Service Drive Magazine October 2015

Early Bird Registration Now Open For Feb. 9-11 CBT Conference & Expo

CHECK OUT OUR DAILY NEWSCAST ON ServiceDriveToday.com

SERVICE DRIVE MAGAZINE

A CBT AUTOMOTIVE NETWORK PUBLICATION

October 2015 CONVERTING RECALL JOBS INTO

LIFETIME CUSTOMERS VERN POYNER ... see PAGE 10

5 POTENTIAL CAREER TRAPS FOR A SERVICE ADVISOR

JEFF COWAN ... see PAGE 16

DAILY PLANNING

MAKES YOUR NEXT DAY IN SERVICE MANAGEABLE

ALABAMA HEAD COACH

NICK SABAN TO KEYNOTE

CBT

CONFERENCE & EXPO FEB 9-11 OMNI HOTEL

ATLANTA

BRENDA STANG ... see PAGE 18

RETHINK ‘NO APPOINTMENT NEEDED’ POLICY

Patrick Lencioni Jason Dorsey

IN QUICK SERVICE

JOHN FAIRCHILD

PRSRT STD US POSTAGE PAID Permit No. 1459 Pewaukee, WI

... see PAGE 20

Business leadership expert Patrick Lencioni and millennials marketing authority Jason Dorsey lead the list of thought leaders and industry experts for 65+ dynamic breakout sessions for the Atlanta event. Save $200 on early bird registration.

Go to CBTConferenceandExpo.com. ...see PAGE 5

SAVVY DIRECT MAIL MARKETING OF SERVICE The ability to segment customer audiences and deliver them aggressive offers for work like oil changes sustains value in this marketing channel. ... see PAGE 14

CBT Automotive Network 5 Concourse Parkway Suite 2410 Atlanta, GA 30328

Volume 1, Issue 6

A

T

L

A

N

T

A

SHOP PRODUCTIVITY IS YOUR MOST CRITICAL METRIC Approaches are offered to increase your service department’s productivity to at least 120% and keep it there. .... see PAGE 8

IF YOU DON’T ALREADY KNOW ABOUT US...

YOU SHOULD.

ForceMarketing.com | Atlanta • New York | 800-610-8905

REVOLUTIONIZING THE SERVICE LANE WALKAROUND EXTERIOR

INTERIOR

RECORD DAMAGE

TIRE

PACKAGES

SCRATCH

WHEEL

COMPLETE DRIVER (2)

REAR (0)

‘08 FORD EXPLORER VIEW/EDIT DETAILS

PASS. (0)

DING

DENT

WINDSHIELD

BACK

SALLY JONES

HISTORY

WIPER

FRONT (0)

PAINT

HEAD LIGHT

TOP (2)

OTHER

BRAKE/TAIL NEXT

ELEAD1ONE 2015

Provides 100 percent transparent communication - from the moment an appointment is made until the repair order is complete. Service1One helps dealers maximize efficiency, customer satisfaction and market share!

2015

AWARDS WINNER

DIAMOND WINNER Top-rated CRM

2015

DIAMOND WINNER

2011

DIAMOND WINNER

2012

DIAMOND WINNER

2013

DIAMOND WINNER

2014

888.628.6779 | sales@eleadcrm.com | www.elead-crm.com © Data Software Services, L.L.C. 2015

SERVICE DRIVE MAGAZINE

Letter from the editor Dear readers, I want to first bring your attention to the CBT Automotive Conference & Expo next Feb. 9-11 in Atlanta, for which early registration is now open. Our roster of keynote, panel discussion and breakout session speakers continues to expand, with successful executives and thought leaders including preeminent college football coach Nick Saban, business leadership guru Patrick Lencioni, millennials expert Jason Dorsey, Jared Rowe and Dale Pollak of Cox Automotive, Asbury Automotive’s Stuart Bailey and EasyCare chief Larry Dorfman. Anyone working in an auto dealership will reap huge benefits from the discussion and peer interaction at our event, so you’ll want to make plans now to attend.

This edition, we pay considerable attention particularly to the needs and job duties of your service advisors.

Check out our article about your options for having advisors help drive sales of various warranty policies, and how your dealership might want to compensate them. Also, fixed-ops trainers Jeff Cowan and Brenda Stang have penned guest articles about, respectively, five potential career-killing mistakes for service advisors and the need for advisors to plan their next work day in advance.

We’re also offering you guidance on the marketing front, with thoughts about how to leverage direct mail to the service department’s advantage from Amy Farley of Force Marketing and our coverage of trends in auto manufacturers’ co-op advertising programs for their authorized dealerships.

Lastly, I wanted to draw attention to metrics, as that’s a topic constantly demanding attention from service directors seeking improved efficiency and productivity. It can be tough to prioritize among a dizzying array of performance metrics, but Don Reed of DealerPro Training makes some great points about why you should be paying special attention to managing your shop productivity stats.

JON MCKENNA

Happy reading.

Managing Editor

SERVICE DRIVE TODAY Email

Newsroom@ServiceDriveToday.com Phone

678.221.2955 PRESIDENT AND PUBLISHER Jim Fitzpatrick VICE PRESIDENT/COO Bridget Fitzpatrick MANAGING EDITOR Jon McKenna

CREATIVE DIRECTOR Randall Veugeler ART DIRECTOR Erica Abrams PRODUCTION MANAGER Laura Payne DESIGNERS Shay Harbaugh Brian Hassinger April Miller Christina Zavlanos WEB DESIGN Jeff Pearson

In This Issue 6 Evaluate whether your service advisors can help sell F&I warranty products

By Jon McKenna

8 Trends in your shop productivity metrics should command special attention

By Don Reed, DealerPro Training

10 Tips for turning a recall repair job into a lifetime service customer relationship

16 5 deadly career mistakes for service advisors, and how you can avoid them

By Jeff Cowan, PRO TALK Inc.

18 Advisors need to plan their next business day to make emergencies manageable

By Brenda Stang, Shifting Gears Training

20

By Vern Poyner, CARFAX

12 Should your OEM’s co-op advertising program cover more digital advertising?

By Jon McKenna

13 Ask the Pros 14 Direct mail marketing still has many advantages to offer service departments

By Amy Farley, Force Marketing

4 Service Drive OCTOBER 2015

DIRECTOR OF MARKETING & EVENTS Alex Branam

A blanket ‘No appointment needed’ policy for the quick-service lane is the wrong move

By John Fairchild, Fairchild Automotive Solutions

22 Good reasons to use your BDC for outbound, as well as inbound, service calls

By Chuck Wenzler, M5 Management Services Inc.

24

Electronic appointment function of your DMS

is an under-utilized service dept. asset

By Ken Rock, Auto/Mate Dealership Systems

26 How to stop overbearing behavior by people at all levels of service department

By Rob Gehring, Fixed Performance Inc.

28

Seven rules to reduce stress levels in work and personal lives of a service team

By David Lewis, David Lewis & Associates

30 Warning signs that your dealership’s CRM is a bad fit for its business model

By Zach Klempf, Selly Automotive

32 On The Set With Service Drive Today

MARKETING ASSOCIATE Roxanne Luhr SUBSCRIPTION MANAGER Emily Wiggins

MEDIA SALES REPRESENTATIVE Jane Howard jhoward@cbtnews.com d 678.221.2964 c 404.452.9551

Subscriptions To subscribe electronically, log on to ServiceDriveToday.com and click the subscribe link on the side bar. Alternately, forward your company name, your name, address, phone number and email address to info@ServiceDriveToday.com or CBT Automotive Network, 5 Concourse Parkway Suite 2410, Atlanta, GA 30328.

Please send address changes to the above email or mailing address.

Permission to reprint or quote excerpts granted only upon written request.

Advertising rates are provided upon request.

ONLINE FEATURES Visit www.ServiceDriveToday.com

Entire contents ©2015 Service Drive. All Rights Reserved.

ServiceDriveToday.com

ATTEND THE CBT CONFERENCE & EXPO AND HAVE ACCESS TO OVER

70 DYNAMIC BREAKOUT SESSIONS

COVERING EVERY DEPARTMENT IN YOUR DEALERSHIP

MANAGEMENT NEW CAR SALES DIGITAL MARKETING SOCIAL MEDIA FIXED OPERATIONS LEADERSHIP CUSTOMER RETENTION F&I/LEASING CRM PRE-OWNED SALES ONLINE REPUTATION BDC/INTERNET DEPT. CUSTOMER SERVICE AND MUCH MORE!

JEREMY ANSPACH

CLINT BURNS

JEFF COWAN

MIKE ESPOSITO

DON’T MISS THE BIGGEST AUTO INDUSTRY EVENT IN 2016

FEB 9-11, 2016 | ATL

PATRICK LENCIONI New York Times Best-Selling Author, Leadership Guru

JARED ROWE

LEE HARKINS

DAVID KAIN

CHIP KING

Head Football Coach The University of Alabama

JOHN FITZPATRICK

Division President, Media Cox Automotive JIM FLINT

NICK SABAN

TIM KINTZ

STUART BAILEY

VP of Marketing & Pre-Owned Vehicles Asbury Automotive

DALE POLLAK

EVP, Cox Automotive Founder, vAuto

LARRY DORFMAN CEO EasyCare/ Motor Trend

WHO SHOULD ATTEND:

DAVID LEWIS

KIRK MANZO

TONY MOLLA

CORY MOSLEY

ERIK NACHBAHR

BRIAN PASCH

GLENN PASCH

SCOTT PECHSTEIN

APRIL RAIN

ALAN RAM

DON REED

JASEN RICE

TOM STUKER

PHIL SURA

MARK TEWART

Dealers, GMs, GSMs, Sales Managers, F&I Managers, Marketing Directors, Service Managers, Internet Managers, BDC Managers and Pre-Owned Managers

REGISTER NOW AND SAVE $200

Early Bird Registration NOW OPEN. Go to CBTConferenceandExpo.com to register today.

SPONSORSHIPS AND EXHIBIT SPACES STILL AVAILABLE

SCOTT TRACY

GARY TUCKER

ALEXI VENNERI

JOE VERDE

JOE WEBB

Visit CBTConferenceandExpo.com or contact Alex Branam for more info. abranam@cbtnews.com | 678.221.2977

Evaluate Whether Your

SERVICE ADVISORS CAN HELP SELL F&I PRODUCTS Even if you decide to focus them 100% on service, at least study a potential fit for advisors with warranty policies. BY JON MCKENNA

S

cores of dealerships would love for their service advisors to morph into dynamite salespeople not just for repairs but also for other products and services. When it comes to extended warranties and various specialty insurance policies (e.g., for tires and expensive windshields), a dealership’s choices come down to: Don’t have the advisors get involved. They are busy enough with service work and customer relations to ask them to carve out time to explain why a warranty would be a good match.

Make sure advisors stay on the lookout for potential buyers of policies (say, a customer’s vehicle is at 20,000 miles and the manufacturer’s warranty ends at 35,000 miles) and do their best to steer them to the dealership F&I office, but don’t compensate them.

Reward advisors with a flat-fee payment or a smaller “bird dog” bonus for every customer who does end up having a conversation with an F&I representative.

Train advisors to sell policies and let them either pocket the entire commission, or “spiff,” or split it with the F&I office if they needed help.

No matter where you side on this issue as chief of your service department, this much as evident: Only a very, very small percentage of dealerships currently ask their service advisors to involve themselves with warranty coverage. Larger dealership groups are more inclined to give it a try. That situation either points to a promising and untapped business opportunity for

F&I staff do what they do best, let “Let the

the advisors do what they do best.”

Tony Dupaquier

6 Service Drive OCTOBER 2015

single stores or small dealership groups, or reflects the realistic limits of an advisor’s potential.

