Automotive Copywriter
Take the Narrow Road to Recovery
Some states are still inundated with the novel coronavirus, but others are holding fast with no new cases for days. There could soon be a return to work process signals the restart of the American economy. For dealers, that means customers emerging from their makeshift home offices and replacing their matured leases, trading in their out-of-warranty cars, and buying the newest model. But we can be certain that it won’t happen immediately.
Dealers are likely to see a spike in car sales once restrictions are lifted, but that will be tempered by the economic uncertainty in the US post-pandemic. But what will continue to buoy businesses is fixed ops.
As always, fixed operations are an indicator of a dealership’s health. It’s no secret that dealers who had over 100% absorption rates prior to the economic shutdown are best positioned for recovery. Car owners need maintenance and repairs. Trade-ins need to be reconditioned. New vehicle drops require a PDI inspection. But customer work is the driving force for fixed operations, and it’s the narrow road to take for your dealership’s recovery.
How Fixed Ops Will Pull Dealers Through
Of course, the sexy part of a dealership is the showroom with the shiny paint and the un-scuffed interiors. It’s easy to push sales as a recovery mechanism with the average selling price around $37,000 in 2019. Here’s the problem though: the profit won’t be there. Moving metal is important, but dealer incentives and customer sentiment, plus the overwhelming competition from other stores, will drive that selling price down either non-existent or negative profit.
The service department, on the other hand, is always poised for profit. It’s built into the structure. The higher the volume through the department, the more money your service department will earn toward the bottom line. It’s one reason for the title fixed operations.
Then, factor in customer sentiment. Millions upon millions of Americans have applied for unemployment in the past month alone. Affordability is a huge concern and job security is still not a given for those currently employed. It’s much easier to part with a small amount of money for car maintenance and repairs than to commit to payments on a new car for five, six, or seven years.
Keep Up With COVID-19 Strategies
Once the pandemic loosens its grip, it will be important to keep up with the policies you’ve put in place. Consider it your new benchmark. Disinfect customer vehicles. Pick up and deliver service customers’ cars. Ensure social distancing is practiced for the time being.
Differentiate Your Dealership
Find something that can make your dealership’s service department stand out from the others in your area – even in your dealer group. That could be continuing to offer discounts for essential service workers or developing a subscription-based all-inclusive maintenance agreement, priority check-in, or any other unique mechanism.
Dealers everywhere are going to take the usual route of broad discounts and giveaways. With a more focused route that makes customers feel safe and special, you’ll earn their service business.
The Sales Will Come
The vehicle sales will return, of that there’s no question. Your service customers will want replacements and new clients will inquire online and in person. Those will be the next generation of service customers that will keep the dealership alive and thriving.
My point is that chasing vehicle sales as a recovery plan post-pandemic is tossing thousands upon thousands of dollars into marketing that will result in extremely slim margins. Phase that in once the economy has recovered a little more. But use your service department as your major advantage. It’s the narrow road that will be less traveled.
Agree or disagree?
Automotive Copywriter
Careful, This is the ‘In’ Direct-to-Consumer Carmakers Needed
State after state, Tesla has scrapped and clawed their way into the fray in a model that shirks the automotive retail norm: direct-to-consumer sales. While ten states still outright ban direct sales, 20 have explicitly allowed Tesla to sell directly to the consumer in some capacity. The fight against the sales model has largely been from dealers and dealer associations that aim to make Tesla conform to laws that have stood since the ‘30s.
But now it’s a whole new ball game. Laws are still in place but the new normal may never favor the current retail automotive model again. The longer coronavirus keeps us from operating the way we once did as a society, the more potential exists for a significant shift in how things are done.
Please know that I am NOT advocating for direct-to-consumer sales. Rather, I’m pointing out that dealers need to be aware of the car buyer’s mentality and know how to work their own angle.
Fully Online Sales
Tesla’s model is almost exclusively an online sales experience. In a couple dozen states, there are outlets where shoppers can view and test the vehicles, but orders are placed online. It eliminates nearly any exposure to potential hazards like COVID-19 and is much more convenient.
