I love the way you work it – NOT!

I have to be candid, no strategy, software, kiosk or tablet will work until we work it! Most commonly, when I diagnose a dysfunctional or underperforming business, the lacking element is simply EXECUTION! Yes, a lot of the time folks know EXACTLY what to do but are failing to actually do it!

Lack of talent pool effects get-n-r-done

Now, in fairness, there are many MANY scenarios, especially the last several years, as the economy has heated up and remains REDHOT where Service Advisors and Technicians have had to work with a SKELETON crew. As these fine people get busier and busier, they will often shortcut important steps that would advance them to their goal….but they don’t have the resources to do it because of the sheer volume of customers they must engage. The “path of least resistance” kicks in and that individual can even get HABITUATED to “doing it the wrong way.” When this happens, these folks must get “rewired” to accomplishing the correct process steps again instead.

Trying to get a sip of water from a fire hydrant

When I engage a Dealer client we focus on the MOST pressing Process or Processes that will affect the greatest initial change and make sure we make them CONSISTENT. I call this the “PROCESS PROCESS” borrowed from a long-time client’s description. The key here is to get an employee shaped process installed and ROUTINE before we move onto the next procedure. We must stay at square 1 until the initial endeavor is accomplished and “just the way we do business.” In this way, we tackle each process before moving to the next.

Verbal Directions vs. GPS

Recently, another Dealer client of mine introduced me to a book by Chris McChesney, Sean Covey and Jim Huling called The 4 Disciplines of Execution (4DX). BAM! What an eye-opener!, Here we have proven methodology that aligns perfectly with Service Department goals and objectives. Fixed Operations Managers, this is like GPS for your goals! I encourage you to explore this book, I listen to it on audiobook myself. I wanted to go over The 4 Disciplines of Execution and briefly what they may mean in the context of a Dealership Service Department.

Discipline 1: Focus on The Wildly Important

Exceptional execution starts with narrowing the focus— clearly identifying what must be done, or nothing else you achieve really matters much….What are very few actual things that we are trying to achieve? For a Service Department, you may come up with different answers, but I wanted to share mine for a recent engagement.

GOAL 1: Create and maintain client Relationships that produce raving fans
NOTE: Every client is “under our care” and deserves the very best treatment and closest professional relationship. What are the activities and measures that create and enhance raving fan advocates? More on this in a bit.

GOAL 2: Advise Every Client properly
Attain client satisfaction and profit goals through Advising and following through on commitments! In this step, we are “Simply Asking” and not prejudging their clients response. We are sharing information in a prioritized way and presenting options.

Functionally: Both at Write Up, and Post Inspection let’s ensure every client is advised of their Needs in 3 priorities.

1. Prime Concern and associated
2. Necessary Needs / What Needs to be done next?
3. Maintenance Needs that are due now or past due that could wait if they had to. (If they really can’t wait to move them up to Priority 2.)
Discuss the advisor aspect and the technician aspect of this with your team!

Discipline 2: Act on the Lead Measures

There are LAG Measures and LEAD Measures in our business. While a lag measure tells you if you’ve achieved the goal, a lead measure tells you if you are likely to achieve the goal. For example, while you can’t control how often your car breaks down on the road (a lag measure), you can certainly control how often your car receives routine maintenance (a lead measure)(especially if your Advisor is advising you properly!). And the more you act on the lead measure, the more likely you are to avoid that roadside breakdown!

Here are some example Metrics for our listed GOAL 1

• Lag Measures: Quality and quantity of reviews and surveys
• Lead Measures: Early warning questionnaires, Advisor questionnaire with Client and commitment to give a perfect Survey. Email penetration results versus clients visited.

Here are some example Metrics for our listed GOAL 2

1. Lag Measures: Advisor & Technician Sales and Process Results including
   • CPRO count-
   • Hrs/RO-
   • ELR-
   • MPI Compliance
   • Overall GP produced
   • Productivity
   • Commodities Saturation

1. Lead Measures: In-process measures that occur at the time of execution;
   • Declined and condition codes related to;
     1. Sales at write up
     2. Sales after inspection.
   • Observationally are Clients getting Advised? Are they truly getting the information that they need related to their prime concern any immediate needs they have and maintenance that is due or past due based on the dealership recommendations?

Discipline 3: Keep a Compelling Scoreboard

Solution: Tech and Advisors Scoreboard. This has to be ANTI-Analysis paralysis and reserved for ONLY the KEY measures we are trying to track. RULE OF THUMB: If you can’t tell if you are winning or not within 60 seconds, go back and further simplify! A digital scoreboard for dealerships can be accomplished very economically and easy to implement. Make sure you utilize an area that is not customer-facing but that the team members can see easily.

