Automotive Copywriter
Audit Your Service Process, You Likely Need It
As I sit in the customer lounge, waiting for my vehicle to be serviced once again, it’s evident that most dealerships have a hard time being in the customer’s shoes. Being three years distant from the role as a service advisor, I’ve become overwhelmingly aware of how bad the true customer experience can be – without the dealer even knowing it.
As I’ve mentioned before, it’s all the little things that make a massive difference. What’s necessary is an honest, unfettered review of the complete service process FROM THE OUTSIDE. Allow me to give a few examples and ideas that are extremely fresh for me as I drink waiting room coffee and sit in a sterile lounge.
The Appointment Process
Look at your appointment process, and what it promises to do. Obviously, an online appointment schedule is much more common than it used to be, but there are many ways it can fall short.
For instance, in my appointment, there wasn’t an option for a basic oil change service, nor an option to simply enter the details of a concern I wanted addressed. And when I completed my appointment online, it told me I would receive a confirmation from the dealership shortly. That didn’t happen. The next contact I received was a text message an hour before the appointment. So, I enter the service visit already a little put off.
Check In
The flow to the service advisor must be logical. Is it obvious to a first-time customer, let alone a regular client, where they should go? I pulled into the service drive and found the check-in podiums unattended. Apparently, their check-in process has changed, and I needed to go through a door to see the advisor. There was no one to greet or direct me.
Write-Up
The details from my appointment did not translate from the online appointment to the in-dealership reservation. Where it falls short, I do not know. What I do know is, as a customer, I expect to need to input the details only once. If that doesn’t happen, why book anything other than the check-in time alone?
The advisor was warm and knowledgeable, which is a stark difference from the previous gentleman who held the role. And while he reviewed the required maintenance with me – something that didn’t happen before – it would be a nice touch if the benefits were reviewed as well.
The Wait…
There’s plain seating, newspapers, and a blank TV in the corner. I’m in for a wait that could take a few hours, and 30 minutes in I’m already fidgety. The waiting lounge has the ability to enhance or detract from the service visit, which I see now.
For tech-savvy dealers, an iPad station with apps, vehicle information, or simply browsers would be an inexpensive way to keep customer happy and occupied. A desk where I can use my computer would be wonderful, embracing the business-class customer. A TV screen that includes valuable vehicle information like the service from Ten Foot Wave would be an awesome touch. Anything to take the customer’s mind (aka. MY mind) off the wait.
Let’s Skip to the Cashier
If the past is any indication, there won’t be a description of the services performed today when I go to pay for my service. The customer absolutely must know what was done and if anything else requires attention next time. It provides reassurance that their vehicle is in good condition until the next service is required.
You’re Too Close
As a dealership employee, you’re most likely too close to see the customer’s POV. It’s your process, which you trust. It isn’t necessarily wrong, but it probably needs to be optimized.
Find someone to perform an audit of your service process, whether it’s a professional or a trusted layperson, to tell you where you can improve the customer experience.
Automotive Copywriter
Without KPIs, Can You Track Success?
Ratchet and Wrench released details of the 2017 Shop Performance Survey. There aren’t many reports that focus on the service industry instead of sales, so we pay attention to this one. In the 2017 Survey, there’s a marked decrease in respondents who claim to track KPIs consistently. Just two years ago in the 2015 survey, 82 percent of survey respondents claimed to track KPIs. This year, it’s just 68 percent.
We should all know what KPIs are at this point – Key Performance Indicators – and why they are so important. So then, why is there an alarming trend where KPIs are only watched by two-thirds of managers in the service industry? Is there something they know that we don’t?
Independent Versus Dealership
Personally, the first thing I checked was where the responses were generated from. Of the 200+ shops that completed the survey, 87 percent were independent repair shops, and 68 percent claim to be in the business of General Repair. This alone could be an interesting point to delve deeper into, as the remaining 13 percent are dealerships and franchised.
It would seem that independent repair shops are putting less stock into tracking KPIs, on average, yet they continue to steal away service customers from dealerships at an alarming rate. What are they doing that is more effective than the usual performance factors?
Even dealership service departments don’t track KPIs as reliably. The report shows that dealer-owned service departments dropped from 88 percent to 79 percent in KPI tracking. Even with the higher rate, their efficacy might still be lacking if they don’t fully understand how to implement them in the face of customer service.
