Richard Holland's Posts - DealerELITE.net2024-03-29T13:18:13ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969https://storage.ning.com/topology/rest/1.0/file/get/2535907370?profile=RESIZE_48X48&width=48&height=48&crop=1%3A1https://www.dealerelite.net/profiles/blog/feed?user=2doo4ohr297wv&xn_auth=noService Departments Need Tune-Ups Tootag:www.dealerelite.net,2015-06-25:5283893:BlogPost:4572612015-06-25T13:08:11.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545146610?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545146610?profile=RESIZE_480x480" width="350"></img></a> The service department tends to be the busiest place in a dealership, and service managers must stay in tune with what’s going on. While meetings and discussions can be useful, at times they only result in vague ideas the service staff never acts upon. Just like in any organization, a service department is only as good as its leader. Sometimes, you have to get in the trenches…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545146610?profile=original"><img width="350" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545146610?profile=RESIZE_480x480" width="350"/></a>The service department tends to be the busiest place in a dealership, and service managers must stay in tune with what’s going on. While meetings and discussions can be useful, at times they only result in vague ideas the service staff never acts upon. Just like in any organization, a service department is only as good as its leader. Sometimes, you have to get in the trenches to really understand employee problems, obstacles, and frustrations.</p>
<p> </p>
<p>To get on the employees’ level, service department managers may find it helpful to visit with their employees in an active and participatory manner, one-on-one. I’m not talking about individual meetings. Rather, I mean managers should shadow employees in areas integral to efficient operations. Service managers can learn a wealth of information from shadowing employees, as well as stay in tune with departmental operations and dynamics. This helps to spot problem areas, and increase efficiency, productivity, and profitability.</p>
<p> </p>
<p>For example, if you have a service receptionist, perhaps spend a few hours listening to how they take field calls. Listen to the types of questions customers ask and how your receptionist handles them. You may find that customers get frustrated when the receptionist can’t get a service advisor to come to the phone. You may also discover frequently asked questions that you can train your receptionist to handle on their own, rather than simply transferring the call.</p>
<p> </p>
<p>The same concept could also apply to any BDC. Sit with them as well. Watch them schedule services. Are they overloading appointments for extensive repairs? Perhaps they are over-scheduling your quick services, such as oil changes. Any of these activities could lead to a crowded shop with advisors and technicians who can’t keep up, resulting in upset customers.</p>
<p> </p>
<p>Take a little time and spend it with your service advisors. Work alongside them as they check in customers, write up RO’s, and deliver service recommendations. Observe how efficiently they work and how consistently they give recommendations and offer upsells. Do they do a good job of explaining necessary services to the motorist? Or are they simply presenting an itemized list and accepting whatever decision the customer makes? </p>
<p> </p>
<p>Perhaps watch the advisors’ interactions and communications with the technicians as well. Sometimes small problems grow into big ones that you could have easily solved with a tweak in a process or some additional training.</p>
<p> </p>
<p>Don’t forget your technicians and parts department. See how efficiently they work. Do they perform consistent inspections? How do they present their findings to the service advisor? Observe your parts department as they interact with customers—both retail and wholesale—as well as the service department. Are they favoring one group over another?</p>
<p> </p>
<p>Shadowing might sound like a simple exercise, but it works. Give it a try and you may well find that your service department operates more efficiently, with happier and more productive staff.</p>The Pursuit of Happiness: Creating Engaged Employeestag:www.dealerelite.net,2015-06-18:5283893:BlogPost:4568382015-06-18T12:29:32.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p class="Body"><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545224129?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545224129?profile=RESIZE_480x480" width="350"></img></a> Today's market dictates that to succeed as a dealer, you have to create a great customer experience. You have to provide value and give the customer a reason to come back. A great customer experience is now one of the strongest value propositions any dealership can use to increase customer loyalty and retention.</p>
<p class="Body"> …</p>
<p class="Body"><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545224129?profile=original"><img width="350" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545224129?profile=RESIZE_480x480" width="350"/></a>Today's market dictates that to succeed as a dealer, you have to create a great customer experience. You have to provide value and give the customer a reason to come back. A great customer experience is now one of the strongest value propositions any dealership can use to increase customer loyalty and retention.</p>
<p class="Body"> </p>
<p class="Body">Dealerships are going to great lengths to create an exceptional customer experience—installing movie theaters, opening coffee shops, and adding other luxuries in an attempt to make a customer's visit as pleasant as possible.</p>
<p class="Body"> </p>
<p class="Body">However, you need to remember in all this that your employees must be just as engaged and loyal. Customer retention begins with your employees. Unless you have a dedicated staff who are truly invested in the success of your dealership, you can never create a company culture that fosters customer relationships.</p>
<p class="Body"> </p>
<p class="Body">Your front line employees are the face of your company. If they aren't engaged in your business, with a true desire to assist your customers, the motorist experience will never live up to its potential.</p>
<p class="Body"> </p>
<p class="Body"><b>Schedule Regular Employee Meetings</b></p>
<p class="Body"><b> </b></p>
<p class="Body">So, how do you identify whether your employees are engaged, or if they are simply working for a paycheck?</p>
<p class="Body"> </p>
<p class="Body">One way is to schedule regular meetings with your employees. If you simply wait for an annual performance review, it might be too late. Studies show that most employees who fail simply don't know what their employers expect from them. In these meetings, managers should be clear and concise about what they expect employees to achieve or accomplish. Elaborate on the goals or responsibilities your dealership has for its employees and collaborate to create a specific plan to achieve them.</p>
<p class="Body"> </p>
<p class="Body">These meetings should also be used as a time for employees to share their frustrations and tell you any ideas they may have for improvement—in other words, a time to make them feel valued as members of the team.</p>
<p class="Body"> </p>
<p class="Body"><b>Observe Employees at Work</b></p>
<p class="Body"> </p>
<p class="Body">Another method you can use to increase employee engagement is simple observation. Engaged employees are easily identifiable. They are consistently willing to help your customers and other employees, with no expectation of recognition. They go above and beyond their duties on a daily basis.</p>
<p class="Body"> </p>
<p class="Body">At times, dedicated employees may even seem argumentative while they attempt to make a case on behalf of a customer. Rather than interpreting this as insubordinate, recognize that the employee really cares about your customers and perhaps needs more tools to settle customer issues and upsets. Reward this behavior through encouragement or recognition. In so doing, you demonstrate and reinforce this type of strong, supportive behavior to the rest of your staff.</p>
<p class="Body"> </p>
<p class="Body">Don't allow negativity or apathy to infiltrate your dealership. These traits spread and will have a direct influence on both the customer's experience <i>and</i> the attitudes and morale of your staff. A company culture that fosters a positive culture and strives for engaged employees is the first step towards building a positive customer experience. In which case, everybody wins.</p>Service Dilemmas: What Would You Do? The Resultstag:www.dealerelite.net,2015-06-11:5283893:BlogPost:4563652015-06-11T12:51:35.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545146388?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545146388?profile=RESIZE_480x480" width="400"></img></a> In a <a href="http://blog.autopoint.com/2015/05/28/service-dilemmas-what-would-you-do/">previous article,</a> I provided two very real scenarios that occurred right before Memorial Day weekend and asked readers how they would have handled them. For convenience, I’ve repeated the scenarios again with the actual outcomes attached:</p>
<p><b>Scenario #1:</b></p>
<p>A customer…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545146388?profile=original"><img width="400" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545146388?profile=RESIZE_480x480" width="400"/></a>In a <a href="http://blog.autopoint.com/2015/05/28/service-dilemmas-what-would-you-do/">previous article,</a> I provided two very real scenarios that occurred right before Memorial Day weekend and asked readers how they would have handled them. For convenience, I’ve repeated the scenarios again with the actual outcomes attached:</p>
<p><b>Scenario #1:</b></p>
<p>A customer brought their vehicle into the dealership the Friday before Memorial Day weekend for a routine oil change. As part of the check-in process, the service advisor rolled down the window to prevent the keys from getting locked in the vehicle. The customer waited for their vehicle while the dealership changed the car’s oil.</p>
<p> </p>
<p>Once the car was completed, the service advisor returned the keys to the customer. The customer got into their vehicle and discovered the window would not roll up. The technician took a look at it and discovered that a piece needed to hold up the window had broken (not the window itself). The dealership did not have the part in stock and could not get one. Therefore the technician installed plastic over the empty window frame, so that the customer could drive it.</p>
<p> </p>
<p>The customer was irate and blamed the technician for breaking the window. Like many other people, the customer was heading out of town for a road trip over Memorial Day weekend and, due to the window, felt he could not do that. He posted his dissatisfaction on the dealership’s Facebook page and used other social media platforms to vent his frustration.<b> <br/> <br/></b></p>
<p><b>Outcome:</b></p>
<p><i>In this scenario, the dealership had an active social media presence. Shortly after the customer posted their complaint, the dealership employee in charge of social channels contacted both the service director and the dealer and alerted them to the situation. The dealer responded to the customer on social media with contact information and took the conversation offline. No one was at the dealership itself due to the holiday weekend. The customer had also already left, so there wasn’t an opportunity to remedy the problem at that point in time. After the holiday weekend, the dealer spoke with the customer and made arrangements for the customer to bring their vehicle back in and they fixed the window free of charge, resulting in a happy</i> <em>customer.</em></p>
<p><b> </b></p>
<p><b>Scenario #2:<br/> <br/></b></p>
<p>A separate customer received an oil change before heading out on a long trip from Florida to Illinois, by way of Kentucky. After the service, the customer proceeded on their trip.</p>
<p> </p>
<p>About three hours short of their first stop in Louisville, they heard a loud pop and smoke started to come out the back of their vehicle. The customer immediately pulled over and, upon inspection, noticed oil pouring out from under the car. As the car only had 13,000 miles on it, and was under manufacturer warranty, the customer called roadside assistance and had it towed to the nearest dealership.</p>
<p> </p>
<p>Unfortunately, by the time the customer arrived, the dealership was 15 minutes from closing and all the bays were full. The dealership could not service the car until the following Monday, because they were closed over the weekend. Due to the holiday and a large local music event, the customer was forced to pay inflated hotel rates, rent a car, and incur living expenses while waiting out the weekend.</p>
<p> </p>
<p>Come Monday, the dealership discovered the drain plug on the vehicle was missing. Fortunately, there was no engine damage whatsoever. The customer proceeded to call the original service center, explain the situation, and claim that the center should reimburse them for their incurred costs, due to the drain plug being reinstalled incorrectly. The total customer requested $724 total, which included the expenses at the dealership they took the vehicle to, the car rental, and the nights they had to spend at the hotel.</p>
<p> </p>
<p><b>Outcome:</b></p>
<p> </p>
<p><i>In this case, the service manager at the original repair facility—a well-known chain of independents—offered to pay only for the repair conducted at the dealership, and nothing beyond that. He believed that there was no evidence that the drain plug was installed incorrectly and claimed that the couple would not have been able to make the trip from Florida to Kentucky had the plug been loose. In addition, he stated that his dealership offered roadside assistance. He claimed that had the couple called them, they would have towed them to a local location of their chain where the vehicle would have been repaired, as they were open on Saturdays. As it currently stands, there has been no further resolution.</i></p>
<p> </p>
<p>Here we see two very similar situations with different resolutions. In both cases, the repair facility made mistakes. In both cases, customers were inconvenienced. However, in scenario #1, the dealership chose to take a more customer-centric approach in an effort to avoid further incidents and make the customer happy. That customer will almost definitely return for future vehicle service.</p>
<p> </p>
<p>In the second scenario, the repair facility chose to pay for only the repair, denied any fault and refused to do anything further to resolve the situation. The customer was a local and had had previous service work done at the facility. This customer would more than likely have continued to service their vehicle there in the future. But that is no longer the case. If you consider the lifetime value of a customer, in all likelihood the chain has lost more than the $724 the customer was seeking in reimbursement—and will perhaps even lose business from the negative word-of-mouth that customer may provide.</p>
<p> </p>
<p>Sometimes, it’s more important to do the right thing for the customer regardless of whether you feel at fault. Customer retention is the foundation of all business. Focus on creating an excellent customer experience and fixing mistakes—whether you believe you made them or not—and your efforts will go a long way towards keeping customers and building business. In the end, it’s easier to hold onto the customers you have than to replace lost ones every month.</p>Car Buying Trends Show Service Is the Future of Dealershipstag:www.dealerelite.net,2015-06-04:5283893:BlogPost:4562222015-06-04T12:37:59.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545147433?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147433?profile=RESIZE_480x480" width="350"></img></a> No one doubts the average age of vehicles on the road has gone up. The current average vehicle is 11 years old and trends in consumer purchases indicate this statistic isn’t going to change any time soon. In fact, indicators suggest average vehicle age might increase.</p>
