Honda Dealership Slashes Wait Times, Improves Service, & Boosts Revenue with Guest Paging System

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1 Case Study for Posting on Automotive Digest. Honda Dealership Slashes Wait Times, Improves Service, & Boosts Revenue with Guest Paging System The Product introduced into the Dealership: Guest Paging System The Challenge for this Honda dealership: One of the biggest challenges May faced was speeding up the turnaround time for car service. On an average day, the service department could see up to 40 cars. However, the volume of requests for service were as high as cars per day, to the point where they were having to turn customers away. For a simple oil change, customers would have to schedule an appointment three to four days in advance. The Solution for other dealer management to note: In the fall of 2014, May invested in renovations to improve his service department. In addition to adding five more service bays and creating more parking, May also invested in a guest paging system. Inspired by the flexibility and freedom that patrons experience in a restaurant setting, May believed the same philosophy could apply to guests waiting in his dealership. At any given time, there could be five to 15 customers waiting to get their car serviced. For an oil change, it used to take anywhere from one to two hours, said May. Now, 95 percent of our customers can be done in 30 minutes or less.

2 Honda Dealership Slashes Wait Times, Improves Service, & Boosts Revenue with Guest Paging System The Results that were realized by the dealership: 1) Improved Guest Experience Customers are no longer tethered to the waiting area. Instead, they are free to roam the lot, walk around the showroom, converse with sales associates or even sit outside if they please. Before the guest paging system, customers were called over a noisy overhead speaker. With the pagers, customers now have peace of mind knowing they haven t been forgotten or missed and can wait comfortably anywhere in the dealership. In addition, May said the showroom is significantly more peaceful without the overhead PA system. 2) Increased Staff Efficiency The guest paging system has also helped May s staff become more productive and focused on their duties. My staff loves it, said May. They used to spend an inordinate amount of time searching for customers, taking them anywhere from five to 15 minutes. Staff are now able to use their time more efficiently. The time saved has also helped speed up the completion of car services. We are able to get back to customers quicker regarding the diagnosis of their car and what they need in order to make a decision earlier in the day. That way, they can get their car fixed and back in the same day instead of leaving the car overnight, said May. 3) Increased Revenue and Cost Savings With the time that staff saved by not having to search for customers, the service department was able to see four to five more cars per day. With the paging system in place, May was also able to utilize his staff more efficiently and did not need to hire an extra staff member to handle the additional volume a $60K savings. Within the first 90 days of the renovation and use of the paging systems, the dealership was already experiencing a 20 percent increase in revenue.

3 Honda Dealership Slashes Wait Times, Improves Service, & Boosts Revenue with Guest Paging System Business Benefits to the dealership: Service was able to see 4-5 more cars a day 60K in savings from not having to hire additional staff 20 percent revenue increase year over year Improved guest and staff experience Conclusion or the significance of this case study: Greg May took the plunge in expanding his dealership to accommodate his growing business. In doing so, he saw increased benefits for his customers, staff and overall business efficiency. With the success May has seen with the paging system, he is now implementing similar changes at his Chevrolet dealership in West Texas. Information about Grey May & Greg May Honda: Profile of the dealership: Greg May, owner of the Greg May Honda dealership in Waco, Texas, understands the value of providing excellent service. At the pace his dealership was growing, May recognized that he needed to make some necessary changes in order to improve the experience for his service customers and adapt with his growing business. What Greg May had to say about the experience: Within the first 90 days of the renovation and use of the paging systems, the dealership was already experiencing a 20 percent increase in revenue year over year. Greg May, owner