Periodically, I get the opportunity to roll up my sleeves and dig into a dealer’s pain point. More often than not these pain points lately are, “How do I get all the customers in to my shop and completed in a timely manner?” or, “Do you know any techs?” and “What is the best way keep my customers coming back?” Here is the extremely tough answer to Mr. Dealer’s questions. The short answer goes something like this, “I have an answer, but I don’t think you will like the timeline it will take to accomplish this once and for all.” After a frustrated perplexed look from the dealer I usually say, “The complete fix sits within your people, your training program and your ability to grow and mentor your staff.” Obviously this is not an overnight fix. Most of the time I feel they are looking for the silver bullet to

Customer retention starts with having a solid process and business model, yes this is a given. The execution of customer retention sits fully on the shoulders of having a well-trained senior staff that builds relationships with every one of your customers. It goes without saying customers like to do business with people and competent ones at that. They may like the facility or the customer waiting lounge or even your movie screen, but when it comes to loosing a customer it is always due to the action or lack of action of a person within your guidance.

How do we create a positive workplace environment that has long-term employees excelling at their position? Here are a few areas to start.

All of these should be completed with regularity within your department.

• Positive reinforcement of a job well done – This one regularly goes without notice. This doesn’t mean pay a spiff or more money, challenge the owner or GM to walk though and hand out a high five very publicly.
• Develop your staff – A well-trained staff not only handles tough customer situations better but they also feel valued by the organization to invest in their success.
• Balance – We work in an intense environment. Help employees understand their needs to be a balance in their work life and personal life. Granted we want them here for the hours of their scheduled time just as important is to enjoy the time they are not there.
• Communication – Engage in open and thought provoking dialog with your employees. Too many times businesses think of communication as talking about policy change or a new process and this is important but not the entire equation. Talk to your employees about their solution to customer satisfaction. Remember to listen and you might just learn something. 

As I look through a group of dealers’ financials I quickly see the huge increase in warranty labor sales and gross. I quickly think of the enormous opportunities there are to capitalize on the increased traffic coming in the door. They are endless, increased revenue, increased customer database, unknown or lost customers coming trough the door and I even know of a dealer that sold 12 cars last month off customers that have come in simply for a service recall. These are all great right? The answer is yes, for the short term. Even though there are incredible profits made currently due to the increased warranty traffic you need to keep a few things in mind to make certain your business is positioned for future prosperity.

Keep an eye on your retail business: Due to the increased traffic and workload from the recalls your retail business will suffer. Quite frankly all of your service advisors made more money last month than they did the prior year due to the “free” warranty money coming in, so their focus is not on your core business. All your hard work and effort to build your retail sales and gross can go out the door simply due to the ease of running and filling your stalls with recalls. Suggestion: Do not let the recall business erode your “core” business and keep your advisors focused on selling service, menu presentations, complete multi point inspections, proper walk around and cultivating customer loyalty.

This too shall pass: Although the immense nature and huge volume of recalls that still need to be done will keep us going for a period of time, there will be a point in time that they reduce. When this happens your traffic will stop. If we are successful in retaining ten to fifteen percent of those that came in for the recall and that have never been in with you before I would consider it a success. The point is, the majority of them you still will not see coming back to your store. On smaller scales history would dictate this to be the case.

Learn from history: When I was running a Ford store in the early 2000’s at the height of the firestone recall we had more late model trucks and SUV’s coming in for replacement tires. Then this was the largest tire recall in history. At the time everyone in the store from parts to service was fat and happy because we had more traffic than we could handle doing over 100-tire replacements daily including Saturdays. The bad news we were more interested in getting the work done instead of looking to grow and retain our customer base. In addition we didn’t have awesome tools at our disposal to give a customer a professional inspection printout with a competitive price quote. Suggestion: Increase staff to help with the increased demand, perform a complete inspection and communicate to the customer. Take it to the next level and make it a positive customer experience and imagine if we were able to retain half of these customers that have not visited a dealership prior to the recall.

