Automotive Service development program part 1 - module One

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Service Development Program - Module 1

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DOS (Dealer Operating Standards)

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 The Dealer Operating System (DOS) is a detailed guide to dealership activities and the
resources needed to perform them. It describes what dealer considers to be the best retail operating
practices.
 This course summarizes the philosophy, content, and structure of the Dealer Operating System (DOS).
 The best dealerships have three important factors in common:
1. A genuine commitment throughout the organization to customers.
2. Motivated, well-trained employees who enjoy working with each other.
3. A standard way of doing business that is understood by everyone.
If you have loyal customers, everything else follows
 DOS have Two major operational changes:
1. The way dealerships market products and services and interact with customers.
2. The way dealerships are organized and managed.

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 DOS should lead the dealership through three basic steps:
1. What needs to be done to meet the customers needs.
2. What resources are required to meet those needs.
3. What are the best ways to perform the functions and make use of those needs.

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 Across the top of the matrix are the major retail functions (represented by the six references).
 Down the left side of the matrix are the resources that support these functions.

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 The new view positions the entire organization as a unified team whose purpose is to serve
existing clients and create client loyalty.
(Client Management – Building Personal Business Relationship)
 Client Management: The idea is to change the focus of the dealership from merely finding new
customers through advertising and promotion to generating client loyalty, enthusiasm, and
repurchases through serving, communicating, and building personal business relationships.
 The traditional salesperson becomes a client manager who functions as part of a cross-
functional client management team that also includes a service consultant and a parts
consultant. The client management team is the primary vehicle for generating client loyalty.
 The client management team develops a personal relationship with each client, supported by a
client information file, the team meets regularly and reviews each of its clients.
 The sales department to be continually winning new customers while the service department
strives to keep them.

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Purchased a Vehicle
(Guest) Prospects >>>>>>>>>>>>>>>>>>>>>> Client (Existing Customer)
 The goal is to break down the functional walls between departments, thereby providing a
complete and seamless support system for the customer throughout the shopping, buying,
and ownership experience.
 The sales manager to move from managing “the deal” to managing the sales process.
The best process in the world will fail if the resources to support it are not in place
 The service manager emerges not as the chief mechanic/shop foreman and fire-fighter, but
as an active and valued member of the dealership management team.

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 Sales Transactions:
1. New Business Development
2. Welcoming Guests
3. Understanding Customer Needs
4. Product Presentation
5. Dealership Services Presentation
6. Demonstration Drive
7. Vehicle Appraisal
8. Purchase Consultation
9. Financial and Security Services
10.Delivery

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1. New Business Development:
 Guidelines for initiating the actual telephone or personal contact & it includes instructions
on how to set a realistic objective for each prospect contact.
2. Welcoming Guests:
 Every person entering the showroom or the display lots is welcomed promptly and treated
as a guest, not an “up.” Salespeople inform prospects that they are free to browse
(assisted or unassisted) at their own pace.
 In keeping with prospects’ expressed wishes, the salesperson begins establishing rapport
and demonstrating helpfulness and honesty. Refreshments are offered.
3. Understanding Customer Needs:
 This process is best described as a conversational interview, not an interrogation.
 The salesperson seeks through purposeful dialogue to understand the prospect’s
motivations and where he or she is in the decision-making process.
 Strong emphasis is on answering questions and paying attention. The salesperson
provides an overview of the sales process.

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4. Product Presentation:
 Product presentation includes presenting the vehicle based on guests’ stated needs.
 Use of feature displays, interactive or passive information modules, and literature, and
presenting competitive information in keeping with guests’ expressed interests is covered.
 Emphasis is placed on demonstrating credibility and providing a learning experience for the
prospect.
5. Dealership Services Presentation:
 The manufacturer and the different dealership departments MUST appear to the prospect as
one seamless support system.
 For example, the division should not be referred to as “they” when describing warranty or other
manufacturer-supported services.
 Dealership services explained to guests include “why-buy-here” issues and any unique
offerings that give the dealership a competitive advantage.
6. Demonstration Drive:
 Every prospect is offered a demonstration drive.
 A variety of demonstration drive routes is planned in advance.
 At the conclusion of the demonstration drive, the salesperson confirms the client’s selection of
the vehicle.