Most Tracked KPIs
This provided some very interesting insight, in my opinion. In the summary, Ratchet and Wrench provides this list of KPIs and the percentage of shops that track them:
- Repair Sales Volume: 90%
- Gross Profit Margin on Parts Sales: 90%
- Maintenance Sales Volume: 89%
- Overall Gross Profit Margin: 86%
- Gross Profit Margin on Labor Sales: 83%
- Effective Labor Rate: 78%
- Technician Productivity: 76%
- Technician Efficiency: 75%
- Overall Net Profit Margin: 72%
- CSI: 43%
What seems to be the most important factors among repair shops of all kinds is still Gross Profit and Sales Volume. Only 43 percent of repair shops take CSI scores into consideration, and that could be because many independents have no way to track them at all.
What also stands out to me is Effective Labor Rate, with only 78 percent of shops keeping track of it. It’s a critical component in maintaining a healthy profit margin and helps reduce instances of unauthorized discounting. Why any shop would leave money on the table by NOT tracking ELR is beyond me.
How Do 32 Percent of Repair Shops Track Success?
There are still 32 percent of repair shops that responded who do not track KPIs. Yet, because they are still in business as either an independent, a dealership service department, or a franchised shop, it must be assumed that there’s some level of success.
In many cases, they simply don’t track progress. It’s an extremely loose way to lead, but it must work for at least a few. The major implication is that it’s difficult to move forward and grow when you don’t know where you’ve been or where you want to go.
An Untracked KPI??
Perhaps it has something to do with a factor that isn’t commonly tracked. Independent shops have a reputation for speedy service, and that’s an area dealerships have been sorely lacking. It’s been widely publicized that customers don’t want to spend so much time at the dealership, but little has been done to correct the issue.
Do we need to begin tracking a new KPI called TIS, or ‘Time In Service’? Reducing the minutes or hours a customer spends with their vehicle in the dealership could have the power to improve CSI and increase retention, as well as overall RO counts and repair sales volume.
Think about tracking TIS, the total time from writeup to completion, not just the technician’s efficiency. Reducing the total Time In Service might be a difference-maker for your store.
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Automotive Copywriter
Finetuning Your Leadership When Everything is Going Right
A lot of times, we focus on how to fix things when it feels like your department is imploding around you. That’s often because running your service department is similar to riding on the edge of a knife blade. One slight variation to the left or right and you’re going to teeter off. But sometimes, things are truly moving in the right direction and there are no major fires to put out.
If you find yourself in a sweet spot, that’s awesome! Enjoy it while it lasts. Because everyone knows that it won’t be this way forever, no matter how good of a manager or leader you might be. It’s in these smooth times that you can work on another important facet: you.
Are You Well Equipped as a Leader?
If you feel like you have all the skills you need to all the problems you’ll encounter as a manager or a leader, you’re probably pulling the wool over your own eyes. There is always – always – room for improvement, and if your staff and processes are working well right now, you can make improvements in you.
Read a book
You could fill a dozen bookshelves with material from gurus and trainers from around the world, but it’s hard to find time to read them. Read a chapter a day in a leadership book to hone your skills.
Many of the books have the same topics, and that’s hard to avoid. You’ll connect better with some authors than others. Even if it feels like it’s something you already know, you might be able to apply it in a different way.
Most importantly, you need to keep honing your skills, and you can do that by always learning and applying the knowledge.
Train your understudy
In the military, you learn the position above yours and train the person below you for your role. It ensures a seamless transition in the chain of command should the need arise. When times are good at your store, you can develop the person below you into a leader who can take your place when the time comes. Don’t be intimidated by the thought that you’re training your replacement. The very fact that you take the time to do so helps solidify your value in the store.
Learn the position above yours
And on the other side of the coin, take the opportunity to shadow your superior. Begin to gain knowledge for your future, assuming you want to continue moving up the ladder in your career. Again, this shows initiative and drive, of which YOUR leadership takes notice.
Attend conferences
DSES was just last week, and it’s the perfect opportunity to improve yourself. Whether you’re a sales manager, general manager, parts manager, service manager, or a senior service advisor or salesperson, there’s fantastic information and inspiration given from the sessions and keynote speakers.
Some of the expenses may end up being out of pocket if your dealership doesn’t have the budget for it. It’s an incredible time and a valuable experience; think of it as an investment in your future.
If the seas are calm right now, know that the storms are coming. Take the opportunity to finetune your own leadership skills so you can manage the rough seas in the not-too-distant future.