As I look through a group of dealers’ financials I quickly see the huge increase in warranty labor sales and gross. I quickly think of the enormous opportunities there are to capitalize on the increased traffic coming in the door. They are endless, increased revenue, increased customer database, unknown or lost customers coming trough the door and I even know of a dealer that sold 12 cars last month off customers that have come in simply for a service recall. These are all great right? The answer is yes, for the short term. Even though there are incredible profits made currently due to the increased warranty traffic you need to keep a few things in mind to make certain your business is positioned for future prosperity.

Keep an eye on your retail business: Due to the increased traffic and workload from the recalls your retail business will suffer. Quite frankly all of your service advisors made more money last month than they did the prior year due to the “free” warranty money coming in, so their focus is not on your core business. All your hard work and effort to build your retail sales and gross can go out the door simply due to the ease of running and filling your stalls with recalls. Suggestion: Do not let the recall business erode your “core” business and keep your advisors focused on selling service, menu presentations, complete multi point inspections, proper walk around and cultivating customer loyalty.

This too shall pass: Although the immense nature and huge volume of recalls that still need to be done will keep us going for a period of time, there will be a point in time that they reduce. When this happens your traffic will stop. If we are successful in retaining ten to fifteen percent of those that came in for the recall and that have never been in with you before I would consider it a success. The point is, the majority of them you still will not see coming back to your store. On smaller scales history would dictate this to be the case.

Learn from history: When I was running a Ford store in the early 2000’s at the height of the firestone recall we had more late model trucks and SUV’s coming in for replacement tires. Then this was the largest tire recall in history. At the time everyone in the store from parts to service was fat and happy because we had more traffic than we could handle doing over 100-tire replacements daily including Saturdays. The bad news we were more interested in getting the work done instead of looking to grow and retain our customer base. In addition we didn’t have awesome tools at our disposal to give a customer a professional inspection printout with a competitive price quote. Suggestion: Increase staff to help with the increased demand, perform a complete inspection and communicate to the customer. Take it to the next level and make it a positive customer experience and imagine if we were able to retain half of these customers that have not visited a dealership prior to the recall.

Many dealerships are focusing and investing in fixed operations. They are adding high tech equipment, expanding service bays implementing growth strategies and extending hours to meet the demand of the customers. All of these for the most part are necessary and will provide bottom line improvement but I warn you, the time is now, more than ever to focus on your people.

It is the people within your store that provide the experience that customers remember and want to come back. It is the people that build the relationship with your customer. Customers come to see Jim in service – not the brick and mortar or fancy alignment checker in your service drive.

I bring this up because our people see the financial investment being made on specialty equipment and space, but in return they are asked to work longer hours and handle more responsibility and duties. I understand the “tools” put in place are there to help improve profit that in return allows them to make more money. Adding more space allows more cars to flow through the shop that in return helps the advisor improve their customer satisfaction scores, end result make more money. So these tools are actually put here to help everyone achieve higher customer satisfaction and increased income potential.

So why don’t a majority of our employees see it this way? It’s simple, as an industry we typically do not do a good job of communication and performance acknowledgement. Our people want to feel the love and be recognized for their efforts.

Here are some tips that will help communication within your employees and ways you can praise and acknowledge your team’s efforts.

• Commit to training and advancement from within – Employees will see this process and strive to achieve the same levels.
• Make sure your compensation plan is fair and within guideline in your market – I wanted it to be known that I will overpay for performance, people wanted to stay with me and I often had calls from those that wanted to come to work.
• Tackle negative emotions – Do not let these fester, they only get worse. Be in touch with your team so you can see and feel when these issues arise
• Encourage, Encourage – Bob Wooden – NCAA basketball coaching wizard had a teaching way about him. A study was performed of his teachings for an entire year and they found only 6.6 percent were expressions of displeasure. But 75 percent were pure information on what to do, how to do it, when to intensify an activity.
• Authentic recognition – Not automatic, the human touch is paramount. Automatic recognition can become impersonal.
• Tied to the employee’s perception of value – People know when they’re valued, and they should have a good idea of their value to the organization. Monetary rewards can skew this notion of value, linking it to cash when it should be linked to appreciation of extra effort and smarts. Money is appropriate much of the time, but it’s not the only – or even the most effective – motivator. Treat employees as valued team members, not as numbers. Most of the time it’s the best way to really recognize a valued player.