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7. Vehicle Appraisal:
 The prospect is invited to accompany the appraiser.
 The appraisal is performed by an authorized dealership appraiser and each step is explained to
the prospect.
 The appraisal report is presented to the prospect in a straightforward, positive manner.
 The process ensures accuracy, and builds the credibility of the appraisal in the mind of the
prospect.
8. Purchase Consultation:
 The salesperson serves the prospect through the entire shopping, purchase, and delivery
transaction.
 “Closers” are not used.
 Purchase consultation is conducted in a no-pressure, no-hassle manner.
 One-price selling is not specifically recommended; however, it will be presented as an
alternative pricing policy.
 Purchase consultation is handled in an expeditious manner, taking the time necessary to
explain and help the guest in the decision process without undue delay.
9. Financial and Security Services:
 The F&I process is designed to give the prospect an overview of financial and insurance
services, presenting each product in a straightforward way with all terms and conditions clearly
disclosed.

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 The mission of financial and security services must be first to serve the guest, and second to
do so at a reasonable profit.
 After-sale items sold at outrageous profits do not provide legitimate value to the client.
 They undermine the credibility of the dealership, and they may restrict the client’s financial
ability to repurchase in the future.
10. Delivery:
 Delivery should be a memorable event for the new owner.
 The new owner should be introduced to the client manager’s service consultant partner and
other appropriate sales, service, parts, and body shop members of the client management
team.
 The salesperson should set up the first service reservation with the new client and the service
consultant.
 The new client must leave feeling special, and feeling that he or she knows the right people at
the dealership for future service needs. An orientation drive is offered to each new owner.
 Significant emphasis is placed on the vehicle preparation, appearance, and performance at the
time of delivery.
 The vehicle should be delivered with a full tank of gas.

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 Service Transactions (customer – centered service) the TEN standard phases of the
service transaction:
1. Reservations
2. Express Check-In
3. Customer Consulting
4. Dispatching
5. Progress Checking
6. Mechanical Service
7. Final Inspection
8. Invoicing
9. Delivery
10.Follow-Up

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1. Reservations:
 This first phase of the service transaction begins before the customer arrives at the
dealership.
 Reservations provide a specific time for reception at the customers’ convenience, with the
goal of determining their wants and needs in a more relaxed and professional atmosphere and
away from the crush of peak periods.
2. Express Check-In:
 Customers are greeted immediately upon their arrival at the service department by a person
who welcomes them, directs them to where they want to go, and gathers important customer
and vehicle data.
 It’s that last opportunity to make a good first impression on a service customer.
 More than just “greeting,” express check-in is a highly visible way to show professionalism and
concern, while freeing up important extra minutes for service consultants to build trust and
identify needed services.
3. Customer Consulting:
 The cornerstone of the service transaction, customer consulting includes the customer
interview and other important consultative activities—the active approach to determining
customer wants and needs, versus the passive “write-up.”

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 Service consultants spend quality time with each customer—at the vehicle—to ensure that
customers get what they drove in for and to build trust in the department and positive, lasting
relationships with the dealership.
4. Dispatching:
 Although invisible to the customer, is critical to ensure that work is distributed fairly and aligned
with the skills and ability of the technicians, and for the best utilization of workshop equipment.
 Ensuring that the completion time promises made to customers are kept.
5. Progress Checking:
 Progress checking by service consultants is a fail-safe mechanism to ensure that
commitments made to customers are met.
 Service consultants touch base with the dispatcher, technicians, and parts department, to get
accurate information about the status of each job.
 Then they contact each customer to report on progress and make any necessary changes to
the invoice.
 Progress checking keeps customers informed, provides a timely method of selling additional
needed work, helps maintain credibility and trust, and prevents unpleasant surprises for
customers at the end of the day.

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6. Mechanical Service:
 Mechanical service is the heart of the service business.
 The success of the transaction hinges on the work that gets done on the customer’s vehicle.
7. Final Inspection:
 It’s a fact that a final inspection takes place after every visit.
 Final inspection provides in-shop detection of errors, thus minimizing comebacks and
maximizing customer satisfaction.
 It allows the service manager to make corrections in the system through information gained in
the process.
 The test technician who performs the final inspection is also available to offer technical
assistance to the service consultants when needed.
8. Invoicing:
 Centralized invoicing places the task of closing out repair orders into the hands of a service
administrator who has the time, the ability, and the resources to ensure that a detailed,
accurate, and understandable document is ready when the customer’s vehicle is ready.
 Service consultants can concentrate on consulting.