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Automotive Copywriter
Has the Automotive Industry Always Been Wrong?
You can’t browse retail automotive news sites today without seeing messages about revolutionizing the sales process or fixing what’s broken. There’s definitely some truth to that, I’m sure we’d all agree. But the retail automotive process has been extremely successful up until recently with billions of dollars in annual sales. So then, how can it be so broken?
Is There a Problem with Us?
For instance, let’s look at the sales process. It was once a platform where customers drove or walked in, the sales person assessed their needs, the right car was found, and the customer drove away happy. And now, it’s so much more complicated.
In today’s sales environment, the customer is ‘afraid’ to visit the dealership before they’re ready to buy. A salesperson can’t use the same tactics of yesteryear for fear of being found too aggressive to the point where the customer leaves disgruntled. What once was a negotiation-based process is now turning to a haggle-free environment or a price discussion that’s led by the customer.
Did the sales process actually get worse over time? Or is it simply no longer acceptable to do business the same way it was done twenty, thirty, or forty years ago?
It Goes Further than Automotive
We see the same changes in retail outside of the automotive market too. Retail giants like Sears are losing their market share at an alarming rate, even closing all their stores in Canada through bankruptcy. Amazon and eBay are a common place to do your retail shopping. What’s even better is it’s dropped off right at your door and you never have to wait in line or talk to a sales rep.
SkipTheDishes will pick up your restaurant order and deliver it to your door. You don’t even have to leave home to buy groceries if you don’t want to.
It’s a Technological Shift
What was once a profitable business practice is making a hard left turn. It used to work – maybe it still does - but it won’t for much longer. If the rest of the retail industry no longer requires a customer to leave home for their purchase, the retail automotive sector won’t be able to stand as it is for very long.
‘The way it was’ wasn’t ever a problem. It just needs to change with the times, like everything else. As technology increases, business practices need to become innovative to stay relevant. Otherwise, it’s the way of the dodo bird…
What’s Right for Today?
For the current automotive market, the trends are to do with technology and the customer visit. It’s about providing a service rather than making a sale. Heavily dependent on technology, the customer bases authority on the information presented and on research done before the dealership visit. It’s no longer the salesperson’s role to be authoritative – at least, not in most cases.
What’s Coming Tomorrow?
The future is coming faster than we think. Research has pegged off the current dealership model in as little as seven years, although it’s probably longer than that. If that’s the direction we’re going, however, there are ways to remain relevant.
- Offer at-home services. Manufacturers like Hyundai are already testing it at 30 stores in the US. A customer can request a test drive and the car will come to them so they don’t have to visit the dealership. Perhaps it’ time to get on board with at-home services.
- Provide online F&I products and paperwork. Let the customer see what’s offered before sitting them in an office with an F&I manager. They feel like fish being shot in a barrel. You might be surprised at the selections customers will make.
- Service department pickup and delivery services. Some dealerships already offer valet services, and good on you. If you want customer loyalty – especially if they no longer have to visit the dealership to buy their car – you’d better give them a reason to stick around for service.
The automotive industry wasn’t doing it wrong twenty years ago and beyond. It just failed to change with the times and is now playing catch-up. But if the retail automotive industry wants to survive, it needs to make some serious changes, and now.
1 Comment
I remember when I started in the car business 6 years ago I wasn't sure if it was going to be for me. I had heard all the horror stories about how car dealerships operate and how they treat employees and customers. Thankfully I made an excellent choice when I decided to give auto a try and begin a career with Darling's, but I know for a fact from listening to the stories from veterans, 15-20-30 year car guys that the car business didn't do everything right all those years ago, in fact many in this business did things back then ass backwards and downright shady.
Thankfully, the car business is made up of mostly honest dealers who give back to their communities and look to do business fairly with everyone. Like ALL businesses there are still some bad apples, operating the "old way" hiding things from customers and trying to "wear them down" and make the sale. But customers are smarter today than ever before, and I for one am thankful for that!
For me, as a salesperson, I think selling has become less complicated. Successful selling today is hyperfocused on one thing, genuinely caring about helping people and offering them a great personalized experience. In order to do that you have to know how to use and incorporate technology.
Thank goodness the internet and technology have caught up to the car business, we will all be better for it! JMO!!