<p> …</p>
<p></p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545147433?profile=original"><img width="350" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147433?profile=RESIZE_480x480" width="350"/></a>No one doubts the average age of vehicles on the road has gone up. The current average vehicle is 11 years old and trends in consumer purchases indicate this statistic isn’t going to change any time soon. In fact, indicators suggest average vehicle age might increase.</p>
<p> </p>
<p><a href="http://www.autonews.com/article/20150601/RETAIL01/150609987/new-car-truck-loans-reach-longest-term-on-record">Automotive News</a> recently reported that loan lengths for new and used vehicles in the United States hit record highs in the first quarter of 2015. New vehicle loans had an average term of 73 to 84 months. Typical manufacturer warranties are only around 36 months. So consumers who don’t purchase extensions could find themselves out-of-warranty with 48 months of loan payments still to go.</p>
<p> </p>
<p>To aggravate the issue, GM announced in March that they’re going to decrease the warranty on Chevrolet and GMC vehicles and eliminate free service. And we all know the defection rate for service customers increases when their vehicle’s warranty ends. So what can you do to retain these essential customers?</p>
<p> </p>
<p><b>Invest in Service Advisor Training</b></p>
<p> </p>
<p>Consider investing in service advisor training so your team can watch for out-of-warranty situations. And get your F&I department involved when your advisors identify potential defections. Look in your DMS to see if the customer’s vehicle has an extended warranty. For new vehicles, the customer often still has the option to purchase an extended warranty right up until the manufacturer warranty expires.</p>
<p> </p>
<p>Used vehicles aren’t so clear-cut. But F&I can still easily identify if they’re eligible and what kind of coverage is available. You can gain more F&I revenue and increase your chance of retaining customers if you reach out to these long-term borrowers and offer solutions that serve their needs. An integrated process to identify these service customers will keep them in your shop long past when their manufacturer warranty expires.</p>
<p> </p>
<p><b>Inform Your Motorists</b></p>
<p> </p>
<p>Many motorists don’t realize they can purchase an extended warranty even after they buy their car. They probably also don’t know about any prepaid maintenance programs your dealership offers. Motorists can often purchase these after the initial sale as well.</p>
<p> </p>
<p>Educate your customers in the service drive and you’ll better demonstrate that you have their best interests in mind.</p>
<p> </p>
<p><b>Investigate Warranty Opportunities</b></p>
<p> </p>
<p>Motorists these days often choose to purchase more expensive vehicles for longer periods of time because they want a nice car that fits their budget. They are willing to make longer-term loan commitments to make this happen. So you can safely assume these same motorists don’t want to face high repair bills right after their vehicles go out-of-warranty.</p>
<p> </p>
<p>An F&I presence in the service department—whether that’s through training, or a concerted effort to identify good candidates who already have appointments—can help your dealership and the service department stay healthy and produce revenue for years to come.</p>Service Dilemmas: What Would You Do?tag:www.dealerelite.net,2015-05-28:5283893:BlogPost:4556602015-05-28T13:23:14.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545167447?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545167447?profile=RESIZE_480x480" width="400"></img></a> Every dealership has seen this customer—the one who demands to be reimbursed for damage they claim happened while the car was in the dealership’s care, or because of faulty service work. You might find it challenging to deal with these customers, especially when you don’t believe your team is at fault. So what is the best way to handle them?</p>
<p> </p>
<p>To help answer…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545167447?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545167447?profile=RESIZE_480x480" width="400"/></a>Every dealership has seen this customer—the one who demands to be reimbursed for damage they claim happened while the car was in the dealership’s care, or because of faulty service work. You might find it challenging to deal with these customers, especially when you don’t believe your team is at fault. So what is the best way to handle them?</p>
<p> </p>
<p>To help answer this question, I have compiled a couple of scenarios. I happen to know how these cases were handled, and I will share the results in my next blog. But first I want your feedback on what these dealerships should’ve done. These are both 100% real events involving simple oil changes that happened just this past Memorial Day weekend. So, my question is: What would you do?</p>
<p> </p>
<p><b>Scenario #1:</b></p>
<p> </p>
<p>A customer brought their vehicle into the dealership the Friday before Memorial Day weekend for a routine oil change. As part of the check-in process, the service advisor rolled down the window to prevent the keys from getting locked in the vehicle. The customer waited for their vehicle while the dealership changed the car’s oil.</p>
<p> </p>
<p>Once the car was completed, the service advisor returned the keys to the customer. The customer got into their vehicle and discovered the window would not roll up. The technician took a look at it and discovered that a piece needed to hold up the window had broken (not the window itself). The dealership did not have the part in stock and could not get one. Therefore the technician installed plastic over the empty window frame, so that the customer could drive it.</p>
<p> </p>
<p>The customer was irate and blamed the technician for breaking the window. Like many other people, the customer was heading out of town for a road trip over Memorial Day weekend and, due to the window, felt he could not do that. He posted his dissatisfaction on the dealership’s Facebook page and used other social media platforms to vent his frustration.</p>
<p> </p>
<p><b> </b></p>
<p><b>Scenario #2:</b></p>
<p> </p>
<p>A separate customer received an oil change before heading out on a long trip from Florida to Illinois, by way of Kentucky. After the service, the customer proceeded on their trip.</p>
<p> </p>
<p>About three hours short of their first stop in Louisville, they heard a loud pop and smoke started to come out the back of their vehicle. The customer immediately pulled over and, upon inspection, noticed oil pouring out from under the car. As the car only had 13,000 miles on it, and was under manufacturer warranty, the customer called roadside assistance and had it towed to the nearest dealership.</p>
<p> </p>
<p>Unfortunately, by the time the customer arrived, the dealership was 15 minutes from closing and all the bays were full. The dealership could not service the car until the following Monday, because they were closed over the weekend. Due to the holiday and a large local music event, the customer was forced to pay inflated hotel rates, rent a car, and incur living expenses while waiting out the weekend.</p>
<p> </p>
<p>Come Monday, the dealership discovered the drain plug on the vehicle was missing. Fortunately, there was no engine damage whatsoever. The customer proceeded to call the original service center, explain the situation, and claim that the center should reimburse them for their incurred costs, due to the drain plug being reinstalled incorrectly. The total customer requested $724 total, which included the expenses at the dealership they took the vehicle to, the car rental, and the nights they had to spend at the hotel.</p>
<p> </p>
<p>Share your thoughts and opinions on the above two scenarios. While ultimately neither customer incurred any major damage to their vehicles, they were inconvenienced on a holiday weekend.</p>
<p> </p>
<p>So, my industry friends, what would you do?</p>Why Technicians and Service Advisors Need Marriage Counselingtag:www.dealerelite.net,2015-05-21:5283893:BlogPost:4551502015-05-21T12:45:23.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545148370?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148370?profile=RESIZE_480x480" width="400"></img></a> Life in the retail automotive industry is taxing. Managers and employees work long hours and, in many cases, are with their co-workers more than they are with their families. Miscommunications, tension or arguments can detract from the efficiency of the dealership, and thus decrease overall profitability.</p>
<p> </p>
<p>Technicians and service advisors work very closely…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545148370?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148370?profile=RESIZE_480x480" width="400"/></a>Life in the retail automotive industry is taxing. Managers and employees work long hours and, in many cases, are with their co-workers more than they are with their families. Miscommunications, tension or arguments can detract from the efficiency of the dealership, and thus decrease overall profitability.</p>
<p> </p>
<p>Technicians and service advisors work very closely together. Communication between them needs to be smooth and efficient. A company culture filled with friction can easily prevent a dealership’s service department from living up to its full potential.</p>
<p> </p>
<p>A <a href="http://wardsauto.com/dealers/auto-dealership-service-dept-relationships-need-repairs">recent article</a> in Ward’s magazine does a really good job of covering the need for improved relationships between technicians and their service advisors. Technicians are paid by how efficiently productive they can be. The more work they can complete in a day, the more money they make. Service advisors, on the other hand, are paid primarily on commission. According to the article, this can cause problems between the two groups</p>
<p> </p>
<p>Service advisors need to be able to effectively relay the customer’s vehicle problems in order to provide the necessary information to the technician. However, in many cases, service advisors don’t have the level of knowledge needed to get this across in the repair order. This then increases the workload of the technician, and decreases the amount of billable hours they can accomplish in a day.</p>
<p> </p>
<p>To help alleviate this problem, consider implementing training on a dealership level. Ask the service directors to sit down with their technicians and find out what pain points they are experiencing, if any, with the advisors and vice versa. Once the initial meetings are completed, simply implement training designed to bridge the gap between these two groups and improve their relationship.</p>
<p> </p>
<p>A dealership can only be as efficient as the performance of its employees. You can install all of the technology you want to increase efficiency, but if your service advisors are writing up erroneous repair orders, this then forces your technicians to spend their valuable time investigating the problems so as to complete the repair properly. The result will be unhappy service advisors, unhappy technicians, lost revenue, poor CSI scores and, most importantly, unhappy customers. This is a steep price to pay for something that could be alleviated through better communication and training.</p>Overcoming Resistance To New Technologytag:www.dealerelite.net,2015-05-14:5283893:BlogPost:4547002015-05-14T16:18:39.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545149115?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545149115?profile=RESIZE_480x480" width="350"></img></a> As part of doing business in today’s fast-paced world, inevitably we all have to adopt new technology to make things run more efficiently. Whether it’s a CRM, a call-tracking system, or a new DMS, it’s not usually met with a big welcome from all employees when the time comes to implement it. Most people don’t like change. Not necessarily because they are afraid of it, but…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545149115?profile=original"><img width="350" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545149115?profile=RESIZE_480x480" width="350"/></a>As part of doing business in today’s fast-paced world, inevitably we all have to adopt new technology to make things run more efficiently. Whether it’s a CRM, a call-tracking system, or a new DMS, it’s not usually met with a big welcome from all employees when the time comes to implement it. Most people don’t like change. Not necessarily because they are afraid of it, but because they have settled into routines, or have become used to software that is already in place.</p>
<p> </p>
<p>So what do you do to maximize buy-in for new technology?</p>
<p> </p>
<p>According to <a href="https://hbr.org/2015/03/convincing-skeptical-employees-to-adopt-new-technology?utm_content=buffer24649&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer">this article</a> in the Harvard Business Review, the first thing management should do is explain to all employees affected by this new technology how it will help not just the business, but also each employee, to operate more efficiently. It’s important that employees understand the reasoning behind the change and the benefits that any new technology will bring.</p>
<p> </p>
<p>Typically, when new technology is introduced into a business, management naturally looks to its most tech savvy employees to learn it. These employees are then expected to assist the rest of the workforce by coaching and/or teaching them. According to the article, however, the most important people to get buy-in from and train to use the technology are not in fact the business’s tech savvy employees. They are the influencers. These are the employees that people look up to and follow. These employees lead by example, have excellent communication skills and are listened to by their peers. By getting them to adopt new technology and use it, the theory is that their peers will follow their lead.</p>
