Since multi-point inspections became standard, dealers have followed the same old processes. A customer comes into the service drive; the service advisor checks them in; a technician takes the car, examines it, then gives the inspection to the service advisor for review with the customer which is typically done by emailing the 5 page report to the customer.

The forms typically have line items with checkboxes colored in red, yellow, and green. 

And to make matters worse, this form is typically emailed to the customer in a PDF format that sometimes can be as many as 5 pages. 

Well, these days technology has evolved. And, as a result, most content is now presented in a visual form with pictures and videos. Consumers have in turn become more visual. They don’t have the time to page down on their mobile phone and navigate through a bunch of red, yellow and green check boxes. And, while some may read these row by row inspection results, it is hard to comprehend. 

Most of the times these MPI report require a phone call with the advisor for clarification. Traditional MPI forms may continue to be used internally. But, if the customer doesn’t understand what is presented to them, approval of recommendations will continue to get longer and will require that the customer get in touch with the advisor.  With so many customers either in rental or loaner cars, just connecting to discuss recommendations is becoming a game of voicemail tag.

Today, many leading dealerships have started to use video documentaries to present recommendations to their customers, with great success -- a picture is worth 1,000 words and video is worth 10,000 words. Their service department profitability is rocketing as a result of increased recommendation approvals! A technician that records the grooving on brake pads and explains the consequences is going to get no argument from the customer.  It speeds up authorizations and is much more convenient. The technician can record the video on their smartphone then send it to their service advisor to ultimately add an explanation and send on to the customer.

This is a very simple process to implement. Here are some best practice tips from my experience: 

1. Every vehicle inspection should get a video documentary or walk around. For best results use a newer phone such as an iPhone 7 or Samsung Galaxy S7/8, as they have better quality video. Some employees will have these already and, if not, they are a relatively inexpensive investment and you will soon reap the ROI. Hold the phone in one hand and point out the feature you are documenting with the finger of your other hand while adding a voice commentary, so it is very clear to the customer what you are recommending. 

2. Identify 2 or 3 of your most technologically-inclined and progressive service technicians. Hold monthly meetings to go over the results. Any among those who are resistant will soon come around once they see how well the other techs are doing. Stats such as increased approval time, upsell, and CP lift will quickly get them on board. 

3. Look for a tool to make the process more efficient, one that documents and archives the video recommendations for future reference. It should also be very easy to send to the customer. This way, you can show the customer on their next visit (should they decline the service). Consistency builds customer trust and gives you another shot at getting their approval. 

4.  Last, but not least, consider a simple spiff program (the simpler the better). One of our customers has seen a significant rise in doing this, and a simple incentive will improve adoption. 

You already do it for tire sales, right? Why not for completed video documentaries?

Don’t get left in the dust by other, more progressive dealers. There’s absolutely no reason to. Let that old technology Rest In Peace and adopt video documentaries. It creates a win-win situation for everyone.

Every business wants to be the market leader and have success. Yet to do so, many have the mindset that it is necessary to spend more money. “Buy a Super Bowl ad,” they say. “Spend hundreds of thousands on TV and radio.” The trick to getting big isn’t always about trying to reach the most people possible. In fact, according to American author, entrepreneur, marketer, and public speaker Seth Godin, it is focusing on what he terms the “minimum viable audience.”

This is the smallest audience you can capture and maintain. When you focus on that, you have a much better chance of making them happy, changing processes that need to be changed and creating a customer experience that’s truly memorable.

Focus too big and your message reaches nobody -- it’s too generic. Today, effective marketing relies upon personal preferences and connections.

Why?

Because nobody can be everything to everybody at the same time. That newspaper ad or “spray and pray” direct mail spend targeted at EVERY customer has a very small return on investment. Sure, the low percentage of people that do respond do so because you happen to hit them at the exact right time with the exact right message. But, what about the other 98 percent of the people? You just annoy them.

Would you rather capture 2 percent of the revenue and alienate the other 98 percent, or flip that around?

According to Seth Godin, most major brands are now focusing small and that is exactly what has made them big and keeps them thriving.

There is a reason why User Experience (UX) and customer experience are today’s buzzwords. In the automotive world, true growth isn’t gained by coupons, discount or novelties, but rather by ensuring that your customers become loyal advocates.

Ensure that each customer that comes in for sales or service has a great PERSONAL customer experience. Try it out. Send in a mystery shopper and spot check your customer experience.

According to today’s highly successful companies, a greater focus on the personal customer experience rather than mass marketing to the universe leads to far more growth.

Take care of your customers with a personal touch and they will take care of you.

I’m sure that you’ve all heard the tale of the princess and the frog. In the beginning, the princess despises the frog and doesn’t want to interact with it – especially not to kiss it – but through personal interaction and a little time, the frog wins her over, gets that kiss and transforms into the prince he actually was all along.  

In the past, big brands have sort of been the princesses of the retail world. They had all the money, spent it to get attention and this worked well for them. However, as the Internet has evolved and greatly improved ease of communication, the world has shrunk. Today’s consumers expect brands to interact with them on a more personal level. 

