Jason Unrau

Company: Automotive Copywriter

Jason Unrau Blog
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Jason Unrau

Automotive Copywriter

Sep 9, 2019

Ways to Use Video Well for Fixed Ops

Lately, I’ve seen clients and prospects alike that are starting to get it. Digital media strategies aren’t new anymore, but they seem to be in a fledgling state for most car dealerships, and that’s even more exaggerated for the fixed operations departments. I’ve seen YouTube videos that are produced pretty well, but they aren’t creating value for the dealership. Thus, the dealer drops video off their radar.

One major Chevy dealer I know, for example, has used their staff to advertise winter tires. He’s personable, relatable, and does a great job communicating helpful information to the viewer. The video is half-decent in its production. But after a full week it has eight views. Yes. Single-digit viewership.

There’s no way to convince management that video is an effective strategy when a good video performs so poorly. I think this example resonates with many dealers, but the video itself is just a piece of the puzzle.

Pairing With Video

I won’t compare a service, parts, or accessories video to a fine wine. However, video on its own has extremely low chances of succeeding. Seldom do good videos – even great videos – go viral or get thousands of views. That’s not what you want anyway. All you want are for your customers to see the video and discover a reason to reach out to you.

For that reason, you can’t depend on a YouTube clip to find your customers. You absolutely MUST put it in front of their eyes. It’s a component of a marketing campaign but it needs a vehicle to deliver it.

Marketing Parts and Service

Imagine sending your customers a YouTube link via email, and that’s all. 9 out of 10 will send it straight to the trash folder. The others might watch a couple seconds before they click the next cat video instead. They aren’t engaged yet.

Now picture an email that arrives for winter tires. “4 for the price of 3 on BFGoodrich winter tires” is the title. The body of the email contains engaging content about why winter tires are important, the sale information, plus your video embedded near the top. Sent during late fall, customers now have a reason to read the email and watch the video.

A video needs to be surrounded by other content. Well-written information and sales copy will help drive the reader to respond whether it’s to click the video or to pick up the phone. A video on its own is extremely unlikely to have the same effect.  

Website Service Info

I’ve mentioned it before, but your service descriptions online can be used more effectively than a bullet-point list. Hyperlink your services to another page that goes in-depth describing their benefits. It’s a good opportunity to build value with your customer, plus you can increase your website authority if keywords are used effectively on the service pages.

In-Dealership Info

Every dealership has TVs in the customer lounge. Why not put your dealership’s staff on display for explainer videos on those screens? You have a captive audience and you can rest assured that every once in a while, a customer will approach their service advisor and ask, “Do I need this?”

 

Video is fantastic at establishing authority on a subject as well as being much more personal than other types of content. On its own, though, you’ll see low viewership. Pair it with another part of your strategy to drive its effectiveness way up.

Jason Unrau

Automotive Copywriter

Freelance Contributor

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Jason Unrau

Automotive Copywriter

Sep 9, 2019

Aim for the Right Service Customers with Data

The service department at dealerships is mostly passive, not actively seeking out new clients. No one’s going to turn down new customers, but actively drawing them in? Likely not. And when dealers do, you’d probably agree that it’s with loss leaders like oil changes and alignments at a bargain-basement price. But there’s a better approach.

Third-party research can prove extremely valuable to keeping your service department at full capacity year-round. For instance, the sales-focused 2019 Experian Automotive Quarterly Briefing has data that can be extrapolated for service’s benefit.

Some Tidbits for You

Some interesting American stats to consider:

- Light trucks accounted for nearly 56% of vehicles that changed hands in Q1 2019.

- Vehicles in the ‘sweet spot’ – 6 to 12 years old – change hands less frequently.

- More than 48% of NEW vehicle registrations were CUVs and SUVs.

The one thing consistent in these three stats is that they’re all PRIME candidates for your service marketing.

Why These Three?

