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«Charlie Polston Customer Retention and Profitability Consultant BG Products, Inc. Oklahoma City, OK cpolston 800-580-0024 The views and ...»

Service Drive: Your

Other Sales Floor!

Charlie Polston

Customer Retention and Profitability Consultant

BG Products, Inc.

Oklahoma City, OK

cpolston@bglsi.com

800-580-0024

The views and opinions presented in this educational program and any accompanying

handout material are those of the speakers, and do not necessarily represent the views

or opinions of NADA. The speakers are not NADA representatives, and their presence

on the program is not a NADA endorsement or sponsorship of the speaker or the speaker’s company, product, or services.

Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.

Service Drive:

Your Other Sales Floor!

Workshop Synopsis Most dealerships have a new-car sales meeting every single day, but how about a service sales meeting? New-car sales produce five- percent gross, used-car sales yield 12 percent gross, and service sales give you a whopping 70 percent gross. The primary job of a service advisor is to pursue that 70 percent gross by selling service.

This workshop will focus on effective strategies to teach advisors how to educate the customer, offer the maintenance solution, and ask for the sale. You would never tolerate a car salesman who won’t sell cars. Why would you tolerate a service advisor who won’t sell service?

Learning Objectives

In this workshop, you will learn:

 Effective ways to quickly teach service advisors how to sell service  A clear process for conducting a service sales meeting  A proven strategy for prospecting new service customers The Current Dealership Situation Customer-Pay Service 13% Warranty Service Unperformed 0% Service 0% 20% 40% 60% 80% 2014 USA Automotive Trends

Customer-Pay Parts and Labor:

$223,100,000,000 (2014) $171,700,000,000 (2002)

Vehicles On the Road:

249,000,000

Average Maintenance and Repair per Vehicle:

$896 Service Center Trends Service Outlet 2001 2006 2013

–  –  –

• The annual miles driven (2.98 trillion) is shifting to a mix of older vehicles…both cars and trucks.

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

–  –  –

Selling Cars, Selling Service You sell cars to make customers You do oil changes to retain customers You sell service to make money!

Service “Sales” Manager Job Description Position: Service “Sales” Manager Position Reports To: General Manager General Description The service manager has overall control over customer satisfaction, customer retention, service sales, and the profitability of the department.

Duties and Responsibilities

1. Supervise the service department staff including advisors, technicians, warranty administrators, cashiers, and service receptionists.

2. Manage the sold and unsold hours.

3. Meet with any dissatisfied customers and factory personnel.

4. Maintain high technician productivity with training programs, proactive sales techniques and proper dispatching based on skill levels.

5. Coordinate with the parts manager inventory stocking requirements to obtain a high level of service.

6. Control expenses such as shop supplies and policy adjustments.

7. Increase sales and gross profit by generating new business with mailings, coupons, customer-contact strategies, and prospecting strategies

8. Increase customer-pay maintenance service sales by holding service consultants accountable to sell menu and maintenance services.

9. Control repair order flow and supervise open repair reports and work in process.

10. Promote high customer satisfaction scores and retention percentages.

11. Other duties as assigned.

Sales and Accountability

1. Conduct a weekly service “sales” meeting with all service personnel (advisors, techs, etc.).

2. Create a “culture of accountability” and track sales production of each service consultant.

3. Set sales goals for the service department, with the general manager’s approval, and develop an action plan for attaining those goals.

4. Communicate service department sales goals with service consultants, technicians, etc., and coordinate efforts toward successfully reaching department goals.

5. Implement and sustain a multi-point inspection process with clear instructions to advisors and technicians.

Skills Required and Physical Demands

1. Previous service advisor, technician, or related management experience.





2. Ability to communicate with customers, department employees, and other managers via meetings and written reports.

3. Proven track record of customer-pay sales success.

4. Ability to use dealership’s computer system.

Service “Sales” Advisor Job Description Position: Service “Sales” Advisor Position Reports To: Service Manager and General Manager Customer Relations

1. Maintain a high level of grooming, hygiene, and uniform appearance.

2. Conduct all business with sincerity, honesty, and genuine concern for customers.

3. Promptly meet and greet service customers in a friendly and courteous manner.

4. Listen to customers’ reason(s) for bringing their vehicle to the service department.

Offer logical diagnostic services or repairs to satisfy customers’ concerns.

5.

6. Provide accurate estimates for all the services or repairs recommended.

7. Personally turn over to the service manager or other designated management representative customers with complaints that cannot be satisfied at the service-advisor level.

Service Sales

1. Sell the proper repairs and/or services corresponding to customer’s perceived needs.

2. Present a service menu of recommended maintenance services to every service customer.

3. Conduct a vehicle walk-around using a walk-around form or a wireless tablet at the time of write-up.

4. Make a genuine effort to sell the maintenance services recommended by the technician to every service customer.

5. Obtain the customer’s approval on all repair orders at the time of the write-up or when offering additional maintenance services.

6. Meet or exceed sales objectives set by management.

Administration

1. Properly and thoroughly prepare repair orders with clear instruction to the technician.

2. Shepherd an RO from creation to completion to close.

3. Carefully inspect every finished repair order for proper completion, pricing accuracy, and continuity.

4. Using the recommendations from the technicians (e.g. multi-point inspections) proactively solicit service appointments for future sales. Maintain a system for following up with past customers for the purpose of setting future appointments to have work done which was recommended by technicians.

5. Fill out Scoreboard of Success sales accountability form weekly.

6. Other duties as assigned.

Skills Required and Physical Demands

5. Preferred experience in the customer service industry—an automotive background is not required.

6. Ability to communicate with customers, department employees, and management.

7. Proven track record of customer-pay sales success.

8. Ability to sit or stand for long periods of time.

Three Types of Service Advisors Pushy: Hard-sell un-needed services, dishonest, aggressively alienate customers… (worthless jerks)

–  –  –

Proactive: Effective liaison between customer and tech, passion for preventive maintenance, educators, successful salespeople, masters of customer retention through service sales… (successful leaders) Service Consultant Philosophy Offering preventive maintenance services to our customers is a noble mission, a high calling.

Our customers have made a large capital investment in their vehicles.

Our top priority is to preserve their investment.

Our goal is to keep vehicles trouble-free, safe, and fun to drive!

It’s the right thing to do!

–  –  –

EDUCATE THE CUSTOMER

• Current odometer reading

• Interval since last service

• Condition of the fluids

OFFER MAINTENANCE SOLUTIONS

• Recommend service(s) needed

ASK THE CUSTOMER TO BUY

• “May we perform this service for you today?”

–  –  –

CONSEQUENCES

• Engine overheating and possible engine failure

• Heater slow to warm up or never gets hot enough

• Costly replacement of radiator, heater core, water pump, and major engine components

–  –  –

CONSEQUENCES

• ABS failure...resulting in over $1,000 of repair

• Sluggish brake response Loss of confidence in vehicle’s braking system •

–  –  –

Fuel and Air Induction Service

FEATURES

• Cleans entire fuel system from tank to exhaust

• Cleans air intake system from throttle to plenum

• Cleans injectors, intake valves, and combustion chambers

–  –  –

CONSEQUENCES

• Poor engine performance

• Engine dies at idle, causing a safety issue

• Increased fuel consumption (paying more at the pump!)

–  –  –

Related Needs: Services that are closely related to the primary item (sold on the drive at the time of write-up or sold over the phone after the technician inspects the vehicle.)

–  –  –





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