Everyone is talking about KPIs and measuring the past ten months to plan for the next calendar year. It’s critical stuff. A dealership would struggle to exist without proficient service and parts departments. At the end of the day, month, or year, it usually boils down to the bottom line. How much did the service department or parts department earn for the store?

To that end, the service and parts departments make conscious investments throughout the year. A bonus spiff here, a service drive facelift there, new parts bins or shelving, a new wheel alignment machine in the shop, and maybe even expanding for a few more bays. It’s a calculated investment, all with the intention to grow production and profits, ultimately achieving the committed target on the DOC.

It would be crazy to argue against this type of return on investment. It’s necessary, no doubt. But in the service department, is there a more important measurement to determine if money has been well spent?

It’s the People

Don’t think I’m getting all schmaltzy on you here. But the foundation of the fixed operations departments has been, is, and always will be the people. Staff and customers.

Investing in Staff

If you’re keeping track of the department’s productivity, you should also be keeping track of individual performance. It takes on several forms. For service personnel specifically, it would be stats like hours per RO, effective labor rate, dollars per RO, and so on. Figures can include CSI scores as well.

But here’s where it gets a little crazy, and it takes some mathematics. Determine exactly how much money your store spent in training costs for each team member. That includes off-site training, online courses, even team-building exercises.

Now, compare last year’s performance with this year’s performance to date. Are you seeing an increase in the KPIs you’ve determined are most important? I’d bet a few Benjamins you’ll see proportional growth to the money you’ve invested across each of your team members. That’s the ROI I think should be tracked more frequently.

Fixed operations training has been getting more attention than ever, but it’s still lagging behind the sales department. I’d challenge you to invest more in your staff training for the next calendar year, calculate the ROI, and tell your GMs and DPs about the success you see.

Invest in Customers

It might be just an average parts department or service department. But when customers enter the picture, they get a first impression on every visit. It isn’t just getting their car serviced – it’s an experience.

Invest in the customer experience for the service and parts departments. That can seem nebulous or daunting, but all you have to do is put yourself in the customer’s shoes. What would you want when you visit the dealership?

Make the customer lounge an inviting experience, not just couches and stale coffee. Use TV services like Spectrio that incorporate digital messages about your services and repairs, and the benefits of choosing OEM accessories. Provide free Wi-Fi, work stations, complimentary shuttles and loaners, and even iPads for Netflix or web browsing while they wait.

Some dealerships do this stuff already, and that’s great. It isn’t a stretch to expect that the better the customer’s experience, the more they’re willing to open their wallet. And does it factor into better CSI scores? I’ll bet it does. Again, you can measure your investment in specific customer experience items against financial growth easily enough.