For trucks…

Truck buyers spends more on their vehicles than any other segment. Not only are part and services more expensive compared with a passenger car, but they’re usually due more regularly. Many dealers already know that trucks are a great well to tap for service revenue, but few do it consistently.

If your brand is a major truck seller like Ford, Chevrolet/GMC, Toyota, or Ram Trucks, it would serve you well to make yourself known as a Truck Center. Be the expert in your field locally. When someone needs a truck, truck accessories, or truck repairs, the first thing they think of should be you.

For ‘Sweet Spot’ vehicles…

Owners of cars aged 6 to 12 years are often keeping their vehicle going a long as possible. They know the repairs and maintenance will start to add up and will turf their vehicle when it gets to be too much. They’re looking for a shop that isn’t going to nickel and dime them to death yet will be able to keep their car going reliably. I see dollar signs in ‘sweet spot’ cars.

Create regular marketing campaigns for local car owners advertising a no-BS approach to maintenance and repairs. That’s what they want – dealership experience without being oversold or pressured. If you can create that relationship with locals, you’re going to win their ongoing service business and, when the time comes, their new car purchase.

For SUVs and CUVs…

Tap into their pride. These car buyers are notoriously proud of their cars. Given the opportunity, they’re going to finance a few extra dollars per payment to have their vehicle personalized. They need the option to add accessories, organizational items, upgraded wheels, and any other vehicle dress-up at the time of purchase.

Work a sales-service collaboration for accessory packages on new SUVs and CUVs. Customers will love that the accessories can be financed, and they’ll love the customized look even more.

 

Every week, reports are released for the automotive industry from finance, service, and especially sales. Read them. Think about opportunities. Make your store different than the rest by implementing original ideas. With the plateau and threatening regression on the horizon in sales, your service department is going to be more important than ever.

Jason Unrau

Automotive Copywriter

Freelance Contributor

1022

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Jason Unrau

Automotive Copywriter

Sep 9, 2019

Market Service by Spending Money at Your Competitors

Much of what I do is creating content that helps retain customers. As you know already, customer defection rates within three years of purchasing a vehicle are in the vicinity of 70 percent – more or less, depending on who you ask. The question begs to be asked, “Where are customers going when they service somewhere other than the dealership?”

For many, the answer is the quick lube shop down the street. Especially when there’s no lineup, it can be as little as 15 minutes from the first VIN number scan to the credit card payment. You can hardly compete with that speed, especially when they advertise ‘warranty approved’ oil changes at a lower price too.

But you could be well served to try them out yourself. You may be surprised at the result, much like I was. And it’s an opportunity to keep your customers too.

The Local Quick Lube Experience

I was long overdue for an oil change on my run-of-the-mill Chevy Silverado and decided to try out the local quick lube. With an open bay, I pulled straight in. The advisor – also the oil change tech, by the way – wrote my truck up for a basic oil change after a very unenthusiastic try for a full synthetic oil change. The basic oil change is just $44.99.

While sitting in my driver’s seat, not a comfy lounge, I scrolled through Facebook mindlessly for about 10 minutes while the oil drained and the filter was changed. The tech then popped up at my window again to show fluid conditions, a few of which were dirty. Being an older truck, the power steering fluid and coolant were low too. Here’s where it gets interesting.

He priced out the front and rear differential fluid changes at $160 each, approximately twice the going rate at a local dealer. The transmission drain and refill was $189. I see where they make their money.

Even worse, I asked if they top up the low fluids. He said he could. It was just $1.99 for power steering, $2.99 for coolant, and when I specifically asked, it was $1.99 to top up my washer fluid. I declined.

The final note on this oil change was on the invoice and never mentioned. The extra liter of oil, as only 5 liters are included, cost me an extra $5.99.

Compare with Your Dealership’s Pricing

Around these parts, a standard oil change at the dealership will run about $49.95. A full synthetic oil change is often advertised at $69.95. It’s a bit more than the advertised price at the quick lube shop, and that can be a detractor.