Discipline 4: Create a Cadence of Accountability

Regular frequent meetings despite the whirlwind of everyday business. Consider that everything else is a “necessary evil” except our key wildly important goals. I recommend going to a weekly meeting at a minimum for advisors and technicians solely to discuss only these KEY items. During these meetings, the question for the team each individually: What are the 1 or 2 things that we can do that will have the biggest impact on the scoreboard ask your team that question. During your meetings at listened to the response. Get their commitment to execute their own plan

Each team member is asked to make a personal commitment to their goal That they decide that they can accomplish

This is a really short explanation of a very, very simple but very potent plan of execution! Please get the book yourself and explore this with your team! Let me know if I can help!

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Service Advisors and Service Managers in particular must treat their clients like a guest in their home. More and more, customers expect personal attention and are not just looking for a transaction when taking their car to the shop. With that said, let’s get into some specific skills that every Advisor can master to “WOW” the customers that they interact with on a daily basis. Make no mistake the “WOW” factor is what it takes to excel in today’s Service Drive.

Attentiveness

First impressions set the stage or how attentive you make your guest feel from the very start. Make sure you act with a sense of urgency that can be immediately noticed from the moment your customer arrives in your service drive. In addition, the aptitude to actually and actively listen to customers is so critical for providing excellent service for a variety of reasons. Not only is it vital to care to individual customer exchanges (carefully deciphering the how they describe their concerns and repeating for clarity), but it’s also important to be mindful and attentive to the response that you get from customers in general. Look to your feedback mechanisms to get customers worst-case impressions. For example, customers may not be saying it bluntly, but pay attention to consistent survey results to address repetitive concerns folks don’t mention but are concerned about. 

Proactive Communication Skills

Customers, as you and I, HATE to be lost in the shuffle. Make sure you are being proactive instead of reacting to your customer’s needs. In the Service Department there are a few distinct ways this manifests itself. From confirming the appointment to carefully assembling a pre-write up and studying your customer’s history to keeping folks abreast with a proactive status call, ensure your client feels like you are going the extra mile to keep them updated.

Using Positive Verbal and Body Language

Your ability to make minor changes in your speech forms can truly go a long way in creating happy customers. Language is a very important part of persuasion, and people (particularly customers) create perceptions about you and the dealership based off of the language that you use.

Here’s an example: Let’s say a customer contacts you with a concern that needs diagnosis

Small changes that utilize “positive language” can greatly affect how the customer hears your response…

• Without positive language: “Sir, a “DIAG” is $130.”
• With positive language: “Ma’m we will need to get your car checked out to see what is causing your concern, from there we will give you an estimate of what it will take to fix it. If for some reason you don’t choose to have the repair performed, you will be charged a $130 diagnostic fee.”

The first example isn’t negative by any means, but the tone that it conveys feels abrupt and impersonal, and can be taken the wrong way by customers. On the other hand, the second example is stating the same thing (your “DIAG” fee), but instead focuses on when/how the customer will get to their resolution rather than focusing on the negative. Equally important is the practice of using open body posture and pleasant facial expressions, we’ve all heard that language is 70% plus “Body Language” so pay heed!

Theatrical Performing Talent

I know this is a shocker but, sometimes you’re going to come across people that you’ll never be able to make happy. Situations outside of your control (they had a terrible day, or they are just a natural-born complainer) will sometimes tiptoe their way into your usual routine, and you’ll be greeted with those customers that seem to want nothing else but to break you down. Every excellent Service Advisor and/or Manager will have the basic acting skill necessary to maintain their usual cheerful facade despite dealing with people who may be just plain cranky, or worse!

Time Management Skills

You should spend more time with customers in general, however, the bottom line is that there is a limit, and you need to be concerned with getting customers what they want in an efficient manner.

The trick here is that this should also be applied when realizing when you simply cannot help a customer. If you don’t know the solution to a problem, the best Service Advisor will get a customer over to someone who does. Don’t waste time trying to go above and beyond for a customer in an area where you will just end up wasting both of your time!

A Soothing Presence

Descriptions for this type of personality: “keeps their cool,” “staying cool under pressure,” etc., but it all represents the same thing: the ability that some people have to stay calm and even influence others when things get chaotic. The best customer service reps know that they cannot let a heated customer force them to lose their cool; It is actually their job to try to be the “adult” for a customer who thinks the sky is falling due to their current problem.