How to Fight It
Don’t. Sell online. It’s an option that’s growing in popularity and dealers should be prepared for it.
No-Pressure Experience
When you shop with direct-to-consumer retailers whether it’s automotive or otherwise, there’s very little pressure during or after to complete your purchase. And if there is pressure, it’s with an easily avoidable phone call or an email or text message you can simply not reply to. Shopping is at your own pace.
How to Fight It
Make it about the shopping experience rather than the sale. Car shoppers appreciate the human contact and relationship development from an in-dealership experience, not to mention an overwhelming desire for a test drive, when it’s done right.
No-Touch Deliveries
Today, there’s fear of contact that will last well beyond the thick of the pandemic. It’s bound to affect how customers feel about someone previously test driving a vehicle they’re hoping to buy. With no-touch deliveries, exposure to others is extremely limited, plus it’s sanitized thoroughly at the time of delivery.
How to Fight It
Customers will expect the same from a dealership. Test drives could be limited to a select vehicles while the vehicle they’ll take home is left untouched on the lot as inventory. Prove to customers that you’re doing everything possible to limit contact with their new car.
Again, I’m not saying that direct-to-consumer sales are right or wrong but they certainly are different. And they’re positioned perfectly to take away business from traditional dealers. As others like Rivian come to market, you’ll need to identify and mitigate their advantages and turn their disadvantages into reasons why customers should shop at your store instead.
No Comments
Automotive Copywriter
Planning for the Future of Fixed Ops
We don’t know what’s going to happen. Nearly all states have stay-at-home orders, and not to minimize the impact on other industries, but the auto industry is taking hit after hit. Factories have idled production and by all appearances, it will be several months before we approach anything close to normal business practices.
The only portions of the auto retail sector operating mostly unrestricted are fixed ops departments. But even that model has been changed well beyond what anyone imagined just a month or two ago. Many dealers are experiencing slowdowns in the service department, putting strain on the livelihoods of everyone they employ.
This is what we have to embrace. Social distancing enforcement may loosen up, but customer sentiment will remain for months or years after. Here are a few thoughts about preparing to do business in the service department going forward.
Keep Pick-Up and Drop-Off Services Running
When the all-clear is sounded, drop-off and pick-up services aren’t something you’ll be able to dial back. You can’t put that toothpaste back in the tube. Since it’s a service nearly everyone is offering right now, it’s become a standard by which many customers will measure CX.
Plan now to staff pick-up and drop-off services for service customers. That could mean hiring extra staff or it may mean including it in certain roles. Perhaps a service advisor’s role is completely changed to service only 5 to 8 clients daily including off-site check-ins and walkarounds. Perhaps the technician is paid to pick up the car and return it. Or possibly it’s a valet. This is a time to become innovative.
Change Pay Plan Incentives
In the immediate future and perhaps well beyond, typical pay plans won’t be enough income to support commission-based employees. It would be a great idea to switch to an hourly wage or salary with incentives for customer service and accuracy rather than volume.
To be honest, I don’t know how well it will be received by piece-work and sales-focused staff. However, my opinion is that many in this time would be satisfied to have secure employment over the uncertainty of the commission structure.
Off-Site Servicing is an Idea
A search for mobile car lifts comes up with intriguing possibilities. It’s no stretch to imagine worried customers and vulnerable populations that don’t want to visit a busy service department. Another option is a mobile technician, possible more than one, that attends a customer’s home or business to perform minor repairs and maintenance from a mobile lift trailer.
This isn’t a new idea and there are logistics that need to be ironed out. Insurance, parts supplies, RO write-ups – there are wrinkles in the fabric. To differentiate your business and to serve a growing demographic, it’s an option to seriously consider.
There’s so much up in the air right now. What I’m confident that most will agree is that we will not be returning to business as it was. Proactively find ways to stay relevant and return to profitability as fast as possible.
No Comments
Automotive Copywriter
Put Your Marketing Focus on Fixed Ops
March 2020 felt like the longest decade in modern history, didn’t it? In the automotive industry, dealerships in most states have gone from flourishing businesses to ghost towns with the odd tumbleweed customer rolling through for an oil change. Government orders to shelter-in-place along with a sentiment of fear are keeping people at home rather than car shopping.