But what customers often don’t consider is what they’re getting for the price. Dealers don’t charge for fluid top-ups (not even washer fluid) and I’ve never been hit with an extra liter of oil either, although the ad mentions “up to 5L”. And if a service advisor at the dealership added $5.99 without directly mentioning it, World War III would ensue. That’s not to mention the head-and-shoulders difference in customer service between the dealer and the lube shop.

How to Use This to Your Advantage

True comparison shopping for local independent competitors is money well spent. If your competition operates like mine, you could easily show real-life comparisons on a bulletin board in your customer lounge. When a customer sees the same service will cost them more at an independent, the only real difference is the length of time their vehicle is in service. And you already have the answer for that with Express Service bays, shuttle vehicles, courtesy cars, and well-stocked customer lounges with snacks, beverages, and free Wi-Fi.

You can also use this information anecdotally as an email campaign. Send it to both active and inactive service customers with an image of the aftermarket’s invoice and your own. When presented the full slate of facts, there’s hardly a logical reason that customers should choose an aftermarket service provider over the dealership.

Try it at three, four, or five local businesses. I’ll bet both you and your customers are surprised what you come up with.

Jason Unrau

Automotive Copywriter

Freelance Contributor

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Jason Unrau

Automotive Copywriter

Sep 9, 2019

Do You Treat the Auto Body Department as an Asset or Necessity?

As you’re aware, autobody departments or collision centers are part of many dealerships in North America. Of more than 225 million licensed drivers in the United States, the number of motor vehicle accidents exceeds 6.3 million collisions annually.

What does that say? It screams loud and clear that a segment of your customers will need a collision repair shop every year. For some, it’s more than once.

Do you dutifully provide collision repairs at your store? Or do you use this department as an asset; an opportunity to increase business in all departments? I know that everywhere I’ve been, the autobody department is treated like a red-headed stepchild (no offense intended to stepchildren or redheads).

The Common In-Dealership Perspective

Perform your own analysis. Ask your dealership staff, family, friends, and anyone else who will give you an honest answer about what they think about the body shop. Almost everyone will range from apathetic and neutral to adverse and unfavorable. It isn’t that the department has done anything wrong. In fact, people who work in the body shop get mad respect from me – you do a phenomenal job despite pushback from insurance adjusters, customers, and other dealership departments.

The simple truth is that the body shop isn’t viewed as an asset. Even among dealership employees, it’s seen as the least important part of the store. Not only is that view completely incorrect, the body shop is an asset that can provide more value than you’d ever expect.

Boast About Certifications

As a dealer franchise, you can stand on the fact that your body shop has certified, trained professionals. They use OEM parts wherever possible. There’s a higher standard expected of dealership body shops in the industry, and you should mention that whenever you talk about collision repairs with a customer.

For salespeople, that’s as important when you’re showing pre-owned cars. If a vehicle has a claim on its vehicle history report, it’s an opportunity to brag about your body shop’s skill and expertise in performing that kind of repairs. Same goes for scratch and dent repairs. Use the body shop as a positive, not a department to avoid.

Sales-to-Body Shop Handoff

Speaking of which, have you ever introduced a customer to your body shop when delivering a new or used vehicle? There’s a significant chance that, during a customer’s vehicle ownership, they or someone they know will be involved in an accident. During the delivery is an ideal opening to show pride in your body shop’s workmanship and customer service.

Body Shop-to-Sales Handoff

And the reverse is true too. More often than you would expect, a customer is ready to buy a new car as soon as they’ve needed collision repairs. The new car luster has been lost; they don’t trust their car as much anymore.

A body shop can take great pride in properly repairing the damage on a claim while embracing the window to get the customer into a new car. All it takes is a passing question like, “Have you been thinking about getting something new or different? Since your car is going to be here anyway, why not check out the new models in the showroom?”