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<p>After you’ve achieved buy-in from these influencers, the next step is to make implementation mandatory. Employees need to know that the old ways are no longer acceptable and that the only acceptable production is output from the new technology. The article also suggests that “quick wins” are celebrated. Make public acknowledgement of small achievements through the use of the new technology. Positive reinforcement is an excellent way to change behavior. Create contests or offer pizza parties for compliance. Perhaps offer something of value, such as an assigned parking spot or recognition. Staff will begin to see the value it brings to the organization in real and practical use.</p>Offer Value Above a Paycheck To Increase Employee Retentiontag:www.dealerelite.net,2015-05-07:5283893:BlogPost:4536982015-05-07T12:25:52.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545147247?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147247?profile=RESIZE_480x480" width="350"></img></a> Automotive News recently <a href="http://www.autonews.com/article/20150504/RETAIL07/150509969/fca-to-offer-free-college-education-to-dealership-employees?cciid=email-autonews-blast">reported</a> that FCA will offer free college tuition to all FCA dealership employees. It will begin immediately in the southeast region and roll out to the rest of the U.S. by the third quarter.…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545147247?profile=original"><img width="350" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147247?profile=RESIZE_480x480" width="350"/></a>Automotive News recently <a href="http://www.autonews.com/article/20150504/RETAIL07/150509969/fca-to-offer-free-college-education-to-dealership-employees?cciid=email-autonews-blast">reported</a> that FCA will offer free college tuition to all FCA dealership employees. It will begin immediately in the southeast region and roll out to the rest of the U.S. by the third quarter. This move comes from a deal cut between FCA and Strayer University. According to the article, it potentially covers 118,000 employees. The program is FCA’s effort to increase dealership employee retention. Head of FCA’s dealer network, Al Gardner, states in the article that this is a big pain point for FCA dealers. He believes that this program will “give the dealerships a lever that no one else has.” He also believes that it will give FCA dealers a competitive advantage when a potential employee is considering job opportunities at other brands. And that it could attract job seekers who otherwise may not have considered a job in the auto industry.</p>
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<p>It has been widely covered that there is a real shortage of well-trained technicians. And this is only becoming more urgent as fewer and fewer freshly trained technicians are coming down the pipeline. The demand for qualified technicians will only increase. Dealerships are already competing to hold onto technicians that receive more favorable offers from competitors. While it is not clear if Strayer will offer automotive technician training, the implementation of this program by FCA was an excellent move. Employees want to feel valued. Providing a free college education – all the way up to a Master’s degree level – is certainly nothing to scoff at. According to the article, a four-year degree at Strayer University would cost between $42,000 and $50,000. That would add an additional ~$10,000 per year in employee benefits. Just like a 401K presents value for job seekers considering a dealership as a potential employer, it will be mighty hard to ignore a free college education.</p>
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<p>Current FCA technicians will now have a world of opportunity open to them for self-improvement. Many technicians enter this field with little to no formal education from a 4-year university. Some without even having attended a tech school. This allows them to seek an education where they otherwise may not have been able to afford it. While FCA’s program is the first of its kind in the automotive industry, there has been a very successful program running since 1944 by one of our country’s largest employers… The G.I. Bill. This program has been used to successfully recruit – and eventually educate – millions of veterans over the past 60 years.</p>
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<p>There is no doubt in my mind that FCA has just elevated themselves above other auto manufacturers as a desirable employer. My hat is off to FCA for their move to decrease employee turnover at dealerships by increasing the value and benefits of being a FCA dealership employee. This move will not only assist dealers in recruiting new talent, but also in retaining that talent. The bonus, of course, is that as time passes, FCA dealers will find that they will have more educated staff overall. Which can only benefit the dealership in the long run.</p>Who Owns Your Cars? Automakers Say They Dotag:www.dealerelite.net,2015-04-30:5283893:BlogPost:4534882015-04-30T12:07:27.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545147422?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147422?profile=RESIZE_320x320" width="300"></img></a> The Digital Millennium Copyright Act is a law enacted in 1998, enforced and administrated by the U.S. Copyright Office. Every three years, the U.S. Copyright Office is tasked with holding hearings to determine what new technology should, or should not, be exempt from copyright laws. According to…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545147422?profile=original"><img width="300" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147422?profile=RESIZE_320x320" width="300"/></a>The Digital Millennium Copyright Act is a law enacted in 1998, enforced and administrated by the U.S. Copyright Office. Every three years, the U.S. Copyright Office is tasked with holding hearings to determine what new technology should, or should not, be exempt from copyright laws. According to <a href="http://www.autoblog.com/2015/04/20/automakers-gearheads-car-repairs/">Autoblog</a>, this year has seen automakers “supporting provisions in copyright law that could prohibit home mechanics and car enthusiasts from repairing and modifying their own vehicles.”</p>
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<p>Automakers argue that vehicles are getting so technologically advanced that allowing amateurs and do-it-yourselfers to modify the sophisticated software within modern vehicles would “lead to an imbalance by which the negative consequences far outweigh any suggested benefits”. According to the article, the Alliance of Global Automakers feels that this would “lead to disastrous consequences”. Automakers claim that by allowing consumers access to the Engine Control Units (ECUS) and software coding, consumers can void the vehicle’s warranty, “easily manipulate odometers, and make cars appear to have fewer miles on them than they actually do, which represents a problem for unsuspecting used-car buyers”. In addition, untrained do-it-yourselfers could present liability issues for automakers as well as alter a vehicle’s emissions standards and other safety features that are present in the software coding.</p>
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<p>Consumer rights advocate group, the Electronic Frontier Foundation, (EFF) has petitioned the office to protect consumer rights to maintain their own vehicles as they see fit. They claim that by failing to provide exemptions to copyright laws for access to software and vehicle components to consumers, automakers could literally dictate who could service vehicles, and thereby drive consumers to franchised dealers or preferred independents. In addition, the EFF claims that the industry’s desire to block exemptions has more to do with profits than safety. They feel that automakers could then sell these performance upgrades on an a la carte basis.</p>
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<p>This might sound wonderful for increased service department revenue. However, if automakers win, not only could they then dictate what could be done by consumers, but also by dealerships, independents and any other vehicle service facilities… and that includes whether your dealership can work on them or not. When a dealership sells an off-brand pre-owned vehicle, it still has the opportunity to service that vehicle and retain that customer. If automakers can claim copyright protection for their ECUs and software, that manufacturer could easily prevent anyone but their own dealers from servicing that vehicle. Whether that happens, or whether automakers work together should they be granted these copyright protections, is something that will have to be visited in the future. For now, however, the U.S. Copyright Office may hold the future of the automotive service industry in their hands. A decision is expected mid-year. </p>FCA US Dealers: Service Revenue Just Got A Lot More Importanttag:www.dealerelite.net,2015-04-24:5283893:BlogPost:4534022015-04-24T12:33:50.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p class="Body"><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545148102?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148102?profile=RESIZE_480x480" width="400"></img></a> FCA US CEO, Sergio Marchionne, recently announced plans to reduce the profit on new cars sold within the FCA brands by increasing the invoice prices, while keeping the MSRP the same. This will result in less potential profit for its dealers. The move, as reported by Automotive News, is FCA's attempt to increase its profitability. This, of course, will probably…</p>
<p class="Body"><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545148102?profile=original"><img width="400" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148102?profile=RESIZE_480x480" width="400"/></a>FCA US CEO, Sergio Marchionne, recently announced plans to reduce the profit on new cars sold within the FCA brands by increasing the invoice prices, while keeping the MSRP the same. This will result in less potential profit for its dealers. The move, as reported by Automotive News, is FCA's attempt to increase its profitability. This, of course, will probably not result in standing ovations from dealers. In today’s ultra-competitive world of transparency and Internet shopping, dealers are already fighting the race to the bottom and depend on aftermarket, F&I products and finance reserves, just to seek out a profitable sale.</p>
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<p class="Body">Sales managers can try tactics such as holding more gross, and not discounting the vehicles as much. But the reality is that consumers have too many resources available to get persuaded into paying more, or taking less on their trade. Transparency in the sales process is only going to become more available – in fact it's going to become the norm. Some dealer groups are already trying to take the entire process online. How hard will it be to undervalue a trade or mark up an interest rate if the consumer can simply open another web browser and look the information up online?</p>
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<p class="Body">Perhaps some are counting on the walk-in traffic that may not have conducted any research prior to visiting. Sorry to tell you this, but showrooming is becoming more prevalent. Your customers are shopping the competition on their mobile devices – right from your lot. There are even services that allow your competitors to target your customers with ads and offers while they're standing on your lot. Pricing transparency isn't going anywhere. Technology advancements will guarantee that.</p>
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<p class="Body">Since margins and profits in sales are declining; due to consumer use of pricing resources and OEMs reducing margins; dealers will have to discover more profit in other areas of their store. One of the easiest departments to do this with is, of course, the one already relied on for revenue - service.</p>
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<p class="Body">It would be a wise move to truly analyze whether you are maximizing profit potential in your service department. There are some really good tools and technology that create more efficient processes, keep your service bays full and avoid idle time for technicians. It's not necessary to spend millions on service bay expansions or new buildings to increase service revenue. Just consider some changes and perhaps stop doing things "the way we've always done it." Approach your operations with a fresh set of eyes. I guarantee that there are opportunities waiting to be discovered...</p>
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<p class="Body">You just have to know where to look. </p>Amazon Enters the Auto Repair Business… Sort Oftag:www.dealerelite.net,2015-04-16:5283893:BlogPost:4528042015-04-16T12:18:35.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545147392?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147392?profile=RESIZE_480x480" width="400"></img></a> At the end of March, Amazon announced the launch of what they’re calling “Amazon Home Services.” This new service by Amazon enables customers to order services for their homes without the inconvenience of having to search for these service providers, obtain references and obtain pricing. Services range from television installation, painting contractors, electrical work and……</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545147392?profile=original" target="_self"><img width="400" src="http://storage.ning.com/topology/rest/1.0/file/get/2545147392?profile=RESIZE_480x480" width="400" class="align-right"/></a>At the end of March, Amazon announced the launch of what they’re calling “Amazon Home Services.” This new service by Amazon enables customers to order services for their homes without the inconvenience of having to search for these service providers, obtain references and obtain pricing. Services range from television installation, painting contractors, electrical work and… you guessed it… auto mechanics. No, Amazon isn’t hiring a workforce of skilled employees waiting to come to your house. In essence, Amazon is simply the middleman in this new arena, facilitating transactions between participants in the program and the consumer. These services all have up-front pricing so the consumer knows exactly what the costs are. In addition, each service provider is reviewed by a previous customer.</p>
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<p>I’ve written a lot about how convenience and transparency are important to today’s consumers. This has become increasingly evident in the proliferation and success of automobile pricing portals, as well as other consumer resources for vehicle purchasing. Now, it seems, consumers will have the ability to go on Amazon and order up an auto mechanic to come to their house and fix their vehicle. I would think it is difficult to price out the repair completely on Amazon -- a mechanic has to diagnose the vehicle, potentially buy parts, and ensure that they have the proper equipment to make the repair. Perhaps Amazon’s auto mechanic service will be limited to basic services such as an oil change, or changing a flat tire. Or perhaps the pricing will simply be based on an hourly labor rate.</p>
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<p>Amazon has a lot of knowledge about consumer buying habits. They are well aware that customers want low prices and convenience. They’ve rolled out same day delivery service (in some markets), will do your grocery shopping for you, experimented with drone delivery -- they even recently released the Amazon “Dash” button. This small button actually sticks to a surface and allows you to order an item by simply pushing a button. Need some more laundry soap? Push the Dash button attached to your washing machine and Amazon will send you some right away. Seems as if the mere act of logging into Amazon and ordering the laundry soap is even becoming too inconvenient for some people.</p>