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9. Delivery:
 Customer loyalty and trust, and the repeat business they bring, are strengthened by making
certain that customers really understand the benefits and value they receive from every visit.
 The delivery process ensures that customers feel they made the right decision to bring their
vehicle in, have a positive final impression of their service visit, and feel encouraged to return.
 First, customers receive a delivery consultation from their service consultant about the details
of their maintenance and repair.
 Then cashiering is performed by a person who interacts positively with customers and handles
administrative duties.
 The final step in delivery is retrieving the vehicle for the customer.
10. Follow-Up:
 After the customer leaves the dealership, the transaction is completed by staying in touch.
 The telephone follow-up survey, performed by a customer survey specialist, allows the dealer
to understand how well customers’ expectations have been met, identify problems, and make
corrections in the process.
 Service consultants build business by making follow-up calls to their customers about
recommended services and special order parts.
 Both activities help cement long-term relationships with customers.

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Body and Paint Service
 Offering body and paint service safeguards owner loyalty by making a high-quality repair
experience.
 The profitability of the dealership is also influenced by this additional profit center, which can
be a major source of income.
 Body and paint operations follow clearly defined service transaction phases similar to those
described for the mechanical shop, with provision for making and following up on estimates.
Quick Service
 Customer loyalty and protection of market share drive the need for quick service.
 Offering fast, cost-effective minor maintenance and lubrication services makes good sense.
 Quick service also reduces main shop traffic and administrative overhead.
 The message: Never provide your customers with a reason to go elsewhere.
 In almost every country in the world there are numerous small facilities that enjoy nothing more
than taking our customers from us.
 We have a duty in the interest of good business practices to ensure that we do everything
within our power to have the customer that bought their vehicle from our showroom have his
vehicle serviced 100% at our facility.

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Workshop Time Management
 The only thing the service department has to sell is time.
 It won’t sit on a shelf—when it’s gone, it’s gone.
Parts Operations
 Parts operations have a significant influence on customer satisfaction and dealership
profitability.
 The challenge confronting parts managers is to fill as many parts requests as possible on the
spot, and to accomplish this task within the confines of a reasonable inventory investment.
How do you know when you are doing things right?
 The parts department’s support of vehicle sales, service, and body shop operations, combined
with the well-conceived wholesale strategy, will determine the department’s contribution to the
dealership’s success.
 The proper management of inventory is a key component of satisfying customers and
maintaining profitability.
 Determining the right inventory to have ⎯ how many part numbers, and the quantities to carry
⎯ is an important management function.
 The management of ordering stock is very important.

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 A system to expedite products necessary for satisfying specific customers’ needs.
 A parts employee needs to verify that the right numbers of the right parts were delivered to the
right dealership.
 The parts department should always provide timely, honest, and objective information to
customers.
 Picking the right parts promptly is a critical step in providing a satisfying transaction for the
customer.
Organization Development
 Planned change is essential to keep a company on track in today’s challenging business
environment.
 The huge consumer engine that raises the quality bar every day cannot be stopped.
An unfailingly consistent level of performance is not easy to achieve
Teamwork
 Team-building activities are based on a willingness to do three things:
1. Examine assumptions instead of defending them.
2. Move away from hierarchical positions and act as colleagues.
3. Explain one’s beliefs and values.

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 Good teamwork tears down the walls between departments and between the dealership and
the manufacturer.
Making Change Happen
 The Four steps in preparing for change:
1. Assessing the size and difficulty of the task.
2. Describing the changes.
3. Describing the current state.
4. Developing a list of actions.
One size fits all
It is critical to measure and reward the right things
An important aspect of communication is what managers hear from employees, this process
happens in meetings and informally every day
 One of the most important ways to attract and keep qualified employees is to provide a top-
notch workplace.

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Thank You
Mohamed Shehata
www.linkedin.com/in/mohamedshehata
Auto Business way
Autobway@gmail.com

Automotive Service development program part 1 - module One

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