 

Collision repairs have notoriously thin margins, but the body shop’s value isn’t solely on the money it earns. You can use it to your advantage.

Increase your advertising budget for the body shop above the $0 norm in the industry. It’s about brand recognition, retaining customers, and recapturing defectors. By making your body shop known in your locale, you can drive traffic onto the lot.

Jason Unrau

Automotive Copywriter

Freelance Contributor

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Jason Unrau

Automotive Copywriter

Aug 8, 2019

The 95-Percent Delivery that Ends in Divorce

Some parts of the automotive business are a little different in the Great White North. The industry may be more resilient in some ways, and less affected by crazy rhetoric and politics. But where it remains the same is the expectation a customer has when they purchase a vehicle. That is, the Customer eXperience.

Whether your store is in the deep south, the Bible Belt, or the densely-populated east coast states, every customer has the same expectation for a smooth, consistent experience buying a car. The process is like getting married. You date for a while, potentially keeping your options open. Once you commit to one vehicle, it’s your wedding day. But that’s a starting point, not the final destination. It’s the beginning of a relationship.

In the vehicle buying journey, you can do almost everything right. A perfect walkaround, a customer-centric needs and wants assessment, honest and transparent pricing and negotiation are the bulk of the delivery and are very necessary. But one small misstep can lead to dealer divorce down the road.

It’s the Sales to Service Handoff.

A View from the Periphery

Recently, I had the opportunity to watch a vehicle sale unfold from start to finish with someone who asked for my guidance. The salesperson was doing so well. He nailed the vehicle selection and was so in tune with the buyer. There was an early introduction to the finance manager and the sales manager to really make her comfortable. The decision to buy was a no-brainer.

Even delivery day was great. They reviewed the vehicle options and set up her phone. They pulled the car out of the showroom and off she drove. Without a first service appointment. There wasn’t an introduction to the service department.

Why It Matters So Much

Some think it’s not a big deal, but it is. That one faux pas can be all it takes to never see that customer again, even though the CX was perfect otherwise. Here’s why.

  • You haven’t reinforced the importance of servicing the vehicle. Do they know when the first oil change is due? And you haven’t had an authoritative person at your store explain how the service process will work.
  • You haven’t emphasized why YOUR STORE is the best choice for service. The customer may think they can service just as well at another dealer, or just the corner quick lube.
  • You’ll lose income. If the customer decides to service elsewhere, that’s income your store sacrifices needlessly. And from recent research, everyone is well aware that fixed ops is where the dealership makes consistent money.
  • Future sales could be in jeopardy. Not too concerned about lost service income? Don’t expect repeat sales or referrals. After the first year, more than half of customers who haven’t been back to the selling dealer are grow apart, divorce, destined to never return. That’s despite having a great sales experience. Loyalty is all but dead.

The very simple but all-so-important service introduction absolutely has to be part of every vehicle delivery. No question. You can do 19 of 20 things perfectly in the sales process and delivery. But miss out on that one detail and your perfect score turns into an utter fail.

Jason Unrau

Automotive Copywriter

Freelance Contributor

1776

2 Comments

Bryant Gibby

Driving Sales

Aug 8, 2019  

Great post and I couldn't agree more Jason!

This was something we pushed heavily at both of the stores that I worked at. I strongly recommend developing a process to hold your team accountable or it won't get done. I've seen some stores go as far as tying it into their pay plan. We used to manage it and still found that salespeople (some anyway) didn't take it seriously. We finally made a change and announced that the % of service intros = % of earned spiffs being paid out. We never really had problems after that :)

R. J. James

3E Business Consulting

Aug 8, 2019  

Jason... EXCELLENT article!!!  Especially like your divorce analogy because it REALLY NAILS the Loss of Revenue, Service Customer Retention, and Repeat Sales Opportunities that so many dealerships miss because of a weak or non-existing commitment to a "Sales-to-Service Hand-off" Process.