REFERRAL FEE IS A GOOD FIT

Tony Dupaquier, a fixed-ops consultant and director of a national training center for Austin, Texas-based Service Group, thinks it’s a mistake for dealerships to devote resources and time to training service advisors to rep warranty products. “Let the F&I staff do what they do best, let the advisors do what they do best,” he argued.

Also, he has seen dealerships go astray by compensating advisors with a flat fee of $25 to $100 for every customer they send to the F&I office who ends up buying a policy. After a couple of months, if they are not seeing any money for their efforts, advisors just quit and focus on the needs of their service customers, he said.

What Dupaquier does favor is paying advisors a small bird-dog fee – say, $5 – for every service customer they refer to the F&I office, regardless of whether they end up buying an extended warranty. “This might add $20 to $30 a week to their paycheck, so it’s covering lunch, which is meaningful to them.”

Considering time pressures on service advisors and the wide array of warranty plan options and terms to explain, Gehring like Dupaquier would prefer to “see them turning the customer over to F&I and getting the spiff.” In fact, he’d rather see advisors applying a very visible starburst decal to a customer’s invoice advising him or her that the manufacturer’s warranty ends in a few thousand miles, than to ask them to take a few minutes explaining why it would be prudent to visit the F&I office.

“The advisor just has so little time now to devote to sales,” said Gehring, who noted none of his dealership clients are trying even referral bonuses.

“I think advisors need to be retrained, reeducated to be salespeople,” Roppo summarized.

However, if dealerships instead opt to be more deliberate and only reward advisors with referral bonuses, they need to be prompt in paying those bonuses every month and not make advisors wait for two or three months, he added.

And, dealerships could add on a small spiff for each successful sale of an extended warranty by the F&I staff. However, given the specialized nature of tire road hazard and windshield policies, with them it’s better to stick with just a referral bonus to advisors, he recommended.

Even with simple bird-dog compensation of advisors, dealerships need to commit to training the advisors well, creating a script for customer interactions, and monitoring the training and script usage, according to Dupaquier. “At this level, it’s still very forward-looking for most dealerships,” he said.

ACKNOWLEDGE ADVISOR’S TIME PRESSURES

Rob Gehring, president of a Huron, Ohio-based consulting and training firm called Fixed Performance Inc., agrees that “it’s absolutely wonderful to sell [warranty] plans in the drive. It’s a lost revenue stream, it really is.”

However, his concept of “selling” is limited.

ServiceDriveToday.com

The varying terms of different extended warranty policies may be a reason to keep service advisors from getting involved -- or why they are a perfect fit.

1

ADVISORS CAPABLE OF MUCH MORE

Michael Roppo, a fixed-ops consultant who works for The Mironov Group CPA firm in Edison, N.J., is at the other end of the spectrum on 2 this issue. He believes forward-thinking dealerships should train advisors to sell warranty 3 products and reward them with full commissions, for the following reasons:

4

The concept of one-stop shopping already is gaining a wide following in dealership circles, even if the more popular approach is to have vehicle salespeople handle F&I products as well.

Service advisors wind up spending more one-on-one time with a customer (as long as three to four hours on a single visit, from the time a vehicle is brought in for service until the time it is driven away) than any other employee in the dealership. That puts the advisor in the best position to learn what the customer really needs and gives him the most time to explain options, Roppo said.

Most advisors have an affinity for technical products, which means they could be good at translating the terms of a warranty policy for a customer.

ServiceDriveToday.com

ONE DEALERSHIP GROUP’S APPROACH

Miami-based Warren Henry Auto Group seems to hold a similar viewpoint. On the group’s website, pages for extended warranties sold by its Jaguar and Land Rover stores list a service manager as the contact for customers. And information about extended warranties for Infiniti customers is given on that store’s service department page.

According to a trade magazine article, Warren Henry management in 2011 began training service department personnel to sell warranty plans. SD

“I think advisors need to be

retrained, reeducated to be salespeople.”

Michael Roppo

Can your people spend time looking for potential fits with an F&I product without letting customer service slip?

OCTOBER 2015 Service Drive 7

SERVICE DEPARTMENTS MUST PAY CLOSER ATTENTION TO

THEIR SHOP PRODUCTIVITY TRENDS Consistent use of maintenance menus, multi-point inspections can help improve this critical metric

BY DON REED

W

hen speaking with hundreds of dealers at various conventions and conferences, I always ask them to share their “hot buttons” for improving service and parts operations.

Here are their most common responses:

1. IMPROVE CSI 2. INCREASE CUSTOMER PAY SALES

3. RAISE GROSS PROFITS 4. TRAIN ADVISORS HOW TO SELL 5. BRING MORE TRAFFIC IN THE DOOR 6. INCREASE NET PROFITS All of the above are certainly worthy of a dealership’s attention, but one key performance metric for a service

department is rarely mentioned. I find this very strange, since this particularly metric directly affects (both positively and negatively) all six of those hot buttons.

It is totally controllable and costs virtually nothing to improve. It’s been used ever since the first service department opened for business around 100 years ago, and today plays a critical role in the overall success or failure of every fixed-ops business in our industry. This key performance metric is shop productivity.

AIMING FOR 120 PERCENT Your goal is to hit high shop productivity and hire additional techs to meet its needs.

Right now, as you’re reading this article, do you as a dealer, GM, fixed-operations director or service manager know what your shop productivity percentage is, month-to-date through yesterday? Do you know the industry target benchmark is 120 percent shop productivity? If your group is below that benchmark, do you know why? If you are exceeding it, what should you do next to become even better? I will address all of these questions and more, so read on.

To begin with, let’s define “shop productivity.” Our goal of 120 percent (and most service departments don’t hit it, by the way) of 120 percent means that your technicians would produce 48 flat-rate hours billed on all repair orders for every 40 clock-hours worked. So, Step One is to measure and compare each tech’s hours

“(Shop productivity) is

totally

and costs virtually nothing controllable to improve. It’s been used ever since the first

service department opened for business around 100 years ago, and today plays a critical role in the

overall success or failure of every fixed-ops business in our industry.”

8 Service Drive OCTOBER 2015

ServiceDriveToday.com

The number of your shop’s ROs should constantly be on the upswing.

produced to the number of clock-hours worked daily.

As a manager, you then can focus on those underperforming techs and how to help them improve.

Once your shop’s productivity exceeds 100 percent, you seriously need to start recruiting additional techs, since your advisors will stop selling aggressively if they believe techs couldn’t complete the work. So, do not wait until you reach the 120 percent target to start recruiting more techs.

[As you look for them, seek techs with C-level skills, as that skill requirement matches up with the majority of your sales growth opportunities. Maintenance and light mechanical repairs are where volume is growing in service sales, and of course that is where the aftermarket (your biggest competitor) thrives.]

CUSTOMER TRAFFIC SHOULD ALWAYS RISE

On the other hand, if your shop productivity is stalled below 100 percent, you must ask yourself why. A service director should prepare a 24-months trend analysis of your customer pay RO count, month by month. Is your traffic going up or down, or flatlining? The only good answer is, “UP.” If your traffic is going down, then you can assume your customers don’t like doing business with your fixed-ops team and prefer to go elsewhere.

A good rule of thumb is a 1-to-5 ratio in car sales to customer pay RO count (if your dealership sells 100 cars per month, then the service department should be writing 500-plus customer pay ROs). Plant your management team at the service reception desk during the busy hours to observe how your customers are being received. Have managers watch the process of delivering a vehicle back to the customer (the active delivery), to ensure that customer is given a clear and precise presentation on the repairs or services performed.

I have found that low productivity directly results from a lack of advising by service advisors and techs.

Advisors who are not properly trained how to effectively communicate with customers using feature-benefit presentations on maintenance and repair services will fail to sell enough hours to maximize technician productivity. Techs will not inspect 100 percent of vehicles serviced if they believe their advisors won’t sell the work.

Here, of course, is another reason why your advisors should not be servicing more than 12 customers per day, lest they not have enough time with each customer to

ServiceDriveToday.com

do a proper job. Remember this: All of your techs have the ability to give more productive hours, and they will do so as long as they are confident in their advisors’ ability to sell the work (and assuming the techs are compensated appropriately).

TWO SOLUTIONS TO HELP PRODUCTIVITY

I would like to offer two very simple processes to increase shop productivity that have been around for decades: maintenance menus and multi-point inspections.

A recent J.D. Power survey showed that 71 percent of customers surveyed said their advisor failed to present a menu or give any recommendations for additional surveys. With the average new car dealership customer visiting its service department just 2.16 times per year, how can it possibly make any sense to ignore 71 percent of your customers’ maintenance needs?

HPRO to your average RO count, which now gives you a total increase in HPRO of 0.5. Based on 500 customer pay ROs a month, that equates to about an additional $500,000 in labor and parts gross profit! At an average 1,000 customer pay ROs per month, the math gets downright crazy (sounds like a new boat for the dealer).

PROCESS STARTS WITH YOUR ADVISORS

As you can plainly see, shop productivity plays a huge role in satisfying those hot buttons (increased CSI, increased customer pay sales, increased gross profits, increased advisor training, increased customer pay traffic and increased net profits). Sounds like an awful lot of increases to me. It all starts with training your service advisors how to put your customers FIRST by ensuring that every one of them leaves the service drive in a safe and reliable vehicle.

Couple that reality with the fact that the average age of a vehicle in the U.S. now is about 11.5 years, and you should ask yourself why wouldn’t your service team inspect those cars for additional repairs and/or services needed? At DealerPro, our goal is to ensure that every customer leaves the service department driving a safe and reliable vehicle. Starting today, why not make that your goal as well?

The legendary golfer Bobby Jones summed it up so well: “If you fail to get the proper kind of instruction, no matter how much you practice, you’re SD only going to get

If you do, and put the processes in place to ensure that every customer gets a proper feature/benefit presentation of needed maintenance services, that J.D. Power survey shows that 46 percent of your customers will say, “Yes” while 54 percent will say, “No.” How, here’s a question: Does a 46 percent closing ratio sound good to you? This would add no less than 0.2 hours per repair order to your average RO count.

service advisors and techs. Advisors who are not properly trained how to effectively communicate with customers using feature-benefit presentations on maintenance and repair

Further, if you implement a proper multi-point inspection process and then present the results of those inspections to 100 percent of your customers, then that same survey shows a 56 percent closing ratio for additional work found on the MPI! This will add another 0.3

“I have found that

lowresultsproductivity directly from a lack of advising by fail to sell enough hours to maximize technician productivity.” services will

DON REED

CEO of DealerPro Training After 26 years in the automobile business as a dealer, GM, sales manager, service manager, service advisor and salesperson, Don began a new career as a consultant and trainer. As CEO of DealerPro Training and founder of The Don Reed PRO Training Network, he has worked with hundreds of dealerships and major dealer groups across the U.S., Canada and the U.K. to increase profits in their fixed operations. He was rated a Top 10 Speaker at the NADA convention for four consecutive years. Visit the firm’s website at DealerProTraining.com.

OCTOBER 2015 Service Drive 9

PERSUADING OWNERS OF RECALL VEHICLES TO

GIVE YOUR TEAM

MORE SERVICE BUSINESS Position your service department as a customer ally from the moment a recall procedure begins.

BY VERN POYNER

R

ecalls affected more than 60 million cars throughout the country in 2014, known in our industry as “The Year of Recalls.” Based on their mounting numbers, it appears that recalls in 2015 will rival last year. It seems that manufacturers announce new recalls daily.

Looming over this issue, from a business context, are how many recall repairs never get completed and the opportunity these unfixed recall vehicles represent for a long-term service relationship. I’m talking about more customers, larger ticket orders and increased customer loyalty.

A staggering number of vehicles – more than 46 million nationwide – have unfixed safety recalls. That’s one out of every five vehicles on the road right now!

High-profile situations like the Takata airbag, General Motors ignition switch and Fiat Chrysler America recalls have made car owners more aware of recalls but also more uncertain about how to respond.