Ability to Handle Surprises

Sometimes a customer is going to throw you a curveball. Maybe the problem you encounter isn’t “black and white”, or maybe the customer isn’t reacting how you thought they would. Whatever the case, it’s best to be able to think on your feet. Keep calm and handle each situation as it arises.

I hope this short list helps to inspire you to review these aspects and put them into action. Remember, it’s your action and sense of caring and urgency the customer appreciates the most. Use your interactions with every customer to build and refine your skills to become “That guy” or “That lady” customers can count on for a great experience each and every time!

The post Service Advisor Skills for handling DEMANDING customers! appeared first on DealershipNews.com.

Lateral Support

Typically in medium to large Service Departments with 10 or more technicians. Each group of Advisor(s) and Techs acts as its own ecosystem, for all intents and purposes, whereas all TECHNICIAN skill levels are represented in each group. Each Tech is generally paid by their own FRH’s produced with a group leader who may receive a bump or production incentive for administrative functions to make the group flow properly if certain levels of production are reached. As a rule, I suggest for about 20 R.O.s per day, per group 2.0 to 2.5 hrs per R.O. and +100% efficiency per group per day – 5 techs per advisor with a skill mix across all levels of work (lube tech through master for each group in order to average your labor cost per hour down) (helps control labor gross at +73%). If all skill levels CANNOT be represented in the group, I tend to steer away from this scenario unless there is an adequate ‘sublet’ opportunity in the shop to expedite jobs with skills that can’t be accommodated in the group organically.

Oversight

The Service Manager must be an active participant in his environment – driving the shop toward profitability ticket by ticket – She/he is on the drive early and stays late and comes in early to review R.O.s and compiles the daily metrics. I recommend a daily tech and advisor group warm-up meeting by a group that the management attends randomly for supervision. Without Management discipline the process is hopeless. The Service Manager must be involved to ensure timing, quality, and consistency of process and make necessary tweaks and overhauls as needed.

General Tasks

Advisors are responsible for the daily CSI and profitability metrics of their group.

• Make reservations (in environments w/o BDC)
• Write service and build rapport with Customers
• Present Needed Services at Write Up based on mileage and history
• Oversee MPI Process (Timing, Quality, and Uniformity) within the group
• Present Prioritized Customer Presentations to sell additional legitimately needed work
• Dispatch and follow proper job flow for their group. 
• Ensure Techs is exceeding their production goals and busy at all times
• Make customer status and follow-up calls
• Cashier in some cases
• Perform an interactive customer delivery 
• Solicit and receive adequate number and score of CSI Surveys and/or reviews

Tech Metrics are tracked daily, weekly and monthly  

• Set individual production goals based on skill and history
• Techs are responsible for up-selling 25%  of their FRH’s.
• Techs maintain 90% plus MPI completion
• Techs maintain top-level FIRFT (Fix it Right the First Time) score

Make sure there is adequate shop loading BY CAPACITY based on skill available. Without a good shop loading and scheduling system, running an efficient and productive shop is like playing the lottery. 

There are a lot of other considerations to make the system run smoothly and avoid common pitfalls. Here are a few that come to mind.

• Create groups of technicians categorized by skill
• Consider personnel changes and shuffling that will occur when groups are launched
• Get input and buy-in from and then train Advisor and Technician responsibilities –  Establish Job flow to visualize process with all employees
• Reboot DMS setups to establish realistic promise times
• Setup DMS to produce accurate capacity metrics
• Recalibrate dispatch system priority codes to reflect changes
• Launch parts pre-picking process (Strongly suggest two-way radios for ALL Fixed Ops  personnel)
• Consolidate computer labor operation codes and distribute to all employees – preferably by weblink
• Implement metrics tracking procedures for all employees and management
• Review Advisor and technician pay plan to verify they align with management objectives
• Provide sustained training from within and externally

With careful planning and open eyes to the potential obstacles, lateral support can be a very efficient production system. It all starts with a proper analysis of your operation to ensure this system is the right fit for your specific set of variables. Call us if we can help. 770-561-4644

The post Considering Lateral Support as a Service Department Dispatch System appeared first on DealershipNews.com.

An extremely simple way a dealership can start to build trust, loyalty, and retention among service clients is for salespeople to introduce vehicle and truck buyers to the service department when the vehicle is in the process of being purchased. But a new survey of consumers shows that such handoffs occur less than half time.

In December, DealerRater polled for Set Ops Journal over 16, 000 consumers who purchased a new car from a dealership in the recent past.