That’s evident after automakers posted year-over-year March sales decreases like GM’s 44.7% dip, Toyota’s 39% decrease, and Ford’s 40.8% slip. If a dealership isn’t moving metal, what do they do to turn a profit?
Put the Efforts into Fixed Ops
The Trump administration has deemed that automotive repair and maintenance businesses are essential services. Make the most out of that designation at the current time and shift from a new car retailer to a nearly-new car maintenance facility. By no choice of your own, the store isn’t going to see much traffic for vehicle sales. But all your customers who previously bought a car will still need to maintain them.
The marketing you’ve done for cars should be mostly repurposed temporarily to emphasize the need for service at this critical time. Beware of marketing techniques though – keep the message overall positive. Put any campaigns through several wise filters to ensure you don’t seem like you’re capitalizing on a really chaotic time in history.
Maximize Absorption Rates
Dealers who previously hit 100% absorption rates in their service departments are best positioned to ride the wave, especially short term. But don’t think that your February 100% absorption makes you safe. If you haven’t seen it already, expect a dramatic shift in what service department traffic looks like.
With financial instability across the country, you’re likely already seeing customers tighten their purse strings. Non-essential work will probably have to wait until later. That means lower dollars per RO. Volume is the solution to that, and that’s going to be difficult to manage with self-isolation, WFH strategies, and quarantines.
Trim the fat where you can. If you can make do without a new piece of equipment or you can negotiate lower shop supply rates in the interim, it will be prudent. Every percentage will be critical for your absorption rate.
Make the Hard Decisions
Let’s be clear – your people are the most important part of your dealership. They are the resource you want to protect the most. And to maintain your workforce, you may have to make some very hard decisions.
- Is it possible to liquidate assets now to keep payroll flowing in lean months? It could be too late if you wait until the noose tightens.
- Are there departments that need an investment to change how they do business? That may mean aggressive marketing and facility changes for online parts sales or moving to a virtual showroom.
- Are there team members that are willing to be reassigned where they may be needed more?
I hate to say it, and I hope I’m wrong, but I don’t think we’re going back to business as usual when COVID-19 is in the rearview mirror. How a dealership operates, from the storefront to the service department, will need to adapt rapidly to stay relevant.
No Comments
Automotive Copywriter
A Charitable Fixed Ops Response to COVID-19
What unprecedented times we live in. The current response to the coronavirus outbreak in America has hundreds of millions of people practicing social distancing and staying home. Fear and worry are rampant as hundreds have succumbed to COVID-19 symptoms in the nation.
Service departments have been designated as ‘essential business’ during the pandemic, and rightly so. But the people staffing the department are assuredly seeing a decline in work coming through the door. Their wages are affected by declining traffic, and they’re exposed more than the average person in their work environment.
Now is a great time for service departments to change the way they operate, at least in the short term. Local needs can benefit from the dealership’s services, and it’s a way to focus on providing for someone else’s needs rather than your own.
Offer Pick-Up and Drop-Off Services for Free
At this point, if your service department is still operating, you’re probably already offering vehicle pick-up and drop-off services at your customers’ homes or workplaces. Continue doing so as long as possible, and so you don’t appear to be taking advantage, do it for free.
In this period of time, it’s more important to be kind and compassionate than making your monthly goal. Customers will remember it afterward and can be expected to be loyal.
Contact Essential Organizations to Offer Assistance
If you find technicians and lot attendants are idle, or any staff for that matter, partner with other essential organizations to fill needs. That can be delivering groceries for a local mom-and-pop grocery store or arranging service for the vehicles in essential businesses’ fleets.
Serve Vulnerable People
In every city or county, there are vulnerable people who are isolated and in need. That has many forms from the elderly in personal care homes to self-quarantined individuals who are running out of supplies. Put out a call on social media offering to help those who need it.
