neighborhood? No. It just means you’re being cautious and reducing the risk that someone will come into your house and rob you. We think of theft as a burglar in a black mask, breaking in from the outside, when more often than not a trusted employee you consider a friend, could be responsible for the biggest losses. With a quick internet search, you can find several stories of theft involving employees dealers trusted. In one, the dealer expressed how devastated he was about the situation, but what bothered him most was the mental and emotional drain knowing he trusted someone who took advantage of him.
You can’t be everywhere all the time. Hiring the “right” people isn’t enough either. There needs to be a better way to check for possible suspicious activity. You may be thinking, “That’s why I pay a CPA.” However, you might be surprised to learn CPAs don’t actively look for embezzlement. They ensure your dealership is using generally accepted accounting procedures. You could hire an auditor if you suspect something is going on but on average, dealership theft takes 18 months to find. In total, it could be hundreds of thousands – maybe millions – before you find the theft.
To ensure your dealership is reducing your risk of theft, you need a dealership-wide monitoring solution that constantly analyzes system data for unethical business activities. This system should monitor your day-to-day operations and alert you when suspicious activity has been found.
How much will it take before you lock your dealership’s doors?
About the Author
With over 26 years of experience with Reynolds, Scott Worthington started as an ERA® trainer in 1991. His other roles included being an original member of the Reynolds Consulting Group, running the Service Readiness organization, Marketing Director, and ERA Solutions Executive. Currently Scott is Director of Product Planning responsible for the ERA-IGNITE and POWER platforms, Business Office applications, Data Archiving, Reporting and Analytic Solutions, and ReyPAY®.
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Your Advisors Need to Stop Calling Customers
*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*
By Adam Kirdzik
Alexander Graham Bell first patented the phone in 1876. Since then, the phone has gained a clearer signal, lost its wires, and turned into a handheld device most people won’t leave a room without. If anyone wants to reach out to a friend, a relative, or a customer, they first reach for their phones.
However, in a service drive, getting to the phone takes time. Advisors already have a lot on their plate from getting recommendations from the techs, looking up labor times, balancing the customers already in the lobby, greeting customers coming in, and then they have to find time to sit down and get on the phone amidst this everyday chaos.
Meanwhile, your drop-off customer is out shopping, seeing a movie, or hanging out with their friends until their ride is ready. If they see a call from a number they don’t recognize, they will let it go to voicemail. In fact, according to a recent study, only 52% of calls are answered while the rest go to voicemail. Unanswered calls are only projected to increase with the number of robocalls rising (robocalls rose 46% from 2017 to 2018).
After the first voicemail from your advisors, the game of phone tag begins. At roughly 30 seconds to two minutes per phone call, depending on the length of voicemail, time spent on the phone can add up quickly. Multiply that by two calls per repair order, then by your number of drop offs, and the numbers don’t lie. Advisors are wasting time and money trying to call your customers.
What’s the easiest way to communicate with customers and keep advisors from playing phone tag? Texting.
According to a study by DealerRater, both mass-market and luxury brand customers preferred a text to let them know their vehicle was ready far more than a phone call, a conversation, or any other form of communication. Yet, only three percent of dealerships are using text messaging in service.
Texting is an easy way to get ahead of this industry curve. One enhancement could make you part of a small percentage of dealership service drives that are beating the competition at bringing customers back. According to the 2017 JD Power Study, 67% of customers who are contacted by text message say they will definitely return to the dealership for service work.
Even recently we can see from the 2019 JD Power CSI Study satisfaction is 75 points higher for all-digital dealerships, with customers preferring to communicate with the dealer through text messages.
When looking for a texting service, dealers should be cautious of the legalities involved. Make sure the provider offers an opt-out option on every text and the text messages are stored securely. It’s also good to have text messages stored within the DMS for a few months at a time in case a legal matter arises. Previous texts should also be easily accessible if there is a discrepancy during the appointment.
With text messaging at their fingertips, why are your advisors still calling customers? Get ahead of the competition and exceed customer expectations with text messaging.
About the Author
Adam Kirdzik is a Product Planning manager for Parts and Service applications at Reynolds and Reynolds.
Connor Wolanski, Reynolds and Reynolds
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