There is nothing better than hitting your financial goals in the service department! Especially considering that fixed-op's is the dealerships money maker. But to hit your financial goals - as a department - there are fundamental processes that need to be in place!

That is the following:

Limit Daily RO’s per Advisor - Less is More $$$

NADA statistics offer than an advisor should not be handling any more than 20-25 RO’s per day. Managing too many RO’s leaves room for “underselling” as s/he is trying their best to push everyone through the lane. Leaving hundreds - if not thousands - of dollars in the lane.

The best way to combat this issue is to a) make sure you are staffed correctly by reviewing your average daily appointments, which is most likely a *small* percentage of your business and daily average walk-ins. Track your *busy* times making sure you have your “A” team in place. In doing so, your advisors will not only make more money BUT - you will hit your goals!

Focus on an Exclusive Monthly Offer

I am confident that the parts department might have an overstocked item, and depending on your OEM many do not have a “buy-back” program for unsold stock. That said, have contests in the lane for the unsold stock. Paying the advisors a flat bonus per item.

For example, if you have a surplus of one brand of a tire - sell it! Try adding an additional special. The buy three and get the 4th for a dollar is the *oldest* trick in the book. Customers are not as easily fooled. Besides, when you break down the pricing - the tire cost is hidden in the other three, right? The markup isn’t that great.

Review the Weekly Appointments

This sure does sound tedious. I get that. But what if the advisor (depending on how your store’s scheduler works) were to review their upcoming appointments. Looking to see what s/he is coming in for? This is *huge* not only does it give the advisor the chance to see what's coming up, but it affords them the ability to plan ahead on what they need to focus on!

This also assists the advisor in understanding when their *busy* times are. Making sure that the lane is staffed accordingly. If the lane is not staffed, then you are absolutely leaving money on the table.

Shuttle Service

If you do not already have a shuttle service. Get one. If you offer to take the customer to work - or wherever within reason - s/he will not be sitting in the service lounge bored. Instead, when you call to offer them the recommended services s/he might be more inclined to take the recommended service. However, it is crucial that when you are “upselling” to focus on the “discount.” Namely, explain to the customer “Mr. Customer, everything is going very smooth - btw, we noticed that the windshield wipers were a bit cracked. It is common with the weather we’ve experienced. But the good news is we are running a special of $15 off! Not to mention, these guys will keep your windshield clean!”

Discuss Dollars Per RO

Going back to how many RO’s the advisor should handle daily - is also reviewing how much s/he is averaging per RO. If you don’t know what your average per RO is then you might not be as motivated to focus efforts on upselling. Not to mention, when reviewing average dollars per RO you might be shocked at just how much money you are leaving on the table. This is the selling tactic to the advisor when they argue that they need 50+ a day!

It is best practice to have a quick pow-wow in the morning with the service advisors to discuss what the stores average is and strategize a plan for each advisor. For example, you have 45 appointments for the day. Calculate the percentage of the appointments that should have one or more upsells. And at the end of the day tally the results. Going over them the next morning. This will help increase average dollars per RO, and build up the momentum in the lane!

When is the last time you had a morning meeting with your advisors? How many RO's do your Advisors handle on a daily basis? 

We have all been there - that is trying to get a repair estimate, but are unable to find the pricing online!  And good luck calling the Service Center! The same age old tactic of “the best thing to do is just to come in” is still the main go-to phrase in selling services. The problem with this mentality is that for every dealer that is afraid of pricing is the dealer (Service Center) who puts pricing online. Of course, they make sure (in most instances) to disclose that the special pricing is based on a particular vehicle.

Here are some top reasons that you should offer service menus online:

• Not showing prices at all online can cause for not only a high bounce rate but fewer customers! Customers have been educated and have several resources at their fingertips.  If it is a customer that has purchased from you  - and there was a proper sales to service handoff - the customer will most likely understand the value in using an OEM certified technician. Not to mention, because s/he has had good experiences they are likely to return regardless if the service is more expensive.

• Customers want to know the value s/he is receiving. That said, it is a best practice to show the competitors pricing on the website. This way the customer can see the value that they are receiving; or why your shop is more expensive. In most cases, your oil change is actually less than the big box stores such as pep boys and Midas.

• The word transparency is overused. I get that. But at the same time, customers do want to know what an estimate repair cost is whether it is on the phone or on the website. Apps like Repair Pal & Open Bay are already doing this! Now I understand that when it comes to more tedious repairs that the customer will need to *understand* the costs associated with it.