Be Generous to Your Staff
Virtually everyone is suffering financially at this time, and dealership staff are no exception. Car sales will have a steep decline during the COVID-19 outbreak, service departments will be very quiet, and parts desks will be nearly abandoned. For any staff that are willing and able to be at work, pay them well. Forget the commission-based structure, for example, and pay an average of their last 3 months instead.
At this time in history, be remembered as a store that cared more about their customers, their city, and their neighbors than about selling. Find ways to serve in as much as you’re able. The benefits to community as well as your team morale are immeasurable.
No Comments
Automotive Copywriter
‘Buy From Home’ Works for Sales, But What About Service?
The government is now telling us that we may not be getting back to normal for weeks or months, whatever that new normal is going to look like. Dealerships are adapting the sales process, pivoting on a dime in transition to ‘buy from home’ processes. From everything we know, an enhanced digital retailing journey is preferred by customers, albeit a completely dealership-free sale isn’t the intention. But sales can make it work.
What about the service department? The typical service experience has dozens of customers arriving at the service drive daily. In today’s ‘social distancing’ requirements, it certainly isn’t easy to maintain your personal space in a busy department. So, what’s a service department to do now?
Stay Healthy
First and foremost is your team’s health and that of your customers. Your service department can’t help anyone at all if you experience an outbreak. Anyone who has symptoms, has recently traveled, or is caring for a sick person should be encouraged to stay home for the recommended self-isolation period of 14 days (unless that changes).
Emphasize the Importance of Appointments
You may wish to switch to an appointment-only structure for better control of traffic volume in the dealership. An appointment allows customers to maintain the appropriate distance for your safety and theirs as they aren’t jockeying for position in a queue.
Can Customers Remain in the Vehicle?
There are definitely restrictions for what’s permissible by insurance companies and regulations. However, if a customer’s appointment doesn’t require them to step out of their car, it could help retain the capacity to service more vehicles. For example, does your express oil change bay have a pit rather than a hoist? It could be repurposed during certain hours or days for more intensive work that allows the customer to stay in their car. Or, if work can be completed on the floor in the shop, the same can be true.
Vehicle Pick-Up and Drop-Off for the Masses
Most dealers offer service pickup in some capacity already. It’s a great way to keep the dealership’s service department open. NADA is advocating to government to consider automotive retail and service as an essential service – cars will need fixing and required services, even if it’s less frequent for the moment.
Consider moving to a vehicle pick-up and drop-off structure on a limited basis. Here’s what it could look like:
- Assign a lot attendant or the technician to pick up the vehicle for service. They should bring safety equipment and cleaning supplies to sanitize the customer’s car and protect themselves. Since service traffic will assuredly decrease if it hasn’t already, techs will have some extra time to help with this.
- Since service departments likely don’t have a huge fleet of loaners or courtesy cars, allow staff to use personal vehicles and pay mileage. Another option is shuttle drop-off and pick-up for staff, but it’s not ideal.
- The vehicle is brought back to the shop, serviced as per normal, and thoroughly cleaned and sanitized before return.
- If it isn’t a dealer-owned vehicle, the customer will be without wheels until their car is returned.
- Process credit card payment over the phone or through another digital manner if you have it set up. Keep it contactless as much as possible, so no cash or checks.
The drop-off/pick-up structure isn’t cost-effective en masse, that’s for sure. In these extenuating circumstances, the goal should probably be refocused to providing an income for your team members ad serving your clients as long as possible. That may even mean aiming for the break-even point or taking a loss to make it happen.
We’re in the business of serving customers and keeping the world moving, physically and economically. Let’s prove it in the coming weeks and months.
1 Comment
Phone Ninjas
I think service departments should consider pick-up service where they pick-up the customers car and then return it to them.
Automotive Copywriter
Improving Service CX – “Did Not Provide a Loaner Vehicle”
There isn’t a service advisor alive that hasn’t heard, “Why can’t I have a loaner car?” It’s many a customer’s perspective that they shouldn’t be inconvenienced and left without a car while they’re vehicle is in the shop. Sometimes it comes for a simple maintenance visit that will take an hour or two. Other times it’s for a warranty repair that may take a week or so but doesn’t qualify for a rental or loaner.
