Service Drive Today | April 2016

Check out our daily newscast on servicedrivetoday.com

APRIL 2016

VOLUME 2, ISSUE 4

a CBT Automotive Network publication

BATTLE SERVICE BUSINESS MYTHS SCORE A KNOCKOUT IN SALES

JEFF COWAN

... See Page 8

EXPLORE THE OPPORTUNITIES OF GOOD PHONE SERVICE

ATTITUDE AND SUCCESS THE SECRETS OF GREAT SERVICE ADVISORS

PAULA BLISS

... See Page 20

LIMIT YOUR LIABILITY

WHEN HIRING NEW EMPLOYEES

CHUCK SUJANSKY

... See Page 26

Building a healthy phone culture is a challenge in service drives, but these tips can turn that around ... see PAGE 12

FIND A DIGITAL GOLD MINE IN FIXED-OPS

Service drives account for 54% of dealership net profit, find the tools to capitalze on it ... see PAGE 18

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

IS YOUR SERVICE DEPARTMENT PREPARED? In the next six years vehicle software updates will grow at least tenfold ... see PAGE 14

SERVICE DRIVE MAGAZINE

SERVICE DRIVE TODAY Email newsroom@servicedrivetoday.com Phone 678.221.2955

LIMIT YOUR LIABILITY

WHEN HIRING NEW EMPLOYEES

President And Publisher Jim Fitzpatrick Vice President/COO Bridget Fitzpatrick

CHUCK SUJANSKY

Managing Editor Mary Welch

26

Creative Director Brandy Brewer Director of Marketing & Events Karen Locadia Digital Marketing Associate Erin Mumphord Subscription Manager Emily Wiggins

MEDIA SALES REPRESENTATIVE

Letter From The Editor Dear readers,

MARY WELCH

The Service Department is the heart of a dealership and responsible for much more than fixing cars. A well-trained service department is often the only touchpoint with a customer after a sale and it can go one for years. As we all know, it’s all about relationships and the service department maintains the car and the relationship until the customer is ready for another car — and it’ll be a good bet that the customer will return to shop thanks to the trusted service department.

Managing Editor So it is so vital to the business that the service department run efficiently and effectively — and with pride. Michael Roppo offers a fantastic article about negotiating price while showing the customer the value in the product and service. There’s a difference, he points out, between negotiating and discounting. Lowering a price to make a customer happy may be a short-term bandaid but there are many negatives that follow, such as profits as well as customers who will always expect a discount. A discount should be a last resort, never the first.

Paula Bliss offers an attitude adjustment

for service advisors and says that, in the service department as with life, it’s all about having a positive attitude, doing your best and learning from failures. It’s all a matter of choices and following through on them.

Jeff Cowan returns to Service Drive and busts some myths about service writers.

The first one is that service writers don’t need as much training as the sales staff.

The second is that economically challenged areas cannot sell as much as service writers who work in affluent areas. Finally, and as a working mother I love this one, given the choice between hiring a male service writer versus a female service writer with young kids, he’d go with the mother. There’s more myths to bust in his very informative and spot-on article.

It’s all fascinating reading — and there’s more in this issue. As always, we hope you enjoy and learn from Service Drive and we’d love your comments, thoughts and story ideas. And, as Paula Bliss says, it’s all about attitude so let’s put a smile on our faces, our eyes on the goal and have a fantastic month.

Mary Welch

Jim Fitzpatrick jfitzpatrick@cbtnews.com d 678.221.2955

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SERVICE DRIVE MAGAZINE

In This Issue 08 Battle service business myths and score a knockout

By Jeff Cowan, Jeff Cowan’s ProTalk

12 Limit missed opportunities throughyour service call center

By Mike Haeg,

08

Century Interactive

14

How can your service department prepare for a vehicle computer onslaught

By Erik Nachbahr, Helion Technologies

18

Unlocking a digital gold mine in the service department

By Glenn Pasch,

PCG Digital Marketing

0 The secret to service advisor success 2

By Paula Bliss,

18

M5 Management Services

22 Ask The Pros 24 Industry News 26 Limit your liability when hiring new employees

By Chuck Sujansky,

KEY Group/Applied Behavioral Insights

30

Creating chemisty with women clients in your service department

By Anne Fleming,

Women-Drivers.com

20

32 On the Set

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OF SERVICE WRITERS Battle Service Business Myths And Score a Knockout

BY JEFF COWAN

M

yths can be very dangerous things. They can and will impede your ability to grow, expand and succeed. Here are some of the biggest myths surrounding the writing of service that have come up and continue to come up in the

many meetings I am asked to speak at throughout the year.

8 Service Drive APRIL 2016

ServiceDriveToday.com

Myth

Service writers do not need the same amount of training as the car sales staff.

Fact

A Service Advisor who works with just 15 customers a day will generate more gross profit for a dealership in a month than a sales person does who delivers 30 vehicles in that same month. In addition, due to the volume of customers they will talk to in a month, they will have more impact on your survey scores and customer retention than any other employee in the dealership, including the dealer. So why would they not need the same amount of training or more?

run and they cannot get to work, then their financial situation will only get worse. I have worked in countless service drives with countless service advisors where their customers were financially challenged and the sales made were either equal to or greater than those in service departments where the reverse was true. The difference is that the financially challenged customer requires a service advisor who has a slightly different skill set and outstanding follow-up and over the telephone selling skills.

Myth

Women service writers have a tougher time in service because men prefer to talk with men.

Fact

Myth

Women service writers who are mothers are risky due to parental responsibilities.

Fact

Tell that to Abigail Adams, wife to President John Adams.

While John was overseas for many years, she stayed behind and ran the farm, ran John’s businesses and raised six kids, one of whom grew up to be our nation’s sixth president. One of my daughters is at the child bearing age. She and 10 of her close friends have all had children in the past 24 months. While one of them quit her career and became a stay/work at home mom, the other nine not only continued their careers, but eight of them actually increased their hours or took on more responsibility. Why? Because they quickly realized

This is not a gender specific problem. A service advisor who is strong at taking control of the customer and exudes confidence, can and will be able to handle your customers. While this myth used to have some validity twenty years ago, it has none today. If I were to list the top ten service advisors that I have worked with over the past twenty-nine years, seven of the top ten would be women.

Myth

It does not take as much skill to be a quick service writer as it does to be a full shop service writer.

Fact

Arguably, it takes more. Think about it. A quick service writer is many times the first person a new customer will work with in service after purchasing a new vehicle. Their ability to handle your customer and convince them that your shop is the only place to go for service, has to be near perfect, if not perfect, to get the job done.

Although the path to full shop writer begins many times in express, the express writer should be trained to expertly handle any scenario that a full shop writer would. Again, they are likely to be the first point of face to face contact in the dealership after purchasing a new vehicle. Express should be trained to impress – every time, on every level.

”A Service Advisor who works with just 15 customers a day will generate more gross profit for a dealership in a month than a sales person does who delivers 30 vehicles in that same month.” that if their kids were to have a life equal to or greater than their own, they had to work harder and smarter. If all things are equal and I have the opportunity to hire a male service writer versus a female service writer with kids, especially young ones, I will take the female with kids every time. Think grizzly bear with cubs.

Myth

SERVICE

Service writers who work in economically challenged areas cannot sell as much as service writers who work in affluent areas.

Fact

Many times, they can sell more for one simple reason; the more financially challenged a person is, the more important their vehicle becomes to them. Financially challenged customers know that if their vehicle does not

ServiceDriveToday.com

Myth

It is impossible to train veteran service writers to adapt to changes in their customers’ demands and in new technology.

Fact

Not if you have established a culture of constant change in your department. The service writer or employee who cannot adapt to change and evolution in retail sales will become a dinosaur within five years. When you consider how rapidly your customers and their buying habits have changed in just the past few years, and how rapidly technology changes, any employee who can not keep up is costing you money.

In the future there will be two types of sales people; those who sell technology and those who use it. The rest will become obsolete.