Often, owners have no idea there’s an outstanding recall. If they are notified, they may simply not know where to start to get their car fixed. Here is where your dealership service department can become a resource and advocate for your customers.

ALERTING YOUR CUSTOMERS

Many of the recent TV affiliate and print media stories have highlighted how few owners realize their vehicle has an unfixed recall issue. Some of them have missed or accidentally discarded the manufacturer’s recall notification. Others may not have received a notification at all, if they only recently purchased the car used or changed addresses.

Either way, your service department has access to open recall information from the manufacturer’s website and vendors and can retrieve it for specific vehicles using either the VIN or license plate number. You should take advantage of that easy research and proactively check your customers’ vehicles for potential recalls when they enter your service lanes.

Doing so only reinforces in your customer’s mind that your dealership cares about his or her safety and how well the vehicle is performing. Even if a customer isn’t currently facing a recall on the vehicle, he or she may still be wondering what to do if one should be declared.

Put your customers’ minds at ease by letting them know will be alerted about any future recalls, and assure them your shop will be ready if and when their car is affected.

But, why wait until a car is in your shop? Use postcards, e-mail or other outreach to alert your customers about a recall on their car. That is an effective way to bring them in, especially if they overlooked the manufacturer’s recall announcement. By getting in front of your customers with recall information, you remind them that your dealership and service department are there for the entirety of their ownership process – not just for the sale. It’s a good practice for dealership service departments to include in this outreach a reminder that only franchised dealers are authorized to fix recalls, a fact that is lost among some car owners.

If your shop does not have the ability to perform a particular recall repair, it is still smart business to inform your customers about the recall and its effects, and explain why it is crucial to have the problem fixed.

Your willingness to tell customers about an outstanding recall and point them in the direction of an OEM-authorized shop for repairs can earn you their loyalty for non-recall-related maintenance needs later.

INCREASING REPAIR TICKET ORDERS

Of course, when customers come in for a recall repair, they’re usually fixated on just that one issue. Their goal is to get the problem fixed at no cost to them in as little time as possible. Your goal, however, should be to leverage these visits to boost your customer service and ultimately your ticket orders. While your techs are handling the recall problem, what additional work might the customer’s vehicle need to help maintain its safety and performance?

With so many vehicles with unfixed recalls, chances are a significant number of them also require further maintenance – oil changes, brakes, fluids, etc. All these procedures happen to help you tap into an even larger pool of revenue for your service department. Experts believe that more than $60 billion of recommended maintenance goes undone every year. With customer service initiatives and greater encouragement from your shop, you can make your customers aware of services they have missed and capitalize on those opportunities.

Now, making service recommendations and suggesting additional work to a customer who came in expecting not to pay anything can be a tough sell. That’s why positioning your team as educators and customer advocates from the moment a recall vehicle comes in is

access to open recall information

“Your service department has from the manufacturer’s website and vendors and can retrieve it for specific vehicles using either the VIN or license plate number.”

10 Service Drive OCTOBER 2015

ServiceDriveToday.com

“Your goal, however, should be to1 leverage these [recall] visits to

boost your customer service and ultimately your 2

ticket orders.”

3

so important. Having an ally in the service department gives your customer peace of mind and builds trust.

When customers arrive at your shop for recall repairs, talk them through all the steps including what is being replaced and why the repair is important.

Offer a timeline that is reasonable for both the customer and your service team.

Answer customers’ questions.

If your customer sees your service department as a partner in the recall process, it can help 4 ease the transition to when your advisors make additional service recommendations.

Offering proof to support your recommendations also goes a long way in helping customers understand why they should choose to have additional work done.

For example, shops enrolled in the no-cost myCarfax

Service Shop program can do this using the service histories of your customers’ vehicles. Armed with the facts, your advisors can establish clear-cut costs and timeframes (will the extra work go beyond the time needed to fix the recall?). Then, your techs can help increase ticket orders for these customers.

RECALLS OPEN DOOR TO MORE BUSINESS

Recalls can be your service department’s cash cow, opening the door to larger ticket orders and, just as important, more loyal customers. There’s certainly no shortage of opportunity these days. Be a resource to customers, so they’ll have even more trust in your shop and won’t think twice about coming back for recall repairs and other services time and again.

Increasing your customers’ trust in your shop will help secure customers for life. SD

VERN POYNER

General Manager of the myCARFAX Program at CARFAX Vern is an experienced senior executive for IT and communications companies including RealNetworks, Wider ThanAmericas and EDS, in addition to CARFAX. myCARFAX is a program giving car owners their service and maintenance history.

After completing the recall repair, this tech should be looking for other service needs with this vehicle.

ServiceDriveToday.com

Do everything in your power to ensure your customer views your service team as an ally.

OCTOBER 2015 Service Drive 11

CO- OP DOLLARS FUEL DEALER MARKETING BUT COULD GO FARTHER Report sees need to cover more kinds of digital advertising.

BY JON MCKENNA

A

utomotive OEMs are expected to set aside a collective $6.5 billion this year for co-op advertising programs helping North American franchised auto dealerships. Most dealers eagerly grab the dollars for their new car marketing, and 72 percent of them tap co-op to promote their service departments.

How happy is your dealership that your manufacturer’s co-op program adequately subsidizes the type of marketing you favor? A new survey indicates that coop terms and rules lag behind dealers’ increasing preference for various forms of digital marketing, and that they should lobby OEMs to liberalize their programs.

Dealers can continue to let their co-op administrators or their manufacturers know where they’re finding the consumers shopping today, which is overwhelmingly on smartphones and with video outside of television,” said Tim O’Rourke, VP of automotive at Netsertive, a Morrisville, N.C.-based digital marketing consulting firm.

Netsertive and Borrell Associates, a Williamsburg, Va., marketing research firm, co-released the report titled “Kick Automotive Co-Op Into High Gear: Optimize OEM Dollars for Video and Mobile to Drive Local Dealership Sales.”

CO-OPS’ RULES CAN FRUSTRATE

On average, co-op programs cover one-third of a U.S. dealership’s total advertising budget, and some dealers rely on them for half their spend. However, more than half of the dealers surveyed by Netsertive and Borrell feel co-ops hit them with too many rules and restrictions, and nearly one-third said there is too much associated paperwork and the program rules change too often.

In the dealer ad mix, various digital channels account now account for 66.5 percent of spending on the typical “buy this make and model now” messages. Manufacturers actually aren’t too far behind, devoting 56 percent of their budgets for brand marketing to digital this year, according to the survey report. “Dealers, who are closest to the consumer, are leading the way, and the manufacturers are following along,” O’Rourke said.

However, the message may not be passed along to the OEM execs who draw up their co-op program rules.

Co-ops tend to support more basic digital efforts such as SEO or ad production, the report said, but expenses

12 Service Drive OCTOBER 2015

More manufacturers should defray their dealers’ costs of optimizing websites for smartphones and other mobile devices. frequently are not covered for website hosting, optimizing websites for mobile devices, database management and fees to run social media programs.

NOT ALL DIGITAL VIDEO TREATED SAME

Only 34 percent of dealers interviewed said their coop plan supports digital video, and merely 29 percent said they get financial help with mobile marketing.

What’s more, coverage for digital video may obscure the reality that many plans pay expenses for preroll but hardly any subsidize longer-form videos that dealerships post to their websites rather than YouTube.

“Longer-form video is becoming more effective, with say a tour of the service department or a video walkaround,” O’Rourke noted.

The report summarized: “A dealership that spends, for instance, $1 million annually on advertising might spend an additional $500,000 or more on digital marketing services, yet less than 10 percent of those services might be covered by co-op programs.”

Ironically, co-op rules are far more generous when it comes to low-tech marketing, covering with few questions asked expenditures on promotional giveaways like key chains, pens and coffee mugs bearing the dealership’s logo.

DEALER GROUPS STICK WITH TRADITION

Another interesting finding in the report was that dealership groups are much less invested in digital marketing than individual stores are. This year, groups on average will devote only 10 percent of their ad spend on average to digital. They are putting 32 percent of their ad budgets toward TV and cable, compared with only 9 percent by individual dealerships.

Despite their extensive marketing resources, dealership groups lean heavily on their outside agencies, which continue to favor their relationships with TV affiliates, O’Rourke believes. SD

“Dealers, who are closest to the consumer, are leading the way [to digital marketing], and the manufacturers are following along.”

-- Tim O’Rourke of Netsertive.

ServiceDriveToday.com

Askthe

Pros:

Do you have questions? We have experts who can answer them.

We have partnered with some of the top fixed operations consultants in the business who are ready, willing and able to share their knowledge and advice with you. All you have to do is email your questions to Newsroom@ ServiceDriveToday.com, and we’ll take care of the rest.

WE ARE THINKING ABOUT ADDING SOME QUESTIONS TO OUR CSI SURVEY EXPLORING THE QUALITY OF THE EXPERIENCE OUR WOMEN CUSTOMERS HAD WITH SERVICE APPOINTMENTS. WOULD YOU BE IN FAVOR OF THIS? THE COUNTERVAILING ARGUMENT IS, THE CSI IS ALREADY SO LONG. - JOHN IN PORTLAND, OR. Anne Fleming, president Women-Drivers.com: We think

of

it is a great idea to include additional questions in your CSI about women’s experiences with your service department. More than two-thirds of service appointments are handled by women, and customer loyalty to your service center pays big dividends for years to come. Clearly understanding your women clientele and catering to their needs is a great way to separate yourself from the competition.

You mention that your CSI survey is already long, so it makes sense to review if any questions in your current survey can be removed to make room for new, targeted questions regarding customer service satisfaction within the women’s market segment. When determining which questions may be removed, pay special attention to those for which responses are consistent across multiple surveys. You may already have enough data in those areas.

Women are very willing to provide pertinent input

regarding their experience. Women-Drivers.com has found that 92 percent of women respond to our surveys and reviews without any incentive, which is a strong indication that this demographic is overwhelmingly happy to share their experiences.

If you do modify your CSI survey, do consider adding questions regarding convenience, comfort, respect and perceived trust. Additionally, are there any concierge features your women customers would like added that will make them even more likely to return to your service center? These issues are of key importance to women customers and to and retaining them.

If you or others do modify the CSI to address women’s experience in the service drive, be sure to keep the questions unbiased and without undue ‘influence’ from service personnel to overstate positive results. You want to receive an honest evaluation so that you can adjust your service area procedures to optimize retention and revenue.

WHAT COMMONALITIES ARE YOU SEEING IN HOW DEALERS EVALUATE THE JOB PERFORMANCE OF THEIR SERVICE MANAGERS? WHAT METRICS OR KPIS ARE THE SMART DEALERS UTILIZING? - CARSON IN METAIRIE, LA. Brenda Stang, Chief Shifter at Shifting Gears Training: Dealers are

taking a three-pronged approach to measuring the performance of their service personnel: sales skills of the advisors, productivity of the technicians, and relationships with customers and staff. The key is to make sure that the performance is measurable. Whatever you measure can either be celebrated or improved upon.

A couple of key service advisor metrics are customer hours per repair order (CP/RO) and effective labor rate (ELR). CP/RO measures sales skills and shows whether your advisors are order-takers or salespeople.

ELR compares the listed door rate with what was actually billed. It shows if your advisors are collecting your full rate or if they are discounting.

The technician metrics are productivity (average hours per tech per day), efficiency (hours clocked on jobs/hours in attendance) and proficiency (hours produced/hours clocked). These metrics tell the whole story of your shop. Do you need to hire more techs or reduce their numbers? How skilled and fast is your technical staff?

In the area of customer satisfaction, customer retention and CSI scores are key. How many customers are returning to service for maintenances and oil changes? 76 percent of customers purchase vehicles from where they service their vehicle. Factory CSI scores will always be key for two reasons: They truly are a snapshot of your service, and the manufacturers factor in your scores when you are buying or opening new stores.