As soon as you hear the customer’s complaint about a lack of transportation, you can kiss the perfect survey score goodbye. According to the 2018 Cox Automotive Service Industry Study, 1 in 10 customer complaints are categorized as “Did Not Provide a Loaner Vehicle”. What seems like an impossible challenge to eliminate is just that: impossible. However, you can cut the complaint in half – maybe even halve it again – with a little understanding and a couple strategies.
What Drives the Loaner Car Question
Knowing what position your customer is coming from will help you steer the conversation about a loaner. Is the customer:
- 1. Feeling like their car will take longer than expected in the shop?
- 2. Under the impression they’re entitled to a loaner no matter the length of the service visit?
- 3. Feeling they’re owed a loaner due to the size of their estimate?
- 4. Unaware of the other transportation options available to them?
There may be other assumptions in a customer’s mind about why they should get a loaner car for their visit, but these are four common ones, in my opinion. A thread you’ll find in each one is a lack of communication.
In each of the four points, talking with the customer should help discover their motives and shape your response.
If the Customer’s Thinks It’s Taking Too Long
When the customer is pacing around, waiting for their car to finish, or they’ve been impatiently waiting by the phone for hours to hear that their car is done, it might already be too late to correct the concern. The service advisor (presumably) has either incorrectly estimated the completion time or hasn’t communicated it well to the customer.
At this point, an apology is the best solution, even if everything went according to the service advisor’s expected timeline. The customer felt it took longer than expected, and that’s what the metric is. Perhaps make a note for the next visit to be clearer about time frames.
Entitled to a Loaner Every Time
It might be the amount of money they spent on their car or a misunderstood phrase from their salesperson during the sale. Or, it could be a family member’s advice to demand a loaner car. If there’s a customer that demands a loaner car with every visit, regardless of the length, it’s a tough spot. You’ll have to handle it delicately no matter what.
Perhaps a conversation as you go through the warranty manual and criteria for a loaner car is helpful. Or asking, “Do you mind telling me where you got this information? I’d be happy to do it if you can point me to your source.” Showing generosity with a one-time courtesy loaner may be the ticket while clearly explaining that it’s only available once outside of the correct circumstances.
They’re Paying a Big Bill
Unless the repair is going to take more than a few days, I’ve always found that it’s a worthy investment for service to cover a paying customer’s base rental charges. That’s assuming the repair is a significant amount like $800 or higher, and with significant gross to cover it and then some. It doesn’t pay to be cheap with paying customers. They won’t come back to buy their next vehicle if the service department doesn’t appear to appreciate their business.
They Don’t Know All the Options
I’ve had customers who took a rental that were surprised and annoyed I didn’t offer them a shuttle ride instead. Sometimes, the hassle of filling out the rental paperwork, paying the rental insurance, and being super careful not to get a ding or a scratch is more trouble than it’s worth to some. When a customer asks for a rental, gently ask, “Would a shuttle ride do, or can I call you an Uber? Or do you need a replacement car to drive?”
The wrong answer when someone asks if they can have a loaner car is, “Sorry, no.” In all circumstances, clarifying questions will help determine the source of the question to help direct you to the best solution.
No Comments
Automotive Copywriter
Improving Service CX – What Does the Dealer Charge?
The customer experience has several dimensions, and all of them have to line up to achieve a truly awesome customer experience in the service department. To a client, your store is only ever as good as their last visit, and the same is true on a CSI survey.
Everything could be phenomenal during their visit. Their appointment process was smooth and easy, they checked in without any issues, and their vehicle was ready on time. They’re ready to click ‘submit’ on the most glowing online review as they step up to the cashier until they see the invoice. “My service cost HOW MUCH?!?”
In the 2018 Cox Automotive Service Industry Study, 10 percent of service customers expressed frustration toward their dealership at ‘finding out how much they charge’ for services. This phrase can be seen in a couple of different ways – the inability to find pricing for services and repairs, or sticker shock at realizing how much it cost. Today’s buzzwords in the automotive industry are TRUST and TRANSPARENCY, and these interpretations deal with each term. Let’s take a look at both of those.