APRIL 2016 Service Drive 9

“Financially challenged customers know that if their vehicle does not run and they cannot get to work, then their financial situation will only get worse.”

A service advisor who takes control and exudes confidence will get the job done, regardless of gender.

Myth

Service writers can handle setting their own check-in times, checking in your customers’ vehicles, following up on those customers throughout the day, closing those customers over the telephone, closing out their own repair orders, contact customers who have been waiting for parts, cashier their own customers, actively deliver vehicles back to each customer as the vehicle repairs are completed, send a thank you note to each customer, contact customers who missed their check in times, contact customers who previously declined repairs, contact customers they have not seen in over six months, while at the same time getting and maintaining high survey scores and customer retention.

Fact

That’s true only if they write 10 to 15 repair orders a day. Just like on the vehicle sales side, you want to free your service writers (sales people) up as much as you can, to talk to your customers. Sales people make you money when they are talking to your customers. The more time they have to talk to your customers, the more money they will make you. From the beginning of car sells through the early 1960’s, vehicle sales people answered the dealership’s incoming sales calls, did their own financing and helped people when they came in for service. When dealers realized that those

10 Service Drive APRIL 2016

activities kept their sales staff in the building and not out on the lot where the buyers where, it ushered in the era of the telephone receptionist, the F & I department and service staff, and significantly more vehicles were sold. The more you can do to support your advisors by freeing them up to talk to your customers, the higher your retention, survey scores and sales will be.

Myth

Service writers will not sell or are not good at selling additional products like special wheels, extended warranties, details, etc.

Fact

Not true. To sell anything on a service drive requires three things; a great product, great training in how to present and sell it, and a great pay plan.

If you are consistently not hitting your sales, retention and survey goals, it is a sign of great weakness not to try something new. Trying something new can be as simple as taking a look at what you or your staff say can’t be done, and testing to see if the reason is based on fact or myth. You should make this a common practice and part of your monthly routine to dispel myths that may exist in your work place.

I get blamed from time to time for being too willing to test and eliminate these myths and reasons that hold my business back. I am told I need more patience. The fact is, I do have patience for the time it sometimes takes for myths to be tested. What I do not have patience for is the lost customers and revenues that myths produce. SD

JEFF COWAN

President of Jeff Cowan’s PRO TALK, Inc. Jeff Cowan is considered the creator of the modern day walk around and selling processes for service departments everywhere. His company, Jeff Cowan’s PRO TALK, Inc. is recognized as North America’s number 1 fixed operations training company.

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GOOD PHONE SERVICE

Going to voice mail is the same as saying goodbye to a customer. Make sure potential customers don’t hang up on you.

BRINGS OPPORTUNITIES Here’s How to Limit Missed Opportunities

BY MIKE HAEG

I

t’s another crazy day in the service drive. You started with a to-do list 100 items long but it doesn’t really feel like anything was accomplished. Most importantly, there is a huge pit in your stomach about the quality of phone handling in your service department. Are we doing a good job? Are we friendly? Are we setting appointments? Are customers cancelling appointments?

Building a healthy phone culture is a real challenge in service drives. It’s also a huge opportunity. Your competition, both dealerships and national chains, are aggressively trying to steal service customers away from you.

It’s important to understand the different scenarios that might lead to a customer not performing service at your dealership. In the call tracking world, we call those “missed opportunities,” but they don’t have to be missed forever. Every effort should be made to get that customer back, and every missed opportunity can be saved. Treat every customer equally and most importantly, get them into your service center.

1. The phone rings and rings and rings and rings.

You better believe that customers hate to sit on hold.

Their concerns are already high with the chance of expensive service repairs. Don’t make the anxiety any worse.

Review your phone routing and ensure that every inbound call and transfer possibility is accounted for.

Train your receptionist to “warm transfer” calls, which means waiting for a service representative to actually answer before hanging up on the customer. Finally, try implementing rollover technology on your phones.

This will bounce a call from one phone to many phones after a certain amount of rings.

remember is that every canceled appointment should immediately spawn a new appointment request. Never simply accept the situation. Treat every canceled appointment as a missed business transaction and lost lead, even if your customer is a regular.

Train phone handlers to ensure they attempt to reschedule the appointment. Go even further by taking time out of each day to phone these customer’s back personally to reschedule the appointment.

3. Your team fails to ask the customer to come in

2. The customer cancels an existing appointment

This one stings. As a service manager, the No. 1 commandment is this: Always ask for the appointment.

Only 12% of people will say no to an appointment invitation. Your team should always ask the customer to come in for an appointment. Never let yourself be the cause of a lost appointment or lead.

This situation is inevitable no matter how well your team performs on the phone. The important thing to

Twenty-five percent of callers who are looking to get

Remember: You can’t play ball with a customer if you don’t even pick up the phone.

“Building a healthy phone culture is a real challenge in service drives.”

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ServiceDriveToday.com

“The important thing to remember is that every canceled appointment should immediately spawn a new appointment request.” a repair done are not asked in for the appointment.

If you have an average of 14,000 repair orders per month, you could raise that number close to 20,000 simply by asking.

The appointment request is grounded in building a healthy appointment culture. If management is serious about increasing their service revenue, then every effort should be made to create awareness around the appointment request.

4. The appointment calendar is too full Organizing your calendar is as simple as planning ahead. Every morning, take some time to go through the service calendar and find any available times for the week. Do your best to leave some room so appointments get scheduled within a week from each call at the latest.

Sometimes, booking smaller services (like oil changes) with the larger ones (like replacing an alternator) helps appointment times run more quickly by leaving more of your team available. If your customer doesn’t book because his or her calendar is too full, ask them for

a good time to follow up at a later date to revisit the question.

5. The customer is a no-show Unfortunately, customers sometimes just forget about their appointments. Limit this as much as possible by quickly emailing appointment details after the inbound phone call. Go even further to solidify by the appointment by calling the day before with a friendly reminder.

If the customer is still a no-call, no-show despite your best attempts, follow up before the end of the day.

This is where your outbound efforts are critical. This opportunity can still be salvaged.

“Hi Joe, sorry we missed you today! Just wanted to

follow up with you to see if we could re-book your appointment. We’d love to help you out whenever and however you need.”

6. You or your team fails to notice an important opportunity Inbound service opportunities pour in from all sort of places. Don’t let any slip through the cracks. Make sure to track every single inbound service phone call to ensure they are accounted for an integrated into your service dashboard. Review these metrics weekly to ensure that your marketing sources are performing as expected (or better!). If you a see a big dip in phone calls from a particular lead source, quickly inspect the marketing, website, or even the phone number itself to ensure they are perfectly published. SD

MIKE HAEG

Director of Automotive at Century Interactive Mike’s company produces the Car Wars automotive call-tracking program. He loves fusing technology with people to help dealerships “own the phone.”

Don’t forget to ask the customer to come in or remind them of an upcoming service appointment.

ServiceDriveToday.com

APRIL 2016 Service Drive 13

The future is in computer updates. Is your fixed-ops department ready?

Getting Your Fixed-Ops Department Ready For

VEHICLE COMPUTER UPDATES

Are You Ready For The Increased Demand

I

n the next six years, the practice of updating a vehicle’s software is due to grow at least tenfold, according to IHS Automotive. Regular over-the-air software updates are required for vehicles with maps, apps, infotainment, telematics and electronic control units (ECU). In auto dealerships, vehicle computer

system updates are performed by service technicians, typically while the vehicle is parked in a service bay.

BY ERIK NACHBAHR

APRIL2016 2016 ServiceDrive Drive APRIL 1414Service

ServiceDriveToday.com ServiceDriveToday.com

(Source: Helion Internal Data)

Installing updates requires a lot of bandwidth. The average software update can take anywhere from 30 to 60 minutes. The time it takes to perform an update is directly dependent on whether the dealership has adequate Internet and Wi-Fi bandwidth in the service department.