The key metric with internal relations is staff retention. Every business experiences staff turnover, but excessive turnover is costly and affects the quality of service to the customer. Depending on the position and the person’s productivity, the average cost of turnover in service is between $25,000 and $70,000.

The key to evaluating performance is frequency. The advisor and technician KPIs should be discussed at every payroll cutoff, and the customer and employee satisfaction reviewed monthly.

DO YOU THINK IT WOULD BE A SMART STRATEGY FOR DEALERSHIPS, IN THEIR MARKETING AND ADVERTISING, TO DIRECTLY TAKE ON LOCAL INDEPENDENT REPAIR CENTERS IN A COMPARISON? OR IS IT BETTER TO JUST FOCUS ON OUR OWN COMPETITIVE ADVANTAGES? - FROM MARIA IN PHILADELPHIA: Frank Lopes, vice president at Forrest & Blake Marketing/Advertising: Not only do I believe it to be a good marketing strategy, but it’s also one that could return a huge ROI. We all know that customers are truly better off bringing their vehicles back to dealerships for service. The reasons are endless, but just to name a few: • Dealerships have more parts in stock than do local repair shops, and those not in stock are normally only a day away. Having more parts in stock or readily available gets the vehicle back to a customer quicker • Dealerships offer many convenience features including loaner cars, shuttle service, comfortable waiting

ServiceDriveToday.com

areas, food and beverages. Local shops have NONE of these features except for bland coffee and maybe stale doughnuts.

• Pricing for basic repairs and maintenance is either competitive with or lower than most local independent shops.

Now, most independents will argue that the hourly labor rate is lower at independents, which I am sure it is. But this does not take into account the fact that techs at dealerships are fully trained and know the vehicles inside and out, and more often than not know what is wrong with your vehicles, how to quickly test that their repair is the correct one, and perform the actual repair in less time than it takes for an independent to even diagnose the problem.

All of these points (especially the one about pricing) should be featured PROMINENTLY on a dealership’s website and in point-of-sale materials in the dealership. I believe that it is also very important for these messages to be delivered to customers IN THE SHOWROOM during the buying process.

This can be done through as simple an approach as price comparisons for oil changes, tire rotations and wiper blades displayed in the showroom.

These are small seeds to plant, but if planted and watered properly, they will bear fruit for many seasons after the sale.

OCTOBER 2015 Service Drive 13

TAKE STEPS TO ENSURE SUCCESS FROM

DIRECT MAIL MARKETING = OF SERVICE WORK Make smart use of your abilities to focus on specific customer audiences and personalize the messages.

BY AMY FARLEY

D

irect mail can be an integral part of your dealership’s service marketing plan, offering customers compelling reasons to choose your service center over that of your competitors.

The following simple tactics can help set your service direct mail campaigns apart, leading to better results and positioning your service center for greater success.

1 TARGET A SPECIFIC AUDIENCE

One of the chief benefits of direct marketing is the ability to target your message to a specific customer or group of customers. When a marketing message is well targeted, it’s likely to be much more effective and cost-efficient, saving your dealership money and improving your ROI. Your service mail campaign could be tailored to a certain smaller group of customers. For example, you might consider sending separate messages to people who haven’t visited your dealership before, customers who visit regularly for service, and those who have visited before but not in quite a while.

ZIP code-targeting is the most effective approach, because you can focus direct mail on areas where people have a high propensity to visit your dealership. You can avoid spending money to send mail to areas where residents are unlikely to come in for service, which helps eliminate wasted ad dollars. Not only is targeting important for effectiveness, it also helps your bottom line.

When you develop mail campaigns with specific audiences in mind, you’re more likely to achieve good results, since those campaigns will be relevant, timely and useful.

2 AIM FOR CREDIBILITY AND PERSONALIZATION

Your customers should see your dealership as strong and credible, with the expertise necessary to assist them with all their auto maintenance needs. Your direct mail can help with that.

Including the information you already have about your customers – such as their last service date, details about their vehicle and personalized service recommendations – can remind those customers they are in good hands with your service department. Personalizing a direct mail or e-mail piece to showcase an image of the customer’s current vehicle not only makes for a strong visual but also makes that customer feel your message is even more relevant.

personalized service from your dealership, and customized messaging helps you accomplish that goal.

3 PAY ATTENTION TO YOUR SPECIALS

When you’re planning a direct mail campaign, it’s important to take a look at what you’re offering. Special deals and discounts are great incentives to get customers to stop in, but certain types of offers tend to be more successful than others.

You should consider utilizing generic specials such as a discount on an oil change, regular maintenance, tire service, detailing or brake service. Offering a percentage or dollar amount off of service also is a smart choice, since that is a simple price break that anyone can use on any type of service they buy from your dealership.

Steer clear of offering deals on services such as fuel induction and

For example, if a customer drives a 2010 Honda Civic, you can use variable imaging technology that takes a customer’s VIN and applies an image of a 2010 Honda Civic to the messaging. This results in campaigns that are more engaging and tailored to a given customer.

Your direct mail campaigns should convey that customers will receive the best, most

convey that customers will receive the best, most personalized service from your dealership.”

“Your direct mail campaigns should

14 Service Drive OCTOBER 2015

ZIP code-targeting lets you send an individualized marketing message to a particular customer’s mailbox.

ServiceDriveToday.com

Direct mail can deliver coupons for effective generic specials such as a discounted oil change.

transmission flushes, as most customers don’t know what that work entails, let alone if their car needs it.

Additionally, those types of services most likely will appeal only to drivers of older vehicles.

4 CONSIDER AGGRESSIVE OFFERS

The first goal of your marketing campaign should be to get a customer through your door. After that, all you have to do is deliver the superior service that you take pride in every day. The question is: How do you accomplish that first step?

The initial messaging and offers you make to a customer should be aggressive, so that the customer feels compelled to take action. For example, you might choose to offer a new customer a greater discount on service than you would extend to a regular customer. You can use OP codes on the coupons you send to easily track which ones are working the best and which might need to be more or less aggressive.

Aggressive, steep discounts pay off in the long run because once you get customers into your facility so you can impress them with your service, they are much more likely to keep coming back.

5 UTILIZE COUPON BOOKS

Because they’ll have a longer shelf life, coupon books are an excellent way to keep customers coming back to your service center again and again. These books can contain a variety of coupons, so that customers can use them at different times to fulfill different service needs.

ServiceDriveToday.com

well targeted, it’s likely to be much more effective and cost-efficient, saving your dealership money and improving your ROI.”

“When a marketing message is

Service coupon books have the potential to work well for your entire customer base, but it’s a smart idea to give them to new customers at your service center or even to those who just bought a vehicle from your dealership. That way, you begin the relationship early and each time that customer needs service, he or she will have an incentive to choose your dealership.

Instruct your customers to keep the coupon book in their glove compartment so that the next time they need an oil change, tire rotation or other maintenance, they’ll remember to stop by.

6 MAKE SURE YOUR COUPONS ARE FULLY FUNCTIONAL

The key to a successful coupon-driven service campaign is to make it as easy as possible for customers to utilize the discount. This means thinking about the piece’s messaging and functionality.

If you’d like the customer to bring in a coupon to redeem it, then it’s best to use peel-away coupons rather than those that must be cut from a mail piece. That way, it’s simple for the customer to remove the coupon and stow it in their wallet or glove box. The easier your

coupons are to use, the more likely a customer will be willing to make the trip to your service center.

7 KEEP IT SIMPLE

In the end, simplicity should be a driving force behind your direct mail marketing strategy, whether it is for vehicle service or sales. Customers respond to messaging that is simple and streamlined. They want to have a full grasp of the benefits from choosing your service center over a competitor’s, so your direct mail campaigns should make those benefits clear.

Your mail campaigns also should make very clear what step you’d like a customer to take next. The customer shouldn’t have to hunt for your dealership’s phone number or address, and they should immediately understand any discounts or offers you’re making.

These simple messages will make it easy for customers to do business with your dealership.

The mail campaigns that you send out on behalf of your service center have the potential to drive a huge amount of revenue. If you put some thought and planning into your mail messages, you should see better marketing results and more service customers at your store. SD

AMY FARLEY

Media and Communications Manager at Force Marketing Amy is a skilled writer and editor with a keen interest in digital trends and topics in the automotive industry. She utilizes her knowledge of what is new in retail automotive marketing to help Force – an automotive digital, direct mail and email marketing firm based in Atlanta – with its evolution of the dealer-to-customer shopping experience. Visit the website at Forcemktg.com.

OCTOBER 2015 Service Drive 15

R E E R A C Y L D A DE S A R O F S E K MISTA

5

ke it’s li b jo r u o y e g a n a m d n cel a x e to h ic h w in s a re a e Treat them uassinfievss. BY JEFF COWAN your own b

I

t is no secret that a service advisor holds one of the toughest, if not the toughest, jobs in a dealership. No other employee has as much contact with customers or as much impact on the service department’s survey scores, customer retention and gross profits. In fact, a service advisor who works with only 15 customers a day will generate more gross profit for the dealership in a month than a salesperson who closes 30 deals.

Given those realities, it astounds me how many advisors never receive the proper training in handling customers, and proper leadership and direction from management if they do get training. When left to their own devices, advisors often make critical errors that result in their working much harder for less money, and ultimately in their termination by the dealership.

Recently, I was asked by a new advisor – who truly loves the automotive industry and wants to make it his career – what he could do to be successful. More specifically, he wanted me to identify the five big mistakes that can get an advisor fired, so he could avoid them.

This was my response:

MISTAKE NO. 1: TRYING TO REINVENT THE WHEEL

MISTAKE NO. 3: NOT INVESTING TIME IN LEARNING

Even if the operating processes and procedures that an advisor’s service manager, dealer or GM has created are not perfect, a smart advisor should focus on perfecting, not replacing, them. Management has its reasons for doing things, and they are usually good reasons.

Surprisingly, whenever I ask workshop attendees whether they have ever read a book on sales or customer service, only one in five raises a hand. An advisor’s job is all about selling and customer service, and 80 percent of them have never bothered to read a book on either topic? And, of those who have read a book, more than half haven’t picked one up in more than five years!

An advisor should seek to change the processes and procedures only after building up some experience in the job. And, he or she should first sit down with management to explain the good reasons for making changes. Your service manager will want to understand your motivations and feel reassured that you are not “going rogue.”

MISTAKE NO. 2: WAITING FOR THINGS TO HAPPEN So often in my workshops, I hear advisors complain about things not getting done. The factory does not provide this or that. The dealer does not provide this or that. The manager does not provide this or that.

Let’s be clear: Successful service advisors will wait for nothing. If product knowledge is lacking, find it. If customers are not receiving thank you notes and follow-up calls, find a way to get the job done yourself. In any business situation, winners understand that no one will care about their financial needs as much as they should, and they make things happen for their own benefit.

Can you imagine a doctor, a lawyer or even an automotive technician who was as neglectful about improving his or her skills? That person would be doing something else for a living within two years.

More than half of all customer complaints about service work can be traced back to an advisor dropping the ball on important details.

MISTAKE NO. 5: FAILING TO MANAGE THE JOB LIKE IT’S THEIR OWN BUSINESS As I have said for years, anyone working at a dealership is on the dealership team and should do everything in his power to ensure the success of the dealership, his department and

MISTAKE NO. 4: FAILING TO PAY ATTENTION TO DETAIL Anyone can greet a customer and write up a repair order. It’s slowing down and truly trying to understand what the customer needs that separates the average service advisor from an outstanding one.

It’s making sure that the customer fully understands he or she needs and is buying. It’s mastering your service department’s processes and knowing how much time will be involved with required service. It’s not missing callback times. It’s returning the vehicle in a way that leaves the customer with a smile. It’s the personal follow-up that demonstrates to the customer that you miss nothing and really care.

