Service Drive: Your Other Sales Floor!

Transcription

1 Service Drive: Your Other Sales Floor! Charlie Polston Customer Retention and Profitability Consultant BG Products, Inc. Oklahoma City, OK

2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 2

3 Service Drive: Your Other Sales Floor! Workshop Synopsis Most dealerships have a new-car sales meeting every single day, but how about a service sales meeting? New-car sales produce five- percent gross, used-car sales yield 12 percent gross, and service sales give you a whopping 70 percent gross. The primary job of a service advisor is to pursue that 70 percent gross by selling service. This workshop will focus on effective strategies to teach advisors how to educate the customer, offer the maintenance solution, and ask for the sale. You would never tolerate a car salesman who won t sell cars. Why would you tolerate a service advisor who won t sell service? In this workshop, you will learn: Learning Objectives Effective ways to quickly teach service advisors how to sell service A clear process for conducting a service sales meeting A proven strategy for prospecting new service customers 3

4 The Current Dealership Situation Customer-Pay Service 13% Warranty Service Unperformed Service 0% 0% 20% 40% 60% 80% 2014 USA Automotive Trends Customer-Pay Parts and Labor: $223,100,000,000 (2014) $171,700,000,000 (2002) Vehicles On the Road: 4

5 249,000,000 Average Maintenance and Repair per Vehicle: $896 Service Center Trends Service Outlet Service Stations and Garages 143, , ,200 Dealerships 21,975 21,298 17,600 Repair Specialists 25,780 26,720 28,300 Foreign Specialists 15,640 16,790 18,100 Tire Stores 24,750 25,660 26,300 Other Outlets 13,575 13,728 12,100 Total 245, , ,700 Older Cars and Higher Mileage In the USA, two forces are at work: The average age of vehicles (11.7 years) on the road is up 20 percent in the last decade. The annual miles driven (2.98 trillion) is shifting to a mix of older vehicles both cars and trucks. 5

6 The result will be more repair and maintenance opportunities as older vehicles are driven with higher mileage! 6

7 Circle of Vehicle Purchase Retention Loyal Re- Purchase Customer Satisfied Car Buyer Satisfied Service Customer How do you keep a service customer satisfied? By selling preventive maintenance services! Selling Cars, Selling Service You sell cars to make customers You do oil changes to retain customers You sell service to make money! 7

8 Service Sales Manager Job Description Position: Service Sales Manager Position Reports To: General Manager General Description The service manager has overall control over customer satisfaction, customer retention, service sales, and the profitability of the department. Duties and Responsibilities 1. Supervise the service department staff including advisors, technicians, warranty administrators, cashiers, and service receptionists. 2. Manage the sold and unsold hours. 3. Meet with any dissatisfied customers and factory personnel. 4. Maintain high technician productivity with training programs, proactive sales techniques and proper dispatching based on skill levels. 5. Coordinate with the parts manager inventory stocking requirements to obtain a high level of service. 6. Control expenses such as shop supplies and policy adjustments. 7. Increase sales and gross profit by generating new business with mailings, coupons, customer-contact strategies, and prospecting strategies 8. Increase customer-pay maintenance service sales by holding service consultants accountable to sell menu and maintenance services. 9. Control repair order flow and supervise open repair reports and work in process. 10. Promote high customer satisfaction scores and retention percentages. 11. Other duties as assigned. Sales and Accountability 1. Conduct a weekly service sales meeting with all service personnel (advisors, techs, etc.). 2. Create a culture of accountability and track sales production of each service consultant. 3. Set sales goals for the service department, with the general manager s approval, and develop an action plan for attaining those goals. 4. Communicate service department sales goals with service consultants, technicians, etc., and coordinate efforts toward successfully reaching department goals. 5. Implement and sustain a multi-point inspection process with clear instructions to advisors and technicians. Skills Required and Physical Demands 1. Previous service advisor, technician, or related management experience. 2. Ability to communicate with customers, department employees, and other managers via meetings and written reports. 3. Proven track record of customer-pay sales success. 4. Ability to use dealership s computer system. 8

9 Service Sales Advisor Job Description Position: Service Sales Advisor Position Reports To: Service Manager and General Manager Customer Relations 1. Maintain a high level of grooming, hygiene, and uniform appearance. 2. Conduct all business with sincerity, honesty, and genuine concern for customers. 3. Promptly meet and greet service customers in a friendly and courteous manner. 4. Listen to customers reason(s) for bringing their vehicle to the service department. 5. Offer logical diagnostic services or repairs to satisfy customers concerns. 6. Provide accurate estimates for all the services or repairs recommended. 7. Personally turn over to the service manager or other designated management representative customers with complaints that cannot be satisfied at the service-advisor level. Service Sales 1. Sell the proper repairs and/or services corresponding to customer s perceived needs. 2. Present a service menu of recommended maintenance services to every service customer. 3. Conduct a vehicle walk-around using a walk-around form or a wireless tablet at the time of write-up. 4. Make a genuine effort to sell the maintenance services recommended by the technician to every service customer. 5. Obtain the customer s approval on all repair orders at the time of the write-up or when offering additional maintenance services. 6. Meet or exceed sales objectives set by management. Administration 1. Properly and thoroughly prepare repair orders with clear instruction to the technician. 2. Shepherd an RO from creation to completion to close. 3. Carefully inspect every finished repair order for proper completion, pricing accuracy, and continuity. 4. Using the recommendations from the technicians (e.g. multi-point inspections) proactively solicit service appointments for future sales. Maintain a system for following up with past customers for the purpose of setting future appointments to have work done which was recommended by technicians. 5. Fill out Scoreboard of Success sales accountability form weekly. 6. Other duties as assigned. Skills Required and Physical Demands 5. Preferred experience in the customer service industry an automotive background is not required. 6. Ability to communicate with customers, department employees, and management. 7. Proven track record of customer-pay sales success. 8. Ability to sit or stand for long periods of time. 9