• Showing pricing online actually makes your coupons more effective. If you get a coupon with “10% off any repair,” but you do not know what the cost is how likely are you going to use the coupon? Probably not. When is the last time you checked your click & print rate on dealer website coupons?

Dealers wonder why we lose so many deals to Jiffy Lube, etc. - I get it - but it comes down to the fact that they aren't afraid to show pricing. Bottom line - we cause the heartache when it comes to pricing, and it is not worth the frustration it ensues. Instead, let’s be competitive, but realistic and get pricing online!

How do you handle service pricing? Do you have success without having a service menu online? If so, what do you use online?

It is no secret that your service customers are valuable! And while there is a lot of debate on what the best practices are for “X-Change” programs are - here are some best practices for running a successful program. Ones that will encourage the service advisors to assist with the growth and development of without fighting back!

1. The Service Advisor should be a part of the “X-Change” program. Remember, the advisor is the one that has “carried” on the relationship with the customer when s/he purchased the vehicle. All too often, the sales consultant approaches the customer with a hard sales tactic. One that turns off the customer. Whereas, the advisor - who has rapport and trust with the customer - can offer the program instead of an expensive shop bill. As if they are “watching” out for them.

2. Have a Service Liaison in the lane that can assist the advisor with the greeting of customers as they make their way into the lane. This will not only ensure that the customer is greeting within OEM standards (many of which are within a minute), but are also “checked” in and ready to go when the advisor becomes available.

3. Use a CRM/DMS program that is linked or a part of the appointment software. Namely, if you use a program that is familiar to both the service advisor and service liaison s/he will easily be able to identify customers in equitable positions. Allowing them to inform the service manager before their visit, which allows the service manager to notify the advisor. Teamwork makes for dream work. Dreamwork makes for happy customers and profits!

4. If the customer agrees to “reviewing” the program make sure to have the car of choice pulled into the lane so as the customer is checked in they are test driving the new vehicle. This allows for a cohesive flow. Allowing the sales department to appraise the vehicle while they are test driving!

5. if the customer is not inclined to participate in the program offer a “soft” approach by including a “payment” summary quote of a similar vehicle with their service paperwork. Sometimes an “extra” touch peaks their interest. You can also use a hangtag in the vehicle as well. 

Lastly, make sure to not “over-sell” this program. Whether that is sending too many emails - more than one per month - in addition to the regular marketing. Instead, make sure to have strong POP marketing that is in the lane as well as the customer lounge. And remember, this a soft sales approach. Too much marketing can cause for opt-outs and upset customers!

How do you run your service “X-Change” program? What are some of your best practices? Do you have sales consultants manage it?

In recent months the OEM has set new standards using KPI’s, which have set a new tone with the survey. Giving the dealer the dealer a new means of setting the performance benchmark with yes or no questions. And while the “survey” scores were always consistently the best in the area the new survey has shed some light in *key* areas where the advisors might need some training.

When is the last time you have brought in training for your service advisors? If you have to think hard on that one, it has been too long.

The service department is the money maker, yet it is the one department that is often ignored when it comes to training!

Here are top reasons your advisors need training!

1. Training is not just about getting a good score for the store.  It is about ensuring the service advisor is equipped to handle situations. Ones that can then be diffused leaving the upset customer happy wanting to come back to the dealer for services again.

2. Working with your advisors on the “walk-around” can increase revenue. If the advisor is better equipped - or trained better on the newer products - s/he will better understand how to up-sell services that would benefit the customer.  

3. Keeping the customer informed - to this day - remains to be an issue for many dealers. That said, setting the standard with your team listening to their concerns can help increase overall customer satisfaction, which will show in the increased survey scores. Ask your advisors “what is the most preferred method of contact” Whatever it is - make it a priority by making sure that it is accessible. For example, if texting is most preferred then make sure the advisors can text from their computers.

4. Using previous scores (avoiding names) can help with discussing potential breakdowns in the process. In turn allowing you to collectively work towards a better way of handling those situations.  As it is safe to say that advisor is most likely not the only one handling the situation that way. One of the best ways to review this is to look at a 90-day scoring period.  