Automotive Copywriter
Staff Turnover: The Most Important KPI for Management
I know you’re thinking, “Great, another article on employee retention.” It’s a topic that has been quite popular since NADA’s Dealership Workforce Study gave it the attention it deserved a few years ago. But the statistics are staggering, and until the issue is fixed, the effects need to be driven home. It deserves to be a focal point for you in the coming months and years. Think of it as one of your KPIs.
First, the numbers:
- Overall dealership employee turnover in 2016 was 43 percent, trending downwards by a few points from the year before.
- Sales positions at non-luxury stores saw annual turnover rates of 67 percent, a modest decrease since the previous year at 71 percent.
- Service advisor employee turnover also dropped from 41 percent to 39 percent.
But that, my friends, is far from good. We’re going to focus on service advisor employee turnover rates, how it affects your store, and what you can do.
How Service Advisors Who Jump Ship Hurt Your Store
Like all sales positions, people are replaceable. That might raise your eyebrows to hear, but it’s true. There are a few extremely tough aspects of replacing a service advisor, though.
- It’s expensive to replace an advisor. It costs your store thousands of dollars per month in unrealized service sales, training costs, and in guarantees you provide while the advisor gets up to speed. According to a DrivingSales study, employee churn costs approximately $45,000 per employee!
- CSI scores suffer. It’s a matter of getting up to speed again. A new employee has bumps in the road and typically has a few complaints here and there. Unfortunately, OEM CSI scores don’t take employee churn into account.
- They take customers with them. Some customers only trust one service advisor. If that service advisor leaves, certain customers may not return (even if they don’t follow the advisor elsewhere).
- It hurts morale. When staff leave, it has other staff members wondering about the ship’s stability. Do they need to be looking elsewhere too?
Why Service Advisors Leave
There are really just three reasons that a service advisor will want to leave your dealership. Some might argue it’s more or less, but these are the basics.
- More money/workflow elsewhere. Often it’s a pipe dream, thinking the grass is greener elsewhere. But if a service advisor is starving and can’t make ends meet at home, they’re going to be searching for a new job. Whether it’s their pay rate or the amount of work that is or isn’t coming into the shop, the result is the same.
- Disagreements with management. It happens that service managers and service advisors can butt heads. If a service advisor can’t get on the same page as their manager, regardless of whose fault it is, eventually they’ll move on.
- Better hours/location/promotion elsewhere. While you can’t fault an employee for trying to better themselves, it can cost your dealership big time. Losing a good team member outside of your store or dealer group always hurts.
How You Can Change Employee Retention Stats
Unless you have a promotion to offer every service advisor that’s moving up the ranks, you’re going to lose one here and there. But there are a few things you can do to minimize employee churn in the service department.
- Review your hiring process. I once had a manager who based the hiring process solely on the interview, never called references, and barely read the resume. Make sure you truly source the right candidates for your service advisor positions – the ones who have the drive to succeed, not necessarily the job history. You’ll eliminate needing to fire poorly-performing staff if you hire good ones at the start.
- Pay them fairly. I’ve never been a proponent of commission-based service positions (unless I had a really good month)! Instead, a healthy salary-based position with performance incentives and regular performance reviews is the best, in my opinion.
- Build a team atmosphere. People clash, especially when you’re in each other’s faces for 10 hours a day, five days a week. As a manager, take time to build your team up by providing non-work-related activities where you and your staff can mingle without titles hanging over your heads. Also, allow your staff to disagree with you, carefully consider their input, but make it known that your decisions are to be honored.
Thirty-nine percent service advisor turnover is too high. It costs you much more than you realize to lose a good service advisor, so do what you can to hire good ones and retain them. Minor costs to keep your good people are definitely less expensive than paying $45,000 for a new person.
3 Comments
DrivingSales, LLC
Uggggh. Yes! I don't think any of us can get tired of talking about retention until we've made significant headway in reducing it!
ACT Auto Staffing & ACTautostaffing.com
Always right on Mr. Unrau! Also, here is a formula for retention that back when I was a fixed ops manager that my dealer and myself put together. This example is for techs but you can just change the numbers for any dealership position:
Take the Techs total hours turned in a quarter, set aside an additional $X per hour they have turned that quarter. Repeat each quarter. After 1 year and 1 additional quarter, the Tech is eligible for his FIRST quarter bonus. Each quarter after the Tech gets the next quarter. However, Tech leaves …. waaaa waaaa, forfeits the bonus. I can tell you from experience, when a Tech gave me the notice and I reminded them of leaving $5k+ on the table, that flipped them faster than a Pro Wrestler in WWE.