“An advisor should seek to

change the processes and procedures only after building up some experience in the job. And, he or she should first sit down with management to explain the good reasons for making changes.”

16 Service Drive OCTOBER 2015

ServiceDriveToday.com

R O S I V D A E C I V ER

Take the time to explore what a customer really needs and to fully explain what the service will entail.

his team. There is no question that means you need to be a team player. However, at the end of the day, no one cares more about your individual success and well being than you do.

As a service advisor, you should strive toward three goals as quickly as possible:

A

Tracking your own customer-retention metrics. You

should exceed 90 percent retention within a year of starting at any service drive.

Setting targets for your personal gross and net profits, and income. What are your

B

own monthly financial commitments and dream purchases? What income do you need to attain those goals, and what sales do you need to produce that income? How quickly can you develop your skills to generate that level of sales?

Service advisors who get one of these usually made one or more critical mistakes.

ServiceDriveToday.com

You should be able to reach those target levels within 90 days of your start date.

C

Creating and promoting your own brand. Why are you different than any other service advisor? Once you answer that question and create your personal brand, advertise it over social media.

Some dealerships also encourage service personnel to promote individual personalities and brands through their regular marketing channels.

Become involved in your community, schools and churches. Run your area of the dealership like it is your own business. Be a team player but conduct your business like it is your own, because it is.

DON’T FOLLOW POOR PERFORMERS

socialize with your teammates, but do not let them drag you down with their insecurities, negative attitudes and poor work ethics.

In my career, I have worked on several different sales teams. There have been times when I have been forced to be somewhat independent in my thinking, as the rest of the team was content to perform the minimum to just get by. On other teams, however, it took everything I had to measure up to those around me. Like me, my teammates were very serious about their professions and the results they sought.

In both scenarios, I constantly had to fight against my own tendencies and sometimes against my surroundings, to avoid the pitfalls I have listed in this article and accomplish my professional and personal goals. I have worked with many advisors who made one or more of these five common mistakes. If these errors are conscientiously avoided, success in a service advisor’s role is all but guaranteed to follow. SD

In closing, let everyone know that when you show up to work, it is to do just that – work. Have fun and

JEFF COWAN

President of Jeff Cowan’s PRO TALK Inc. In his 28th year of training, Jeff is recognized as the creator of the modern-day walk-around and selling processes for service departments. Currently partnered with NADA, EasyCare, NCM, MPi and other vendors and manufacturers, he is the nation’s authority when it comes to training service advisors and service support staff. Visit his website at AutomotiveServiceTraining.com and sign up for free, weekly training.

OCTOBER 2015 Service Drive 17

SERVICE ADVISORS:

TODAY’S PLANNING DECISIONS MAKE TOMORROW MORE MANAGEABLE

PLAN AHEAD

A disciplined approach to anticipating tomorrow’s tougher repair projects helps reduce stress in the service department.

BY BRENDA STANG

atch your service advisors sometime at the end of the work day. Are they practically waiting for quitting time with their hand on the doorknob? Do they practically race off the lot? Do they seem frustrated and frazzled? Do they routinely “bury” a problem or mistake on a job, assuming it’s better to deal with it in the morning when they feel fresher and better able to handle the fallout?

How advisors end their work days determines how their next day will unfold.

Most businesses talk about planning a day in terms of time management, but I have found that in the service department, the issue is bigger. The actions service advisors take and the decisions they make the day before determine how the subsequent 24 hours will unfold. It takes less mental energy than trying to make some of those same decisions during a hectic time of the next day.

A recent study from Columbia University found that we’re bogged down by more than 70 decisions a day. Considering that half of our waking hours are spent at work, that means at least 35 decisions are work-related. Is it any wonder that the decision-making muscles get tired before the end of the work day?

That’s why it’s important for advisors to develop the discipline and habits to make some decisions as automatic as possible and to address as many of the others the day before, so they have enough in mental reserve to handle the inevitable exceptions that will arise tomorrow.

18 Service Drive OCTOBER 2015

Tackling three particular areas of the service department in particular will lead to better planning and decision-making, and service managers should encourage their advisors to deal with them: PHYSICAL AND MENTAL CLUTTER Clutter is distracting, filling both our physical and mental work spaces. Keep in mind that we are capable of mentally keeping track of six projects or tasks at any one time; we don’t need the added distraction of papers piling up on our desk.

There is something about a clean work area that helps makes us more productive and frees our minds to concentrate on the task at hand. Service advisors need to make the conscious decision to maintain a clean work area but keep the items they need most readily at hand. Out-of-date forms and other obsolete material should be shredded.

Service advisors also should resolve to finalize and close out open ROs in their systems. Believe it or

not, these unresolved ROs can clutter up the advisors’ minds. If the vehicle has left the service drive, then the RO should be closed out, with cash collected or charged to receivables or warranty accounts. How many ROs remain open because no one wants to concentrate long enough to decide about tech time, flat-rate hours or who is paying.

Delaying the decision just clutters up advisors’ minds. By the way, we all know that the biggest sins are hidden in the open ROs. Make closing them out a habit every day, and I guarantee that advisor productivity will climb.

They should end the day by setting up what they want tomorrow to look like. Work surfaces should be clean except for whatever materials are needed for the first two hours of the day.

ServiceDriveToday.com

“It’s important for advisors to

develop the discipline and habits to make some decisions as automatic as possible and to address as many of the others the day before.”

In setting up for the next morning, service staffs can plan actions today in two areas – today’s carryover customers and tomorrow’s customer appointments.

CARRYING OVER WIP Did a customer’s vehicle stay over in your shop last night? Is there a vehicle on the hoist or parked in the compound waiting for parts on order? Did your people sell additional work that they couldn’t finish yesterday?

When our advisors decide to become advocates for their customers, they start asking better questions in the shop and in the parts department. They should demand to know what is happening with a vehicle, why work isn’t completed, how many days it has been a carryover, and what the plan is to get the work done. Then, they should let the customer know and not wait to get the phone call.

Service managers and their advisors should hold a quick midafternoon meeting to assess the progress of carryovers and make an action plan for each, and to make sure advisors will call the customers with a status report. Plan, plan, plan.

These efforts can result in the staff uncovering some efficiency and operational issues in the shop and in parts. For example, maybe parts are not being ordered, the shop is routinely getting overbooked, and a tech may be in over his head on multiple jobs and is not asking for help. By resolving to plan ahead, the service department is fixing its processes.

TOMORROW’S CUSTOMER APPOINTMENTS

customers are coming in tomorrow for what kinds of service. They should go over tomorrow’s service appointments and spot the potential exceptions, the jobs that look out of the norm in any way. On any job, the advisor should know the day before: 1 If the customer has been in the ● shop previously.

2 What kind of work was done before. ● 3 If the owner has had recurring or ● related problems with the vehicle.

4 If the service department needs to ● make a special effort to check and make sure everything is okay with the vehicle.

Preparing and making the decisions that are possible today makes the advisor’s tomorrow more manageable. The added bonus is, the customer’s perception of the advisor improves significantly when they see that that advisor is

prepared and knows what will be happening with his or her vehicle.

The Service Manager’s Role: What should the service manager’s role be in helping the advisors plan and make decisions?

“Advisors should know when they leave which customers are coming in tomorrow for what kinds of service.”

I have worked with managers who believed in giving their advisors free rein to handle their days.

Frankly, I consider that to be abdication that leads to service drive hell. A manager who is in control of the service department sets the standard and trains staff, then holds that staff accountable to do the work right and maintain the standard. SD

BRENDA STANG

Chief Shifter at Shifting Gears Training After 19 years in the dealership world, Brenda shifted a gear and started an organization to train and coach dealership managers. During her time in the Ulmer Auto Group, she worked with GM, Toyota, Nissan, Dodge and Chrysler stores. As managing partner for two of the top GM dealerships in Western Canada for the past 14 years, she worked with her management teams to develop and practice the best habits to be effective and efficient. She is a certified trainer, coach and speaker with the John Maxwell Team. You can reach Brenda at stangbrenda.20@gmail.com.

Advisors should know when they leave which

ServiceDriveToday.com

OCTOBER 2015 Service Drive 19

NO RESERVATIONS TAKEN FOR YOUR QUICK SERVICE WORK?

RETHINK THAT POLICY The ability to avoid bottlenecks and keep customers happy trumps the ‘No appointment needed!’ marketing pitch. BY JOHN FAIRCHILD

Q

uick service lanes have been quite the hot trend in the dealership world for the last 10 to 15 years. Many manufacturers have launched quick oil change programs in their dealerships that are aimed at retaining oil change and competitive maintenance work for their car buyers, and recapturing a big chunk of business that was lost to independents.

Part of the model I see imposed by the OEMs has encouraged customers to drive into the quick service lanes without an appointment. Many of the advertising and marketing campaigns tout “No appointment necessary.” While that promise may be very appealing as an ad tagline, the chaos it creates in the service department is undeniable.

At certain times of the day, you will see customers backed up in the drive waiting for oil changes.

The phones in service are ringing incessantly, unanswered. Customers are clearly becoming angry with the wait, and the attention they finally do get from the advisor is not exactly high-quality. Then, just an hour later, it may be like a ghost town in the quick service area.

Remember, at the end of the day in the service department, we are selling TIME. Effective use of time really is money … and customer happiness! That will not change. We really need to sell every minute of every hour of every day for our service departments to be successful.

When a technician is idle, that amounts to lost productivity and lost revenue. However, our dealerships also can lose income and customer satisfaction when they are TOO busy. Then, the customers simply will not get the attention they deserve, and the advisors and techs won’t be able to legitimately and effectively sell needed additional services.

Advisors should steer quick service customers to take an appointment for a slower time period.

20 Service Drive OCTOBER 2015

ISN’T THERE A BETTER WAY? WHY RESERVATIONS MAKE SENSE Clutter is distracting, filling both our physical and As I have worked with many different dealerships and many different manufacturers, it has never ceased to amaze me how so many service directors and advisors resist initiating an appointment/reservation system in their quick service facilities.

A lot of folks are still stuck in the “No appointment necessary,” “Bring it on down” mentality.

When they make those promises to customers, they never really know if they will have the necessary time available, or if the customer is going to even show up at all!

I believe that service departments need to orga nize themselves based on both kinds of customers.

After all, we want to enhance customer retention and dealership profitability, right?

TRY FLEXIBILITY IN SCHEDULING APPROACH The solution is to utilize both methods. In other words, your dealership could give the customer the option to set a reservation during the traditionally slower time slots right after lunch and in the late afternoon, along with a realistic expectation of wait time if those hours don’t work or if the customer insists on arriving at a time of his or her choosing. Once the service department has some experience with this approach, it should be able to attract new customers by reducing wait times and minimize its staff’s unproductive hours.

As for walk-ins, you want to consistently convert those customers by using specific “reeducation” tactics I’ll discuss next.

REEDUCATING CUSTOMERS AND YOUR STAFF Believe it or not, your staff may strongly oppose this change. Even once you break down their reluctance over time, they will need some help in communicating the new policy to customers correctly. A service department should create word tracks that emphasize to customers the benefits of setting an appointment. These word tracks should be utilized in every customer interaction in the quick service area.

Here’s an example: “Mrs. Jones, did you happen to have a reservation with one of our advisors for this morning? In the future, I recommend that you please call for a reservation prior to coming over. I would never want to turn you away or see you wait a long time. I’ll make sure to set up your NEXT reservation for regular service.”

Changing the habits and mindsets of customers and employees will not happen overnight. First off, your service department only sees the average customer perhaps twice a year. Informing customers will take time, energy and constant commitment.

Consider using e-mail, direct mail, point-of-sale displays, business cards, repair order invoice messages and social media to get the message out.