5. The most significant benefit of monthly training  - even if it is just for 20-30 minutes - is getting the inside scoop on the team that keeps the dealer afloat. It offers the advisors a platform to bring their concerns to the table. Offering you a meaningful way to provide insight, and prevent future issues from happening as it can honestly just be a breakdown in communication!

How often do you have training? If so, have you seen a positive impact?

We have all been there - well, those who haven’t are lucky or have done some seriously good research -  and booked a reservation online because we were not only mesmerized by the pictures. The price was right. You add perfect pricing with amazing photos, and man do you feel good! You feel like you have won something! Seriously.

This is all very exciting except for when you arrive the pictures are nothing like the ones you had seen online. It sure does set your experience off on the wrong foot, no?

Well, let’s face it. Dealers are also expected to uphold certain standards in appearance and atmosphere in the Service Lane.  

Here are some top things to avoid & do to enhance your customer's experience:

1. You want to make sure your building is free of smoke smell. There is nothing worse than walking into a building that wreaks of an ashtray. It will inevitably turn off the customer.

2. If you offer amenities such as hot dogs or sandwiches, make sure to keep the food area clean. Making sure the food is presentable. No one wants a burnt, shriveled hot dog that has been left out since yesterday morning. Lastly, make sure employees are not lounging in the customer waiting area eating the food. The customer might not feel comfortable settling in if there are employees in the chairs and eating the food.

3. The bathrooms should always be stocked, and if you do not have a cleaning company, you might want to assign a detailer/porter to check the bathrooms throughout the day. Our customer does not want to have to dry their hands on their pants. It is just awkward.

4. Try and keep the chairs as clean and orderly as possible. If you have leather chairs, make sure to wipe them down. If they are torn and dirty, it sure doesn’t make for a nice place to sit. Let alone spend money in.

5. Wi-fi - make sure to have wi-fi that is in alignment with your OEM standards. Not having wi-fi can make the visit a drag. Not to mention, it is a *great* way to get the customer’s name & email. This is common practice at hotels.

6. Music - try and refrain from playing music with curse words or content in which can be deemed too racy. Remember, it is a family environment. This isn’t a club.

The cleaner and nicer your service lane is the better the customer's experience will be. The better their experience is, the more s/he will spend!

How do you handle keeping your Service Lane clean and organized?

Convenience is a luxury. A luxury that many people seek. So why then haven’t we offered a simple solution that not only gives into the customer's expectations but also saves the dealer money too.

As of now, many customers are forced to pay for their services at the time of pick-up, which - in many cases - causes frustration, inaccurate discounts, and most importantly it results in an upset customer who just spent 100+ dollars - the customer who will destroy you on social media- what gives?

Progressive dealers are offering their clients a luxury amenity - one that s/he will remember - that is being able to pay his/her RO online!

Concerned? I get that, and security is a *key* concern for sure. But trust me, it is safer than the customer's credit application left in the employee lounge, or the driver's license and customer information left on the showroom floor.

Here are the top reasons you should allow your customer to pay online:

• Customers are busy at work, no? So if they are busy at work and you are offering them a “solution” to their being busy they might spend more. Think about it, you are in the middle of adding things to your cart at work - boss walks by - and all of the sudden you are clicking as hard as you can to get that order completed. Most of the time without even thinking about it. But the thing is you aren't thinking about your order - instead, you are thinking about getting back to work, but you are relieved you got the order in! (Whew, thank goodness for Amazon’s One-Click Purchase, seriously)

• Convenience = Luxury - there is the fear of the unknown - in so far as knowing exactly what your bill is for the repair. So if you can inform the customer of the *exact* charges for their services they have the peace of mind knowing what the costs are allowing them the convenience of coming in grabbing the keys and going!

• Having the customer pay at the time of service online can assist with accuracy. Having to rely on the cashiers - who are handling more than one thing at once - is asking for inaccuracies to occur. Everything from getting the wrong email (if you are expecting a receipt, you will always give a valid email, no?), wrong discount, or not knowing what the charges are, and what if the customer has a question about their charge forget it the advisors and manager have left for the day - so, they have to wait all night wondering what happened. All of which leaves a bad taste in their mouth

• Customers want convenience. In today's market, you not only have to sell a product, but you have to sell the advantages of your product and services. What about your services offers the customer a unique, hassle free experience?

Do you offer your customers the ability to pay online? If so, how has that increased your overall customer satisfaction?