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<p>Consumers have been price shopping automotive service for a long time now. Up to this point, franchised dealerships have typically only had to complete with independents and other dealers. Don’t be surprised if, in the near future, a consumer whips out their smartphone, launches their Amazon app and attempts to negotiate based on a labor rate from a mechanic in your area. While the process, logistics and experience consumers will receive by ordering up a mechanic on Amazon have yet to be revealed, one thing is for certain – your customer loyalty, retention and experience are going to quickly dictate whether your dealership service bays stay full or become a ghost town. </p>GM Warranty Cuts: The Good and Bad Newstag:www.dealerelite.net,2015-04-09:5283893:BlogPost:4518192015-04-09T13:12:30.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545164880?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545164880?profile=RESIZE_320x320" width="300"></img></a> An article last month in <a href="http://www.usatoday.com/story/money/cars/2015/03/12/gm-chevrolet-gmc-warranty-service-cut-reduced/70210660/">USA Today</a>, revealed that General Motors plans to dramatically cut the warranty coverage on Chevrolet and GMC vehicles beginning with 2016 models. Additionally, GM is halving those brands’ maintenance-free programs. According to the…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545164880?profile=original"><img width="300" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545164880?profile=RESIZE_320x320" width="300"/></a>An article last month in <a href="http://www.usatoday.com/story/money/cars/2015/03/12/gm-chevrolet-gmc-warranty-service-cut-reduced/70210660/">USA Today</a>, revealed that General Motors plans to dramatically cut the warranty coverage on Chevrolet and GMC vehicles beginning with 2016 models. Additionally, GM is halving those brands’ maintenance-free programs. According to the article, the main reason? GM thinks nobody cared.</p>
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<p>This could create significant side effects for Chevrolet and GMC franchisees.</p>
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<p>The warranty period of any vehicle is a highly important time in the customer retention lifecycle. The brief time when a vehicle is under warranty is also the period of time that a dealer will enjoy the highest level of customer loyalty – during this period consumers will naturally gravitate towards a franchise dealer to get repairs completed.</p>
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<p>This news essentially represents a potential ticking clock counting down as GMC and Chevrolet dealers experience the highest levels of defection once vehicle warranties expire. The warranty period has always been the time to build and nurture customer relationships. By reducing this amount of time, these dealers will be forced to expedite any retention efforts or risk losing customers to independents. Customer retention is a challenge in itself, and the luxury that warranty coverage provides a dealer is time. Some of that will be taken away soon.</p>
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<p>However, a potential positive side effect is that these dealers will be able to capture more of the most lucrative type of service work – customer pay –sooner than has previously been possible. They will also be able to increase their basic service revenue stream as soon as free maintenance disappears. This second side effect is, however, very much dependent on the dealer’s ability to retain the customer after the warranty expires. As well as to entice consumers to choose them for basic services immediately after purchase.</p>
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<p>Perhaps this move by General Motors could present an opportunity for dealers to increase service department revenue earlier in the customer relationship. It will depend on if these dealers make an effort to build value, trust and loyalty early in the customer relationship. Dealers that fail to immediately improve their customer experience may find that the service work they used to rely upon disappears.</p>How Customer Training Leads To Retentiontag:www.dealerelite.net,2015-02-26:5283893:BlogPost:4465672015-02-26T13:35:25.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145861?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145861?profile=RESIZE_480x480" width="400"></img></a> With almost everything consumers purchase, there’s an owner’s manual or set of instructions for them to use. For decades, car manufacturers have included an owner’s manual with new vehicles. Sadly, it is no secret that this tidy three hundred-page booklet is one of the least read publications produced in mass quantity. </p>
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<p>Some car dealerships require that their…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145861?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145861?profile=RESIZE_480x480" width="400"/></a>With almost everything consumers purchase, there’s an owner’s manual or set of instructions for them to use. For decades, car manufacturers have included an owner’s manual with new vehicles. Sadly, it is no secret that this tidy three hundred-page booklet is one of the least read publications produced in mass quantity. </p>
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<p>Some car dealerships require that their sales people give each vehicle purchaser a thorough presentation of their vehicle at time of delivery. This slower-paced and personalized walk-around is perhaps more common in days past, than in today’s busier climate. However, it acquaints the car buyer with their vehicle’s key features, inside their vehicle as well as critical components under the hood. In short, it offers a much-abbreviated version of what is found in the owner’s manual<i>.</i> </p>
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<p>Customer training is not a new concept, but in an ever-changing industry, automotive manufacturers and dealerships adapt to the wants and needs of the consumer. Some prefer a grab the keys and go approach, while others still take time to educate the buyer about their investment and give the all-important introduction to team members in the service department. It’s worth thinking about; apparently offering “hands-on” training to your customers can create higher retention rates and higher rates of customer satisfaction, according to a recent blog <a href="http://blog.capterra.com/how-to-create-customer-stickiness-through-customer-training/">article</a> on Capterra.com. And we all know that retention and CSI can be major pain points.</p>
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<p>In this vein of customer training, some dealerships offer “new owner’s clinics.” Every few weeks new vehicle owners are invited to the dealership and teams of service employees offer service-related demonstrations that cover such things as how to change a tire, where to check vital fluids and the importance of maintenance. During these one to two hour presentations, customers are encouraged to ask questions relating to servicing their vehicle, and any queries they may have about the facility itself. Some dealerships offer complimentary snacks or catered food, to make it more of a fun, party atmosphere. </p>
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<p>These type of service clinics, when done well, serve as a wonderful educational opportunity for the customer, especially for those that may have hurried through their purchase and delivery. Many are still learning about their vehicle, and these clinics are very useful to them. They can also help break the ice when it comes to meeting the service department employees that will help them when it comes time to servicing their vehicle. Some dealerships even do a similar clinic about a year after the customer’s purchase. This serves as a refresher course, but also opens the door to have a more in depth conversation about ongoing maintenance. And to discuss any problems that may have surfaced during the first year of ownership. Not all owners will attend these events. But for those that do, it is another step towards making a long time loyal customer. And better educated customers can produce another benefit – less calls to the service department to ask service-related questions, which then frees staff up to spend more time with the customer in front of them.</p>
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<p>Perhaps your dealership hasn’t been open long. Or maybe you have a high turnover rate. With fresh places and fresh faces, having your employees take a few minutes to introduce your facility to each customer is important. Enough studies have been done through the years that show that customers and prospective customers are a lot “stickier” when they feel at home and are welcomed by all departments.</p>
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<p>It’s important that each customer knows where to go when they visit for service. This includes everything from the process and convenience options offered for setting appointments, (online scheduling, etc.) to what, if any, shuttle services or rental car options are available. A visit to the parts department, customer lounge and other areas do not need to take long, but surely can help make the customer at ease with the dealership and its employees.</p>
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<p>Customer training isn’t just about opening the owner’s manual, a walk-around after a vehicle purchase or attending an owner’s clinic. It works better if it’s all-encompassing for all customer touch points. In a sense, it can begin with a phone call to your dealership when a vehicle breaks down, or when routine service is needed. The staff at that point have been invited to help educate the customer and assist them with their needs. No owner’s manual is needed here. Your staff will know what to do: listen, educate, learn and satisfy.</p>What Does Cheating Teach Your Employees?tag:www.dealerelite.net,2015-02-19:5283893:BlogPost:4458502015-02-19T14:20:45.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545144649?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144649?profile=RESIZE_320x320" width="300"></img></a> <a href="http://www.autonews.com/article/20150216/RETAIL07/302169962/did-subaru-store-falsify-customer-surveys">Automotive News</a> recently carried a story about a lawsuit filed by Subaru of America against one of their franchisees. The lawsuit accuses a Southern California dealership of falsifying 224 CSI surveys in an effort to increase their CSI scores. This was after…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545144649?profile=original"><img width="300" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144649?profile=RESIZE_320x320" width="300"/></a><a href="http://www.autonews.com/article/20150216/RETAIL07/302169962/did-subaru-store-falsify-customer-surveys">Automotive News</a> recently carried a story about a lawsuit filed by Subaru of America against one of their franchisees. The lawsuit accuses a Southern California dealership of falsifying 224 CSI surveys in an effort to increase their CSI scores. This was after being issued a warning by the OEM in 2012 for past poor CSI performance. According to the article, when surveys arrived via email from the manufacturer, the dealership would then allegedly have employees fill them out at a neighboring dealership (that was also part of the same group). Apparently, as many as 12 employees were tasked with completing and submitting these surveys, which to me illustrates a massive failure in leadership – should it be proven true.</p>
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<p>A dealership’s employees are its lifeblood. What lesson does this type of behavior teach these employees? -- That it’s OK to kink the system, cheat the manufacturer and falsify reports for monetary gain. How do you hold these employees accountable for being honest to your business when you’re teaching them that it’s OK to be dishonest?</p>
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<p>Managers should be role models for their employees and set an example of the culture and morality of an organization. By teaching them that it’s OK to cheat the manufacturer’s system, you’re also teaching them that it’s OK to cheat ANY system, including yours.</p>
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<p>For any dealership to grow, it needs to be open to feedback – both positive and negative. The best dealerships use this type of feedback to identify and fix any friction that exists in the customer’s experience. Doing this then brings more revenue through greater retention and loyalty. Happier customers generally means more dollars coming in. Turning a blind eye to the reality of what is actually going on at the dealership and falsifying CSI surveys may provide the short-term benefit of OEM bonuses or stair step money. However, it will also taint your employees and drive away customers. And that will lose more revenue than any lost money from the manufacturer.</p>The Four Buckets of Customerstag:www.dealerelite.net,2015-02-12:5283893:BlogPost:4454022015-02-12T13:05:34.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545148011?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148011?profile=RESIZE_480x480" width="400"></img></a> We all have a myriad of contacts that we consciously (or subconsciously) place into separate categories in our relationships. These categories include family, close friends, business associates, colleagues and acquaintances. Most people tend to act differently depending on which group they are surrounded by at any particular moment. People may relax a little, be more…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545148011?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545148011?profile=RESIZE_480x480" width="400"/></a>We all have a myriad of contacts that we consciously (or subconsciously) place into separate categories in our relationships. These categories include family, close friends, business associates, colleagues and acquaintances. Most people tend to act differently depending on which group they are surrounded by at any particular moment. People may relax a little, be more vulnerable around family. While perhaps act with more formality when networking with people they are not as familiar with.</p>
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<p>The same is true with our customers. In the automotive industry it’s fairly simple to identify which category your customers fit into, if you’re paying attention. The key is to be cognizant of these customer categories so as to interact with them in the most effective manner.</p>
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<p><b>1. Freshman</b> - These are the customers that haven’t taken a whiff of coffee brewing in your service lounge. They have just made their first vehicle purchase from your dealership and are in for their initial maintenance. Or, it could be the person that got fed up with the service department across town and decided to give yours a try. The sky is the limit and you can make or break the relationship quickly at this stage. At this point there is every opportunity to wow them with outstanding service. And, if you hit it off right, they’re going to be back for more. But if things don’t go well, you’ll have to go above and beyond the next time you see them – if you see them at all.<b> </b></p>
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<p><b>2. Your Old Friend</b> - You know the kind. These are some of your former co-workers, social media friends, and people from the neighborhood, that know you and your dealership well. They won’t go to the other side of the city to get service or buy their parts, but you aren’t connected like you used to be. In many respects they are loyal to you and your dealership, but you might not see them as often as you would like, or as often as you should. After all, they do have multiple friends (dealers) and like to spread the love around, at least a little. They might hit you up for an extra discount or a small favor now and again. They’ll visit your store if they received your mailer for the $20 oil change. However, they may well take their business down the street to “the other guy” when they receive an offer for free lifetime tire rotations with the purchase of four new tires. Your <i>old buddy</i> isn’t the guy you rely on, like you do with your <i>loyalists</i>, but nevertheless, you never want to see him disappear<b>.</b></p>