And that’s exactly what many brands have decided to do. 

A recent blog by Chris Brogan breaks down exactly how and why big brands have decided to think smaller. Rather than reaching out to mass audiences, they have realized that a single person at a time may be a better strategy.  

The fact that the Internet – and, more specifically social media – has allowed consumers to interact with brands instantaneously and on a personal level has changed the game and levelled the playing field. No longer is it all about “Buy our things because we’re popular!” Today it is more about, “Do business with us because we care about you – and we’re talking just to you… at the moment.” And that’s what creates brand advocates. People love the individual experience, tell their friends and continue to interact.  

When consumers display the desired behavior, brands reward them with social media interaction – thus encouraging the behavior and increasing the likelihood of repetition and loyalty. The more the behavior is rewarded, the more often the consumer repeats it.  

As Chris Brogan states, the future lies in using all your tools to let your buyers feel as seen and heard and loved and personally tended to as humanly possible. You’ve “gotta take all the sentiment and heart and caring and dedication to the satisfaction of the buyer and deliver on this at a many-to-one scale.” 

Consider trying this approach with your operations wherever you can by simply communicating via your various channels on a more personal level. Step up your social media game. Make sure you are monitoring and replying to your customer comments and questions. Thank them for any positive reviews and reach out to them if their review is less than great. You don’t need to spend millions of dollars on a Super Bowl commercial to gain brand advocates… in today’s world, all it takes is some personal attention and recognition.

As automotive tech vendors increasingly push the importance of bringing the car buying experience online to combat companies threatening disruption, it appears that a couple of world-leading companies may be showing us the future.  
 
An article in Marketing Dive theorizes that the trend towards a better online experience is slowly being overshadowed by a push for traditional in-store customer experiences. This could explain the curious move by the world’s largest digital retailer, Amazon, to open physical bookstores, along with its recent acquisition of the grocery chain Whole Foods. In addition, the world’s largest traditional retailer, Wal-Mart, is aggressively acquiring online retailers. It does seem counter-intuitive but, in reality, it’s actually pretty logical.   

If you recall, way back in 2001, while everyone was predicting the death of brick-and-mortar stores, Apple’s Steve Jobs introduced the Apple Store - which many predicted to fail. We all know how that worked out as Apple Stores have succeeded beyond everyone’s expectations. Have you tried to visit one lately? 1) They are always packed with people; 2) Apple does a great job of servicing their customers; and 3) Apple is able to showcase its latest products and educate consumers on them. These three KEY elements apply to any customer-focused business, be it Apple, or an auto dealership. 

While I realize most dealers will not have the same success as Apple, Amazon and Wal-Mart, the point is that the way to grow, and at least approach that type of success, is to realize that today’s consumers demand the experience THEY want on THEIR terms. For some consumers, that experience may be completely online, others may desire a completely traditional buying experience, while others may want a combination of the two.  
 
For the future, those businesses in the forefront will be the ones that ensure their customers can have the experience they want, rather than being forced to endure the experience the business wants them to have, especially when it does not meet the customer’s desires. 
 
In the end, what will determine your dealership’s success is how you adapt to your customers preferred ways to interact with you and whether or not you provide that experience to them, be it traditional, digital, or a mixture of both. 

Costco has certainly built a loyal following over the years, even though it literally charges consumers for the privilege of buying goods from them – and many consumers happily do so. In fact, 85 million consumers who, in 2016 alone, spent a collective $16 billion.  
 
Why do 85 million people pony up $55 and more per year (depending on the type of membership) simply to purchase items from Costco? Good prices and a great customer experience are two key things that have helped the company grow through strong customer loyalty.  
 
And, talking of a great customer experience, did you know about their incredible no-questions asked return policy? I was refunded the full amount for a gift I ordered for a friend because it did not reach them in time. One would think that this no-questions asked policy would be pretty risky. However, while there are some who may abuse it, the loyalty it engenders amongst the vast majority more than makes up for any losses it may incur.  
 
In our industry, most dealers certainly don’t have the same sort of policy, (although some do have limited return periods) and I’m not suggesting that dealers should. I’m merely pointing out the power that catering to customers can have in creating customer loyalty -- even if it costs a little money. It helps transition repeat customers into brand advocates.  
 
When issues arise between customers and dealerships, decisions are often made from a financial viewpoint, rather than with customer service and the overall customer experience in mind. The dealership employee or manager often factors in the dollar cost of pleasing the customer when making their decision. If that cost is too high, they may lean towards declining or offering a token gesture, but not one that completely rectifies the bad experience as far as the customer is concerned. 
 
Nothing will cost you more money over time than the loss of a loyal customer. A customer’s lifetime value to your dealership across sales and service can easily climb into the hundreds of thousands of dollars range. Yet many dealers end up with an unhappy customer by concentrating on the dollars and cents of a single transaction. 
 
Consider whether you would rather have hundreds of thousands of dollars in revenue in the future, or lose a customer so you don’t take a one off $200 hit in service or sales. 
 