The cost of these software updates is passed directly to the customer. At $100+ per hour labor rates, the time and cost involved is likely to cause some grumbling and complaints.

Updating challenges As more vehicles are sold that require vehicle computer updates, the task of performing these updates will pose two major challenges for service departments: 1. Productivity. The time involved with updating software may negatively impact shop productivity. How many vehicle computer updates does your service department perform every month? Multiply that number by ten. Is your shop prepared for this increased capacity? Regular updates are necessary, but they aren’t the most profitable jobs. To increase gross profits, your service department needs to be able to accommodate more customer-pay work and jobs with higher gross profit margins.

2. Customer Dissatisfaction. The cost involved (that must be passed onto the customer) may negatively impact customer satisfaction and potentially reduce CSI scores.

Service managers and dealers should start planning now for the imminent rise in demand for vehicle computer system updates. The good news is you won’t have to add more service bays. With just a few tweaks to your Information Technology (IT) infrastructure, you will be able to slash the amount of time it takes to perform software updates, free up service bays for more profitable jobs and reduce customer costs.

The Need for Speed: Internet The first thing dealers should do is to assess their Internet connectivity. In 2016, dealerships are using an average 50 Mpbs of Internet bandwidth, which has

ServiceDriveToday.com

In the service department, the addition of fiber optics, enterprise-grade access points and exterior Wi-Fi will drastically reduce the time it takes to perform vehicle computer system updates.

tripled since 2014 when dealers used an average 15 Mpbs. This amount is expected to double again in the next two years. By 2018 the average dealership will require 100 Mbps of Internet bandwidth.

When it comes to your Internet, don’t skimp by opting for the lowest-cost “Small Business” service plan from your Internet Service Provider (ISP). Typically these plans provide the same amount of bandwidth as residential customers (about 30 Mbps of throughput), along with the same, sub-standard level of support.

Today’s dealership requires enterprise-grade service, which always comes with high-level support and greater reliability. The best way to accomplish this is with fiber optics.

Until recently, fiber optics was prohibitively expensive for small businesses. That’s because only phone companies could provide Internet service over fiber optics.

Fortunately for auto dealers, recently cable companies and utility companies have been awarded with Rights of Way, so they can also provide fiber optics. The increased competition is lowering prices. In some areas, dealerships can now bring screaming fast Internet via fiber optics right into their server rooms for under $1,000 per month.

To prevent downtime, ensure your Internet connections are resilient. This means contracting with more than one carrier, so that in the event that one carrier’s

As more vehicles are sold that require vehicle computer updates, the task of performing these updates will pose a few major challenges for service departments...

network goes down, your dealership and service department will not suffer lost productivity.

Growth in Connected Devices: Wi-Fi In auto dealerships, the first Wi-Fi networks were typically established in service departments to connect to the OEMs’ tech tools. Soon after, dealerships started adding Wi-Fi connectivity for their customers. The typical way to do this was to send someone out to a big box store, purchase residential-grade routers and place several of them throughout the dealership. For a while, this solution worked fine, but today’s data requirements are quickly outgrowing this setup.

In 2015 there were 18 billion devices connected to the Internet; that includes everything from laptops, phones and tablets, to thermostats and “smart” appliances. In 2020, it’s projected there will be more than 50 billion devices connected to the Internet2. That’s a 250% growth rate in five years.

This same growth rate is happening in auto dealerships too, and particularly in service departments. Several years ago a typical shop may have had one or two tech tools that required relatively low bandwidth. Now every tech has their own laptop and a cable from the OEM to plug their laptops into cars. Today’s service department with 40 or 50 bays may have 60+ connected devices that are all downloading huge amounts of data.

In service departments, Wi-Fi connectivity is required for:

• Vehicle computer system updates

• Mobile tablets

• Third-party service applications

• Employee and customer cell phones

• Smart appliances

To ensure your service department has adequate Wi-Fi connectivity, you may want to consider replacing your current routers with enterprise-grade wireless access points. These access nodes deliver data at two to three times the speed of residential-grade equipment, plus

APRIL 2016 Service Drive 15

Often a customer must be shown several times how to use technology before they understand and use it.

they offer increased security, signal optimization, noise reduction (which can be helpful in a service department) roaming optimization and more.

Within a few years, an average-size dealership will require ten to fifteen wireless access point nodes split between service, sales, parts, customer waiting areas and the exterior. The majority of the access nodes will be in the service department, as that is the department that requires the most bandwidth.

Vehicle Computer Updates Innovation: Exterior Wi-Fi Some dealerships are now installing exterior Wi-Fi. Exterior Wi-Fi connectivity is certainly useful for salespeople, so they can interact with customers using their mobile tablets while out on the lot. But where dealership profitability is concerned, exterior Wi-Fi stands to benefit the service department the most.

With a Wi-Fi access node on the exterior of the building, service technicians can park vehicles outside to perform

vehicle computer system updates. This not only frees up service bays for more profitable repair work, but it also frees up technicians. A technician can park a vehicle outside, start the software updates and begin work on another job. Several cars can receive computer updates at a time without taking up a single service bay. Not only does this keep shop productivity high, but it could potentially add more billable hours without having to add another service bay!

Perhaps most important, exterior Wi-Fi will greatly reduce the cost for the customer. With no time in the service bay and very little technician time, the cost for a vehicle system computer update could be reduced from $100+ to well under $50, which is a lot easier to swallow.

In the service department, the addition of fiber optics, enterprise-grade access points and exterior Wi-Fi will drastically reduce the time it takes to perform vehicle computer system updates. If you want your fixed ops department to be ready for the increased demand, you should plan to make the necessary upgrades to your IT network in the next year or two. SD

ERIK NACHBAHR

President and CEO of Helion Technologies Erik’s company, which he founded in 1997, provides IT strategies to auto dealerships. He individually works as chief information officer for clients with a combined billions of dollars in annual revenue. See the website at www.heliontechnologies.com.

16 Service Drive APRIL 2016

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FACEBOOK ADS

Target T Potential Service Customers

hink of the Gold Rush of the early 1900’s. People crossed the country because they heard there was a way to find gold and become rich. Some were successful because they had the right investment in tools and had the right location. They also had the courage to take a chance.

Others failed because they were not educated and prepared.

Today, dealers are told there is gold in the service drive. There is gold in your fixed marketing operation online.

Unlocking Digital Gold Mine in the Service Department

BY GLENN PASCH

Most dealers I speak to always ask, “How do I do it?” “How do I know it is working?” “Where can I learn more?”

First, dealers need to realize the potential is there if the marketing of this department is done correct-

ly. Often the focus is only on new or used vehicles. If you find this odd, understand that, on average, Fixed Operations account for an average of 54% of dealerships net profits but only have — (wait for it) — 2% of the visibility on the average dealership website. Two percent?

I asked a few of my clients for some real numbers to back up my hypothesis. My findings were that on average, dealers give as little as 5% to possibly 15% of their marketing budgets to the service and parts departments.

I think there is more gold to be mined. I want to smash a misconception and arm you with a new strategy that many dealers ignore — Facebook Advertising.

Now before we dive in, currently many dealers use SEM (Search Engine Marketing) to market fixed operations and they should continue to do so. But you have to make sure it is being run correctly.

There are many companies out there doing some service advertising SEM campaigns mixed in with the other branding, such as new model and used model campaigns. I have seen some successful but in some cases they are not well thought out.

Fixed Operations account for 54% of a dealership’s net profit but has only 2% of the visibility on the average dealership website.

18 Service Drive APRIL 2016

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One of the biggest issues for dealers when doing SEM marketing is that the website is not set up for success. Excuse me if I sound like a broken record but your website and SEM campaigns need to have the following: Specific targeted ads including your special pricing Optimized landing pages for each of the 8-10 basic services they handle with video explaining the service that include the same pricing as the ads.

Remarketing efforts to highlight service Have a “Why Service With Us” video on their service page or confirmation page Have a great “Thank You,” page for customers who book service that pops up and offers other options for them to view while they are still on the site.