Many dealerships are focusing and investing in fixed operations. They are adding high tech equipment, expanding service bays implementing growth strategies and extending hours to meet the demand of the customers. All of these for the most part are necessary and will provide bottom line improvement but I warn you, the time is now, more than ever to focus on your people.

It is the people within your store that provide the experience that customers remember and want to come back. It is the people that build the relationship with your customer. Customers come to see Jim in service – not the brick and mortar or fancy alignment checker in your service drive.

I bring this up because our people see the financial investment being made on specialty equipment and space, but in return they are asked to work longer hours and handle more responsibility and duties. I understand the “tools” put in place are there to help improve profit that in return allows them to make more money. Adding more space allows more cars to flow through the shop that in return helps the advisor improve their customer satisfaction scores, end result make more money. So these tools are actually put here to help everyone achieve higher customer satisfaction and increased income potential.

So why don’t a majority of our employees see it this way? It’s simple, as an industry we typically do not do a good job of communication and performance acknowledgement. Our people want to feel the love and be recognized for their efforts.

Here are some tips that will help communication within your employees and ways you can praise and acknowledge your team’s efforts.

• Commit to training and advancement from within – Employees will see this process and strive to achieve the same levels.
• Make sure your compensation plan is fair and within guideline in your market – I wanted it to be known that I will overpay for performance, people wanted to stay with me and I often had calls from those that wanted to come to work.
• Tackle negative emotions – Do not let these fester, they only get worse. Be in touch with your team so you can see and feel when these issues arise
• Encourage, Encourage – Bob Wooden – NCAA basketball coaching wizard had a teaching way about him. A study was performed of his teachings for an entire year and they found only 6.6 percent were expressions of displeasure. But 75 percent were pure information on what to do, how to do it, when to intensify an activity.
• Authentic recognition – Not automatic, the human touch is paramount. Automatic recognition can become impersonal.
• Tied to the employee’s perception of value – People know when they’re valued, and they should have a good idea of their value to the organization. Monetary rewards can skew this notion of value, linking it to cash when it should be linked to appreciation of extra effort and smarts. Money is appropriate much of the time, but it’s not the only – or even the most effective – motivator. Treat employees as valued team members, not as numbers. Most of the time it’s the best way to really recognize a valued player.

There are several critical performance indicators in service, however, the most critical one to measure and excel in is customer retention. Customer retention is the source for future growth. If we are able to reduce the amount of customer defections over a defined period of time while we keep our arms open welcoming new, we will continue to have a customer base that grows month after month. The main focus is to reduce the customer defection after the warranty time period expires. It is no secret within our industry that once a customer reaches the end of the warranty time period they almost simply disappear into thin air. The reality? They were looking to defect long before they vanished.

Every service visit, every customer touch point is recorded in a service experience bank deep within our customers minds. Every time a positive customer experience happens there is a deposit in the emotional bank and trust. Conversely when there is a negative experience there is a withdrawal. Here is the secret, and it's really no different than our physical bank accounts, the withdrawals are easier, quicker and even more severe than the time and energy it took to earn the deposits. For instance, during a relationship with a customer over the last three years that included several visits each year can be taken into overdraft with one negative experience. Simply put, our account is volatile and every single customer touch point should be treated as such. Walt Disney said it best “do what you do so well that they will want to see it again and bring their friends.”

Here are a few ways to ensure you are performing positive customer treatment.