Example using assumptions: Let’s say Tech turns 48 flat rate hours every week, we will use $2.25 per hour retention bonus, 52 weeks a year = 13 weeks in a quarter year, $2.25 x 48 hours = $108 each week, x 13 weeks (amount of weeks in a quarter) = $1,404 per quarter. After a year, if they leave, bye bye to $5,616 Bonus Money!!!!
And if your dealership want to use a tax-deferral for this, see this article
3E Business Consulting
Joe... THANKS for sharing your Retention Strategy. Loved your WWE analogy.
Automotive Copywriter
Service Sales Lacking? Just Write More ROs.
It sounds ridiculous, I know. It’s not as easy as just writing more repair orders in a day. Yet, when your RO count is down, typically your gross profit and net are lower too. A stopgap can be to bring in more customers as temporary relief.
When it’s slow, there’s tension in the air. You see it in the faces of everyone who depends directly on customers rolling in the door for their income: service advisors who can’t make sales, technicians who won’t make hours, and even the poor lot guy who can’t stay for overtime. Ebbs and flows are common in the industry, but when it’s been slower than normal for longer than you expect, you need to do something about it. If not, here’s what happens:
- Your service advisors look for home runs. Every customer that comes into the service drive gets hit with the whole service menu at once. Because they’ve put on the full court press instead of properly caring for the customer, the all-or-nothing approach often leaves them with the one-line oil-change. Obviously, that hurts the bottom line even more.
- Your technicians target the cream of the crop. Instead of properly looking for additional repairs with a thorough vehicle inspection, they rush through the minor jobs, hoping to snag a big engine job or transmission rebuild that will feed them for a few days.
- Your support staff get complacent. Detailers, cashiers, and lot attendants are found hiding in corners, checking Facebook accounts or talking amongst themselves. It hurts your department even more as the few customers you have rolling through are left waiting longer than necessary.
What it takes to get things on track again is simple: more work rolling in.
Bring the Work In
A tactic that the sales department uses can and should be used by service departments also. Buying leads is common when sales are slow in the showroom, so why not do the same for service?
If you’re not familiar with the strategy, it’s straightforward. Your dealership places ads or deals in strategic places online. The deal captures the viewer’s attention and demands a click-through. The offer brings the viewer into your store, creating the extra traffic you need to keep your staff busy. Your store pays a fee for each response to the online ad.
It almost sounds too good to be true, but there are a few things you need to know to make it work for your store.
1. The quality of the offer is critical. Paid leads are all over the internet. You can buy placement in the best places, but a shoddy offer or unattractive ad is almost as ineffective as not doing it at all.
2. The placement is crucial. Targeting the right online traffic is the only way to get return on investment. Non-specific placement is like burning your advertising budget.
3. The ad design and wording can make it or break it. You’ve seen online advertisements that make you giggle because of bad grammar or spelling, and it totally trashes your credibility. It has to look and sound professional.
What You Need to Do
You have enough on your plate without adding ‘internet marketing guru’ to your job title. Leave it to the professionals. The sales department already advertises online, and I’ll almost guarantee that someone has the contact information for an agency. If they’ve been effective for the sales department, use them.
However, I don’t suggest letting them work for you unchecked. While some of what they do is far beyond what you’ll comprehend, you should have some idea of what to expect from their work. Ask about how you’ll be paying – cost per click, cost per impression, and so on. You need to know how much you expect to pay per response to your online ad.
Find out where the advertisement will be placed. Make sure it’s on social media, and provide criteria for the type of customer you want to draw in. The agency you use will likely help you figure this out. If they don’t ask, you might wonder if they’re right for the job.
Follow up on the ad. You should be able to receive a metric of some sort to see the results. Once the ad begins to run, it shouldn’t be long until the trickle into the service drive begins to flow a little stronger.
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Automotive Copywriter
Do We Over-Service Our Customers?
Disclaimer: this post is NOT about over-selling. You might find that it resounds with you, or you might completely and wholeheartedly disagree with me. But in my very humble opinion, the North American ‘customer service’ model is overly intrusive in the way service is provided.
I’m coming to the end of my vacation in Italy where you are served in a much different way than Americans are used to. From the waiter at the Michelin-star restaurant to the attendant at the fuel station, the employees in the leather shops to the tour guides, they are available at your beck and call.