Sticker Shock
A customer that visits your service department should have the ability to TRUST that they’re getting a fair price on the services their vehicle needs. For example, taking a vehicle to the dealership’s service department for a wheel alignment should come with the expectation of an invoice around $100 or so, whether or not the customer asks in advance. But if they return to pick up their car and are greeted with a $200 invoice, a mild to moderate freak-out is realistic.
It’s dangerous to leave pricing expectations up to the customer, but if it happens, there shouldn’t be a reason for the customer to lose their mind. Knowing that your prices are in line with other local competitors is key to avoiding sticker shock.
Hard-to-Find Pricing
Avoiding the sticker shock part of the equation is much easier when your pricing is TRANSPARENT. Whether it’s a basic oil change or a major hourly job, you owe it to your customers to post your shop’s door rate and common maintenance items and packages.
Having a reader board in the dealership is obviously great, but service customers are going online more than ever to book appointments and check maintenance schedules. Pricing is often tough to find or non-existent on a dealer’s website for service items. It shouldn’t be that way. If it’s alright for the sales department to post new and used car pricing online, the service department should also be expected to.
Service customers are the best source of future car buyers at your dealership. By providing the best customer experience possible, you’ll keep them coming back until they’re ready to start the vehicle lifecycle all over. But if one of the poor customer experiences occur, like sticker shock or tough-to-find service pricing, you could be driving them to find a different service provider and their future car seller.
1 Comment
Harper Motors
Every customer should know the price of a job before they authorize (with a handful of exceptions where it's impossible to know the extent of work needed); that's a non-negotiable. However, if 10% of your customers aren't complaining about your price, then you are too cheap.
Automotive Copywriter
Improving Service CX – “Had an Appointment but Waited in Line”
Very few things are more frustrated than feeling like your time has been wasted. Think about something as routine as going through a fast food drive thru because you’re on a short leash, only to be left waiting for your meal at the pickup window for seven minutes unacknowledged (I’ve been there). A customer’s irritation is much the same when they’ve gone through the processes to expediate their in-dealership visit, then to stand in line in the service drive.
Online appointments have made booking a maintenance or repair visit much easier. Time slots are typically in 10-minute intervals to space them out. The BDC and service advisors are personally invested in accurate appointment booking. So why is it that waiting in line after making an appointment is still the primary pain point for 13 percent of annoyed customers?
Poor Planning
I’m convinced that probably half – maybe more – of the issue lies with people booking appointments. I recall often as a service advisor that a ‘gravy’ appointment wanted an booking for first thing in the morning when all the time slots were already filled, but I’d jam it in anyway so I’d be able to earn more that day. Other times, it seemed like someone booked an appointment simply to get the customer off the phone, stacking the schedule at a particular time that was super inconvenient. And then there are the walk-ins…
Of course, the result is an influx of appointment check-ins that can’t be handled at once. Someone is going to be waiting.
The Human Factor
Tell me if I’m wrong… an appointment time never seems to be hard and fast anymore. Once they’ve made an appointment, the customer thinks it’s fine to drop the car off whenever they can. Hours early, a half hour late – as long as they’re scheduled for that day, it should be cool.
I encountered it almost daily. 10am appointments dropping off their car at the 7am opening rush. Usually, more than one per day. Their intentions are innocent, perhaps trying to grab the first shuttle to work. Nonetheless, it made for hectic mornings at the service desk with several people tapping their toes impatiently.
What to Do About It
This problem will never go away as long as there are customers. But you can improve this facet of the service customer experience in a few ways:
- - Schedule appointments at slightly unusual times. Rather than booking on the hour or at the half, book in 12-minute increments. Not only does it allow 12 minutes for a service advisor to write up an RO which should be plenty, but the time will stick out in a customer’s head. When you say, “Mr. Rodriguez, I have you booked in for 8:36 tomorrow morning. See you then,” you can picture their head cocking to the side as the time registers. “8:36? Why such a precise time?”
- - In busy times, the service manager and valets can pick up the slack by helping with walkarounds. If there are customers waiting to check in, someone can pick up a clipboard with a walkaround checklist, greet the customer, and engage them with a walkaround. Once the service advisor is free, they can inject themselves into the conversation. That should easily eliminate the concern about waiting in line despite an appointment.