Texting is an integral part of business whether we like it or not. Texting is also not relevant solely because it's what Millennials want, either. In fact, recent statistics have shown that the number of “click to call” continues to increase on mobile devices. A large part of that number is, in fact, millennials. 

The fact of the matter is that our devices have offered a new means of communicating. And with a new means of communication comes the Fear of Missing Out, frustration, indifference, excitement, results, & issues - prompting the question - quite literally - what and how does texting affect the sales process? What is texting? 

Texting in its Primitive form 

One of the most important things I want to mention is that in no way has texting *replaced* all other aspects of communication. Instead, think of texting as an enhancing the communication you already have with your customer. 

Studies show that customers need an average of 5 touches before s/he is ready to fully engaged (i.e. securing the appt) with the average time to close the lead being four days. Think about it - you have emailed, called, and now what’s next? Another email or call? With 77% of leads coming in between the hours of 8-5PM* customers are shopping between regular business hours. They are at work, no?  I strongly encourage you to review your analytics -  looking at your busy times. What time are customers on your website shopping? 

If the busy hours are between 8-5AM, the customer might not be able to speak on the phone. Answering emails on their phones isn’t necessarily easy, either. Especially depending on how the email was sent and whether or not it hit their junk folder, no? 

The one thing that is sure to be seen whether s/he responds is a text message. That’s right. 98% of the text messages sent are read within two minutes*. The customer will have it on their minds, and until s/he deletes that message they will continue to see that message every time s/he opens their messages, which is an average of over 141 times a day! You get the picture. 

So if texting is the *hottest* mailbox - how do we approach it? How do we capture that market? What is that market? 

Often I think - in so many ways - we over think what texting is and should be. There have also been grave concerns over the legal aspects of texting - i.e. opt-in’s, CRM texting vs. personal phones, etc. But when you break down those instances whether it was a text or email there still would have been concerns with legal issues, no? 

That being said, I do offer that it is best practice to use a CRM platform to text your customers. Not only is this a safeguard compliant practice but it also provides the owner analytics behind the usage of texting. In addition to offering the ability to manage what your consultants are saying. It is not about being big brother. I mean, we record inbound phone calls - so why wouldn't we record texts? 

The best way to get started with texting (which I argue that your consultants are already texting using their mobile phones. Just ask.) is to use it as a means of confirming appointments or keeping the customers updated for their services if they’ve already opted in. 

Once you feel like you’ve got a handle on how your store is using texting you can educate, train and implement texting as another facet of communicating with your customers who are looking to purchase a vehicle! 

What are your thoughts on texting? How has texting changed the way your store interacts with customers - whether good, bad or indifferent? 

*please message directly for links to the studies

The profit margins in the service lane remain high and are every dealer's biggest asset. Yet to maintain the profits we have to be competitive with pricing. Noting that not everything has to be less expensive so long it is relevant, and the value is translated to the customer. Not everything that is cheaper is the *best*  option - where more often than not if there are *excellent* reviews the customer will opt for the more expensive service. 

Here are five ways to be competitive with pricing: 

Online Comparisons 

Best practice is to list the major services your service lane offers online. Posting the competitors pricing (using shops that are within reason). Where if your pricing is only a few dollars more - and the customer has previously serviced with you - then s/he will most likely return. And if asked, the pricing is supported with local pricing. Informing the customer that your techs are OEM certified, and training to work exclusively on your vehicle make. 

Mobile Apps’ 

For those who still have mobile apps - with geofencing - you can pick targeted locations such as big box retailers, which will push a notification to the customer's phones. This is invaluable when it comes to tire & brake sales. If the customer is headed to PEP Boys or Jiffy Lube and receives a coupon for tires cheaper than of what the big box guy is doing it might prompt them to visit the dealer. If this customer is in your assigned customer base - from the OEM - it could assist with the retention requirements. 

Meet or Beat Competitors Price 

This is mainly for oil changes. It does not hurt to have a coupon in your email blasts (to non-sold customers), which might urge the customer to look and see what your pricing is in relation to your competition. As I mentioned above, you might be a little bit more expensive, but if you are willing to match or beat their oil change offer it can lead to the dealer landing a new customer. 

Building Banner (It really works)

If you a store with a repair shop in your backyard you can always consider placing a banner on the side of the service bay. Allowing the customers at the neighboring store to see your low oil change price. This has proven to be very effective with our one store. Where customers at the adjacent location have literally pulled out, and driven into our store. Servicing their vehicle with us. This has resulted in a few extra sales a month as well. 