Need a different size? Just look in their direction where they attentively watch at a distance. Want a top-up of Prosecco? Simply raise your eyes to the waiter a few steps away. Yet, in most cases, you aren’t pestered every minute about how you’re doing. You aren’t rushed to make your decision about dinner, nor are you asked how it tastes before your first bite is chewed and swallowed. It’s attentive but not intrusive.
The North American experience is much different with an emphasis on ‘excellent customer service’. At least, that’s what we say it is. You have a waiter hovering to take your order, ask you how it tastes, clearing your plate as you pick up the last bite, and bringing your bill so they can flip the table quickly.
And I contest that dealerships are similar in North America. You bring your car in for service, choose from the menu after you hear the ‘specials’, receive several phone calls to touch base and update, a follow-up call, thank-you email, CSI survey, and constant emails. After your next visit, it’s the same thing again.
The over-the-top customer service experience isn’t special anymore. It’s what is expected by all, dreaded by some, and appreciated as intended by only a few. So then, I ask you:
Would Your Customers Appreciate Less ‘Service’ From You?
In the craze of the daily life in a busy dealership service department, it can feel like you’re riding on the edge control. If one small thing goes haywire, your whole day can run off the rails. Might that ‘busyness’ come from doing too much unnecessarily? I think so.
I don’t know if there’s an easy answer, or if this is an opinion shared by others. But I’d like to know if you agree or disagree. Are there aspects of your service experience that are unnecessary? Are there processes that would free up much needed time for your staff if they were trimmed? I’ll give you just a few ideas I have about it.
The 80/20 Rule
If there’s something you do that benefits 80 percent of your clients – or just think of the vast majority - it’s worthwhile. But if you’re implementing processes to satisfy the very occasional customer – the 20 percent – then is it really necessary to implement it across the board? Likely not.
When you’re making or changing processes, consider how many will benefit from it, and if the work involved is worth it.
Ask Your Customers
Every store has a few clients that are willing to give brutally honest feedback. All you need to do is ask them and you’ll quickly know if your store is doing too much to serve them. It wouldn’t surprise me if some said they get too many calls and emails from the dealership.
Consider What You Appreciate In Other Industries
It’s tough to think about what you want in the auto service industry – you’re too close to it. You can, however, apply the same principles from other industries such as restaurants and retail. When you come across something that annoys you, consider whether your store is similar and if it might annoy your customers.
For example, does the waitress ask if you’re ready to order as soon as you sit down at your table? If you haven’t heard what’s on the menu today, how should you know what to order? Similarly, if a service advisor asks a customer what their car is in for without reviewing the recommended services, a customer may be frustrated or unsure what they should get.
I’d love to hear what some thoughts and perspectives from others. Weigh in – I might be out to lunch!
Automotive Copywriter
Become a Ferrari in Your Own City
As I write this, I’m resting comfortably in the Tuscan hills. I’ve had the pleasure of seeing Michelangelo’s David at Galleria dell’Accademia, visited the world-famous Uffizi, and roamed the labyrinth of streets in Venice. But perhaps the most impactful was the trip to Ferrari’s factory in Maranello. That’s the one place I’d model my business after.
This past month, the focus has been on the customer experience. It entails the type of people you employ and the training you provide right through to the building your store is housed in and the equipment you use. If you ever have the chance to see all those tools in action simultaneously, it will be at the Ferrari factory.
What’s So Special About Ferrari (besides the obvious)?
It really boils down to knowing who you are. The brand behind the prancing horse has it down to an art. If you ask someone at Ferrari what their all about, you’ll get a definitive answer. And more than providing an incredibly exceptional product, they are all about delivering precisely what each customer wants.
The customer experience is paramount, and that’s made clear from the first point of contact. If you want a new Ferrari – Portofino, LaFerrari, or any other model – the first step is visiting the factory to decide on your options. You choose your fabric, your paint colors, your stitching, accents, upgrades, and on. The tour guide emphasized that no two Ferrari cars are ever exactly alike.
That customized service experience is the exact model that has taken Enzo Ferrari’s 1947 startup to one of the most recognized name brands in the world. The customer is the focus, not the car. It’s simply assumed that the car will be of the utmost quality, because that’s what history has already proven.
See where I’m going with this?
It’s a process to become a ‘Ferrari’ in your city – that dealership that stands out above the rest. It isn’t overnight, and it takes commitment, dedication, and resources.
