How to Create a "Disney-Like" Customer Experience In Your Dealership Service Department With Don Tipton of Moderated By Mike Bowers of DealersEdge
Don Tipton - President, Don began in the automotive business, working for his dad around the age of 8. There was no such thing as daycare in those days, so most of Don's free time was spent with Dad, a Parts & Service Manager at the local Chevrolet store. Since no one got a free ride in his family, went to work in the shop. As he got older he took on more meaningful responsibilities in both the Service & Parts Departments. He was the third generation of his family to have worked in this dealership facility. Over the years he's held management positions in both small single point stores and large multi-dealer operations at the corporate level. He also spent a number of years with what was the largest automotive fixed operations consulting firm in the country, conducting training seminars and in-dealership consulting. In Don's view, his most valuable experience comes from his early days in the business. He's checked in the parts orders, driven the delivery truck, worked the lube rack, undercoated vehicles, worked the parts counter, built wholesale parts operations, written repair orders and dispatched all the work...and the list goes on. All of these experiences have made him a better fixed operations consultant. He knows what the profits should be and understand what it takes to make it happen. He's passionate about this business and the success of the dealers he works with.
How to Create a Disney-Like Experience in your Service Department Don Tipton August 15, 2013
Quest for excellent Customer Service
Take an objective look at the complete customer experience at your store Would you do business with you? Would you share the experience with anyone? Is the experience just functional It basically just works, the job gets done, no better than the rest, no real reason to return Just okay is a non-event Or is it memorable Not the norm, the non-typical dealership service experience Positive, exceeded expectations
Better quality vehicles = less repair work Longer warranty coverage = less customer pay work Longer maintenance cycles = less maintenance work Manufacturer covered maintenance = less customer pay work Better informed customers, On-Star, Sync, monthly e-mails, internet, smart phone, etc.
2.6 Service visits a year Maintenance is 77% of work Customer loyalty (will return to the dealership) 79% while in warranty 64% after warranty Source J.D. Power 2013
Why Customer s Leave 1% Die 3% Move 5% New relationship with another company 9% Price 14% Product issue 68% Perceived attitude of indifference by an employee Source - Rockefeller Corp **Only 4% will tell you they are dissatisfied** A complaint.is a gift! To Disney a 1% increase in customer loyalty translates into millions in revenue each year
What Does Good Customer Service Mean? 81% Tell friends & family 45% Broadcast on social media 35% Write about it on a review site like Yelp 52% Will continue doing business with your company 24% Will choose you over the competition for up to 2- years Source Dimensional Research No matter how good the product or service may be, it won t go far with poor customer service Unknown
Take an objective look at your operation! Has there been to much focus on: Hours per repair order but will they return? Effective labor rate but will they return? Gross profit margin must know what s in the number! Parts to labor ratio what does it really mean anyway? Value per repair order up-selling needed services? Personnel expense may save on expense, but cost you customers
Maybe not enough focus on: Customer input listen to what your customers are saying Customer retention how many are you keeping?, what are you doing about the ones that are missing? Customer pay repair order count - is it growing? What s happening on the front-line Service Lane, Customer lounge, Cashier, Phone - watch, look & listen What happens on the front-line leads to the bottom-line Break your business down Customer Pay, Warranty & Internal must know how it s changed & changing You ve got to be very careful if you don t know where you re going, because you might not get there Yogi Berra
Instead of marketing, (discounts, coupons, specials) to drive customers to your store, why not create an environment that attracts customers to your store! To make that happen you have to create the non-typical, automotive dealership retail service experience Whether your business is jet engines or peddling hamburgers, if you simply treat your customers with common ordinary garden variety courtesy, you can have the lion share of any market because you d be alone Tom Peters
For now put aside results such as; sales, profits, key performance indicators, CSI scores and even expenses That stuff will just get in the way of being objective Get out of the Car business and get in the Retail business, (with your thinking)
Find out what your customer s want and then give it to them Good customer service is 1. Answering the phone 2. Identifying needs 3. Not making promises you know you can t keep 4. Listening to your customer 5. Handling complaints, quickly 6. Apologizing & showing empathy 7. Focusing on what you can-do 8. Adding something extra occasionally 9. Making them feel important 10. Getting regular feedback and maintain customer contact 11. Understanding the customer s first and last impression 12. Helping customer s to understand your process
In order to consistently deliver a high level of service to every customer, every time YOU MUST stay in control. Never allow your customer to take control of expectations. Stay in Control of The Customer Environment The Employee Environment
Let s start with the Customer Environment First impressions The Web-Site Quick to load Easy to navigate Service appointment tab on the home page Address, phone number & directions on home page Appointment process is easy & quick with minimal key strokes
The Phone Call First Impressions The business that can actually have a human answer the phone and address the customer s question or provide the service the quickest, without transfers or holds WINS Phone System Quick & easy to navigate Minimum transfers just 1 The person that answers the phone is usually expected to answer the question Direct calls to the front line staff first, then send to backup Monitor or record calls and use as a weekly training tool Implement word tracks at each position
Stay in control of the customer environment Stay in control of your schedule and set the arrival expectation Control the customer s arrival day and arrival time by offering options, use the either or technique An environment that creates a positive impression; a calm, unrushed and professional write-up experience Explain to the customer where to go and who to see when they arrive (setting the expectation) Be prepared for their arrival. Utilize pre-work orders: Pre-view prior service history Identify recalls or campaigns Make reminder notes on the pre-work order How you lose control: When would you like to bring it in? Come on down first thing in the morning