Remember that it is extremely important to educate yourself to fully understand reports from their SEO and SEM provider in layman’s terms.

Now let’s talk about Facebook advertising. I feel that right now this is one of the most cost effective ways to market service.

“It is time to embrace marketing your service drive with the same commitment as your retail side of the dealership.”

The two types of advertising placement is either in the sidebar or in the newsfeed stream. PCG prefers to have them in the news feed because as people scroll through their feed, their first instinct is to think it is a regular post. We have seen more clicks using this strategy versus the sidebar.

It is easy enough for a dealer group to do it themselves but in many cases you should find a competent agency partner to help you. Without getting too technical, reviewing what we did for a client in simple terms will help frame the conversation.

Client Interaction The client came to us because their Facebook page had little engagement and was not driving traffic to their site. We created a click to call awareness campaign. This was designed to let FB users in their area know about the service center, their hours and location. Pretty simple.

The ad would show on desktop FB users as well as mobile. One difference we set for the mobile user was having a click to call button in the ad. Remember that a very high percentage of Facebook traffic is mobile

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so having the click to call button was important and easy for the user to connect with the dealer.

As I mentioned, this form of marketing can be very targeted and also very cost effective. Because this was an awareness campaign, we set the radius of 20 miles around the dealership and goes off of impressions to a local audience.

Anyone who is logged into Facebook within a 20 mile radius will see this ad. This ad was shown to 11,838 people 37,849 times and the dollar spend has only been $85.25. See how cost effective this is?

What does this mean?

What did this mean in terms of calls or clicks to the website? There were 53 clicks on the call now button. The link clicks were 28. The photo on this ad is attached to the dealerships service page, so when it is clicked, the customer is brought right to service specials.

In a separate ad we offered a discount for any service they chose. In other campaigns we focused on a tire special or tune-ups and were targeted specifically to their customers who matched using a customer audience for FB.

Having a click to call button on your Facebook page makes it easy for a potential customer to contact you immediately.

Custom audiences in FB are created by uploading your customer emails from your CRM. Facebook will match profiles based on those emails. It is not a 100% match but think of the targeted marketing you can do based on your customer’s service history.

Do you see the possibilities?

One of our other clients who embraced this type of advertising told us that their previous month’s revenue for the service drive increased by 80%.

Fixed Operations is a gold mine. This of how you can now compete with the Independents for oil changes and other services. Think of how you can make it easier for customers to see your Why Service message.

It is time to embrace marketing your service drive with the same commitment as your retail side of the dealership. Take advantage of this type of marketing before your competition does and while it is very cost effective. SD

There are many dealers who finally understand that social media can sell products and services. I think

GLENN PASCH

CEO of PCG Digital Marketing Glenn is a trainer at heart. He is a highly sought-after speaker, writer, coach and operations strategist, as well as a customer service fanatic. He has spoken throughout the U.S. and Canada, educating audiences on a variety of topics including business leadership, change management, digital marketing and the impact of this new technology on culture, business and society. Visit the website www.pcgdigitalmarketing.com

APRIL 2016 Service Drive 19

Succeeding As A

SERVICE ADVISOR It’s All in the Attitude and Your Choices

BY PAULA BLISS

“Don’t give me that attitude!” Ever heard that? Or, “You need an attitude adjustment.” I can’t count the number of times someone has spoken these words to me, and they quite obviously refer to a bad or negative, attitude. The perception of someone having a negative attitude in the workplace can be detrimental.

Succeeding as a Service Advisor (and in life in general) is largely determined by how others perceive you in your personal interactions with them. Most of us are simply one of many and to achieve what people regard as “success” means trying to please most of the people most of the time. Not doing so usually results in being labeled a failure or even a rebel or outcast. This brings with it a negative attitude and all the unhappiness that

society can unleash. In our culture, we expect many different things to create “warm and fuzzy feelings” from others and it can get very demanding, especially as a service advisor. Most people expect some the following personal characteristics and qualities from others, and especially from those serving others:

What others desire comes from a way of thinking, and it all begins with a person’s attitude!

It’s Your Choice

• A healthy skepticism, not cynicism

It’s a proven fact that the wrong attitude is the main basis of failure, unhappiness and involuntary employee terminations. In the service department, all the experience, training, coaching, supervision and even pay plans are worthless without the right attitude. More people find themselves in an unhappy job because of the wrong attitude than for any other reason. This is a shame, because everyone has the power to have a positive attitude. Attitude is a CHOICE people make.

• Has Integrity, do what you say you’ll do

Attitude comes from within a person. No one person

• Is trustworthy, honest • Caring of others • A good listener • A top performer

“More people find themselves in an unhappy job because of the wrong attitude than for any other reason.”

20 Service Drive APRIL 2016

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can give another attitude. People make choices every day to be positive or negative in response to the challenges that work life presents. Attitude is really the only thing over which we, ourselves, have complete and total control. As humans, we have the power to make choices every day. Choices to make the best of a given situation, enter into a mode of personal suffering, or be happy or angry. Some people seem to be born with positive attitudes (and at times, may make their co-workers wonder about their sanity), but the rest of us have to work at being positive all the time.

Let’s Get Positive The first step to developing a positive attitude is to recognize that it’s a challenge. Most people who have negative attitudes have them for a reason: it’s easier!

The next big hurdle is making a deliberate effort to change and not give up. It can be, for many, a big challenge to develop a positive attitude. But remember, you have a choice, and choosing a positive attitude leads to success!

Here are some ways to help you develop (and maintain) a positive attitude. Some of them may sound cliché, but they are tried and true for a reason.

Boost your self-esteem If there is one common denominator about positive people it is a sense of high self-esteem. Appreciating yourself has to come first, and if you think about it, everyone has something they can feel good about.

There are many things you can do to work on boosting your self-esteem. Make it a point to feel good about yourself first. Realize that everyone has strengths and weaknesses, it’s human nature. Realize that it IS impossible to please everyone, and don’t take it personally!

Use failure as an opportunity It is counterproductive to dwell on failure. From time to time it’s an unavoidable part of life. Anyone who ever says they’ve never failed is lying. But just remember, “success is built on failure.” Use your mistakes and failures to learn. Find your own constructive criticism

in failure and learn what to do or not do the next time.

It’s a valuable lesson that provides opportunity. We’d never know about a famous product called WD-40 if it’s creators stopped on the 39th try!

Always do your best Failing as a result of NOT doing your best only compounds failure. A person can hold their head high in the face of failure if they know deep down in their heart they did their best. Failing because you haven’t done your best goes back to making a choice… and probably not a good one!

Devote your energy to something good Make sure your actions truly contribute to something worthwhile. Being a good service advisor truly does help people in need. Strive to be innovate, unique and seek new ways to do better every day. This will only add excitement to the job, and life in general!

Do the right thing For most people, knowing what’s right and wrong is not too difficult. Knowing what should be done should be an easy choice, actually doing it is sometimes another story. Doing the wrong thing may be the easy thing. “Doing the right thing” may take a little more work and may even mean putting yourself at risk. But in the end, it builds character and others will admire and respect you for it!

Know what motivates you Most people really do not know what motivates them.

Either they may not have taken the time to consider it or they are not aware of the basic scientific principles of motivation, or rather “what is it I desire beyond food, clothing and shelter” (e.g. Maslow’s motivational

hierarchy of needs). “Self-actualization”, which is the realization one’s potential, is the highest in Maslow’s motivational hierarchy. According to him, people will be frustrated if they are unable to use their talents fully or pursue their true interests. If you don’t know what motivates you, strive to find out. It will help direct your life’s energy in a more satisfying, productive and positive direction!

Accept the rules of the game (or not) Every game has rules by which it is played; so does life and so does business. If the rules are wrong or “unfair” strive to make them right. If the rules are not right for you, then you have another choice to make: learn to live with them, or find another game to play.