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<p><b>3. </b> <b>Your Loyalists</b> - These are your best customers and you can never have enough of them. They’ll buy every vehicle from your dealership and refer friends and family to you. They’ll spend hours in your service lounge waiting patiently for their car repair. Why? Because somewhere along the way (probably when they were “freshman”), your dealership and employees impressed them with fair prices, incredible customer service and perhaps even became their “friend.” You’ve gone above and beyond at times: Did not charge them for a simple repair, provided a free rental when their car broke down, were courteous in your follow up after their service visit, and so on. Somewhere along the way, you knew what it took to ensure their <i>individual satisfaction</i>. Your employees love customers like this: they are easy-going people, they constantly give you raving reviews and perfect surveys, and they spend money – time and again. You don’t have to market or advertise to them; because you know they’ll be back when the need arises. However, sometimes they get taken for granted, because they are loyal to your company. Be sure not to ignore these customers by always looking out for <i>next year’s hopefuls</i>.</p>
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<p><b>4. </b> <b>Next Year’s Hopefuls</b> - These are the faces in the crowd with money in their pocket that they are willing to spend on the right car, the right service, and the right repair shop. But you haven’t met them yet. You’ve boasted about the awards you’ve won, the ease of service and the competitive prices – yet these folks are always an arm’s length away. You see them; you just can’t get to them. Your dealership spends money, sometimes a lot more than necessary, to acquire the customer. If successful, they become your freshman and later your loyalists. But, with so many other dealerships wanting to become their friend, all you can do is hope that by next year, they become yours.</p>
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<p>The evolution of these customers is pretty clear. Just like in our personal lives, you first have to meet people in order to be their friend. Once you’ve hit things off, a fair share of them will emerge as your <i>loyalists</i> (and you’ll be theirs). Some will fade away completely, while others will still be <i>your old friends</i>. Depending of course upon how well you treat them. We all want loyalists in our life – the tried and true people we can count on, through good times and bad. So it is with our customers. We just have to make sure that they know it.</p>Season of Change?tag:www.dealerelite.net,2015-02-05:5283893:BlogPost:4446842015-02-05T14:20:34.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p>With a steadily improving economy and declining unemployment rates, the automobile industry is geared up to experience another year of expansion and progress. While this is great news, it would be wise to consider that just as customers now have more choices when it comes to buying or servicing their vehicle, employees (and prospective employees) also have more options than they did just a few years ago. In general they no longer feel quite so loyal to their position, nor do they fear…</p>
<p>With a steadily improving economy and declining unemployment rates, the automobile industry is geared up to experience another year of expansion and progress. While this is great news, it would be wise to consider that just as customers now have more choices when it comes to buying or servicing their vehicle, employees (and prospective employees) also have more options than they did just a few years ago. In general they no longer feel quite so loyal to their position, nor do they fear obtaining jobs quite as much as they did during the recession. Whether it’s your service advisor, top technician, cashier, or office manager, the wheels might already be in motion for some of your valuable employees to leave your company. <i>Are you prepared if they leave? What about the customers they will leave behind – or take with them?</i></p>
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<p>As has been quoted by many business leaders, “Customers don’t buy from companies – they buy from people.” This statement is a good way to emphasize the importance of keeping your employees happy so they in turn can keep your customers happy and loyal. I recently read an interesting post on Inc.com: <a href="http://www.inc.com/jeff-haden/8-reasons-why-youre-losing-customers.html">8 Guaranteed Ways to Drive Customers Away</a>. It’s a good read and points out again how building and developing relationships with customers is key to long-term success. But this has to start with building relationships with your employees. If you have high turnover within your organization, you are more likely to have higher turnover within your customer base.</p>
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<p><i>Is the grass greener on the other side?</i> In the automobile industry, just as it is in other retail markets, it’s not uncommon to have a revolving door of sales and customer service positions. If you’re a successful and profitable operation, you most likely have a core group of employees that are in it for the long haul and see themselves as a key ingredient to your company’s success. These employees, no matter the department, and regardless of their position, can single-handedly make or break your company. If they are happy with their jobs, their working environment, and of course their compensation and company benefits, the chances of retaining these valuable employees increase significantly. </p>
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<p><i>How many true superstars are on your team?</i> The list is endless, but consider the service technician that could virtually overhaul a transmission in his sleep, the sales consultant that sells twice as many cars as the next guy, the computer or software guru that everyone turns to when something goes awry, or the manager that everyone loves because he/she is fair, down-to-earth, and friendly, but also gets the job done effectively. Are you making sure that these superstars are shining for <i>your</i> company? Or are you giving them the opportunity to see what else is out there? Just as the Inc.com article points out, “in most cases employees leave because they aren't treated well.” And this is usually the case with customers. You can have both, but rarely one without the other.</p>
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<p>The key to long-term success and prosperity is a loyal customer base that repeatedly brings in not just their own business, but that of their business associates, family and friends. The same principal applies to your key players. Just as you depend upon these loyal and happy customers to keep the bottom line in check, your employees, when happy, are more likely to stay. </p>
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<p>2015 is still young. Make employee retention a high priority this year. Starting at the top down to the managers and the supervisors, be on the lookout for the key players that make a difference in the workplace and especially those that have an impact with customers. Because all too often, where the best employees go, the customers soon follow.</p>Is Going Above & Beyond Really the Path to Customer Loyalty?tag:www.dealerelite.net,2015-01-29:5283893:BlogPost:4439402015-01-29T15:02:46.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545144251?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144251?profile=RESIZE_480x480" width="400"></img></a> Most executives believe that providing an excellent customer experience will increase customer loyalty. Many companies are known for it and stand out as examples of how to win business and loyalty – Nordstrom, Zappos and Apple come to mind. While providing an excellent customer experience is certainly more likely to increase a loyal customer base than providing a poor one,…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545144251?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144251?profile=RESIZE_480x480" width="400"/></a>Most executives believe that providing an excellent customer experience will increase customer loyalty. Many companies are known for it and stand out as examples of how to win business and loyalty – Nordstrom, Zappos and Apple come to mind. While providing an excellent customer experience is certainly more likely to increase a loyal customer base than providing a poor one, just how this is done may well be the key.</p>
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<p>A very insightful <a href="https://hbr.org/2010/07/stop-trying-to-delight-your-customers">article</a> in the Harvard Business Review analyzed the results of a study by the Customer Contact Council of over 75,000 people. It examined the links between customer loyalty and customer service. The results were quite surprising. According to the article:</p>
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<p><i>“Two critical findings emerged that should affect every company’s customer service strategy. First, delighting customers doesn’t build loyalty; reducing their effort – the work they must do to get their problem solved – does. Second, acting deliberately on this insight can help improve customer service, reduce customer service costs, and decrease customer churn.”</i></p>
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<p>So, if going above and beyond isn’t really a solution, what is?</p>
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<p>According to the study, to really have an impact on customer loyalty companies should stop focusing on going above and beyond, and start focusing on simply accomplishing their core services efficiently. The overall concept is that a consistent customer experience that solves a customer’s needs trumps an exceptional one in terms of impact on loyalty. “When it comes to service, companies create loyal customers primarily by helping them solve their problems quickly and easily,” the Harvard Business review article states. And, according to the article, that is accomplished by removing obstacles.</p>
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<p>In the automotive world, customers come to your dealership to get certain problems solved. They may be coming because they need a new vehicle. Perhaps they need their vehicle serviced. Or perhaps they simply need their phone paired to their vehicle’s Bluetooth system. They want their problem solved quickly. Solving those problems efficiently in a consistent manner has the greatest impact on building loyalty simply because you have met the customer’s needs. They don’t necessarily need flashing lights, confetti, red carpets or fanfare. In fact, the article says that doing this can actually be a waste of time and effort and that: “Corporate leaders must focus their service organizations on mitigating disloyalty by reducing customer effort.”</p>
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<p>Some businesses have an over-the-top perception of what providing an excellent customer service experience means. Because of this misperception, they dismiss it as something that is too difficult or too costly to implement. In essence, providing an excellent customer experience boils down to one simple thing: Solving your customer’s problems properly and efficiently. While the customer may not leave with confetti in their hair, they are more likely to return for this simple reason -- they got what they wanted: their problem was solved.</p>Time Isn’t of the Essencetag:www.dealerelite.net,2015-01-15:5283893:BlogPost:4420452015-01-15T13:49:26.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545144449?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144449?profile=RESIZE_480x480" width="400"></img></a> Imagine a customer that is in for a routine oil change at your dealership. As part of the complimentary inspection your store provides, it is discovered that the vehicle’s brake pads are severely worn and it would be unsafe to continue driving the vehicle much longer without replacement. The service advisor brings this to the customer’s attention. Rather than making the…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545144449?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144449?profile=RESIZE_480x480" width="400"/></a>Imagine a customer that is in for a routine oil change at your dealership. As part of the complimentary inspection your store provides, it is discovered that the vehicle’s brake pads are severely worn and it would be unsafe to continue driving the vehicle much longer without replacement. The service advisor brings this to the customer’s attention. Rather than making the immediate decision to do the brake service that day, the customer takes the work under advisement, pays for the oil change and goes on their way. It could be that the decision was purely financial (not expecting to spend more money that day). Regardless, the consumer is now armed with the information that they need a brake service and it plants a seed in their mind. Perhaps they believe they were trying to be sold a service that wasn’t completely necessary, (or not needed yet) or perhaps they need to do their own due diligence before spending the money. That same customer may go online to research brake service. Or they may talk to a friend or use social media to invite opinions. Perhaps they will call another dealer or even another car repair company down the street to get an estimate. In the process, before the decision to actually perform the work is done, they may have touched more than a handful of resources besides your dealership’s service department. Will your dealership earn the business? Will the customer be loyal to you? At this point, you can only hope so.</p>
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<p>Consumers by nature have a tendency to not trust everything they hear until they have heard it from multiple sources, or have received the information multiple times. Therefore, before the decision to spend is made, the consumer may need to educate themselves. And one such way is to use third party information online, or to talk to others - whatever it takes to help them reinforce their decision to purchase.</p>
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<p>How about helping the consumer in this decision process while building credibility for your dealership? As an example, provide evidence of the needed service (show the customer how thin the brake pads are). Then support that with a third party video or YouTube video that demonstrates what is done in a brake service and how it will benefit the customer. Assuming you are competitive with your prices, it may also be worthwhile to show the consumer a list of advertised prices from nearby service centers. It’s upfront, it builds customer trust and in the end it can mean retaining the customer for this service as well as further services down the road.</p>