Steps to Become a Ferrari Among Jalopies
Your dealership might be the epitome of modern, using the latest technology, and carrying the full line of your brand’s models. But without a differentiator – without that exemplary customer experience – it’s all just cogs in a machine that doesn’t work. A jalopy or clunker, in a sense.
On a very high level, here are a few steps to become who you need to be to succeed.
The Complete Process
I once worked for a dealer principal, Larry, who always seemed like he was micromanaging. It’s been a few years, but now I see it for what it is: perfecting the process. If the ship had even a small leak, even one that posed no danger of sinking, a solution would be sought to not just plug the hole but prevent it from re-occurring.
Enzo Ferrari did just that. He eliminated the smallest of concerns so there was nothing to detract from the Ferrari ownership experience. If there’s a health issue in your store, that’s something different altogether that needs to be addressed. But when a few problems keep popping up, or if there’s a bottleneck, get it fixed so it doesn’t interfere with the customer experience.
Commitment
At the factory, I saw one of the last Ferrari California models getting water tested after its build was complete. It’s fascinating that a car that has been perfected in engineering for several years still gets tested every single time.
If it seems to be running smoothly in your store, remain vigilant. Just one person cutting corners on their job will affect the other staff they work with, their management, the product, and ultimately the customer experience. Remain committed to providing the top-level service for each of your clients, and test your process.
Invest in Your Store
The Ferrari factory is incredible in size, employing more than 3,100 people in over 600,000 square feet of space. That doesn’t come without sizeable investments. If you want to offer the Ferrari experience, you can’t do it on a Fiat budget.
Spend money on high-quality equipment, pay the ransom for your dealership’s facelift, and most of all, invest in your employees. Onboard only the staff that will make you better and pay them accordingly. Train them so you can keep them at their peak performance.
You don’t need to sell Ferrari’s, Lamborghini’s, or any other high-end brand. The customer experience is of paramount concern. Become the brand you want your customers to experience, and you’re going to be successful.
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I would like to be resting comfortably in the Tuscan hills writing, jealous! Question, did you drive any Ferrari's?
Automotive Copywriter
I wish! The experience is available but I wasn't willing to put out 250 euros for a 15-minute drive. However, I did rent an Italian car for our journeys through Tuscany. It was a frugal Fiat Panda, and it achieved a real-life 38 miles per US gallon. Fuel prices are 1.50 euro per liter, though, or about $6.70 per gallon.
Automotive Copywriter
How Do You Thank Your Customers?
As a service department, your day is filled with serving customers. That’s your purpose for being there, after all. You see familiar faces that visit every three or four months, and there are new customers who are trying your store for the first time.
In customer service, the experience is a large chunk of what separates the good dealerships from the bad ones. But what also weighs in heavily, elevating the great service departments from the good ones, is beyond the in-store experience. It’s how you express your appreciation to your customers.
It’s More Than Just Follow-Up
Absolutely no one in their right mind would dispute the value of following up with customers after a service visit. It’s a valuable practice; one that tells you how your team is performing and ensures the customer is satisfied. Follow-up must be done, but there’s something to add to it.
Every customer MUST know their patronage is appreciated.
For some service department staff, there are times when you feel like you’re the hero of the story. It’s your helping actions that saved the day, and the customer should thank you for it. Sometimes they may, and that’s great. But it’s a business transaction for the customer and they are the ones paying the bill. It’s a payment for a service provided, and it’s a service that you don’t exclusively provide.
But for your dealership’s service department, there’s something at stake: future business from the customer. If it’s left as a simple business transaction by both the customer and the shop, it’s easy for the customer to take their business elsewhere.
‘Thank You’ as Positive Reinforcement
- “I know you have choices for your vehicle service. I just wanted to say thank you for choosing us to service your car. I appreciate it.”
- “Thanks for your feedback. We’ll check if there’s a way to make the shuttle service more efficient. Still, thank you for your patronage. It’s customers like you that make my day.”
- “I’m so glad everything went smoothly for your service visit. Thanks again for choosing me as your service advisor. See you again soon.”
These phrases are what you can expect when you call a customer simply to show your appreciation for their patronage. It’s nothing much to you, but it’s invaluable to the customer and their future visits.
You can’t honestly believe that your dealership’s service department is a customer’s only choice. Even for warranty work, very few customers live too far away from another dealer to make the switch. So, keeping your customers is a principle goal, or at least it should be.principle goal, or at least it should be.