ServiceDriveToday.com

“’No appointment necessary’ … may be very appealing as an ad tagline,

[but] the chaos it creates in the service department is undeniable.”

Techs may get too rushed to give their best work if they are overwhelmed with oil and fluids changes.

ADDITIONAL RECOMMENDATIONS ● Remember, when the phone rings your goal is to get a reservation set for that customer. Handle each and every call with care. ● Schedule your appointments throughout the day. Offer your traditionally slow times first. The notion that customers won’t come in during those time slots will be debunked very rapidly if you offer them first. ● Rather than asking when the customer wants to come in, trying instead immediately offering only two times and two days. ● Try to spread your “waiters (people who want to wait at the dealership while the work is performed) throughout the day, to ensure you can accommodate them as efficiently as possible. When customers have to wait too long, they wind up neither happy nor profitable. ● Rather than asking, “Will you be waiting?” try ”Can you leave the car with us?” on any repair expected to last more than an hour. ● Always leave one advisor’s time open during each reservation time slot, in order to accommodate emergencies and walk-ins. ● A follow-up system to call and reschedule reservations as needed is a must. ● Try to set the customer’s next reservation by opening with a statement, not a question. For example: “Mr. Smith, I set your next service reservation for Oct. 23 at 10:15 a.m. If you need me before then, here is my card. Please call me and I will get you worked in.” ● Write the customer’s next reservation time and date on the back of your business card, and hand it to your customer.

As customer counts go up and business gets more brisk, I firmly believe reservations will catch on in the quick service realm for good. If you’re on the fence, consider my points above, make a commitment and go for it!

SD

DESIRED OUTCOMES Without using reservations, advisors must manage quick service customers the best they can, which often results in those customers feeling they were overly rushed. Remember, your goal is always to create great customer relationships, be the work a simple oil change or a complicated repair. If you do nothing to prevent customers from arriving en masse, it’s hard to meet those goals.

On the other hand, customers who reap the benefits of a smoother, more thorough and often faster visit set with a reservation will think well of your service department. Your advisors will be able to cater to the customers’ needs and wants much more effectively. It’s not uncommon for advisor to add up to a half-hour on average to every repair order after successfully migrating to a reservation system.

See my additional recommendations above right.

ServiceDriveToday.com

“Your dealership could give the customer the option to

set a reservation during the traditionally slower time slots

right after lunch and in the late afternoon.”

JOHN FAIRCHILD

President and Performance Coach of Fairchild Automotive Solutions Johnhasmorethan35yearsofexperienceinfixed-operationsmanagementandconsulting,andtrainsfixedopsstafftoimproveperformanceandcustomerservice.Hestartedworkinginautorepairandpartsatage15 andovertimeheldnumerouspositionsatdealerships,includinggeneralmanager.Visitthewebsite https://fairchildautomotivesolutions.com.

OCTOBER 2015 Service Drive 21

“I generally am a believer in providing the BDC people with phone scripts for outbound calls.

It is essential that the caller speaks professionally and be consistent in with the manner and tone of outbound calls.”

SERVICE APPOINTMENTS AND MAINTENANCE MILESTONES

Your BDC personnel can help clear that backlog of service appointment calls.

Fixed Ops And BDCs:

WHY NOT USE THEM FOR OUTBOUND CALLS,, TOO? Service departments need a variety of outreach methods, and a well-managed BDC could prove helpful.

BY CHUCK WENZLER

B

usiness development centers (BDCs) are not, of course, a new concept. Dealerships have used them for years to assist in driving sales and growing the variable side of their business.

Most obviously, a BDC would be useful working on outbound reminder calls for service appointments. How many service advisors regularly contact their customers to remind them about an upcoming appointment? Letting the BDC handle that task would improve both call frequency and show rates. And, if it turns out the customer is unable to keep a service appointment, then the BDC staffer, who has access to the appointment-scheduling system, could reschedule it right away.

Also, the BDC is in a good position to contact customers whose vehicles may be approaching a factory required maintenance interval. In that scenario, the service manager would provide the BDC with a list of customers whose vehicles are approaching a 15,000mile, 30,000-mile or other maintenance milestone. A personal call from the BDC representative would help emphasize the customer’s need to maintain the vehicle and protect his or her investment. Once again, the BDC caller could then schedule the appointment, helping to keep the shop filled.

SPECIAL-ORDER PARTS AND RECALLS

A fixed-ops group also can call in a BDC to contact customers regarding the arrival of special-order parts.

Here, the parts or service department, or collision center would message the BDC that the part has arrived and ask that the customer be contacted to arrange for its installation. With the scheduling of an appointment and follow-up calls made when needed, the special order parts shelves are much less likely to become overloaded and the likelihood of wasted spending is greatly reduced.

Remember, too, that service departments can become overwhelmed by phone traffic when an auto manufacturer announces a recall. Not only would the BDC be beneficial in managing the inbound calls from owners, but also its staff could take a helpful proactive approach. The BDC representatives would phone customers, provide helpful information about the recall program and schedule service appointments. The manufacturers generally provide manifest lists or have them available.

EXTRA WORK FROM A MULTI-POINT INSPECTION

Meanwhile, many service advisors have become so overwhelmed with phone calls that they are unable to spend the appropriate amount of time on the service drive taking care of customers who are on-site. This has seriously affected their ability to perform two primary job duties: sales of services and customer satisfaction.

Most service departments do a good job in performing multi-point inspections and providing the owner with a report card on the vehicle’s overall condition. Suppose, however, that the inspection determines the car’s condition requires attention over and above why the customer brought it to the service drive. More service work may really be needed, either immediately or in the near future.

Now, service BDCs have greatly assisted in controlling incoming calls, but what about outbound calls? Could the BDC help out the fixed-ops department with certain calls? Absolutely. With proper staff training and tools, a BDC staff could become very beneficial to service, parts and collision center businesses.

Should the customer decline to have the additional repairs or services performed at the time, another useful role for a BDC emerges. The call center personnel

However, only in recent years has the concept of a BDC for fixed operations has become popular. Service departments have started to utilize a BDC mainly to control inbound call volume.

22 Service Drive OCTOBER 2015

ServiceDriveToday.com

could phone the customer to remind them about the additional needed work and try to schedule a service appointment. I find it a best practice to contact the customer about the declined items within 72 hours of the original visit, and not to wait longer.

While the customer often will turn down the work with the excuse that money is tight or the work too expensive, often what that really means is: “I don’t really trust you so I am going to shop you.” Waiting longer than 72 hours simply gives that customer ample opportunity shop the work and line up another shop to handle the repairs or services your team recommended.

The maintenance needs to be performed by someone; why shouldn’t it be the dealership that actually identified the problem, and why shouldn’t that dealership be assertive about seeking the work?

WHOLESALE CUSTOMERS, COLLISION ESTIMATES, SERVICE SURVEYS

A parts manager could utilize the BDC’s help in expanding his department’s wholesale business. The BDC staff could be tasked with contacting potential wholesale customers. During that outreach, they could provide information regarding the full range of products and services offered by the parts department. Or, they could at least help the outside salespeople by identifying the proper contact at the repair facility and scheduling an appointment for the salesperson.

Another potential beneficiary of a BDC’s assistance is the collision center. The BDC staff could follow up on estimates that were written but not closed, assisting the collision center in increasing its estimate-closing ratio.

Here, the collision center manager presumably would provide the BDC with customer contact information, and later review outcomes of the calls with the BDC supervisor. If necessary, the collision center manager could then follow up personally with the customer to answer questions and address concerns.

Many managers of service, parts and collision have struggled to persuade their advisors, counter people and estimators consistently follow up with customers regarding their opinion of the levels of service provided and satisfaction. Why not have the BDC team make these calls? The BDC team could thank the customer for the business, gauge his or her level of satisfaction and provide feedback to the managers. When necessary, those managers could follow up personally with the customer in order to preserve the relationship.

of outbound calls. That person is an extension of the dealership, whether the BDC is in-house or a third-party organization.

DON’T LET A BDC OPERATE WITHOUT A SCRIPT

Utilized properly and having received the proper training and tools, a fixed operations BDC can prove a valuable asset with outbound calls. The BDC can help keep your service drive filled, trigger additional sales, and improve customer relations and satisfaction. In fact, an effectively operated BDC is far more than a call center; it is also a sales center. SD

Across all of these activities, I generally am a believer in providing the BDC people with phone scripts for outbound calls. It is essential that the caller speaks professionally and be consistent in with the manner and tone

So, the manager of the fixed-ops department for which the calls are being made should be an active participant in creating and approving scripts. That manager also should participate in training the callers and in role-playing to help sharpen their customer communications.

greatly assisted in controlling incoming calls, but what about outbound calls? Could the BDC help out the fixed-ops department with

“Service BDCs have

certain calls? Absolutely.”

CHUCK WENZLER

Consultant and Coach at M5 Management Services Inc. Chuck is a fixed operations professional with more than 25 years of managerial experience. He has worked for several dealerships and later moved into training and consulting, both independently and for AutoNation and M5. He specializes in fixed operations clients at M5.

Phone follow-up will be needed on work not authorized from this review of a multi-point inspection.

ServiceDriveToday.com

OCTOBER 2015 Service Drive 23

Getting Your Service Advisors To Kick The

Paper Appointment Pad Habit The electronic appointment function is one of your DMS’ most underutilized, and time-saving, features.

ervice s r u o y e r u “Make s now how much advisors kuld benefit. The they co age is simple: core mess

t n e i c i f f e More duling = sche ed sales increarse money = mion the pay plan.”

BY KEN ROCK

E

lectronic appointment (EA) systems have been around for more than 10 years, so when I visit a dealership service department and see advisors still using paper appointment pads, I should be shocked, right?

I am not shocked at all. The fact is, the EA system is probably the most underutilized feature in DMS service modules.

When I ask service advisors why they don’t use EA systems, I typically hear “I’ve always done it this way,” “I don’t have time to learn the system” or “We’re not big enough.” But, these are just excuses, not reasons. In reality, advisors are afraid of giving up control.

I know what many service advisors are really thinking: “If we switch to an electronic system, something’s going to get screwed up. The technology isn’t going to work right, or other people are going to mess things up.

What if we go over capacity? What if they overschedule a technician? What if I don’t know what’s going on?”

They say the best way to overcome fear is to face it, head on. Before we address how to do that, let’s take a look at the many ways EA systems can make service advisors’ lives easier AND service departments more profitable.

LETTING EVERYONE SCHEDULE APPOINTMENTS Open scheduling.

When you still work with an appointment pad, obviously one person is usually in charge of booking all appointments. With EA, anyone in the dealership can see and schedule appointments.

Many dealerships now train their BDCs to book service appointments through the DMS. Customers prefer this approach, because they don’t have to wait to speak to a particular person and it frees up advisors to focus on their other needs.

24 Service Drive OCTOBER 2015

Fewer walk-ins.

When a customer is placed on hold or routed to voice mail, many times he or she will just hang up. That customer may take a chance and walk in, or even worse try another repair center. Open scheduling via the EA function by anyone (a BDC representative, a receptionist or cashier, even the GM) results in more appointments and fewer walk-ins.

DON’T ENTER INFORMATION TWICE Elimination of double-entries.

With an appointment pad, someone typically writes down the customer and service information. When it’s time to open the RO, that information has to be entered again.

However, with an EA system everything is entered ahead of time. When it’s time to open the RO, you simply click the “Create RO” button on the EA’s appointment screen, enter the vehicle’s mileage and you’re good to go. This approach reduces the typical transaction down to 30 seconds from several minutes with a pad.

Sales of more labor hours.

EA systems make it easy to maximize shop capacity.

When a service manager views the weekly or monthly schedules, the system tells him how many hours have been booked, which days are open and which technicians are busy. This allows that service manager to easily set priorities and more accurately predict and report on shop capacity status.