Jason Unrau

Automotive Copywriter

Aug 8, 2019

Give Customers a Refreshing, Old Ad Message

If you’re the average dealer who’s trying to grow business, the fixed operations departments are one of the best bets you can make. Once you bring in the service customer, odds greatly increase that you’ll convert them into a car buyer down the road.

Capturing new service business presents the same challenge as selling cars in the first place though. Your marketing people are caught in this cycle of advertising loss-leader services for an even deeper loss or pushing to compete with aftermarket providers who sell brakes and tires far below your cost. None of it makes anyone rich and often just opens you up to dissatisfied customers who see right through your games to upsell.

Consumers are tired of the usual messages. “$29.95 oil change.” “Half price wheel alignment.” “Buy 3 Get 1 Free Tires.” They could be great deals, but there’s nothing special about them.

Instead, give customers a reason to buy from you.

Advertise Your Dealership

My own spending habits have me convinced that advertising the lowest price is no longer effective marketing, by and large. Whether for selling cars or selling service, you need to use something other than price to differentiate your dealership. That’s a reason for shoppers to choose your store.

Recently, I had an experience at a local grocery store that reinforces that fact. More than an hour before the posted closing time, I discovered that the produce section had put away items for the night that needed refrigeration. Irked, I followed that up with the discovery that the deli had already cleaned up and shut off the lights. Nowhere was it posted that these departments close before the store’s closing time. I put down my basket and left, and haven’t been back since, no matter what’s on sale.

Millennial or otherwise, today’s shoppers are focused on the experience above price. So, what does that have to do with service advertising? Everything.

Your dealership should be promoted as a destination, not a discount shop. When you sell your products for less than your posted prices, you cheapen their value. The discounted price is now the benchmark a customer will think is fair. Discounts hurt your image as well as your bottom line.

The better option is to let customers know what sets you apart. Do you have free courtesy cars for your service customers, or loaner bicycles for eco-conscious clientele? Do you have an onsite bistro for breakfast or snacks throughout the day? Is your waiting room kid-friendly? Is your Wi-Fi fast and free? Those are important for your customers today, but you need to have more.

Your ad viewers need a hook to change from their current dealer or service shop. Figure out what that can be for you. Perhaps you offer evening appointments for express oil changes. Maybe you can provide pickup and drop-off for service customers. Create a niche for yourself or, at very least, be the very best at something.

Follow Through

Whether you advertise that you offer service shuttles, complimentary detailing, or vehicle delivery, you can never, ever fail. The absolute worst thing you can do is fall short on promises you make in advertising. It’s tantamount to advertising a car for sale without having it in stock. There’s no cleaning the egg off your face from it.

When everyone else is focused on dropping their pants on pricing, be different. Tell people why your store is the better choice to visit. Just make sure you keep your produce and deli open until closing time.

Jason Unrau

Automotive Copywriter

Freelance Contributor

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Jason Unrau

Automotive Copywriter

Aug 8, 2019

Why You Shouldn’t Expect Your Service Advisors to Do More

The service advisor's job is a juggling act. Do you answer the line flashing on your phone first, call the estimate an impatient tech just put in your hand, or perform a walkaround for the customer who just drove into the service drive? In this juggling act, there are always multiple balls in the air, and one is always close to hitting the ground.

Multitasking is a part of the service advisor’s role. But as service managers and fixed operations directors, it’s in your best interest to streamline their work. Here’s why.

Multitasking is Inefficient

Research at the University of California has found that it takes 25 minutes to resume a task after being interrupted. Think about it in your own life. When you’re in the middle of something at work or at home and you’re interrupted to perform another task, can you get right back into it when the interruption is over? In my life, I prove the research is true. I can’t make the mental shift back to task #1 immediately.

It doesn’t mean that service advisors should not be capable of juggling multiple tasks and prioritizing the order. It’s integral to the role. But what it does mean for management is that interrupting the service advisor’s tasks with something that’s outside their daily tasks should be planned thoughtfully.