If you make the CHOICE to live with the rules, it important to realize and accept the reality that most of the time we have no control over our work environment. This is one of the biggest steps in not only developing, but maintaining, a positive attitude. Realize and accept that it is impossible to please everyone.

Realize and accept that it IS possible to please SOME of the people SOME of the time. Realize and accept that rejection shouldn’t be taken personally.

In the end, developing and maintaining a positive attitude takes work and persistence. There is no substitute for a “never say, I can’t” spirit. Some of the most unlikely candidates for world-renowned success owe it to being persistent. If you are willing to be persistent and pay the price for your own success, make the CHOICE to start now, this minute, this second…. and go out there and “give me some attitude!” SD

PAULA BLISS

Director of Business Management of M5 Management Services Paula has over 30 years of experience in the automotive industry, with over 16 years in fixed operations training and consulting. Her entire automotive career was with General Motors, a majority of which was spent as a training program developer and instructor of parts and service non-technical training programs.

She was also instrumental in training and ultimately managing GMs first ever field team of fixed operations consultants. She has extensive knowledge and experience in Organizational Development/Organizational Change Management (OCM) methodologies. Paula’s passion lies in training & development for fixed operations dealer personnel.

A smile and a positive attitude will have many benefits at work and in life. It’s up to you to choose it.

ServiceDriveToday.com

APRIL 2016 Service Drive 21

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 get a lot of moderately priced cars in our service department. But the one question we always get and we have difficulty answering is: “Why did I have such an expensive car repair? I found the part online and it is only $XX.XX, but the shop wants $XXX.XX to do the job?”

How do I tell them that we’re not ripping them off?”

SAM C., GREEN BAY, WI.:

Brian Medford, auto writer and blogger for Ask My Car Guys™ :

Ask the customer to look at it this way: Do you REALLY want the cheapest, least competent person fixing your car? Didn’t think so.

Let’s talk about part pricing for a minute. Most shops give a “good, better, best” range of options for repair parts they install. Sure, you can go online and find a part cheaper, but that isn’t the same part that a shop is going to install in your car.

Your customer may ask why you won’t sell the cheapest part. And, the answer is that you don’t want to do the job twice. Shops don’t make money on a “come back” repair; they work with their suppliers to make sure they are installing dependable parts. If a part fails it isn’t the part manufacturer that looks bad, it’s the repair shop!

When you lay it all out, the customer will realize they are getting their money’s worth.

Why the disparity? Because in order to change the rear main seal on most vehicles the entire transmission must be removed from the vehicle. Now we are talking about needing a lift and special transmission jack just to get to a piece of molded rubber. Gaskets and seals are particularly bad offenders, as they are usually fairly cheap to buy but getting to them can be hours of labor. Most customers won’t know that but will understand it if you explain it.

Take the time to explain labor costs. Tell them that labor time is actually standardized across almost every repair. Mechanics use an industry standard to estimate the time that a competent mechanic should take to do a specific repair. The labor payment rate is up to each individual shop, but the time required for a repair will be fairly even across the board. This means that if a shop gives you an estimate of 2 hours do perform a job, the shop across town should give the same time estimate as well. The number of hours should be about the same, but again, it is up to each shop to decide how much they charge per hour for that labor.

22 Service Drive APRIL 2016

3. Labor Sales Repair Order: To improve labor sales per repair order review that you’re charging amounts that provide good gross profit margins. You don’t have to be the lowest cost provider to have good performance in service. You have to be the beset service provider. Make sure your advisors provide your clients with professional feature benefit presentations on needed maintenance items. Preventive maintenance is the key to unlock your dealerships results on labor sales per repair order. Best practice is to train on one labor operation a week with your advisor staff role-playing feature benefits together.

“A new dealership just opened close to me. How do I keep my employees, especially my service guys?”

BEN, LENOX, MASS..:

Jeff Cowan, president of Jeff Cowan’s PRO TALK: : There will always be new businesses open and they are likely to have the latest and greatest. When those businesses open they almost always generate interest from employees who work in the same industry.

The way to keep your employees from jumping ship is simple really.

Create a work environment that is conducive to a long

The explanation is quite simple: parts and labor are separate costs.

Spend the time with your customer to explain the process.

Take for example the lowly rear main crankshaft seal on your engine. The seal itself is usually less than $20 for most vehicles, but the labor involved is usually several hundred dollars.

2. Repair Order Count: Continuous growth of repair order counts is also a critical component of growing the service department. Best practice is to have service advisor staff contact a minimum of five open safety campaign customers every day. If the dealership has a business development center, this is a wonderful way to consistently build repair order counts. It is also wise to contact customers that haven’t been in the last six months to address any concerns they might have about the dealership.

happy life and career. Is your workplace friendly? Do you pay well? Is your business able to deliver what it promises? Do you have a healthy flow of customers?

“I know I need to improve my service department but I don’t know where to start. What are some key areas I should look into first?”

JAY B., BUTTE, MONT.:

These things are what draw employees in and keep them in place. Here at Pro Talk I pay better then my competitors. I go out of my way to make everyday interesting and fun. I repeatedly invest in my products and advertise in various ways which keeps my customer flow healthy. And I always make sure that our products are delivered in a manner that exceeds our

Rob Gehring, president and founder of Fixed Performance Inc. : To start improving your service department, I’d start with changing these three critical components: 1. Customer Intake Process: The way you treat your customers is critical to growing your service department. The dealership should prepare a pre-write order and review the customer’s history looking for needed maintenance items or declined repairs from a prior visit. Scheduling arrivals should be staggered as to not inconvenience any customer with excessive wait times.

Advisors should walk around the vehicle with the customer looking for damage or needed items. They should also review every customer cancer visually so they completely understand expectations.

customers expectations.

Do I have employees leave from time to time? Of course I do. But they are always replaced quickly by people just as good or better. I do not fear nor do I care what my competitors are doing in their workplace.

I feel I have the absolute best work environment in my niche of the market and go out of my way to make it so. I walk in everyday to my place of work with that attitude and demeanor. It rubs off on my co-workers. My co-workers are smart. They know a good thing when they see it. If you deliver to your co-workers, they will see it too. If what you offer is the best opportunity, they will see it and will go nowhere. SD

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Own an Allstate insurance agency in your dealership and grow your business.

Allstate was first to market with this proven model and can get you up and running quickly with minimal start-up costs.

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Subject to all terms and conditions as outlined in the Allstate R3001 Exclusive Agency Agreement. Dealer agency opportunity is not available in all states. Allstate agents are not franchisees; rather, they are exclusive agent independent contractors and are not employed by Allstate. Allstate is an equal opportunity company. Allstate Insurance Company, Northbrook, IL. In New Jersey, Allstate New Jersey Insurance Company, Bridgewater, NJ. © 2016 Allstate Insurance Co. allstate.com 1/15.

Industrynews RADIATOR AND CONDENSER CATALOG Catalog features expanded selection of premium aftermarket radiators and condensers

NEW CHIEF® VULCAN ADHESIVE DEBONDING UNIT USES INFRARED HEAT TO SEPARATE ALUMINUM PANELS The patent-pending Chief Vulcan ADU is the first product specifically designed to break the bond of structural adhesives in automotive applications. The Vulcan ADU uses infrared radiation technology to quickly heat the surface to a temperature where the first layer of glue underneath releases cleanly — in as little as 20 seconds.

With the adhesive bonds broken, the technician can then easily separate the materials with less risk of damage to either piece. The epoxy remains smooth and hard, not sticky, leaving behind a clean work surface. The Vulcan ADU can be used on any vehicle surface, including aluminum, carbon fiber and steel.

“The need to meet 2025 CAFE standards is driving automotive manufacturers to explore an incredibly wide range of materials, joining methods and other light-weighting technologies in a relatively short period of time,” says Mickey Swartz, director of global product management for Chief parent company Vehicle Service Group (VSG).