• Actively listen – Hear what your customers are saying.
• Show genuine interest – Treat your customers right
• Treat your customer as a managing partner – value their opinion
• Build trust by being transparent
• Own up to your mistakes – Take full responsibility and then some, do a little extra
• Keep your word – Follow through on your promises
• Always say “thank you” – show extreme gratitude
• Communicate – building a strong relationship takes communication
• Invite them back – Ask your customer to come back and see you.
• Continue to over satisfy – build value and offer VIP specials.
• Respect – respect your customer, respect their thoughts and their feedback

Keep in mind that a minor 5% increase in customer retention can equate to a 70% increase in profit. Apply these eleven trade secrets on every interaction and watch your loyal customer base grow.

There are several critical performance indicators in service, however, the most critical one to measure and excel in is customer retention. Customer retention is the source for future growth. If we are able to reduce the amount of customer defections over a defined period of time while we keep our arms open welcoming new, we will continue to have a customer base that grows month after month. The main focus is to reduce the customer defection after the warranty time period expires. It is no secret within our industry that once a customer reaches the end of the warranty time period they almost simply disappear into thin air. The reality? They were looking to defect long before they vanished.

Every service visit, every customer touch point is recorded in a service experience bank deep within our customers minds. Every time a positive customer experience happens there is a deposit in the emotional bank and trust. Conversely when there is a negative experience there is a withdrawal. Here is the secret, and it's really no different than our physical bank accounts, the withdrawals are easier, quicker and even more severe than the time and energy it took to earn the deposits. For instance, during a relationship with a customer over the last three years that included several visits each year can be taken into overdraft with one negative experience. Simply put, our account is volatile and every single customer touch point should be treated as such. Walt Disney said it best “do what you do so well that they will want to see it again and bring their friends.”

Here are a few ways to ensure you are performing positive customer treatment.

• Actively listen – Hear what your customers are saying.
• Show genuine interest – Treat your customers right
• Treat your customer as a managing partner – value their opinion
• Build trust by being transparent
• Own up to your mistakes – Take full responsibility and then some, do a little extra
• Keep your word – Follow through on your promises
• Always say “thank you” – show extreme gratitude
• Communicate – building a strong relationship takes communication
• Invite them back – Ask your customer to come back and see you.
• Continue to over satisfy – build value and offer VIP specials.
• Respect – respect your customer, respect their thoughts and their feedback

Keep in mind that a minor 5% increase in customer retention can equate to a 70% increase in profit. Apply these eleven trade secrets on every interaction and watch your loyal customer base grow.

In my current work capacity, I have the opportunity to interact with multiple vendor partners that service the automotive industry. We are continuously discussing activities that would promote the engagement from service managers to use the innovative tools that would help solve current industry deficiencies. The feedback from the vendor partners to me is typically that the service manager is extremely busy and has a lot going on. This causes the commitment to using the performance-enhancing tool more of an obligation. After many years in the service manager’s seat, I understand how busy and hectic the day-to-day business is and it takes exceptional skill to structure your day to work on the business instead of within the business. Great leaders do this at an exceptional level and it allows them to visualize, plan and execute their strategy. Recently, I came across a great article that made several great points on what productive people do within the first fifteen minutes of their day to be successful. I will review a few of these that I feel directly applies to the position. The article in its entirety can be read on the following link on Lifehack.org http://www.lifehack.org/articles/productivity/14-things-productive-people-the-first-15-minutes-the-workday.html

On time is 15 minutes early – Be early to work and use this time to collect yourself for the day.  Instead of rushing to work anxiously and hoping to be on time, they plan ahead and stroll into work calmly. This sets the tone for the day.

Review your to-do list and deadlines – By reviewing your to-do list at the beginning of the day allows you to strategize and plan ahead. This will allow you to prioritize deadlines, meetings and future commitments.

Identify no more than 3 important tasks for the day – Leo Babauta, founder of the productivity blog Zen Habits, also sets himself 3 most important tasks (MIT’s) each morning to move himself forward. This is very critical in the service manager’s role as your task list can grow faster than you can finish them. The point is to work on it and cross 3 off the list every day to make progress.

Reduce or remove the distractions – By putting your phone on silent, not checking your personal email first thing in the morning will allow you focus and not have your schedule dictated by the chime of incoming messages.