PRE-ORDERS SAVE TIME Creation of pre-work orders.

A pre-work order is an identical copy of what the RO will be. At the end of each day, printing out pre-work orders for the next day is a huge time-saver, especially during busy mornings in which 15 to 20 customers drop off cars.

Rather than open an RO for each arriving customer, advisors can just pull a printed pre-work order from the

pile, review service requests, write down the mileage and have the customer sign. Once the morning rush has died down, they can start working with the actual RO.

Reduction of no-shows.

An EA system can be configured to send e-mail reminders to customers about upcoming appointments, thus increasing show rates. Additionally, they make it easy to run a no-show report at the end of each day, so that your advisors or BDC can follow up to reschedule appointments.

AVOID ‘GOTCHAS’ IN SERVICE DRIVE Elimination of service bloopers.

Keeping appointment information on a pad leads to “gotcha” surprises popping up in the system. Let’s say a customer arrives for a scheduled service. The service advisor opens an RO, and the system notifies him that this vehicle has an open recall, or the warranty has expired, or the dealership doesn’t have a part in stock.

At that point, it’s a little late to notify the customer, who will not be happy about paying more or leaving the car for longer than planned. And, what if that customer needs a loaner car? Does your dealership have one available, and ready and waiting? An EA system eliminates such bloopers by notifying you ahead of time if there are open recalls, OEM recommendations or warranty issues.

More parts sales.

Paper appointment pads don’t tell you if a special-order part for this customer has been sitting on your shelf for six months. Again, if you wait until the last minute to open an RO, the customer may not want to take the additional time to have the part installed.

However, when you type a customer’s name into an EA system, it instantly notifies you of his or her parts status – whether it is still on order, on back order or has been waiting on your shelf for pick-up for months.

ServiceDriveToday.com

Weeding out clipboards and notepads from your follow-up appointment process will eliminate wasteful double-entries.

Screen shot shows the electronic appointments feature in an Auto/Mate DMS.

CUSTOMERS ARE HAPPIER Increased customer satisfaction.

Most DMS providers now have online scheduling integrated into their EA system, which customers can access through the dealership website. When customers schedule their own appointments online, hours of time are freed up for dealership personnel to do other things.

Plus, these customers typically report higher satisfaction levels because they are in control to set appointments instantly, view recommendations and more actively participate in their vehicle’s maintenance.

go wrong when you start using an EA system, fix it and figure out how to prevent a recurrence.

Sometimes, switching to EA system may take a directive (and incentive) from above. Make sure your service advisors know much they could benefit. The core message is simple: More efficient scheduling = increased sales = more money in the pay plan. In my experience, simply switching to an EA system can increase a service advisor’s productivity by 30 percent or more.

Additionally, I recommend training. Technology is so much easier to embrace when you know how to use it.

Contact your DMS or service software vendor and tell that company you need help setting up and utilizing an EA system.

I have trained many service advisors how to use their DMS’ EA functions. Once they make the change, they never go back to paper appointment pads. SD

KEN ROCK

HELP FROM ABOVE, AND TRAINING

Corporate Training Manager and Customer Support Specialist at Auto/Mate Dealership Systems

Are you ready to throw away your appointment pads by now? If not, perhaps you should ask yourself, “What’s the worst thing that could happen?” If something does

Ken has trained dealership customers for more than years, after having worked as a fixed-ops director for a dealership group in New York and Massachusetts. He has more than 25 years of dealership experience and hands-on training of dealership staff.

ServiceDriveToday.com

OCTOBER 2015 Service Drive 25

HE CALLS IT ASSERTIVENESS;

WE CALL IT THAT PERVADES SERVICE DEPARTMENTS Stop putting up with this behavior from advisors, techs and even service managers.

BY ROB GEHRING

M

ost of us at some point of our live encountered a bully, either as the victim or witnessing the mistreatment from close range. However, most of the time that controlling, manipulative and destructive behavior was in school. How can it be that bullying is prevalent among the adults who work in service departments?

Well, it is. I have seen bullying behavior on service teams throughout the country. Just as parents of a bullied child inevitably lose confidence in the teachers, principal and school board, employees who see or experience in this behavior will wonder about the competence of their service manager and dealer. The question has to be asked: Is this really accepted behavior in our dealerships?

Let me detail some of the common bullying scenarios I see time and again in service departments all over the U.S.

techs acting the bully toward advisors and service managers,

“I also have seen many examples of

beating them up for more hours on a particular job.”

26 Service Drive OCTOBER 2015

FROM SERVICE ADVISORS

How many times have I heard from techs and parts personnel that a service advisor has it in for them? Countless times.

The tech might believe the advisor dislikes him so intensely that he only gets assigned work on which he can’t possibly make a living. The parts worker might be ignored when he asks to discuss the special order parts piling up on the shelf.

It’s true that some advisors seem to believe bullying improves their status in every situation. They may even lash out at dealership management on a regular basis.

After all, their numbers are great; no one could possibly replace them. In fact, I’ve seen advisors bully a customer standing right in front of them. They will argue that a repair is not covered under warranty and insult the customer’s intelligence.

I recall a conversation I had a few years ago with an advisor considered a bully by his co-workers. I began by asking if he liked to make wood toys. He asked why I would ask such a ridiculous question. I replied that he obviously wasn’t happy in his position and was making everyone around him miserable, so he should consider another career such as making wood toys. The 30-minute conversation ended with a clearly stated understanding he could no longer act like a bully and continue as an advisor at that dealership.

The service manager must directly intervene with any advisor misusing his or her position. He should have open communication with all staff seeking information about every bullying incident, and never name their sources.

FROM TECHNICIANS

I also have seen many examples of techs acting the bully toward advisors and service managers, beating them up for more hours on a particular job. They seem to believe that intimidating the advisor or manager also will protect them from losing hours on future jobs, that the advisor or manager would think, “I have to pay Bill more hours or he will go off the deep end, and I don’t need that today.”

This path-of-least-resistance way to manage a prickly tech totally disregards the customer and the rest of the dealership, and reduces the entire staff’s quality of

ServiceDriveToday.com

repairs to recommend ways to reduce the cost of errors made on customer vehicles.

FROM THE SERVICE MANAGER However, the worst bully in the bunch can be a wayward service manager. Some service managers seem to believe their job description requires them to be a bully. They feel compelled to constantly walk around the dealership looking for what is wrong, and then yell explicitly about the failures to the employee.

In reality, this form of “management” leads to high turnover and lack of stability in the dealership. Team members will walk on eggshells, wondering what kind of mood their service manager is in today. Productivity, customer retention and profitability decline as a direct result of the service manager’s moodiness. Look for service team members to seek jobs in another shop where the quality of life is better.

Service managers who seem to roam and find reasons to complain, loudly, bring down an entire staff’s mood.

Dealers should extend a “no risk, open door” policy so that any team member can approach them about a problem manager without fear of reprisal. Also, consider an annual rating form (similar to the CSI survey) for the service team to anonymously review their manager.

DON’T ALLOW SUCH BEHAVIOR

There should be no room for bullies in your dealership, at any level or position. It makes the quality of life poor for an entire team and reduces performance on a consistent basis. Just as I would hope a school system would act swiftly against bullying behavior, dealerships should take the same position.

Develop a work culture that deals with bullies promptly and severely. Life is too short to have it any other way. SD

“How can it be that

bullying is prevalent among the adults who work in service departments?

Well, it is.”

If techs like this one become obstinate about getting more hours per job, don’t wait to intervene.

work life on a consistent basis. It becomes a daily routine of avoiding that tech as often as possible, and shivers running down the spines of any team member he approaches.

Most shops understand that their flat-rate system requires they use a labor time guide manual such as Motors or Chilton, to provide them with the accurate time needed to perform a repair operation. Everyone understands that occasionally, these manuals need added time because of rusted bolts or other complications, etc. However, in general these guides are considered accurate. Not using a labor time guide encourages arguments from techs to pay them more hours.

The tech who behaves professionally understands that the proper way to improve his personal income is to perform consistent multi-point inspections, and recommend needed repairs and maintenance to the advisor on every vehicle. I remember an incident when I was fixed-ops director at a dealership. A tech approached me yelling that he just been assigned another recall. He stated his house and Harley payments were coming due Friday, and these recalls were killing his ability to make any real money.

The vehicle was on the lift, so I walked over and performed a visual inspection of its condition. As I was pointing out the needed maintenance and repairs, the tech interrupted me and said the customer would never buy that. Obviously, I wrote down every need. I sold more than 13 hours of customer pay labor on this recall job about which the tech was complaining so vociferously.

In my opinion, history shows that a tech who constantly argues about his time ends up reducing his income by at least 20 percent. You can’t be efficient and angry at the same time; that will never work.

Service managers should consider creating a board of three techs to review those instances when a co-worker feels shorted. This board also could review shop policy

ServiceDriveToday.com

ROB GEHRING

President and Founder of Fixed Performance Inc. Rob’s company specializes in training engagements for dealership fixed-ops clients throughout the U.S. and Canada. It aims for dramatic and profitable improvements in a dealership’s fixed operations in both processes and people. He also writes a free weekly newsletter and holds a free weekly conference call on fixed operations topics.

OCTOBER 2015 Service Drive 27

IMPLEM

HEA Will Cut Stre The importance of a disciplined approach to getting enough sleep can’t be overemphasized.

Cutting back on your morning coffee intake will help reduce your stress at work.

B

ased on attendance in a training class on stress reduction that my firm delivers, I can tell you unequivocally that stress is a major issue in dealership service departments. You know exactly why stress builds up in service without my having to list the reasons.

In this article, I want to offer a few rules to help reduce stress levels, both at work and in your personal life. These rules may come off as obvious at first glance, but I can tell you that many service managers and advisors are not following them, and problems are resulting. Moreover, service managers are in a position to encourage and coach their advisors and techs on stress management, and improved motivation and productivity will result if they do.

RULE NO. 1:

REDUCE CAFFEINE INTAKE

I’m not talking about removing the coffee and soda machines from the service department, or even setting a numerical standard for cups per day. Just drink less caffeine.

Despite the abundance of research warning how overuse of caffeinated drinks contributes to stress, many of us start the day with a bracing cup of coffee and turn to soft drinks throughout the day for a quick energy boost. Or, drinks like Red Bull are popular for a quick jolt. Try adding up the cost of one Red Bull per work day over a year’s time; that alone could create enough stress to trigger a heart attack.

RULE NO. 2:

EAT BALANCED MEALS

If you buy into the old saying, “You are what you eat,” what does it say about a service department where meals often are skipped during hectic schedules and replaced with fast food, pizza, donuts and other filler that has little nutritional value.

It’s worth the effort, time and discipline needed for your service team and you to develop good eating habits.

Nutritionally balanced meals with more fresh vegetables, salads, soups and fresh fruits can definitely reduce stress and enhance your well being.

28 Service Drive OCTOBER 2015

RULE NO. 3:

DON’T PROCRASTINATE

Refusing to put off until tomorrow what you can do today contributes mightily to a lower-stress life. Don’t procrastinate! If you’ve got to tell a customer about a steep repair bill or other bad news, stop dawdling about making the call. Procrastination is a disorder that can consume our productivity and fuel mediocre business results.

Setting clear daily goals and working to achieve them is a terrific way to defeat the terrible procrastination habit. Without goals that rest upon our own shoulders and a consistent process for achieving them, we can easily find ourselves losing confidence and failing to complete even the simplest tasks. Result: More stress, more pessimism about our abilities.

RULE NO. 4:

SET ASIDE QUIET TIME

Regular and personal quiet time is one of the best ways to reduce stress. A service manager or service advisor constantly deals with other people’s problems and their solutions. That leads to added stress.