The arrival day First Impressions What they see Control the experience of the customer s arrival, every detail sends a message Signage (or lack of): entering and on the lot Parking: reserved, designated and easy Lighting: bright, working, positive impression Write-up area: Clutter, old repair orders, dusty paper work, sticky notes Old out date posters stapled to the wall, nobody pays attention to anyway Signs; always negative, don t do this, don t go there, not responsible, coupons must be presented Take a picture and pass it around
The arrival day Body language First Impressions What they see and hear Be show ready Poor posture, shaking the head, facial expression (or lack of) Being ignored No or minimum eye contact, no greeting or acknowledgement Employee chatter Employees talking amongst themselves Employees talking about another customer or the last customer Employees texting or on cell-phone Employees complaining about something; management, work schedule, another employee
The Write-Up Controlling Expectations Initial Contact Proactive, friendly & warm greeting Happy? So let your face show it smile Get the customer s name, use it often Make them feel important because they are!! How do you make someone feel important? Just pay attention to them! Obtain pre-work order if applicable LISTEN to the customer s concern(s) while maintaining eye contact. DO NOT WRITE DO NOT TYPE DO NOT LOSE FOCUS Repeat each concern back to the customer to ensure accurate understanding before documenting on the repair order You must determine what to fix the machine or the mind DO NOT offer any additional services or maintenance items until all customer concerns have been covered
Controlling Expectations The Write-Up Recommendations by a Professional Present manufacturers recommended maintenance for this vehicle at this mileage Recommend services from the pre-work order, (service history) Remind the customer of services declined from prior visits Build value by explaining the service, the benefit to them and lastly the price Do not sell anything to anybody instead recommend all credible service to every customer
Controlling Expectations The Write-Up What to Expect Stay on the positive, what you CAN DO Do not pre-diagnose Explain how the diagnostic or repair process will go Repairs will not proceed without approval Establish a Status contact time & preferred method of contact How you lose control when do you need your car back? call me later and I ll tell what we ve found it should be ready at 5:00
Controlling Expectations The Follow Up Promises Kept Status contact VERY IMPORTANT #1 customer complaint Always make the call, try to never take the call Every customer leaves with a business card with the Status Time written on the back Make the call early (ahead of established contact time) Keep the customer informed and up to date on progress Stay in control of the expectations What to expect next
Controlling Expectations The Finish - Contact Expectations Exceeded Set up the delivery (via; phone, e-mail, text, web-site) Contact customer Establish time for pick up Review services performed and charges Be ahead of time and under budget Stay in control of the expectations Explain what will happen when they arrive Who to see when they arrive
Controlling Expectations The Finish - Pick Up Expectations Exceeded Acknowledge arriving customer Be prepared, have all paper work complete and available Review all concerns and the action taken Review total charges and compare to original estimate or quote approval Ask the customer if they have any questions about the repairs made to their vehicle today Review the next service or items that will require attention soon Discuss the possibility of receiving a survey Escort the customer and the paper work to the Cashier Thank the customer for their business and invite back
Customer Service It s the Little Things that make a difference Recognize anxiety and work to remove it Focus, make them feel important Show empathy and genuine concern Never be afraid to say you don t know, but you ll find out Admit to being wrong or making a mistake Never saying no, instead let me look into it and offer alternatives No alternatives can equal an ultimatum Saying please and thank you Invite them back Doing the routine consistently great
Control the Employee Environment
Find out what your employees need and then give it to them Information Feedback Training Communication Treat employees well, E.S.I. before C.S.I. Recognition Coaching Emotional Account Balance Make deposits before you make withdrawals Must maintain a positive balance Disney has cast members, not employees Organized sports has team members, not employees What do you have? If you genuinely want to put customers first, you must first put employees more first Tom Peters
Control the Employee Environment Staffing More than sufficient front-line team members Less support staff needed The front-line should not become content with their performance and income Create an environment of; eagerness, opportunity to perform, goals and competitiveness Appropriate compensation plans MUST be in place!! If the person in a front line position is not a front line type person, be quick to make a change *Production capacity must be greater than the volume of business* Compensation Must be weighted to reward Individual performance Must also include Team performance The addition of a front-line team member should be felt (financially) by the other front-line team members
Control the Employee Environment Pricing Management sets, controls and monitors Some empowerment to make adjustments, inspect over-rides Performance reviews The individual should and has the right to know how they re doing Have high expectations Be accurate and candid Offer solutions and assistance Keep the emotional bank account positive Does not replace active coaching Coaching MBWA (walk the sidelines) look & listen As needed and almost instant Use praise in public and criticize in private technique Be careful of the activity trap. Activity does not always mean Productivity
Control the Employee Environment Career path For the individuals that are interested, where can they go? Do they know it? Can you help them get there? Customer Handling Process How to handle every customer, every time Your way of doing business Not optional Training Keep them focused Give them the tools to be successful Eliminate the knowing Focus on the doing Knowledge breeds Confidence Confidence breeds Enthusiasm
The Three C s Care Communicate Courtesy
Do what you do so well that they (the customer) will want to see it again and bring their friends Walt Disney
P.O.B. 49277 Jacksonville Beach, FL 32240 803-917-9991 don@dtcretailconsulting.com don@dtcretailconsulting.com 36