“As a result, the collision repair industry is innovating like never before to develop new tools, equipment and repair techniques. The Chief Vulcan Adhesive Debonding Unit is a solution to an issue that wasn’t important just a few years ago. But as OEMs incorporate glue and epoxies into their manufacturing processes for more and more vehicles, collision repair shops need to be equipped to efficiently separate those bonded components to properly repair the vehicles.”

The Vulcan ADU uses very short waves of infrared radiation to quickly produce up to 600 degrees of heat concentrated at the surface of the material being treated.

Even though the unit produces very high output temperature, the lamp’s handles and sides remain cool to the touch for safe operation and prolonged lamp life.

MEN LOSING INTEREST IN MANUAL TRANSMISSIONS FASTER THAN WOMEN At what rate is “manual drift” occurring in the American auto industry, and is there a difference between the rate of manual transmission use between men and women?

Swapalease.com, the nation’s largest car lease marketplace, recently analyzed over 50,000 driver records from its marketplace dating back to 2012 to uncover some interesting trends.

“Manual drift” is a phrase coined by Swapalease.com executives that addresses the slow sunset of interest in manual transmissions found in today’s cars. According to analysis conducted recently by the company, the number of manual transmission vehicles driven by Americans has dropped roughly 22% since 2012.

Equally as interesting, the rate of drift isn’t occurring at the same pace for men and women. In its analysis of over 50,000 vehicle records dating back to 2012, Swapalease.com has found that the rate of use is declining for both genders, but it is happening at a faster pace for men compared to women. In fact, the percentage of men driving manual transmission vehicles has dropped from 85.4% in 2012 to 81.2% in 2015. As a result, the percentage for women has responded by adjusting from 14.6% in 2012 to 19.8% in 2015.

Both genders overall are driving fewer manual transmissions during that time, but since the numbers for men are dropping faster, it has caused the percentage to actually increase for women.

24 Service Drive APRIL 2016

DENSO Products and Services Americas, Inc., a division of leading global automotive supplier DENSO Corp., has released its 2016 First Time Fit Radiator and Condenser Catalog. The 2016 catalog details hundreds of new part numbers DENSO has added to its radiator and condenser programs.

With the addition of 361 new part numbers, DENSO’s radiator program now covers popular US domestic coverage for model years 1985-2015. In addition, the 2016 catalog itemizes DENSO’s recent condenser program growth, which includes 150 part numbers for European and US domestic vehicles. These additions reflect DENSO’s on-going commitment to aggressively expand its thermal product category.

DENSO First Tim Fit radiators and condensers have a return rate of less than 1 percent. The unsurpassed quality of DENSO radiators ensures proper cooling under the most demanding conditions. Likewise, DENSO condensers are designed to operate at peak efficiency, providing years of trouble-free air conditioning performance.

Available online and in print, DENSO’s 2016 First Time Fit Radiator and Condenser Catalog makes it easy to find the right replacement part the first time. Customers can quickly locate the radiator or condenser they need by year, make, model, engine type, or part number. The catalog also includes a complete photo guide by part number, numerical listing, cross-references to DENSO parts by competitor, and list of supersessions and discontinued part numbers.

To view the interactive digital version or download a PDF of the 2016 First Time Fit Radiator and Condenser Catalog or for any other DENSO catalog, visit www.densoautoparts.com/catalogs.

NO LIMIT WHEELS UNVEILS INTIMIDATOR WHEEL No Limit Wheels introduces the Intimidator wheel, a six-spoke wheel that features a virtually indestructible double reinforced rim edge and 1100 lb load rating as well as the exclusive No Limit hybrid tire bead retention system that offers 400% more tire bead retention than any other brand of wheel. The new Intimidator wheel comes in a gloss black finish with customizable aluminum inserts available in nearly all OEM matching colors as well as gloss black and gloss white.

The Intimidator is offered in a 14x7 at a retail price of $99.45 and 15x7 at $112.20.

They come in 110, 137 and 156 bolt patters to fit almost any Side by Side, UTV or ATV and are currently available only thru dealers, online at www.nolimitoffroad.com or by calling 888-848-8024.

MANUFACTURERS AND AUTO INSURANCE COMPANIES BOND OVER RECALLS According to Automotive News, U.S. auto insurance companies want major carmakers to help persuade millions of car owners to get recalled vehicles fixed.The new push comes as a U.S. House panel held a hearing on efforts by the National Highway Traffic Safety Administration (NHTSA) to reduce the number of uncompleted vehicle recalls.

The Alliance of Automobile Manufacturers, representing General Motors, Ford Motor Co., Toyota Motor Corp., Volkswagen AG, Daimler AG, and others, and the Association of Global Automakers, representing carmakers including Honda Motor Co., Nissan Motor Co., and Hyundai Motor Co., sent letters to the CEOs of major U.S. insurance companies asking them to remind motorists of recalls when they renew their policies.

ServiceDriveToday.com

DEALER-FX:

TABLET-BASED SOLUTION

Dealer-FX is transforming the future of the service lane by integrating AutoAlert’s trade cycle

C

ustomer retention is a buzzword in service departments of franchise dealerships across the nation. Driving customer loyalty not only reduces defection to independent repair facilities, but most importantly enhances the customer experience, which results in an increased likelihood that the customer will repurchase from that dealership.

In principle, it all makes sense, but there are factors that may interrupt the customer purchase decision process, and that is a concern for the dealership. Those may include: geographical proximity, lack of brand loyalty, peer influences, self-directed research, and promotions, to name but a few.

So what is the dealership to do, and what intelligence can it leverage to better protect their investment in retaining their customers?

Dealer-FX is known for its tablet-based solution that engages with customers at their vehicle and provides an exceptional experience on the service drive, enabling service advisors to build rapport and serve as relationship builders, rather than just order takers. Dealer-FX’s proprietary One Solution software suite is fast becoming the unchallenged leader in the service lane. It promotes best practices

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among advisors, driving key metrics including service maintenance penetration, dollars per repair order, customer satisfaction and, yes, customer retention.

Dealership sales departments can create an environment of uneasiness for consumers who have become savvier, and may be suspect of upselling by service advisors and technicians. In contrast, if you’ve developed trust between your service advisors and your customers, presenting an offer within the service lane presents a great opportunity to deliver a compelling opportunity to your customer.

Now, what if you had intelligence identifying which customers were approaching the end of their warranty or vehicle lifecycle? And what if you could pre-empt their decision making process by engaging them with a valuable upgrade offer?

That is just what Dealer-FX is delivering in tandem with strategic partner AutoAlert, a leader in trade cycle equity management. By presenting targeted upgrade purchase or lease renewal offers from the service drive and integrating that capability into the service write-up process in the lane, Dealer-FX is changing the game.

The AutoAlert solution is a proven retention tool and has been shown to effectively reduce the trade cycle from an average of 68 months to 36 months.

The dealership opportunity is substantial given that an estimated 10%-15% of customers entering the service drive meet the upgrade target criteria.

When you consider that 30%-50% of all service customers have never purchased or leased from their servicing dealer, the upside is even greater.

New technologies and business models are changing customer expectations such that the old ways of buying and selling at the dealership have been turned on their head. Customers are looking for engagement and transparency. The service department is evolving and advisors are fostering trust with customers by coming out from behind their computer terminals.

With these changes come new ways of doing business. Dealer-FX is transforming the future of the service lane by integrating AutoAlert’s trade cycle management intelligence so dealerships can monetize profitable opportunities with customers who were previously underserved. SD

APRIL 2016 Service Drive 25

CUT THE RISK

When Hiring New Employees There are Ways to Limit Your Vulnerability to Employee Theft

BY CHUCK SUJANSKY

E

mployers in every industry are increasingly becoming victimized by theft of goods and services from once-trusted employees. How widespread is the problem? Ninety-five percent of employers are believed to be victims of theft and 75 percent of employees who steal from employers do so repeatedly. The U.S. Chamber of Commerce estimates that theft by employees costs American

companies $20 to $40 billion a year. To pay for it, every man and woman working in America today contributes more than $400 per year.