For example, HR needs a short online course for OSHA compliance performed by everyone in the service department. Instead of putting it on their plate mid-morning, schedule it for the first thing after they return from their lunch break. Your service advisor can better devote their mind space to it.

Mistakes Happen

I know it’s true for me. When I’m faced with multiple things at once, it’s an opportunity to make a wrong call. Mistakes happen. It might seem like a really minor thing to add a point to a routine, but it leads to mistakes.

You’ve decided that your busy service drive needs to be streamlined and your service advisors should put floor mats and seat covers in so valets can focus on parking vehicles faster. Think about something menial in your store that might be similar to the example. It seems like a non-issue, but it requires mental capacity to change a habit. You’d probably prefer service advisors use that mental capacity for productivity, wouldn’t you?

And what happens if the service advisor misses it in their routine? The valet pulls the vehicle out without a seat cover, the technician is sick of picking up the slack and does the work without it, and you’re left with a detailing bill for the handprint on the customer’s cream-colored seat.

It Decreases Productivity

The same research shows that it takes 50% longer to complete a single task when you’re multitasking. That means that a 10-minute task takes 15 minutes. But since you’re doing two things at once, it means that each 10-minute task takes 15 minutes – what should take 20 minutes takes 30.

 

The takeaway is this: it pays to keep your service advisors focused on the tasks that are productive. They include greeting customers, performing walkarounds, reviewing maintenance recommendations and upsells, writing ROs, selling estimates, and keeping in contact with customers. Follow-up calls are also important.

It’s in a service department’s interests to strip away non-compulsory tasks that take away from productivity. In most cases, adding an extra support staff is a less expensive option than expecting service advisors to add to their workload. It isn’t an excuse for service advisors to not chip in when they can, especially if they have idle time. But if your service department is humming at full or near-full capacity, it doesn’t make good sense to demand more from the highest-selling people in your store.  

Jason Unrau

Automotive Copywriter

Freelance Contributor

1581

1 Comment

Joe Henry

ACT Auto Staffing & ACTautostaffing.com

Aug 8, 2019  

Jason, so true about needing to be a centipede. And with your receptionist yelling “get the phone!” while you have a tech AND a customer standing in front of you, no wonder:

NADA study states the average dealership will lose 1 out of 4 Techs and 2 out of 5 Service Advisors/ASMs a year

Jason Unrau

Automotive Copywriter

Aug 8, 2019

Make Your Menu Prices an Asset

A McKinsey Insights article titled “Driving the Automotive Customer Experience Toward the Age of Mobility” explores the shift in demographics for the automotive industry. In the article, they suggest that millennials will become 45 percent of the customer base in automotive by 2025. That’s just six years away.

What we know about the millennial generation is that their shopping patterns and expectations are different than previous generations. They expect transparency more than any other generation, and they expect a connected, easy to navigate online experience. Information needs to be readily available or they’ll turn on their heel and choose someone else.

How does that affect service departments? With nearly half your potential customer base at stake, you’ll need to embrace millennial expectations, particularly where service pricing is concerned. Specifically, your menu prices should be front and center.

Build Customer Trust

The values that millennials expect aren’t new, they’re just exacerbated. All customers will benefit from intentional transparency and menu prices that emphasize value and while highlighting OEM advantages and amenities. It builds trust with your customers.

What happens when customers trust you? Sales folks know this well – they open their wallets. They do so because you aren’t trying to sell them on a service or product but because they perceive that you’re helping them.

So, how can you help your customers trust you through your menu pricing?

Consistent Delivery Across Platforms and Media

When you’re establishing your service department’s online presence and advertising through a wide range of old and new media, deliver a consistent message. Use similarly worded and styled ads whether on social media, snail mail flyers, TV ads, or anywhere else you know your customers will see it.