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<p>Impulse purchases aren’t usually made when it comes to servicing a vehicle. What is the “fun” in getting a transmission fluid change or brakes replaced? There is little consumer satisfaction in spending their hard earned money in this manner, even if it is a necessity. In a perfect world, we would all like every customer to come in, make their purchase and return again soon. However, since car dealerships aren’t the convenience store down on the corner where a customer runs in for a Slurpee and ends up with three candy bars as well, make good use of each opportunity you have to provide informative, helpful information. Ensure that when the consumer is ready to make their purchase, your dealership is the one they choose. </p>Will Service Technicians Need Computer Development Skills Soon?tag:www.dealerelite.net,2015-01-08:5283893:BlogPost:4413252015-01-08T13:30:13.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145207?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145207?profile=RESIZE_480x480" width="350"></img></a> Each year OEMs add more and more advanced technology to their vehicles. As a result, the skill set demanded of today’s technician has transitioned from one that is purely mechanical, into one that is more technology-based. Up until now, technicians have had access to master techs at their respective manufacturers to help diagnose and repair vehicles, and that was enough.…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145207?profile=original"><img width="350" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145207?profile=RESIZE_480x480" width="350"/></a>Each year OEMs add more and more advanced technology to their vehicles. As a result, the skill set demanded of today’s technician has transitioned from one that is purely mechanical, into one that is more technology-based. Up until now, technicians have had access to master techs at their respective manufacturers to help diagnose and repair vehicles, and that was enough. However, that might be changing.</p>
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<p>A recent <a href="http://adage.com/article/digital/owns-dashboard-apple-google-automakers/296200/">AdAge</a> article discusses the battle between CarPlay (Apple’s in-car technology) and Android Auto (Google’s). As there is increasing demand from consumers for smartphone integration into their vehicles, these two behemoths have been courting auto manufacturers.</p>
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<p>While the OEMs argue that they will be the ones held responsible by consumers should accidents occur while drivers use these systems, according to the AdAge article, control over this technology is slowly being transferred away from the OEM and towards either Apple or Google. Apple, in particular, is notoriously tight fisted with their operating system. It has no open API and allows nothing onto its hardware without full consent. According to the article, when asked about guidelines for app approval, a GM spokesman stated, “Apple and Google own the products themselves and are really the only ones who can speak to the final decision-making.”</p>
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<p>While this struggle over technology control occurs, the question still waiting to be asked is who supports these technologies? Consumers confronted with issues will undoubtedly seek assistance from their dealership. If both Apple and Google retain control over these technologies, they will also be required to support it, or open their systems up to manufacturers and dealers to diagnose and fix, which judging from previous history seems very unlikely.</p>
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<p>In the event that a consumer encounters a problem with their CarPlay or Android Auto systems, in order to diagnose and fix the issue, technicians will more than likely have to interact with either Apple or Google. Whether that’s accomplished through step-by-step instructions via a dedicated automotive support team that the OEM implements, or Apple and Google develop some sort of over-the-air diagnosis and repair processes, is yet to be seen.</p>
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<p>Manufacturers are adding hot new features to vehicles in an effort to make them more desirable – such as integrated Wi-Fi hotspots. But in so doing they are trading control over those features. Perhaps someday there will be an Apple Auto Genius Bar similar to the tech support available at Apple Stores, but dedicated to automobiles. Only time will tell. But one thing is certain – automotive technicians are going to need increasingly advanced training so as to keep up with the pace of advancing automotive technology.</p>Volvo Boldly Goes Where No One Dares Gotag:www.dealerelite.net,2014-12-29:5283893:BlogPost:4405282014-12-29T13:05:23.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145048?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145048?profile=RESIZE_480x480" width="400"></img></a> While most businesses analyze budgets and shift money towards digital advertising, video and branding, Volvo has taken an interesting strategy: to decrease marketing. While it isn’t planning to cease all activities, Volvo has decided that, rather than attempt to take on any rivals with bigger budgets, it will shift money towards providing a more personalized customer…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145048?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145048?profile=RESIZE_480x480" width="400"/></a>While most businesses analyze budgets and shift money towards digital advertising, video and branding, Volvo has taken an interesting strategy: to decrease marketing. While it isn’t planning to cease all activities, Volvo has decided that, rather than attempt to take on any rivals with bigger budgets, it will shift money towards providing a more personalized customer experience for its owners. Volvo’s plan is for a personal service technician to deliver each new Volvo in person. The technician will then be on call for the customer seven days per week, throughout the customer’s ownership. Volvo has started an extensive global training program, with the goal of making this service standard in all dealerships by 2017.</p>
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<p>A recent <a href="http://adage.com/article/global-news/volvo-reinvent-auto-marketing-strategy/296222/">Ad Age article</a>, quoted Alain Visser, SVP marketing, sales and customer service at Volvo Cars, as saying, “We want to challenge traditional, conservative car marketing, which starts with TV, print, billboards and sponsorship. The recipe is always the same. But it's not the best recipe for Volvo. When customers buy a Volvo they are buying a relationship -- the personal service technician is like your butler."</p>
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<p>It’s unclear at the moment what tasks or services these personal service technicians will offer customers. It’s also unclear who will foot the bill for these technicians. All indications point towards these technicians being permanent fixtures in Volvo dealerships. This raises the question as to who these techs are actually employed by – the manufacturer or the dealership. I’m sure any questions will be answered in time. How dealerships and service departments welcome this change will likely be dependent on economics and control. That being said, this move could lead to dealers enjoying an increase in customer loyalty, since these personal service technicians are location-based.</p>
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<p>With personal service comes trust. The more personal your relationship is with your customer, the more likely they will be to continue to do business with you and refer your dealership to their friends. By creating an ownership experience that is even more customer-centric, those dealerships that already deliver a great customer experience may find Volvo’s efforts a further boost to brand loyalty. This should then lead to additional sales and service opportunities. And that is never a bad thing.</p>Video Games: Using Employee Interests To Traintag:www.dealerelite.net,2014-12-18:5283893:BlogPost:4394602014-12-18T14:35:33.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545152956?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545152956?profile=RESIZE_320x320" width="300"></img></a> Despite the many tools available and the best of intentions, many dealerships struggle with providing ongoing professional development for their staff. Whether it’s because of the volume of customers that need handling; lack of time; or worry about taking a technician or salesperson out of commission – even for a short period of time – training presents many challenges to…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545152956?profile=original"><img width="300" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545152956?profile=RESIZE_320x320" width="300"/></a>Despite the many tools available and the best of intentions, many dealerships struggle with providing ongoing professional development for their staff. Whether it’s because of the volume of customers that need handling; lack of time; or worry about taking a technician or salesperson out of commission – even for a short period of time – training presents many challenges to dealership management.</p>
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<p>A recent <a href="http://www.autonews.com/article/20141027/RETAIL07/310279958/chrysler-video-games-bolster-dealership-sales-staff-training">article</a> in Automotive News reported that Chrysler thinks they have found a potential solution – video games. According to the article, Chrysler has developed “four video games to help salespeople learn the fine points of Chrysler, Jeep, Dodge and RAM vehicles.” The goal is to provide interesting product knowledge exercises to the sales staff that can be studied at their convenience. The staff can quickly review the exercises on their own smartphones and mobile devices during periods of low activity, without any large time commitment. A salesperson could be waiting for their next customer while playing quiz-style video games on their smartphone; a medium that many of us enjoy as entertainment.</p>
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<p>This innovative mode of training could certainly be expanded to other areas of dealerships outside of sales. Imagine technicians learning new features and technology for new models in the same fashion. If Chrysler deems this experiment successful, it’s certainly a possibility.</p>
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<p>Let’s face it, many staff now entering our industry grew up on video games. This is a medium they know and love. And training is that much more effective when the student is engaged with it, enjoys the process and participates because they want to, rather than because they are forced to.</p>
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<p>It’s great to see manufacturers utilizing new and innovative ways to bring product knowledge to sales staff. As technology and resources become more innovative, there’s little doubt that salespeople and service staff will be better equipped to provide a better and more informed buying and service process for customers. Rather than the customer leaving to “think about it,” your staff could be better equipped with the knowledge they need to help customers make buying decisions immediately. And that is a great thing.</p>WestJet: A No Holds Barred Customer Loyalty Strategytag:www.dealerelite.net,2014-12-11:5283893:BlogPost:4388782014-12-11T13:14:32.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145658?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145658?profile=RESIZE_480x480" width="400"></img></a> Last year, WestJet pulled off an elaborate scheme whereby flight passengers met with a virtual Santa at the gate to share any Christmas wishes. Upon arrival, these passengers were beyond delighted to discover the very gifts they had just wished for circling the baggage carousel. The whole caper was filmed and edited into a story that has been viewed by over 37 million people…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145658?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145658?profile=RESIZE_480x480" width="400"/></a>Last year, WestJet pulled off an elaborate scheme whereby flight passengers met with a virtual Santa at the gate to share any Christmas wishes. Upon arrival, these passengers were beyond delighted to discover the very gifts they had just wished for circling the baggage carousel. The whole caper was filmed and edited into a story that has been viewed by over 37 million people to date.</p>
<p> </p>
<p>Just last week, WestJet <a href="http://youtu.be/p-BKX3G0BpQ">pulled it off again</a>. This time, however, they chose to take their holiday plans to a small, poverty-stricken village in the Dominican Republic. Santa’s sleigh was staged in the middle of the village, where both children and adults could relay their Holiday needs and wishes to Santa via video. Not long afterwards, a huge party was held to which the entire village was invited. All of the gifts the villagers had requested were presented to them. This year trendy gifts gave way to far more practical items such as a washing machine, and even a horse. The video was again posted online for others to view and has been viewed over 2.5 million times just this past week.</p>
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<p>Why does WestJet pull off such lavish and intricate campaigns each year?</p>
<p> </p>
<p>Well, there is of course the huge publicity and exposure it brings. With tens of millions of views in a year’s time, it was certainly worth the cost of making the videos. They went viral because they tell a story that makes all but the Scrooges of the world feel good. And everyone likes that.</p>
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<p>But in my opinion the more important point is this: In addition to the brand exposure, these types of campaigns make employees proud to work for a company. They also help make customers eager to continue their relationships. Does WestJet make mistakes throughout the year? I’m sure they are just as fallible as any airline. However, such a gesture around the Holidays makes employees and customers feel great about the brand. This then helps gloss over any of the small inconveniences and customer service mistakes that WestJet may have made.</p>
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<p>I believe the real strength (and benefit) of these campaigns is that they nurture the relationships between WestJet, and its employees and customers. A common (and accurate) expression in the car business is “People do business with people they like.” By using stories that tug on heartstrings and leave people feeling good, positive and happy feelings are ingrained in customers and employees.</p>
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<p>Don’t worry, I am not here to tell you that you should run out and try to duplicate these lavish campaigns. What I’m saying is that retention and loyalty can be nurtured through marketing efforts and acts of generosity. It is the Holiday Season after all, so this applies even more right now.</p>
<p> </p>
<p>Such acts do not go unnoticed by the people that make your business what it is – your customers and employees. These type of acts can go a long way to help transform your business to a point that customers are not just happy to do business with you, they become your brand ambassadors. Nothing is better than a customer telling their friends and family to buy and service at your dealership.</p>Reach Out and Touch Someonetag:www.dealerelite.net,2014-12-04:5283893:BlogPost:4385392014-12-04T13:05:55.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145868?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145868?profile=RESIZE_480x480" width="400"></img></a> Do you remember the AT&T ad slogan “Reach Out and Touch Someone” from the early 1980s? It may have been thirty years since that slogan reached its peak in popularity, but it still has a similar meaning today. Our high-paced, digitally driven world has made it even easier to stay in touch with our friends and family. A few typed words on a smartphone, or the sharing of a…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145868?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145868?profile=RESIZE_480x480" width="400"/></a>Do you remember the AT&T ad slogan “Reach Out and Touch Someone” from the early 1980s? It may have been thirty years since that slogan reached its peak in popularity, but it still has a similar meaning today. Our high-paced, digitally driven world has made it even easier to stay in touch with our friends and family. A few typed words on a smartphone, or the sharing of a photo, has replaced in-person meetings. Reaching out and touching someone through phone conversations is also much rarer. Technology has changed how we communicate.</p>