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“Employees can reduce the potential for employee problems and avoid unnecessary expenses.”

Spending the time and money to do thorough background check and drug testing can go a long way to reduce employee theft.

Service Drives not Immune to Employee Theft These estimates don’t take into account losses from employee theft that may harder to measure. Acts of theft and fraud committed by employees can also rob a dealer of invaluable intangibles, such as lost time, damaged trust, ruined relationships and ruined reputations. While organizations of every size and in every industry may fall victim to employee theft, the damage can hit smaller employers the hardest. A report by the Association of Certified Fraud Examiners found that organizations with fewer than 100 employees lost an average of $147,000 through occupational fraud, compared to an average of $100,000 for companies with 1,000 to 10,000 employees.1 Consider a few examples from within the automotive retail industry: • A dealership accountant issued checks made out to cash with her 17-digit credit card account number listed on the memo line of the checks. Instead of depositing the checks in the dealership’s account she used it to pay off gambling debts.

• A dealer’s General Manager eventually pled guilty to fraud charges for altering lease documents to increase his commission by altering signed lease documents adding dealer-installed accessories that never existed.

• An Assistant Parts Manager was fired after altering sales documentation by recording sales as a “quote only” then pocketing the cash. The losses were found when the parts department performed their annual inventory.

• The parts manager at a Nissan dealer was

ServiceDriveToday.com

convicted of scamming more than $165,000 from his dealership by submitting false warranty repair claims, as well as stealing inventory, voiding bills that had been paid by customers and using a debit machine to transfer money into his own accounts.

• An employee at a Honda dealership in Arkansas was caught skimming $25,000 from sales of parts on eBay.2

Can You Afford to Gamble When Hiring New Employees?

What if you knew in advance that hiring the wrong job candidate could cost your organization thousands of wasted and lost dollars? Would you change your hiring processes? Would you invest in better screening methods? Most employers don’t realize that: • 30% of job applications contain false information.

• 20% of workplace death is linked to alcohol or drug use.

• Negligent hiring cases against employers have resulted in verdicts of up to $40 million.

• The average settlement of a negligent hiring lawsuit is nearly $1 million.3

Dealing with Workers with Substance Problems One of the biggest challenges facing most employers today is dealing with workers that struggle over drug and alcohol problems. These employees are the most likely to lie, steal, cause accidents and create innumerable other problems for employers. According to the 2014 National Household Survey on Drug Abuse

(NHSDA) • 27.0 million Americans age 12 or older admit to illicit drug use in the last 30 days.

• 16.3 million Americans age 12 and older and 12.4 million adults admit to “heavy” drinking (5 or more drinks on at least 5 or more occasions in the past month).4 These workers are involved in 55% more workplace accidents and sustain 85% more on-the-job injuries than other workers. In addition the National Safety Council reports that 80% of those injured in “serious” drug-related accidents at work are not the drug abusing employees but non-using co-workers and others.

Finally, the US Navy estimates that each drug user costs his or her employer an average of $6,600 more than non-substance abusing co-workers each year.5 Fortunately there are instruments available to help employers make the right hiring decision the first time.

These tools represent a small investment that can pay big dividends to employers that wish to avoid problems with employee theft, substance abuse, criminal record, performance problems, and related issues:

Background Checks Comprehensive and timely criminal background check services provide employers with the information necessary to make an informed decision when hiring an applicant Pre-employment screening refers to the process of investigating the backgrounds of potential employees and is commonly used to verify the accuracy of an applicant’s claims as well as to discover any possible criminal history, workers compensation claims, sex offender list, aliases, address history, governmental watch lists, motor vehicle records, and legal working

APRIL 2016 Service Drive 27

Practical Tips For Preventing Employee Theft and Fraud Personnel Management and Training Conduct thoroughgoing interviews of all applicants and conduct detailed background checks, with pre-employment screening and drug testing.

Ensure that all new employees understand their job duties and responsibilities, especially with regards to safety and security.

Conduct regular security reviews and training sessions to bring all employees up-to-date as well as to review ongoing operations and procedures.

Systems and Procedures Make sure that all procedures in place for all departments - sales, service, parts, finance and accounting – are airtight and meticulously followed by all employees.

Conduct frequent audits, refresher training, and procedure reviews for all employees.

Security Technology Install surveillance cameras and enhanced lighting in all areas of the dealership, especially covering blind spots Conduct regular reviews of surveillance footage to ensure nothing suspicious is taking place.

Invest in state-of-the-art locks and access control in areas where theft of valuables (cash, credit cards, checks, merchandise, parts, etc.) are most likely to occur.

Install alarms as necessary and conduct regular tests to assure they are functioning.

status. Background checks cost about $20 to $50 depending on how extensive the research is.

mobile Dealers Association report explained: • More than 1.05 million people were employed at U.S. new-car dealerships in 2014, which is higher than any other auto-related industry.

“Ninety-five percent of

• New-car dealers, on average, employed 64 people per dealership.

employers are believed to be victims of theft and 75 percent of employees who steal from employers do so repeatedly.”

• Wages at new-car dealerships have increased an average of 3.3 percent since 2011, with employees, on average, earning more than $55,000 a year.

• Annual payroll at new-car dealerships was more than $58.1 billion in 2014, an average of $3.5 million per dealership.

• Total dealership revenue, which included new-car and used-car sales (as well as parts and service sales) reached an all-time high of $806 billion in 2014, an increase of 8.6 percent from 2013.6

Drug Testing Standard urine drug testing panels range from five to 10 drugs. Specimen validity testing is available to detect adulterants or specimen substitution resulting from a donor’s attempts to mask drug use. The use of an independent Medical Review Officer (MRO) to review all non-negative test results is recommended. Drug testing costs range from a low of $28 per drug test to a high of $42 per applicant. 77% of surveyed employers said that since implementing drug testing they were receiving a much better caliber of job applicants simply by telling applicants they require drug screenings.

When service drives and related businesses bring new workers aboard their managers don’t have access to a “crystal ball” that can help identify which employees might be prone to steal, lie or commit fraud sometime in the future. But, by following the strategies and recommendations above employers should be able to reduce the potential for employee problems and avoid unnecessary expenses. SD Notes:

The Step One Survey The pre-employment Step One survey is used as a screening tool early in the candidate selection process.

The survey, which can be completed by employees online, assesses work-related values such as employee background, employment history, integrity, personal reliability, and work ethic.

Don’t Miss The Signals Most employers, whether inside the automotive industry or outside of it, probably tend to trust that their employees are for the most part honest and trustworthy. They don’t anticipate employee fraud and often miss the signals that all may not be as it seems when it comes to employee honesty and trustfulness. But within the Automotive Industry the ramifications for employee theft and fraud are enormous. As a 2015 National Auto-

1. “Association of Certified Fraud Examiners - 2012 Report to the Nations - Key Findings and Highlights.” Association of Certified Fraud Examiners - 2012 Report to the Nations - Key Findings and Highlights.

Association of Certified Fraud Examiners, 2013. Web. 15 Mar. 2016. <http://www.acfe.com/rttn-highlights.aspx>.

2. “Stories of Employee Theft and Lies - DealershipForum.com.” Stories of Employee Theft and Lies - DealershipForum.com. DealershipForum. com, 1 Apr. 2008. Web. 15 Mar. 2016.

3. “Experience the Employee Background Checks.” Experience the Employee Background Checks. Profiles International, 2015. Web. 15 Mar. 2016.

4. Hedden, Sarra L., Joel Kennet, Rachel Lipari, Grace Medley, Peter Tice, Elizabeth A. P. Copello, and Larry A. Kroutil. “Behavioral Health Trends in the United States: Results from the 2014 National Survey on Drug Use and Health.” Samhsa.gov. Substance Abuse and Mental Health Services Administration, Sept. 2015. Web. 15 Mar. 2016. <http:// www.samhsa.gov/data/sites/default/files/NSDUH-FRR1-2014/NSDUH-FRR1-2014.pdf>.