Dealers, there should be a fair slice of the budget dedicated to service advertising. We know that it’s easier and cheaper to convert a service customer to a new car buyer than to attract a new sales prospect. Don’t miss this. It’s a huge opportunity that many dealers still haven’t caught onto.

Highlight Promotions

Service promotions are usually a steeply discounted loss leader to attract customers during slow times. It doesn’t have to be that way. Your promotions can be very minimally discounted – or not at all – and your services emphasized instead.

Once you’ve set your promotion, get the message out with your consistent delivery methods. Tell your current and potential customers why your store is the best choice for them, regardless of price.

Remember this about deep discounts: the lowest price at which a customer has paid for a service is now their perceived value. Trying to raise the price makes them think you’re overcharging. Keep discounts of any kind minimal.

Use Menu Pricing as a Sales Tool!

Have you ever considered using your service menu pricing as a sales tool? Think about this scenario:

A millennial shopper (or it could be any shopper, really) has settled on a make and model you sell. They’re either sitting in front of you after a test drive, or possibly you’re still talking back and forth online. Sure, you could drop your pants on the price to try to secure the sale, but what’s to say another dealer won’t undercut you on price? But you can change the conversation. Let the shopper know all the reasons they should choose your dealership, not your car. Bring up your online service menu prices that show competitive comparisons with local providers, a service InteliChek can help you with. Demonstrate that you have amenities others don’t have, your prices are comparable or better than the competition, and they’ll have the advantage of dealing with the OEM.

As a tool in a good salesperson’s hands, menu pricing can change the conversation away from sales price and build trust with the customer.

 

The bottom line: customers of every generation want to trust the people and companies they deal with. By making your service menu pricing consistent, making it easily available, and using it for more than just selling service, it will benefit your dealership and build trust.

Jason Unrau

Automotive Copywriter

Freelance Contributor

1021

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Jason Unrau

Automotive Copywriter

Jul 7, 2019

Why Fixed Ops Managers Need to Experience DSES

More emphasis has been put on the service and parts departments recently than ever before. While there have been huge strides forward, it seems like fixed ops management is expected to have answers for every problem from the moment they take the hot seat.

It’s different for sales management, GSMs and dealer principals. The variable side is fluid and ever-changing, requiring continuous personal and corporate learning. The bulk of attendees to automotive retail training and seminars like DrivingSales Executive Summit is from this group.

But I’d contend that fixed operations managers, especially service managers, would benefit even more from attending DSES.

Ongoing Improvement

The service and parts departments have more cogs turning at any time than most people – even other dealership staff – usually think. It’s commonly thought that it will just keep earning, no matter what happens locally, nationally, or globally.

Things change more than most people expect in the service and parts departments. It can include:

  • Best practices for customer contact methods. Phone has given way to email, and text messaging is on the rise.
  • Equipment improvements. The latest technology for parts department organization, shop tools, and CRM management are evolving quickly.
  • Management techniques. You can’t deal with your staff today as you would’ve in the eighties.

Status quo on these issues will have your service and parts departments eating the competition’s dust. Sessions from keynote speakers and breakout sessions on specialized topics will help fixed operations managers keep their head and their department in the game.

It’s Like Reading the News

It used to be black-and-white newsprint was the way to stay in touch with current business trends and new tech. Today, that can be done online in many ways, but it’s even better in person.

While there are automotive publications available specifically for fixed operations like Fixed Ops Magazine, the content is both advertorial and sales driven. Sure, there’s an aspect of that at DSES but that’s outweighed by the thought leadership and innovation that you’re exposed to.

It’s Invigorating

AutoBahn Academy reports that 9 out of 10 leads from your websites are new potential customers, and poses the question: “Do you ever tell them why they should buy from you other than price?”

On customer retention, the Cox Automotive 2018 Service Industry Study reports that 74 percent of those who returned for service within the past 12 months are likely to return to the dealership of purchase for their next new vehicle versus 35 percent of those who did not return for service in the past 12 months.