<p> </p>
<p>Many people don’t even bother listening to phone messages anymore. How many calls have you received in which the caller simply says they saw that you called then admits to not having listened to your voicemail? Many millennials prefer text messages and never listen to, or leave, voicemail anymore. People often text message each other while they are both at the same place, in order to keep track of each other so as to meet up later. Digital communication is becoming so fast and efficient that sometimes it is the chosen method of communication even if a live conversation simply means walking into the next room.</p>
<p> </p>
<p>The majority of today’s customers expect some sort of ongoing electronic communication with you. Also, communication is a two-way street. Be sure all available channels are open to both parties. Whether you are trying to sell a vehicle to a new or existing customer, contact a service customer or are simply checking in with a long-time customer to see how they are doing, digital communication provides many new avenues for communication. Yet sadly many dealerships aren’t taking advantage of, or paying attention to, how these customers want to be communicated with. Instead, many receptionists, salespeople and service advisors spend their time leaving voicemails that may never be listened to. Or spend hours playing phone tag. Time that could have been spent generating more business or handling administrative tasks. A simple text message could have been received and read by a customer within seconds.</p>
<p> </p>
<p>Think about establishing better digital communication with your customers. It is relatively easy to ask each customer in the service drive which method of communication they prefer. Perhaps they aren’t able to answer their cell during the day, but they could reply to a text message or email. How much time would it save your service advisors? How much downtime would it save your technicians if the customer’s car is no longer waiting in limbo for a response and approval on service recommendations? How many more service recommendations could a customer accept because you are able to contact them and get their approval while the vehicle is still in the shop?</p>
<p> </p>
<p>Communicating with customers in their preferred manner also enhances the whole customer experience. They can be more informed, receive your messages faster and be better able to reply. Have the technology and processes in place to keep the lines of communication flowing. This two-way communication can be through phone calls, text messages, emails or all of the above. Every customer will have a personal preference. It make sense to reach out and discuss this with your customers.</p>
<p> </p>
<p>By doing this effectively, before long your customers will be reaching out to you when they are ready to purchase or service their vehicle again.</p>Starbucks Is Playing Offense and What Dealers Can Learn From Ittag:www.dealerelite.net,2014-11-28:5283893:BlogPost:4383182014-11-28T13:47:09.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545167548?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545167548?profile=RESIZE_320x320" width="300"></img></a> Starbucks recently <a href="http://fortune.com/2014/10/31/starbucks-delivery/">announced</a> plans to roll out a delivery service in some key major markets. This follows on the heels of an initiative which allows customers to place their drink orders via smartphones, so as to minimize wait times.</p>
<p> </p>
<p>Starbucks has a very loyal customer base and many locations…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545167548?profile=original"><img width="300" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545167548?profile=RESIZE_320x320" width="300"/></a>Starbucks recently <a href="http://fortune.com/2014/10/31/starbucks-delivery/">announced</a> plans to roll out a delivery service in some key major markets. This follows on the heels of an initiative which allows customers to place their drink orders via smartphones, so as to minimize wait times.</p>
<p> </p>
<p>Starbucks has a very loyal customer base and many locations routinely see long lines and wait times. Despite this inconvenience, people still go. Is their coffee that much better than other establishments? That’s a matter of personal taste, but there can be no doubt that many Starbucks see more than their share of traffic on a daily basis.</p>
<p> </p>
<p>That being said, the Seattle-based café chain, recently reported disappointing revenue caused in part by weak traffic in the US. Unwilling to lose further market share, the company is not resting on its laurels, but is now trying out a new delivery service.</p>
<p> </p>
<p>“Imagine the ability to create a standing order at Starbucks, delivered hot or iced to your desk daily. That’s our version of e-commerce on steroids,” CEO Howard Schultz told analysts on a conference call. “We are playing offense.”</p>
<p align="center"> </p>
<p>Seeing a problem in their market, Starbucks first made getting your coffee fix more convenient by allowing consumers to use technology, namely a new phone app, to order ahead. Now, they’re taken it one step further with the delivery of coffee right to your desk. In so doing Starbuck’s hopes to completely eliminate the excuse of long wait times that prevents some customers from choosing them over their competition.</p>
<p> </p>
<p>How does this apply to us in the auto industry? Well, the rise of the Jiffy Lube’s of the world came through the promise of speed and convenience. Are they able to provide a faster experience than your dealership? That depends on your volume, staffing and efficiency.</p>
<p> </p>
<p>Today’s consumers demand convenience, speed and efficiency. To steal a term from Starbucks, it may be time to play offense. Rather than discounting oil changes to attract new customers, perhaps it’s worth taking a look at how you could make the vehicle service experience faster and more convenient for your customers. It could well pay dividends in loyal customers and increased service revenue.</p>When An Apology Isn’t An Apologytag:www.dealerelite.net,2014-11-20:5283893:BlogPost:4376642014-11-20T14:00:00.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545144353?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144353?profile=RESIZE_480x480" width="400"></img></a></p>
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<p>Regardless of how hard you work to ensure that your customers have an excellent experience, mistakes happen. No doubt you’ve had customers complain about something – it took too long for their vehicle to be serviced, there was a miscommunication in pricing during the sale, or a general failure to deliver on promises (big or small). Whether the…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545144353?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545144353?profile=RESIZE_480x480" width="400"/></a></p>
<p></p>
<p></p>
<p>Regardless of how hard you work to ensure that your customers have an excellent experience, mistakes happen. No doubt you’ve had customers complain about something – it took too long for their vehicle to be serviced, there was a miscommunication in pricing during the sale, or a general failure to deliver on promises (big or small). Whether the complaint is relayed to the frontline employee, or the customer felt the need to go directly to management, apologies are usually made.</p>
<p> </p>
<p>The problem is that, at times, your customer feels that they have received an empty apology and can recognize this type of apology a mile away. These “nonpologies” don’t accomplish anything more than relaying indifference to the customer.</p>
<p> </p>
<p>Examples of nonpologies are:</p>
<p> </p>
<p><i>“We made a mistake.”</i></p>
<p><i> </i></p>
<p><i>“We apologize for it taking so long.”</i></p>
<p><i> </i></p>
<p><i>“I’m sorry you’re unhappy.”</i></p>
<p> </p>
<p>The reason these apologies have no weight in the customer’s eyes is because there is no acknowledgement of responsibility. Customers who complain are typically communicating a couple of things. First, they are unhappy and feel the need to express themselves, regardless of whether their problem can be fixed. Second, many customers (especially those who wish to continue to do business with you) simply want to know that you recognize the mistake, take responsibility for it and will take steps to ensure that the mistake will not happen again – not just to them but also to any other customer. Here’s one example:</p>
<p>“Mrs. Jones, I apologize that you had a poor experience at our dealership today. We value your business and recognize that we failed to provide you with the customer experience you desire and we like to deliver. We promise to look into this more to ensure that your next experience with us is more satisfactory.”</p>
<p> </p>
<p>It doesn’t matter whether you feel that your business was in the wrong or not. Attempting to justify or make excuses for the mistake simply exacerbates the issue and further frustrates the customer. Managers who are engaged with the company have the instinctual desire to defend it and their employees. But is it really worth losing a customer?</p>
<p> </p>
<p>Being cognizant of how you are perceived by customer through your actions (or inactions) is the first step towards building customer loyalty and increasing retention. Forget whether you are actually right or not.</p>
<p>It’s the customer’s perception that matters and they control whether your business is successful or constantly scrambling to replace defecting customers.</p>Tired of Damage Complaints in Service? Here’s a Solution.tag:www.dealerelite.net,2014-11-13:5283893:BlogPost:4369772014-11-13T13:31:25.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545166070?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545166070?profile=RESIZE_480x480" width="400"></img></a> I doubt that a dealership service department exists that hasn’t had to deal with a customer claim that their vehicle was damaged while being serviced. Whether it’s a minor scratch, or something bigger, these types of claims cost dealerships money. It’s not always a customer who is trying to get a free cosmetic repair. Sometimes the customer simply did not previously notice…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545166070?profile=original"><img width="400" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545166070?profile=RESIZE_480x480" width="400"/></a>I doubt that a dealership service department exists that hasn’t had to deal with a customer claim that their vehicle was damaged while being serviced. Whether it’s a minor scratch, or something bigger, these types of claims cost dealerships money. It’s not always a customer who is trying to get a free cosmetic repair. Sometimes the customer simply did not previously notice the damage. Most dealerships have an inspection procedure in place when taking a vehicle for service. However, typically it is very basic and just involves a piece of paper on a clipboard, with a cursory walk around by the advisor.</p>
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<p>A <a href="http://www.autonews.com/article/20141103/RETAIL07/311039996/hidden-cameras-save-dealership-thousands">recent article</a> in Automotive News shared how one dealership in Baltimore installed hidden security cameras in its service department to combat these claims. Reportedly, the service manager found that 9 out of 10 times the damage already existed. “It’s more than a monetary deal. The customer feels very bad if you damage their car. But if you can show them you didn’t damage their car, then they feel satisfied, and that makes them happier than anything,” said Jeff Sterry, the service manager at BMW of Catonsville, according to the article.</p>
<p> </p>
<p>While these claims are typically ambiguous, to maintain good CSI, many dealers opt to go ahead and repair the damage. This can end up costing thousands of dollars per year. A good video system, as covered above, is an excellent way to save the dealership money. At the same time it can prevent customers from defecting due to a feeling a dealership is simply careless with their vehicle. Many dealers, however, don’t want to invest in what could be a costly video surveillance system.</p>
<p> </p>
<p>Well, there could be a very cheap and easy solution: The goal of these hidden security cameras is to provide photographic evidence of the state of the vehicle when it’s being transferred from the consumer to the dealership and back. Your dealership already has the capabilities to do this. I am pretty sure that every employee in your service department has a smartphone with a camera. Chances are that they are also doing some sort of walk around on every vehicle already. Why not simply integrate photo and/or video into your walk around to capture a vehicle’s condition? If you’re worried about requiring employees to use their phones, a simple digital camera or iPad would accomplish the same goal.</p>
<p> </p>
<p>The integration of this technology and process is relatively inexpensive. It provides your dealership with photographic and/or video evidence that could be reviewed in instances where customers complain.</p>
<p> </p>
<p>In the event of a claim, you would simply need to review the evidence with the client then take appropriate action, depending on the outcome.</p>
<p> </p>
<p>Customer retention and satisfaction are vital to success and growth. If you cannot satisfy a customer complaint regarding damages while their vehicle was in your care, you open yourself up to losing future business from that customer. And in today’s Internet age, there is also a high probability that they will post negative reviews and share that negative experience with their family and friends. This can then cost you additional service business and/or sales.</p>
<p> </p>
<p>Think about it. Technology is a wonderful thing. And this is something that does not require any learning curve or real investment in technology. Why not give it a try? You have nothing to lose, and could gain substantial lost profit and customer satisfaction.</p>What Have you Done for Me Lately?tag:www.dealerelite.net,2014-11-06:5283893:BlogPost:4368332014-11-06T14:29:45.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145563?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145563?profile=RESIZE_480x480" width="400"></img></a> A few years ago, car dealers across the nation were caught in the net of a struggling economy. Fewer sales compounded by budget conscious customers caused many car dealerships to restructure their corporate operations, reduce staff and tighten their wallets. Many dealership owners, along with their manufacturers, were faced with downsizing or total elimination. In the midst…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545145563?profile=original"><img width="400" class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145563?profile=RESIZE_480x480" width="400"/></a>A few years ago, car dealers across the nation were caught in the net of a struggling economy. Fewer sales compounded by budget conscious customers caused many car dealerships to restructure their corporate operations, reduce staff and tighten their wallets. Many dealership owners, along with their manufacturers, were faced with downsizing or total elimination. In the midst of the economic turmoil and uncertainty, customers were left wondering – <i>What happens to me? Will the dealership close? Will I have to find a new dealer to service my vehicle? Will I lose my favorite dealership employees? Do they even care about me anymore, or is it every man for himself?</i></p>