Rewards that Translate 

Letting the customer know ahead of time what their rewards would be on that service is a great way to build value. Expressing that not only are we less expensive, BUT you will also earn up to $3 dollars back per service. Not to mention, if you are wanting to upsell a major service you are able to use their rewards dollars as an “additional” discount, which builds value with the customer. 

How are you competitive with pricing? Do you use “Meet or Beat Your Competitor Pricing Tactics?”

In recent months, our OEM has been pushing the use of tablets in the service lane. Handling everything from the walk around, explanation of services, and charges to even completing the RO on the iPad offering the customer an easy experience.

An experience sounds great, no? But the problem is what is the “experience”? And how does Service integrate them into the lane? What are the benefits?

All valid questions. Here are some overall benefits on using the iPad in the service lane streamlining the customer's transactions and touch points.

1. Removes the “behind the desk” approach. No longer is the advisor crouched behind the desk when greeting the customer

2. The “walk-around” is started immediately after the meet & greet allowing the advisor to stay with his customer, which allows him/her to mark the appointment completed.

3. The Advisor is able to their iPad to explain the charges and explain the recommended items in an honest approachable way

4. The Advisor can now close their RO - leaving less room for error for discounts, etc. Also letting the customer update his/her information all from the iPad. Where s/he might intuitively complete the form submission.

What the iPad in the service lane eliminates:

1. Long wait in line at the cashier's office

2. Coupons & Discounts issues are resolved and properly marked on the RO

3. The customer standing aimlessly wondering what's going on.  

Do you use iPads in the service lane? If not, is it something that you would consider using? What concerns do you have with using an iPad in the lane?

The DMS is the main house that stores all of your customer's information. Information that is used by all of the vendors you work with. Yet, the most important tool - the DMS - is mostly managed and left to the devices of your employees. It is essential that they understand what their role is in managing, and updating customer accounts. Here are some tips and suggestions in how your service advisors might actually be hurting your lifeline, the DMS!

Updating Customers Accounts & Duplicate Accounts - You Already Have my Email or You Don’t Need my Email

We have all been there. Standing in line ready to check out and the cashier or service advisor asks to update your email. Where the customer kindly says “you already have it.” To which we nod politely, and move on. It is also a widely known fact that many customers will give us their spam email.

So instead of caving in - we might say; instead, I understand I just want to confirm as we would then be able to send you advance notice on recalls versus having to wait for a letter in the mail. In addition to more coupons from our store.

Not saying it will work every time, but if you are able to give a reason with value - an added benefit to the customer - s/he may feel more obliged in giving/confirming their email.

The other thing your advisors need to be aware of is ensuring that if VIN is brought in by a spouse, etc. - they do not add a second profile for the customer in the DMS. That is not to say, however, that the advisor cannot still collect an email for the individual. As creating a second profile for the database skew the actual amount of customers there are.

Not Scrubbing Data

People move, sell their vehicles, or have opted out of your emails. However, we still keep them on the email list. It is always best practice to scrub your data quarterly working with a vendor that manages your email campaigns. In doing so, not only will you have an accurate count of emails, but you will also save yourself from getting flagged as being spam.

Data is precious, but data that is invalid such as an email that bounces or has opted out is junk. Junk that slows down your DMS. Giving you an inaccurate count. Not to mention, getting hundreds of kick-backs will undoubtedly flag you for spam. Another reason to update the email.

Several vendors actually have the ability to append data for a small fee. If they do not, it is worth asking your marketing company (if you are in-house you can easily find one) what the cost is to append your data quarterly.

Manually Adding Appointments to the DMS

Service Appointments are different than sales appointments. Namely, a service customer is often viewed as being “captive” vs. the selling of a sales appointment. Nonetheless, the advisors might not be aware of the damage they are doing by “manually” adding appointments to the DMS when the customer did not actually have an appointment or called into the store for appointments.

Unless the appointments that are manually being added into the DMS are able to be sourced, then it is best practice to use the appointment scheduling tool. Adding the source if possible. This is essential when reviewing and understanding what the conversion is and was for service appointments booked online. In particular for OEMs that offer “express” services where the foot traffic may not be counted as accurately if in fact there were a manual appointment added.

Do you manage your DMS? What are some best practices that you follow?