10 Three Types of Service Advisors Pushy: Hard-sell un-needed services, dishonest, aggressively alienate customers (worthless jerks) Passive: Nice guys or gals, order-takers, full of excuses, if it ain t broke don t fix it, passively alienate customers (spineless placeholders) Proactive: Effective liaison between customer and tech, passion for preventive maintenance, educators, successful salespeople, masters of customer retention through service sales (successful leaders) Service Consultant Philosophy Offering preventive maintenance services to our customers is a noble mission, a high calling. Our customers have made a large capital investment in their vehicles. Our top priority is to preserve their investment. Our goal is to keep vehicles trouble-free, safe, and fun to drive! It s the right thing to do! 10

11 Selling Automotive Maintenance Services THE ROAD TO A SALE EDUCATE THE CUSTOMER Current odometer reading Interval since last service Condition of the fluids OFFER MAINTENANCE SOLUTIONS Recommend service(s) needed ASK THE CUSTOMER TO BUY May we perform this service for you today? - OR - How do you think we ought to proceed? 11

12 Cooling System Service FEATURES Power-cleans the cooling system Removes rust, scale, and sludge Balances ph to fight future corrosion Prevents dissolved-engine scenario BENEFITS Extends the life of hoses, water pump, heater core, thermostat, and radiator Reduces operating temperature of the cooling system, automatic transmission, and air conditioning CONSEQUENCES Engine overheating and possible engine failure Heater slow to warm up or never gets hot enough Costly replacement of radiator, heater core, water pump, and major engine components Provides safety for daddy s little girl as she heads off to college Provides independence for the widow 12

13 Brake Fluid Service FEATURES Flush out all old, worn-out, oxidized, and contaminated brake fluid Remove moisture, condensation, and air from brake system Install new de-moisturized heavy-duty DOT 4 high-temperature brake fluid BENEFITS Increased master cylinder and braking system Peace of mind and safety Reduced risk of ABS malfunction due to oxidized, contaminated brake fluid CONSEQUENCES ABS failure...resulting in over $1,000 of repair Sluggish brake response Loss of confidence in vehicle s braking system Provides safety for the next generation Provides a steady income for the builder 13

14 Fuel and Air Induction Service FEATURES Cleans entire fuel system from tank to exhaust Cleans air intake system from throttle to plenum Cleans injectors, intake valves, and combustion chambers BENEFITS Increases power performance Eliminates rough idle, hard-starting hesitation, and pinging Restores fuel economy CONSEQUENCES Poor engine performance Engine dies at idle, causing a safety issue Increased fuel consumption (paying more at the pump!) Provides bragging rights for the sportsman Provides better fuel economy more money for shopping! 14

15 The RIM Process RELATED IMMEDIATE MAINTENANCE Helping Customers Prioritize Their Maintenance Needs Related Needs: Services that are closely related to the primary item (sold on the drive at the time of write-up or sold over the phone after the technician inspects the vehicle.) Primary Item Brake Job Water Pump Front-End Alignment Tire Rotation Related Service Brake Fluid Exchange Coolant Service Power Steering Fluid Exchange Front-End Alignment Immediate Needs: Services that are safety-related or things that, if put off, will result in catastrophic failure or significant exposure. Engine Oil Two Quarts Low Bald Tires Check Engine Light Airbag Warning Windshield Wipers Scratching Brake Pads Wearing into the Rotors Burned-Out Tail Lights Maintenance Needs: Services that should be performed to lower cost of ownership by preventing major break-downs. Fluid Exchange Services Belts and Hoses Fuel System Maintenance Tire Rotation and Alignment Note: Maintenance needs often move up in priority, thus becoming immediate needs or related needs. 15

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17 Customer Prospecting (Increasing Drive Traffic) Professional Buildings Manufacturing Facilities Hospital Facilities Business Parks Corporate Offices College Campuses Government Offices Downtown Businesses Walking Distance Near Public Transportation Dedicated Shuttle Times The Law of the Harvest We always reap what we sow. We always reap more than we sow. We always reap in a season later than when we sowed. Whatever a man soweth, that shall he also reap. Galatians 6:7 17