Think With Google reports in their 2017 Fixed Ops Study that more than 40 percent of auto service shoppers need reactive versus routine maintenance.

These statistics begin to develop thoughts and mental processes that can drive fixed ops managers to excel in the coming year. Should they focus more on advertising the benefits of servicing at the dealership versus matching prices? Maybe driving hard toward higher customer retention should be the target. And perhaps customer education on the importance of routine maintenance versus fixing problems can both lower cost of ownership and improve the customer’s trust in your dealership.

But engaging with people and companies that specialize in the automotive industry, fixed ops management are invigorated with new ideas and better processes that can drastically improve culture, satisfaction, and revenue.

 

It’s a fantastic idea for sales management to attend the DrivingSales Executive Summit, no question. But service and parts managers also belong at the event!  

 

Jason Unrau

Automotive Copywriter

Freelance Contributor

844

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Jason Unrau

Automotive Copywriter

Jul 7, 2019

Add Service Value with Dealer Amenities

The 2018 Cox Automotive Car Buyer Journey reveals that about 77 percent of a dealership’s service customers think they’re being overcharged. That research is substantiated with high defection rates – car buyers who decide to service their vehicles elsewhere after the sale. But this research is only based on the customer’s perception, not reality.

InteliChek asked focus groups of various demographics a similar question about service costs. All groups had the same result: they believe dealerships charge double what you’d pay at an aftermarket service provider.

The Perception is Dealers Charge More

 Customers believe franchised dealers are overpriced for services, and that’s without comparing price. What’s also true is that customers are willing to spend 15 to 20 percent more at the dealership based on the expertise and amenities you have. You can demonstrate your competitive pricing in ads or in the store but that’s only effective if you have the amenities to back it up.

What Dealer Amenities to Focus On

In your service promotional material, both online, in print, and in-store, you should be making an effort to differentiate your service department offerings from competitors. These are the factors that will reinforce value in the customers, drawing them in to be pleasantly surprised that they aren’t paying double.

Loaner Vehicles

A massive plus for dealerships is a fleet of service loaner cars. Many manufacturers offer loaners for warranty repairs, but what about CP services? A fleet of loaner cars relative to your department size is an investment you can’t afford NOT to make.

Another low-cost transportation option that’s increasing in popularity is loaner bicycles, especially for the conscientious millennial generation.

Loaners are an amenity that aftermarkets can rarely afford. Work that angle to your advantage.

Free Detailing

It might not seem like much to you, but car owners love a clean car! If you can wash cars in for service consistently, customers will love you for it. It saves them time and money from making a visit to a car wash, even if they’re paying a bit more for their services.

Complimentary Multi-Point Inspections

Not only are multi-point inspections huge benefit for adding service sales but they add peace of mind for the customer. It shouldn’t be understated – MPIs are arguably the most important tool in a service department’s chest. When it’s deliberately stated as complimentary on the RO, customers take notice.

Refreshments

Everyone offers coffee and water. Additional refreshments make the customer’s experience even more comfortable. Whether it’s juice to refill sippy cups for your next generation of customers or pastries for early birds that rushed out the door, providing a snack and a few beverage options is a nice touch.

Kids Play Area

Parents worry what they’ll do with their kids when they come in for service. If you have a play area with safe toys and age-appropriate TV shows, it’s a hit for parents.

Well-Kept Waiting Room

How your waiting room is kept is just as important as what it contains. The customer perception is that you treat their vehicle the same way you treat your facilities. That means spotless washrooms, a tidy, organized customer lounge, and modern equipment are the expectation.

Remember, the amenities you offer are meant to improve the customer experience, adding value for your customers. You can charge up to 20 percent more for services in most cases as long as you give your customers more value than lower-priced competitors.

Jason Unrau

Automotive Copywriter

Freelance Contributor

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