The service manager/service director job can be very demanding and using a few known tricks to coordinate your thoughts and activities will allow you to execute a flawless gameplan.

In my current work capacity, I have the opportunity to interact with multiple vendor partners that service the automotive industry. We are continuously discussing activities that would promote the engagement from service managers to use the innovative tools that would help solve current industry deficiencies. The feedback from the vendor partners to me is typically that the service manager is extremely busy and has a lot going on. This causes the commitment to using the performance-enhancing tool more of an obligation. After many years in the service manager’s seat, I understand how busy and hectic the day-to-day business is and it takes exceptional skill to structure your day to work on the business instead of within the business. Great leaders do this at an exceptional level and it allows them to visualize, plan and execute their strategy. Recently, I came across a great article that made several great points on what productive people do within the first fifteen minutes of their day to be successful. I will review a few of these that I feel directly applies to the position. The article in its entirety can be read on the following link on Lifehack.org http://www.lifehack.org/articles/productivity/14-things-productive-people-the-first-15-minutes-the-workday.html

On time is 15 minutes early – Be early to work and use this time to collect yourself for the day.  Instead of rushing to work anxiously and hoping to be on time, they plan ahead and stroll into work calmly. This sets the tone for the day.

Review your to-do list and deadlines – By reviewing your to-do list at the beginning of the day allows you to strategize and plan ahead. This will allow you to prioritize deadlines, meetings and future commitments.

Identify no more than 3 important tasks for the day – Leo Babauta, founder of the productivity blog Zen Habits, also sets himself 3 most important tasks (MIT’s) each morning to move himself forward. This is very critical in the service manager’s role as your task list can grow faster than you can finish them. The point is to work on it and cross 3 off the list every day to make progress.

Reduce or remove the distractions – By putting your phone on silent, not checking your personal email first thing in the morning will allow you focus and not have your schedule dictated by the chime of incoming messages.

The service manager/service director job can be very demanding and using a few known tricks to coordinate your thoughts and activities will allow you to execute a flawless gameplan.

Customer retention is much more than just a “buzzword” in the car business today. It should be what governs your day to day decisions when handling customers and training your staff. One of my favorite authors that I like to quote in sales meetings and re-read regularly is Jeffrey Gitomer. I have carried Customer Satisfaction Is Worthless, Customer Loyalty Is Priceless: How to Make Customers Love You, Keep Them Coming Back and Tell Everyone They Know around now for the last 10 plus years because his common sense approach to customer centered ideas are easy to implement for anyone who talks to a customer, especially anyone on your service drive. Providing excellent customer service should be common sense, then how come I am constantly reminded about the phrase “common sense in this business is just not so common.” Here are a few quick tips to help those provide exceptional customer service.
 

RELATED: 5 No-Fail Ways to Increase Service Customer Retention
 

Show genuine interest

Customers like to have their concern acknowledged and want someone to have an active interest in fixing their concern. Some easy ways to accomplish this would be acting with urgency or maybe anticipating their needs.

Make it personnel

Offer a personalized greeting or use their name regularly. This is a simple and common skill that has a huge pay off...the customer may remember your name.

Never quote policy

When a customer is upset the last thing they want to hear is your policy because quite frankly I’m sure your policy is what created this upset customer. Try telling them what you can do for them and figure a way you can help with the situation.

Make a commitment and keep it

This is really important in a couple of areas. Follow up communication – If you tell someone you will call him or her with an update, you better call them ten minutes before that time. Appointment reservation – if a customer is taking the time to set an appointment you better do everything possible to follow through. For a good laugh look up Seinfeld episode rental car reservation.

Invite the customer back

Just like it says in the classic customer service training video, “The Guest.” Invite your customer back just as if your best friend was leaving your house and you wanted to watch next weeks football game with them as well. In this case your really setting the expectation to the customer that you “want” to help them next time them come in for service.

In your next training do a little role-play in these areas and watch your team become comfortable with these skills. When everyone in your organization is on the same page you win. Customer retention will soar and customers will become loyal.