When a simple thank-you call is what it takes to create positive reinforcement after a service visit, is there a good reason not to? You’re not honestly too busy, are you? It would be good if every customer received follow-up call from your call center, then a personal thank-you call from a front-line staff member.
Give it a Couple Days
It feels scripted or forced if the thank-you call is the day after the service. That’s a good time for a follow-up call, but not a thank-you call. Ideally, you want the customer’s memory of their visit to begin to fade. Then, when it’s no longer fresh, you call.
Your thank-you call reminds the customer who you are. It brings a positive spin after the service visit, whether it went perfectly well or not. And, it shows a caring attitude. These things should help retain your customers as your own. Why give them a reason to defect to a different shop?
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Automotive Copywriter
The Little Things Count the Most
At the dealership level, the customer’s expectations are high. For the price your clients pay, they want an experience – even more so than their car fixed right. Now, while you absolutely must be committed to ‘Fixed First Visit’, there are little things that aren’t prerequisites that are just as important, or perhaps even more important.
The Dealership View vs Customer Perception
In your store and your service department, the staff have one overriding thought (from what I’ve seen anyway): get the car fixed right and the customer will be satisfied. It’s a service department where you fix cars, and shouldn’t that be the main concern?
The problem is that nearly any shop can fix the customer’s car – dealership or the corner shop down the street. Staff members think your premium charges are for your expertise in vehicle maintenance and repairs, so naturally, that becomes your daily focus. But that’s not how the customer sees it.
The customer’s perception on a service visit to the dealership is minimally on the repair or service. It absolutely must be done correctly, but in the customer’s view, that’s a foregone conclusion; a natural expectation. They are in your store for a purpose beyond the vehicle’s requirements. And that’s where the problems come from.
Realistic Expectations?
It’s all the little things that your customers expect at the dealership level. There are benefits that only your store provides that they desire, expect, and get frustrated about more than anything. It’s these little details that make or break your CSI scores, convince customers to be long-term clients, and trust your store for their next vehicle.
You’re wondering which details I mean. Here are a few:
- Car washes. If your store offers a complimentary car wash for visiting the service department, you’d better be certain you can handle the volume. Every. Single. Car. After it happens just once, the customer has a realistic expectation that it should happen every time they bring in their car. I can’t tell you the number of customer surveys over the years that complained their car wasn’t washed.
- Shuttle Service. It’s a delicate subject. Obviously, you can’t have a one-to-one ratio of drivers to customers, and wait times have to be expected. But when a customer’s wait time isn’t acceptable and they are late for work or otherwise, it’s going to make them upset. That little thing, a perk that you provide, is a stumbling stone you’ve placed in the customer’s path.
- Vehicle pickup. Sometimes it’s just an oil change, so why should an advisor attend the cashier with the customer? I’ll tell you why from my wife’s perspective: There may have been an expected call that new tires were required, or that the maintenance is up to date. Speaking with the customer when they’re picking up their vehicle gives reassurance and positive reinforcement that they’ve made a good choice for service departments. Or, in my wife’s case, a sour taste in her mouth for NOT getting that level of care.
Driving It Home
Every time. The little things need to happen every time. Do you promise your customers their car will be washed? There’s no excuses for a backlog in the wash bay. Put extra bodies back there to make it happen. Are you concerned with the availability and efficiency of your shuttle service? Add an extra vehicle to the fleet, or take advantage of your manufacturer’s incentives for a loaner fleet. Frustrated about the vehicle pickup situation? Change the process so customers see the advisor, not the cashier, to pick up their cars.
Whether it’s a verbal or written promise or not, the little things are what set you apart from the other shops. The independent and chain repairs shops are narrowing the gap for repair quality. You can’t rest on your expertise as the sole reason customers should see you, and not them.
4 Comments
DrivingSales, LLC
I'm not familiar with the term "fixed first visit." Does this simply mean every first-time visitor to the service department has a similar experience that is set out by a pre-determined process to make sure they get the best first visit possible?
Automotive Copywriter
Fixed First Visit is ensuring that the proper repair is completed on the customer's first visit for the complaint. It means the customer did not have to return to the dealership more than once to fix a problem.
This is so true at every level and in every department throughout a dealership or any business for that matter. The little things are always the things that make the difference and ultimately determines how successful a business or individual becomes. Get great at doing the little things consistently and it separates you from the competition and builds tremendous value in what you offer, making it easier for your customers to stay loyal to you.
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