Of those, 42 percent mentioned that the dealership introduced them to the service department upon making as purchase. One-fourth of the customers surveyed said there had been simply no such introduction, and another 25% stated they couldn’t remember whether they met service employees— an indication that no such introduction had occurred or had enough impact to be memorable. Luxury-brand dealerships were somewhat more efficient at conducting sales-to-service handoffs, producing introductions 46 percent of the time, compared to 41 percent for dealerships promoting less expensive mass-market brands, according to the survey.

M5 Management Providers, a dealership fixed operations contracting firm, says the handoff “should be an important focus point inside your sales process.” Customers, the firm says, “want to be familiar with the individuals and facility where they obtain service. “

The post Most dealerships still fumble sales-to-service handoff appeared first on DealershipNews.com.

Are we that repellant of a profession, or are car salesmen so conniving, and distrustful that we now need to initiate contact via texts, anonymous live video streams, emails, and algorithms defining to us the probability of a lead being truly “in-market” and not just a tire kicker? Could it be all of the above?

There are thousands of metric tonnes of consultants out there setting dealerships up with state-of-the-art technology that initiates contact with customers, responds to leads, sends emails & review prompts by software, and other clever ways to squeeze dollars out of customers in every inch of the dealership. I even saw one dealer with signs in the urinal asking if the customer was flushing dollars down the toilet by not getting an extended service contract!

WTS, I’m not against automation. My blog site focuses on emerging technology and creates a spotlight in which new and old vendors can wax on about their various solutions, technologies, and philosophies. I do EVERYTHING in my power to help new vendors get a break but…I believe the practice of developing person to person skills is lost with technology. Technology dulls our senses, and truncates our ability to communicate with each other the way nature intended.

Meanwhile, while online yesterday, I uncovered some ancient texts written by some of the world’s greatest sales people, on how to achieve success as a person,. After all, we’re all always selling something right?

Without further ado; here are some success secrets of some of the most accomplished sales people of all-time…just in case your algorithm breaks down. Notice, these are more like life tips rather than sales advice. It’s about you being the best human you can be, not the best software.

“I determine to render more and better service, each day, than I am being paid to render. Those that reach the top are the ones who are not content with doing only what is required of them.” -Og Mandino, The Greatest Salesman in the World

TAKEAWAY: The whole is greater then the sum of its parts and rewards are oft-times bestowed upon us based on effort, effort is energy, and energy is NEVER wasted. Remember, the love you make is equal to the love you take! Go that extra mile…every day!

“Personally I am very fond of strawberries and cream, but I have found that for some strange reason, fish prefer worms. So when I went fishing, I didn’t think about what I wanted. I thought about what they wanted. I didn’t bait the hook with strawberries and cream. Rather, I dangled a worm or grasshopper in front of the fish and said: “Wouldn’t you like to have that?” Why not use the same common sense when fishing for people?” ― Dale Carnegie, How to Win Friends and Influence People

TAKEAWAY: Listen to your customer and introduce them to something they want, not what you want them to have. It’s not about you. They bait their own hooks!

“Never allow two people to do a job which one could do. George Washington observed, ‘Whenever one person is found adequate to the discharge of a duty by close application thereto, it is worse executed by two persons, and scarcely done at all if three or more are employed therein.” -David Ogilvy, Ogilvy on Advertising

TAKEAWAY: If you want something done right, do it yourself! Believe in yourself, rely on yourself, and stay focused on making sure your customers are happy! You may hand them off, but make sure you never drop the ball!

“Most people think “selling” is the same as “talking”. But the most effective salespeople know that listening is the most important part of their job.” -Roy Bartell

TAKEAWAY: God gave us two ears and one mouth for a reason. Fools speak, wisdom listens. The customer will tell you exactly what they want, makes sure you can hear it.

“Talk to someone about themselves and they’ll listen for hours.” – Dale Carnegie

TAKEAWAY: Show people you are interested in them, everyone needs attention, be your customers spotlight. Make them feel warm and bright.

“The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” -Seth Godin

TAKEAWAY: Ask questions, listen to answers. Your customer will tell you why they value what they seek, it will likely never be price first.

“Pretend that every single person you meet has a sign around his or her neck that says, ‘Make me feel important.’ Not only will you succeed in sales, you will succeed in life.” -Mary Kay Ash

TAKEAWAY: People want to feel loved. So do you. “Do unto others as you would have them do unto you.” Who said that?

“To build a long-term, successful enterprise, when you don’t close a sale, open a relationship.” – Patricia Fripp

TAKEAWAY: Not making a sale isn’t always a loss, if you make a friend, you always win.

Kelly Kleinman

“The Automotive News Car Dealerships Can Really Use”

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