- - Look into self-serve service kiosks. The jury is out on their use, but it’s an option to serve your non-appointment or early customers, especially those who would prefer to drop off before hours or pickup after hours. If you use kiosks, make sure you communicate very well throughout the day with those clients.
Do you have any other ideas to address the concern, “had an appointment but waited in line”? Leave a comment below.
No Comments
Automotive Copywriter
Improving Service CX: Dealing with Additional Services
In our month-long series on improving the customer experience in the service department, we now look at the second-most common issue identified by customers. In the Cox Automotive Service Industry Study, 20 percent of service customers say they’re most frustrated with service advisors who “tried to push additional services.”
20 percent, or 1 in 5 service customers that express frustration with a service visit, doesn’t seem like a huge statistic to deal with. That’s only the top pain point for those customers, and there are likely many more who think it’s a secondary or tertiary issue. Point being, it’s more insidious than it appears.
What Does “Tried to Push Additional Services” Mean?
The way the response is phrased seems loaded. As a service manager, the knee-jerk reaction is to admonish your service advisors for upselling unnecessary services. Hang tight – that’s often not the case.
While upselling unneeded maintenance and repairs continues to be an issue at stores highly incentivized on sales, this pain point in the customer experience often starts way before customers check in in the service drive. Like most (if not all) CX issues, communication breakdowns start early on.
Often, it’s related to inadequate training when appointments are set. A couple scenarios:
A customer calls in and requests a service B, a basic oil change and tire rotation. The dealership staff, whether BDC, cashier, or service advisor, fields the call and enters the appointment in the system. Unfortunately, they don’t check the customer’s history or current mileage, and there’s additional maintenance needed.
A second customer books their service appointment online. They select the mileage best as they recall, then pick an appointment time. They arrive at the service drive and learn that they’re way off on the mileage estimate and additional services are required.
In both cases, the service advisor is RIGHT in recommending the additional services per the time and mileage according to the maintenance schedule. The customer’s perception, though, is that they’re being advised to do services they didn’t expect on that visit. And their ire isn’t misplaced.
How to Deal with It
Proper training and communication are fundamental in setting appointments properly to avoid this issue. Anyone – absolutely everyone – who takes appointments for the service department should be able to check a customer’s history and the maintenance schedule, and comfortable to make recommendations for services at the time of booking.
And secondly, every appointment booked online should be contacted to confirm their required services. This is the time to make recommendations that have been overlooked and to confirm an accurate mileage.
An Imperfect Metric (Again)
Just like last week’s topic – “service took longer than expected” – there’s no way to fully eliminate this issue. In fact, I had a fixed operations director that said to me on more than one occasion, “If I don’t have a complaint about a service advisor being too pushy at least once per month, they aren’t doing their job well.” It’s the service advisor’s role to advise on services and repairs that customers need. Even done as gently as can be, there are some customers who will always feel like they are being pressured.
Avoid Unnecessary Upsells
Service advisors have to be very careful not to be too aggressive in sales also. I know many service advisors, myself notwithstanding, who saw an easy target and sold repairs that could easily have waited and maintenance that was premature. With a sales-based pay plan, there’s always a temptation to make the easy money. While you can get away with it, you can and will get caught from time to time. It damages not just YOUR reputation, but the whole dealership’s reputation.
More than anything, being mindful of proper communication and following the process every time (not cutting corners) will help improve this subjective metric.
2 Comments
Callsavvy
Are we sure the "additional services" does not mean the ancillary repair items technicians recommend after inspecting the vehicle. In my experience customers usually do not have a problem with required maintenance recommendations. It's the pesky motor mounts and high paying suspension parts which techs sometimes push in order to make their numbers. Just saying. You go in for an oil change and you're being presented with a $3000 worth of repairs. Dealerships have to do a better job of understanding their customers financial situations before recommending high ticket items. That sticker shock is one of the reasons customers do not return to a service center. Who would not want a second opinion when asked to spend thousands? I would.
No Comments