I know how much I would rather have.

It’s the goal of every service department to enjoy excellent customer retention and loyalty. Other than tempting them with coupons and incentives, what can you do to keep bringing those customers back in? 

Here are 5 things I have seen successful service departments do over the years that bring their customers back for service: 

1. Assign Each Customer a Service Advisor – By assigning each customer their own service advisor you have a better chance to build rapport and trust. The sales department assigns a customer to a salesperson for this exact reason, so why wouldn’t the same philosophy apply to service? This practice allows customers and service advisors to build a relationship which then extends to the dealership. When customers deal with the same person for each service visit, they no longer have to explain past repairs to the service advisor, have more familiarity and are more at ease with the entire service process. 

2. Notify Customers of ETA Changes in Real-Time – There’s nothing more frustrating to a customer than planning their day around a repair based on the estimated time their vehicle is supposed to be ready, then an hour or two later, when they expect the service to be done, they find out it’s going to be MUCH longer. Text, email or call your customer (depending on their preference) with regular vehicle status updates. If Domino’s Pizza can do this, why not your service department? Real-time notifications keep customers informed and lessen the chances that they will be irritated and will lower the # of inbound phone calls to your service department. 

3. Provide Direct Lines to Service Advisors – Nobody likes phone trees when calling into any business. Especially if it makes it difficult to talk to a live person. Lessen friction by simply giving direct phone numbers to the customer for their assigned service advisor. Customers will no longer be upset by being unable to reach a live person; the service advisor they speak to will be familiar to them; and the customers should get their questions answered faster. This makes for a better customer experience and more efficient service department. 

4. Allow Customers to Review Invoices in Advance – Being surprised by a bill larger than expected is not something most people react well to. If you can email or text the final invoice to the customer, they can then review and approve it -- and with today’s technology even pay the invoice before coming into the dealership. This also gives the customer the opportunity to ask any questions up front and removes the possibility of confrontation and aggravation at the dealership. 

5. Follow Up After Service – Of course, for a customer to feel special and cared about, they shouldn’t be forgotten once they leave. A simple call by their assigned service advisor to verify they are happy with the service they received, to check if they have any questions and to inform the customer that they look forward to their next visit, makes a far greater impact than most people realize. In addition, it allows the service advisor to hear, address and correct any problems before the customer either fills out a survey or decides to go somewhere else. 

Consider copying these best practices from other successful service departments. As a result you should enjoy happier customers, less friction, increased customer retention and profitability.

While the automotive industry has seen massive technology changes in the last 5 years, there is a continuing trend where some OEMs partner with specific vendors and then take away the freedom of choice for forward-thinking dealers. Mandates are enforced where franchised dealers must choose between 2-3 vendors for a particular solution.

This practice can be very frustrating for dealers – especially any that specifically wish to think outside-the-box, be innovative and try new things. I have heard of some dealers that have vendors they are forced to use as a packaged deal with multiple solutions, some of which they don’t wish to use. There are even dealers that pay twice. Once for the vendor solution they are forced to use, and once for another solution which they prefer for their individual dealership. This ties up their budgets and effectively handcuffs dealers to vendors, preventing them from trying new solutions.

In my opinion, things would work better if manufacturers would allow dealers to choose which solutions are the best fit within their marketplace and audience. I would rather OEMs set up benchmarks that need to be achieved with very simple measures, but with high standards.

Here’s a simple yet radical thought - get rid of the 15 questions you ask every customer in your surveys. How about just focusing on the Net Promoter Score (NPS) for the dealership? Set the bar high and ask one question, “Would you recommend the dealership to your friend or colleague based on your service experience?” I guarantee this would work better than the current situation where OEMs choose solutions which target different actions such as web-based appointments. Instead the focus should be on the NPS score.

This would avoid the “one solution fits all” model for dealers, and would allow forward-thinking dealers to customize their approaches. A case in point, every manufacturer is going after tablets in the lane. Well, I know of a franchise in Santa Monica where on Fridays a car rolls in every 2-3 minutes and they only have space for 6 cars in 2 lanes. They simply cannot check people in using a tablet and allow the customer stay in the car while that is happening. Instead, they have to use porters to whisk the car away and then walk the customer over to their office to check them in. If you jam this dealer with a tablet, and if it does not keep the cadence of a 1-2 minute check-in per car, you are going to create a backup on the already jammed streets of Santa Monica.

Technology changes so quickly that an impenetrable partnership which forces dealers to use one vendor over another can restrict progress, growth and sales. Freedom of choice and outside-the-box thinking is what fosters innovation and then true game-changing can begin.

What do you think, should dealers be given more autonomy to choose their own vendors?

myKaarma Founder & CEO Ujj Nath explains the importance of genuine systematic follow up for dealerships.

Founder / CEO Ujj Nath shares 5 ways that dealership service departments can increase their market share on repairs in this video blog.

Ujj Nath shares 3 things that dealers should pay attention to in order to ensure a successful future.