Setting aside time during each work day (maybe a couple of times) for personal reflection and rest helps shed problems and achieve a little peace. Maybe you close your office door and listen to some music, or head

to a nearby park.

I personally am a big fan of a 15-minute walk. Whatever works best for you as an individual, be insistent about setting aside some quiet time every day.

RULE NO. 5:

GET PLENTY OF REST

Service managers and advisors have jobs that often get intense. If they have not gotten enough sleep or down

“Service managers are in a position to

encourage and coach their advisors and techs on stress management, and

improved motivation and productivity willif theyresult do.”

ServiceDriveToday.com

MENTING

ALTHY HABITS ess Levels On Your Service Team Follow these seven rules in your work and personal lives, and urge co-workers to do the same.

BY DAVID LEWIS

function and helps prevent heart disease. They help maintain healthy blood pressure and reduce stress levels tremendously.

A regular exercise regimen also is a great way to lose weight and gain strength, energy and endurance.

It contributes to increased brain function and makes it easier to fall asleep when you want to. Again, I am a big fan of daily walks, and walking is a good starting point if you are not used to regular physical exercise. A simple 30-minute walk three times a week can make a big difference in your general health and well being. Of course, you want to avoid walking in the extreme heat of the day, but morning and early evening walks can be tremendously beneficial to your health.

DON’T SWEAT WHAT YOU CAN’T CONTROL RULE NO. 7:

time at home, they cannot function at their best.

It becomes obvious when they cannot effectively function with customers, their staffs or other dealership personnel.

Getting enough sleep and R&R time at home is essentially a matter of insisting on the proper number of hours, no excuses. The busier life gets, the harder it can be to carve out the number of hours of sleep needed to function at our best. However, when days without enough rest start to stack up, one after the other, we become irritable and less able to deal with the intensity that comes along with a dealership service job. Once again, increased stress.

RULE NO. 6:

EXERCISE MORE

According to the American Psychological Association, exercise improves mental health by helping the brain better cope with stress. Having a regular exercise regimen is one of the easiest and most effective ways to reduce stress. It will not take long to start realizing the benefits of simple exercise like a daily walk, and you’ll also enjoy benefits that extend far beyond stress relief. Taking regular walks improves cardiovascular

ServiceDriveToday.com

Most of us spend far too much time worrying about things we cannot control. We tend to worry about what others think of us, when in reality we are probably in their minds hardly at all. We worry about the future, the past, a host of things we can affect little if at all.

“Yesterday is history, tomorrow is a mystery, today is a gift. That’s why we call it the present.” Those are good words to remember if you want to reduce stress in your life. We all should do what we can about events we can influence, and stop worrying about those we cannot control. Constant worrying is a sure way to increase our stress levels to the danger point. Then, it usually takes a serious health failure to get us to wake up and smell the coffee ( just don’t drink it).

SPREAD THE WORD

Again, it would be easy to dismiss these seven simple rules as stating the obvious, if I didn’t see such high stress levels in dealership service departments. The fact is, these habits and the warning signs are being ignored.

Follow these rules to reduce your stress level.

Keep an eye on your service team and encourage them to make the same changes. Remind them again and again. Cutting stress will contribute substantially to a more productive, smoothly running service department. SD

Former First Lady Eleanor Roosevelt liked to say,

“It would be easy to dismiss these

seven simple rules as stating the obvious, if I didn’t see such high stress levels in dealership service departments. The fact is, these habits and the warning signs are being ignored.”

DAVID LEWIS

President of David Lewis & Associates David’s firm is a national training and consulting business that specializes in the retail automotive industry. He also is the author of four industry-related books, “The Secrets of Inspirational Selling,” “The Leadership Factor,” “Understanding Your Customer” and “The Common Mistakes Automotive Salespeople Make.” Visit his website at www.DavidLewis.com.

OCTOBER 2015 Service Drive 29

Your CRM May Be

A BAD FIT With Your Dealership Business Model Be alert for these warning signs that you should look for a different kind of CRM. BY ZACH KLEMPF

Auto salespeople need to be able to easily interact with your CRM using a mobile app.

“I’m not just talking about small independents …

I see franchise dealers that either have no CRM system

or use an ineffective one that is not working well.”

30 Service Drive OCTOBER 2015

ServiceDriveToday.com

T

oday’s car buying marketplace demands nothing less than a connected, personalized customer experience. Consumers want dealerships to know who they are and what their interests are, and to anticipate the types of cars and services they need. They want to reach their salesperson whenever it’s convenient for them, whether by voice, e-mail, video or text.

These expectations make it critical for a dealership to really leverage its customer relationship management (CRM) system. I’m often amazed when I come across dealerships that regularly use a DMS but still don’t have even a basic CRM solution. I’m not just talking about small independents, either. I see franchise dealers that either have no CRM system or use an ineffective one that is not working well.

Some of these dealerships do realize the value and potential in a CRM system, but they are not happy with what they bought and are frustrated their salespeople just aren’t using it. I’m not going to debate whether this is a principally a management or a salesperson problem, but clearly it’s a problem!

WHY CRMs ARE A CRITICAL TOOL

Before I discuss what a dealership should look for in a CRM solution and highlight warning signs with your current system, I want to enlighten holdout dealerships on the value they are missing.

At its core, a CRM system helps to manage sales and marketing processes, while delivering a more streamlined customer experience. CRMs let dealerships set workflows for their sales and BDC teams, manage Internet leads, and store valuable customer data that allows remarketing to existing customers.

For example, a dealership can leverage a CRM database as it would Internet leads, to run customized campaigns encouraging trade-ins. CRM leads are warmer, as you have more information about an existing relationship than with an lead purchased online. Also, CRM systems help both management and the sales team shorten sales cycles and turn inventory faster. Plus, manager dashboards help track overall trends and individual performance levels, while resource-specific views show each salesperson his or her open opportunities in order to ensure prompt follow-up for faster closes.

Some market research shows CRM adopters typically see a 32 percent improvement in win rate and a 50 percent acceleration of sales conversions. With that type of ROI, it’s worth it for dealerships of all sizes to explore what is possible to meet their CRM needs.

DON’T FALL IN LOVE WITH FEATURES

Modern CRM systems have innovative features that give dealerships an edge over stores that don’t use one. However, technological bells and whistles mean nothing if the system doesn’t fit your dealership’s sales process and deal flow. Fit is the single most important CRM criteria; your CRM needs to align with your sales culture, workflow, deal processes and business goals. If you use a UP system, then the CRM should complement it. If your business is single- or multi-rooftop, then the CRM must be calibrated to work well with those physical facilities.

A CRM needs to meet your dealership’s basic needs, have an intuitive user interface and be simple to learn. It has to be mobile and free your sales team to “work the lot” from virtually anywhere. A good CRM system provides multi-channel communication

ServiceDriveToday.com

5 SIGNS YOU SHOULD RETHINK YOUR CRM If your dealership is unhappy with your current CRM system, did I hit a nerve in discussing any of these key criteria? Here are five warning signs indicating your CRM approach may not really be working for your dealership:

1 PRICE

Are you paying more for your CRM than some of your sales guys’ salaries? Do you lack a clear ROI on your CRM system, and are you locked into a multi-year contract?

If yours is a smaller store selling 50 cars a month, then a CRM solution that is geared toward multi-rooftop dealers and loaded with every whiz-bang feature in the book is not the best or most cost effective highway to travel. Create a critical features checklist in concert with your sales team to cover what your dealership really needs, and do your due diligence when researching different CRM systems. Demo several of them to identify a good fit for the price and a system that works well with your sales processes.

At the end of the day, you want to trim your monthly CRM payments with a more affordable system that is right-sized for your business.

2 POOR MOBILE APP

Does the mobile version of your CRM create the feeling that you’re using a brick phone?

Mobile is crucial for salespeople, with statistics showing a 30 percent increase in the number of “fresh-ups” once they start using a mobile CRM. Putting everything at your salespeople’s fingertips, with faster data entry tools, improves sales productivity. Having the ability to scan both VIN and driver’s license information is the sign of a good mobile CRM. Knowing who’s calling with details of their car interests, via screen pop-ups, is also a best-in-class mobile CRM feature.

3 LEGACY SYSTEM

If your dealership has a CRM system that feels “clunky” and doesn’t integrate with other applications you use, consider dumping it. If the interface looks outdated and does not integrate with top social media tools, then trade in your legacy system for a newer model.

4 OVERLY COMPLICATED WITH “FEATURE OVERKILL”

Does your CRM actually make the sales process inefficient and slow deal momentum? Are there a zillion features, when your process really only requires a few critical ones?

You get out of a CRM what your salespeople enter into it. If the CRM just slows them down, then they will stop using it. Stick with a simple CRM solution and focus only on what your sales team really needs.

5 GENERIC CRM

I often run into dealers who use B2B-focused CRM systems that are feature- and report-rich but are not focused on the B2C automotive industry. Your dealership CRM needs to be automotive-specific, not a general SaaS system.

capabilities via e-mail, voice, video or text; and has integrated social media tools to stay connected with prospects. It offers your people increased visibility into the pipeline and sales trends at a glance, with dashboard-centric reporting. And, all of this must also be affordable.

Make sure your CRM is tailored to the automotive world, with modules that work with important dealership tools.

IT’S NEVER TOO LATE TO CHANGE

dealership management with CRM platform decisions. Make the best possible decision by including your sales and BDC teams in crafting a critical CRM functionality checklist and walking through how the CRM will affect the sales process. If yours is not a tech-savvy team, consider bringing in an outside consultant to help evaluate CMR systems for your store and sales culture.

Change can be hard. It often takes 60 to 90 days of using a CRM before it becomes a natural process for your team. Follow the guidelines I’ve provided, and stay patient in order to maximize your CRM ROI. SD

Thinking about all of these issues will aid your

ZACH KLEMPF

CEO of Selly Automotive Zach’s background includes working in both automotive and high-tech industries in Silicon Valley. As a millennial CEO, he has his finger on the pulse of that generation’s shopping preferences. His expertise is in digital marketing, CRM and general dealership technology. Visit his website at SellyAutomotive.com.

OCTOBER 2015 Service Drive 31

ON THE SET WITH

Michael Roppo, director of fixed operations and training/QPS at Automotive Domain Results, with Corinne Lillis of Service Drive Today.

Steve Hall, faculty member at NCM Institute, with Corinne Lillis of Service Drive Today.

Anne Fleming, president of Women-Drivers.com, with Corinne Lillis of Service Drive Today.

Tom Kukla, principal and founder of Tom Kukla Credere Leadership, with Corinne Lillis of Service Drive Today.

Jeff Cowan, president of Jeff Cowan’s PRO TALK Inc., with Corinne Lillis of Service Drive Today.

Jim Roche, SVP of marketing & managed services at Xtime, with Joe Gumm of Service Drive Today.

John Fairchild, president and performance coach at Fairchild Automotive Solutions, with Joe Gumm of Service Drive Today.

Rob Gehring, president and founder of Fixed Performance Inc., with Corinne Lillis of Service Drive Today.

32 Service Drive OCTOBER 2015

Chris Collins, founder of Chris Collins Inc.

Jonathan Thompson, director of client development at Force Marketing, with Joe Gumm of Service Drive Today.

ServiceDriveToday.com

SCHEDULED RETENTION

MORE CUSTOMERS BUYING MORE STAYING LONGER

86%

of drivers who return for regular maintenance are also more likely to purchase their next vehicle from the same dealership.1 LEARN HOW TO CAPTURE THESE OPPORTUNITIES!

Visit easycare.com/servicedrive Or Call Us Today at 855.772.6590

1 PPM Driving Retention, Profits - March 2013, Auto Dealer Today. © 2015 Automobile Protection Corporation – APCO. EasyCare is a registered trademark of APCO. MOTOR TREND® is a registered trademark of TEN: The Enthusiast Network Magazines, LLC.