<p> </p>
<p>The truth is that in the “what have you done for me lately?” mentality of the car business, the only thing that is relatively stable is a dealership’s loyal customer base. Whether the consumer needs service or are in the market for a vehicle, dealers can count on a certain percentage of past customers returning, so long as they are cared for and treated as more than a nameless person with a wallet.</p>
<p> </p>
<p>Today’s economy is certainly stronger and many customers aren’t afraid to purchase a vehicle with pricey add-ons, or spend money on suggested services. However, each employee in your dealership would be wise to remember that every customer is valuable, for today and for many tomorrows. Building lasting relationships does not happen overnight. And think about it -- it only takes one employee to destroy an optimal customer experience -- and potentially the entire relationship. Every employee needs to have a genuine care and concern for the customer.</p>
<p> </p>
<p>Ultimately, building a “customer-first” culture begins with dealership owners, executives and key management. Starting with a strong and positive approach is crucial. Positive attitudes from the leaders will trickle down to all associates. Even in the face of adversity, owners and managers must remain confident in front of employees. This attitude will curtail negative actions by the employees who interact with customers and the relationship can continue to grow. Without a positive stance, it’s not possible to truly care about the customer and fellow employees. </p>
<p> </p>
<p>Your dealership employees, operating as a team, show that you care. Bringing outside problems and distractions into the dealership will affect the employee’s attitude and ultimately the customer, even when it doesn’t involve the customer at all. Imagine a scenario where your CRM is down and you can’t input customer data. Or a form in your finance office refuses to print. If you let the customer “see you sweat” then you’re already losing the battle. </p>
<p> </p>
<p>Dealership employees don’t usually see customers more than a few times per year. Unless you have some very personable staff and an amiable customer, there’s a pretty good chance that very little is ever known about the customer outside of their immediate needs and concerns. These interactions offer employees a perfect opportunity to display genuine interest in the customer. An employee’s “I’m happy to see you,” mentality can place the customer in a better state. They’ll know you care.</p>
<p> </p>
<p>Don’t leave a customer to wonder <i>who cares</i>. Show them you care and then prove it. Make sure your customers know what you’ve done for them lately!</p>Using Data to Increase Service Revenuetag:www.dealerelite.net,2014-10-30:5283893:BlogPost:4363322014-10-30T12:52:32.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545153125?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545153125?profile=original" width="320"></img></a> One of the most valuable assets you have at your dealership is your customer database. However, frequently dealers fail to effectively use this information to help achieve more specific marketing goals. While some may use their database to send marketing messages to existing and previous customers in an effort to sell another vehicle, or perhaps remind of a future service…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545153125?profile=original"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545153125?profile=original" width="320"/></a>One of the most valuable assets you have at your dealership is your customer database. However, frequently dealers fail to effectively use this information to help achieve more specific marketing goals. While some may use their database to send marketing messages to existing and previous customers in an effort to sell another vehicle, or perhaps remind of a future service that is due, this is a very limited use. Sadly, many dealers fail to fully leverage this literal goldmine of information.</p>
<p> </p>
<p>For example, using data segmentation to present products or services purchased by one set of customers to other customers with a similar profile. This is not a new idea, Amazon does this quite effectively. When a consumer visits many web pages, suggested products are prominently displayed that were purchased by other Amazon shoppers with similar buying or viewing habits. Amazon’s suggestive marketing strategy is effectively playing the odds that, by leveraging a customer’s previous purchase history, along with those of consumers with similar shopping habits, the products being marketed will be of interest.</p>
<p> </p>
<p>As a dealer, you can replicate this strategy through transactions analysis of specifically targeted customers. This intelligence can be accessed from your DMS, or through your loyalty program database, if you have one. It is just waiting to be used.</p>
<p> </p>
<p>As an example, let’s say a service director wants to increase upsell on a specific service. They could run reports that would identify commonalities amongst services and successful upsells. If the service director finds a large percentage of a specific upsell (say a radiator flush) was successful when it was made to a customer who came in for a different service (like an air conditioning tune-up), they could then mandate that every customer who comes in for an air conditioning tune-up is presented with the option of doing a radiator flush. It is more likely that you will see a better success rate by strategically narrowing in and targeting your customers in this way.</p>
<p> </p>
<p>If done correctly, it should return better results than simply blanketing your entire customer base with the same upsell message every month. In addition, it can help retain your margins and increase the number of services performed, without being at the expense of net revenue.</p>
<p> </p>
<p>It could be time well spent to learn how to effectively utilize all of the data available in your databases – CRM, DMS, loyalty programs, etc. – I am pretty sure you will find it helpful to effectively reach your marketing goals and drive more revenue opportunities. There’s a reason that Amazon and other retailers use these techniques - a very good one– it works!</p>There’s Always Time to Do It Right!tag:www.dealerelite.net,2014-10-23:5283893:BlogPost:4355752014-10-23T12:58:50.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545151277?profile=original" target="_self"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545151277?profile=RESIZE_480x480" width="400"></img></a> You don’t have to live in a bustling city to see that people are in a hurry. Compared to even ten years ago, it seems that everyone is in a rush to get something done fast and with as little inconvenience as possible. The reality is - people have less time, which means they demand more of businesses, including your dealership.</p>
<p> </p>
<p>In today’s hurried environment,…</p>
<p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2545151277?profile=original"><img width="400" class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/2545151277?profile=RESIZE_480x480" width="400"/></a>You don’t have to live in a bustling city to see that people are in a hurry. Compared to even ten years ago, it seems that everyone is in a rush to get something done fast and with as little inconvenience as possible. The reality is - people have less time, which means they demand more of businesses, including your dealership.</p>
<p> </p>
<p>In today’s hurried environment, it’s imperative that your staff be on their toes to not just make a good impression, but also perform their best in every opportunity afterwards. With customers making fast decisions, one of their first could be to take their business elsewhere if the level of service is not meeting their expectations. The expectations customers have for businesses to provide stellar service is growing quickly. </p>
<p> </p>
<p>If you polled all of your employees, it probably wouldn’t shock you that that virtually all of them would say that they provide good service. What metrics do you have to identify what good customer service actually is? You know problems come up and that customers aren’t happy at times. When was the last time you ran a report that showed the number of return visits to your service department? How does this compare to the number of first time visitors? The answers to these two questions and others like them may give you some indicators on whether a customer is happy and your staff is providing at least acceptable customer service, as it would seem that loyal customers are generally happy with the service they received.</p>
<p> </p>
<p>Providing good customer service is everyone’s job. The importance of a proficient, friendly, and caring approach from front-line employees in your dealership is more vital than ever. The manner and speed in which an email is handled, a phone call is answered, or how a customer is greeted are the first impressions that can help define good customer service. These front-line employees are the face of your dealership and need to be on top of their game with every interaction. The interactions these employees have with customers are key to the customer returning and spending more because they are treated well.</p>
<p> </p>
<p>Despite being busy, people still want to hear a cheerful voice when they call your dealership. They still appreciate a birthday card from their sales consultant or favorite service advisor, and they still welcome service reminders whether they are mailed, emailed or sent by text.</p>
<p> </p>
<p>If you promise a haggle-free shopping experience, make sure your staff holds true to this philosophy. If you promised not to inundate them with every e-blast, then live up to that expectation. If you promise that their vehicle will be ready at a certain time, make sure you can deliver on that. When a problem or a complaint arises, be sure that it can be resolved quickly at the lowest level of authority possible. Empowering your employees to take immediate action to satisfy a customer will not only translate to good service in the mind of the customer, but employees will feel better about themselves and the dealership when they can be the one to please the customer. It’s simple, but it goes a long way.</p>
<p> </p>
<p>Sometimes all it takes is a few extra seconds to wow a customer with some kind words and a smile, an unexpected follow-up call, or even a greeting from a manager. Providing a great customer experience could be the difference between a loyal, growing customer base, or scrambling to acquire new customers. Even when we are pulled in many directions, there’s always time to do what is right. If you don’t take the time to do what is right when you are busy, you might find that you have plenty of time to do nothing.</p>Training: Mercedes puts its Money Where its Mouth Istag:www.dealerelite.net,2014-10-16:5283893:BlogPost:4352342014-10-16T12:27:46.000ZRichard Hollandhttps://www.dealerelite.net/profile/RichardHolland969
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145482?profile=original" target="_self"><img class="align-right" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145482?profile=RESIZE_320x320" width="300"></img></a> I’ve written many times about the value of training and professional development to employee retention. Training, in combination with a company culture designed to create engaged employees, can help make a dealership a force to be reckoned with. Employee retention has always been a pain point in the automotive industry, because many employees feel there is no job security.…</p>
<p><a href="http://storage.ning.com/topology/rest/1.0/file/get/2545145482?profile=original" target="_self"><img width="300" src="http://storage.ning.com/topology/rest/1.0/file/get/2545145482?profile=RESIZE_320x320" width="300" class="align-right"/></a>I’ve written many times about the value of training and professional development to employee retention. Training, in combination with a company culture designed to create engaged employees, can help make a dealership a force to be reckoned with. Employee retention has always been a pain point in the automotive industry, because many employees feel there is no job security. Until very recently, it has been up to the dealership itself to foster this environment and provide ongoing training for its staff. Mercedes, however, has decided to take matters into their own hands.</p>
<p> </p>
<p>In a recent <a href="mailto:http://www.autonews.com/article/20140928/RETAIL/309299992/m-b-will-train-26000-in-the-brands-culture%23">article</a> in Automotive News, it was reported that Mercedes is launching an ambitious training program with an ultimate goal of training all 22,000 Mercedes franchised dealer’s employees, and 4,000 Mercedes corporate employees, in a program they’re calling the “Brand Immersion Experience.” At a cost of roughly $1,200 per employee, (not including travel expenses) and a total investment of $30 million over the next 4 years, Mercedes has decided to stop waiting and take action. The training isn’t in-dealership, as most OEM training is, but rather at their factory in Vance, Alabama. “For the past several years, Mercedes-Benz has been investing heavily in its people, processes and technology to improve customer service,” reported Automotive News.</p>
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<p>Decades ago, there was minimal involvement by OEMs in dealership operations. As time progressed, however, OEMs started realizing the value of training and having knowledgeable dealership personnel. They began implementing certifications in both sales and service. CSI scores became more important, and bad scores lead to increasingly harsher ramifications – everything from lowered allocations to loss of factory money – something that could equate to tens of thousands of dollars in lost revenue.</p>
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<p>I doubt that most dealers would disagree that training is important. The problem is who in the dealership should be responsible for training and ensuring that it continues on a consistent basis. I’ve heard many stories of dealers sending their sales staff off to a sales training seminar, returning and implementing weekly (or daily) training, just to see the training slowly dwindle down until it stops altogether. For any training to be effective, make it a priority and ensure that the training program is set up to be consistent and ongoing. Without consistent ongoing training, the enthusiasm and immediate results that are seen right after a training session can quickly evaporate. Those employees then regress to their old habits and methods.</p>
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<p>An ongoing training program for your entire staff – from the receptionist, to sales, and service – shows your staff that you value their professional growth. It can also foster a company culture that is conducive to your company’s vision. Chances are good that, if you don’t, your manufacturer might decide to do it for you. While this might seem great on the surface, keep in mind that a manufacturer’s primary concern is training your employees in brand loyalty, not loyalty to your company.</p>
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<p>The fact that Mercedes recognizes the value in training and how it can affect customer service is great. However, I think dealers will see better results if, once an employee has gone through their Brand Immersion Program, upon return to the dealership there is additional, ongoing company-centric training. Mercedes wants owners of their vehicles to be satisfied and loyal to them. It’s up to you to then train your employees so customer’s want to be loyal to your specific dealership.</p>