Hint: It involves implementing a digital retailing strategy with messaging woven into it. And we’ve got a guide to help you make it work. SEE HOW
Vehicle Acquisition Center--Recall Relationship Center--Loaner Center---Vehicle Service Contracts/Maintenance Contracts Center (more about the details of these below)
For two years prior to my present position, I was stationed in the Group 1 Automotive Service Development Center (SDC) in Houston. That's where I learned a lot about the dealership service business by taking service calls for all of the Group 1 dealer service centers nationally.
And if you think that job was all about simply scheduling appointments, better think again. It was a prime opportunity to establish either a "great or poor" customer relationship with the callers. First experience encounters at dealerships are critical touch points for an already skeptical and sometimes fearful customer.
In addition, I would visit many of our Houston area dealer service centers on my days off to see what the reality was like on the firing line.
However, now I'm in the best position ever to see how the dealer service center really works...as the Customer Retention Manager (service) for a very large volume Buick GMC dealer with a great reputation in Houston.
The recession coupled with the huge onslaught of recalls has really gotten the attention of the OEMs as to the importance of their service centers (what has always been called the back end of the dealer model.)
There has always been a saying in the "back end" “let's abolish that identity right now, shall we!” "Sales sells the first vehicle...service sells all the rest!"
Well guess what...that cute little phrase has become a reality with the OEMs and the "smart" General Managers (who have traditionally come from the sales side).
Here are the departments (or maybe future departments) for the "other" showroom...the dealership service center.
Vehicle Acquisition Center
What's that, you ask!
There's a new "big idea" in auto retailing that is just gaining its legs. It is called "equity mining” but if dealers don't so it right...it will turn into just another reason for car care customers to defect to the independents and chains repair facilities.
How do you do it right?
First, eliminate that "Sell Us Your Car" signage and mindset from everywhere in the dealership.
Second, hire for service skills first...sales skills second.
Third, construct an extra low pressure "story" of why you are doing it...that the customer will believe.
The third one is critical and it will make perfect sense to a customer base who is already skeptical of your every move. Make it reflect that the number one priority in this program is obtaining first class, worry-free pre-owned cars to sell. By worry-free, I mean a "better" used vehicle because the buyer, in many cases, will have the complete service history to review.
Recall Relationship Center
I believe that most would agree that recalls are pretty much here to stay, right? But most service centers still lack a specific plan to leverage them properly.
I believe recalls are a "sleeper" opportunity for service centers to
1) gain new customers and customer pay business
2) secure possible prospects for future sales and
3) recalls are still so new...we still aren't aware of all the possibilities yet.
However, we pretty well know this...the impact of recalls on customers has been "overall" pretty positive so far. The customers I have spoken with seem to have the opinion that it's a positive act on the part of the OEMs from a safety standpoint. But it will only stay that way if their experience goes well at the service centers. (I've had personal conversations with 100s of them via my last job with Group 1 Automotive)
I don't know about you, but I was completely caught by surprise to see that brands like my store, Beck & Masten Buick & GMC, have an incredibly large fleet of loaners.
And the loaner "experience" will be a big part of the vehicle acquisition center process. Not only should that process include demonstrating the (new) loaner model features (for those service customers with older model vehicles)...that process should also attempt to provide as close to a match for the potential "equity exchange" vehicle as possible.
In other words...try to match the loaner to the potential new car choices for those positive equity prospects.
It always made sense to me that the potential buyers who rent a make/model of an impending vehicle purchase ahead of time are the really smart ones.
Vehicle Service Contracts/Maintenance Contract Sales Center
This has been around forever but with the new cry for a more transparent F & I process, the potential for ramping this effort up in service is imminent. After all, who better to dramatize those costly auto repairs than the service advisors.
All in all, the service center potential to affect future purchases of vehicles is rather dramatic when you really break it down