5. “Marijuana Fact Sheet: What Is The Truth?” http://www.ndwa.org.

National Drug Free Workplace Alliance. Web. <http://www.ndwa.org/ pdf/Marijuana Fact Sheet 111913.pdf>. Web. 15 Mar. 2016.

6. “NADA Data 2015 Report.” NADA Data. National Auto Dealers Association. Web. 15 Mar. 2016.

CHUCK SUJANSKY

CEO of KEY Group/Applied Behavioral Insights KEY Group/Applied Behavioral Insights is a Pittsburgh based human resources consulting, assessment and training company.

Chuck consults to clients across many types of industries, including automotive, retail, financial and health care. Questions or comments can be sent to csujansky@keygroupconsulting.com

Employees taking tools is just one quick and easy example of employee theft.

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Creating

GREAT CHEMISTRY

With Women Customers

Combine the Proper Ingredients to Boost your Bottom Line

BY ANNE FLEMING

C

hemistry between people is discussed in many types of relationships, and it is an important ingredient in a customer relationship. Many combinations of formulas can work, but finding the optimal combination can seem complex.

Use this handy chart from Women-Drivers.com as a guide for creating the right synergy with your female customers and reap the benefits of a better bottom line.

Website Think of the dealership web site as the first stop in the shopping experience for your potential customers and leads. The idea for a new car may come late at night, and having a easy-to-use, informative web site a few clicks away can be the means to a successful engagement.

Facebook, Twitter and your dealership’s web site are likely to be a shopper’s next stops after your web site. What kind of Internet chemistry are you creating? Is your web site appealing and personal?

More importantly, will it engage your buyers? A good web site is one that lets a shopper follow an easy path to desired information, including reviews and car searches.

And don’t forget about demographics. Web sites should always show your target demographic, including women in various life stages. Value-add content will help to bring shoppers and customers back again. In today’s mobile-enabled world, a web site needs a proper mobile version that can be easily navigated and viewed. Lead

generation is a must, and short and sweet is the right formula in the Internet world.

Social Media Social media is a great way to engage customers in a more personal way. Fun and interesting tweets and posts will send your message across the social network. Responding to customer questions and comments is a must-do. Daily posts show that your dealership is actively engaging with your customers, prospects and leads. Video testimonies from your happy customers can deliver a powerful message to social media followers. Facebook and Twitter are perfect ways to get the word out about special events and offers. But, be clear, never lead with offers and “do

you wanna buy” posts. Be a trusted resource and provide educational and engaging lifestyle and life-stage content. Be sure to pay attention to demographics.

Reviews by women for women will bring great results, as women rely on reviews more than men.

Advertising The objective of a web site and social media activities is to provide effective communication and digital advertising, but traditional advertising still matters.

Anyone can advertise a car; good advertising sells the dealership and service center, too. Offer women-centric ads that address what matters to women buyers, like safety and practicality. Differentiating from the competition is critical. Everyone offers the best price and experience so it is important to seek ways to convey trust and show that your dealership is more convenient and will be there for her during servicing and for her next car purchase. Advertising chemistry should be one of engagement and service.

Environment Perceptions about a dealership will begin to form as soon as a woman prospect or client walks in the front door. Aesthetics matter, so be sure to make a good first impression. Flowers, artwork, fresh paint and a warm environment can add comfort to what can be a stressful experience. When your customers see a balanced workforce that reflects your demographic, it shows that you are heading into the future.

Sales

Creating an inviting website and sales environment go a long way with women customers.

When a woman shopper walks into the showroom, sales advisors have the task of creating the chemistry of direct engagement. A good impression is mandatory, and goes beyond a good appearance and friendly demeanor. Successful sales advisors will be respectful, trusted advisors who can quickly discern needs and

“When a woman shopper walks into the showroom, sales advisors have the task of creating the chemistry of direct engagement.

A good impression is mandatory, and goes beyond a good appearance and friendly demeanor.”

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priorities. Emotional Intelligence is a key part of a successful formula. Being able to perceive a woman’s emotions during the buying process can make the difference between a good sale and a lost sale – a reaction that ignites or fizzles. Effective sales advisors are excellent listeners who understand that they are selling the dealership and years of potential service. A woman client is buying things that go beyond transportation, including freedom, confidence or caring for her family.

F&I The Finance and Insurance Department typically can create stressful reactions, and a customer may engage in self-doubt in this phase. Did she get a fair price? Can she really afford the payments? Is this really the right decision?

At this stage, a woman buyer will look for reassurance, a seamless transition and straightforward answers. If she becomes frustrated and leaves, odds are 6 in 10 that she will not return and she will buy from a competitor. The deal is nearly done; don’t let it fizzle out.

well as a comfortable waiting area with Wi-Fi. Dealerships that build great chemistry go beyond the standard offerings and provide healthy snacks and beverages, PlayStations and child play areas as well as a workout room and business lounge. A waiting customer can be offered educational videos to learn more about her car and servicing. Consider adding retention programs like birthday cards and coupons, bring a friend events, women’s seminars and frequent customer rewards. When she picks up her car, she will thank you for that car wash and vacuum. Be sure she knows that the service you provide is trustworthy and safe.

chart course corrections if necessary. Solicit fair and accurate reviews, thanking and acknowledging your customer’s contribution to your dealership’s success and fostering transparency. Be sure to use reviews by and for women in your advertising, outbound emails, web site and social media.

Your Ideal Buyer Knowing the chemistry of an ideal woman buyer will help create goals during the sales and service process.

Continually refining the customer journey can increase the number of ideal buyers at the dealership. Fostering confidence and comfort during interactions means that a woman customer can drive away in a car that she loves, feeling satisfied and excited about the purchase.

Feelings of empowerment ensure that communications are thorough and effective. If she has a question about her car deal, she knows exactly who to call. She is willing and eager to share her exceptional experience with others, and give glowing reviews and referrals. When it comes time to trade up, she doesn’t hesitate to return to your dealership for her next vehicle.

And the chemistry continues. SD

“Don’t wait for your customer to have to make a choice when it comes to service. Create the chemistry immediately by offering coupons for the next oil change.”

Service Creating good service chemistry is every bit as important as finalizing the car buying deal. This critical relationship can deliver revenue to your dealership for five to eight years, and can result in a customer returning again to buy a new car. Don’t wait for your customer to have to make a choice when it comes to service.

Create the chemistry immediately by offering coupons for the next oil change.

Showcase comfort and convenience during this less than welcome task. A courtesy vehicle is a must, as

Reputation What is the best way to create chemistry that ensures a good reputation? A Director of Customer Experience can take a true pulse of your customer’s journey and

ANNE FLEMING

Presient of Women-Drivers.com Prior to her involvement in the retail automotive industry, Anne spent 20 years in brand and strategic product development for several international consumer product companies. Her leadership training led to the founding of Women-Drivers.com, which has been featured in the Wall Street Journal, ABC News, USA Today, Working Mother, Smart Money and other national media. Visit her website at Women-drivers.com and follow her on Twitter @Womendrivers.

To women, a good impression, reputation and chemistry all help them make a decision to buy.

ServiceDriveToday.com

APRIL 2016 Service Drive 31

ON THE SET WITH

Michael Roppo of The Withum Group with Joe Gumm of Service Drive Today.

Steve Munyan of Hire the Winners.

Gary Kalk of Dealer-FX.

Kathi Kruse of Kruse Control.

Joe Gumm of Service Drive Today.

Erik Radle of Miller Ad Agency.

Don Reed of Dealer Pro Training.

Jeff Cowan of Weekly Tune Up.

Todd Fitzgibbons of Zumbrota Ford.

Jamie Mcknight of West End Mazda with Joe Gumm of Service Drive Today.

Steve Hall of NCM Institute

Matt Miller of Lexus of Edmonton with Joe Gumm of Service Drive Today.

32 Service Drive APRIL 2016

Adam Robinson of Hireology.

Paul Tremel of Graco.

ServiceDriveToday.com

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