Fixed or Broken Operations for Car Dealerships by Joe Cala - Internet Sales 20 Group 10
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The document outlines strategies for enhancing guest experiences in a service environment, focusing on fixed versus variable operations. It emphasizes the importance of core values such as teamwork, integrity, and urgency, while providing detailed questions to identify improvements before, during, and after service. Additionally, it discusses staffing and pay plan recommendations for service teams and ways to optimize customer retention and engagement.
Fixed or Broken Operations for Car Dealerships by Joe Cala - Internet Sales 20 Group 10
- 1. Fixed or Broken Ops JC Training & Development, LLC “Developing a strategy to create a world class guest experience before, during and after service!”
- 2. About Joe Cala • Director of Business Development Sparks Toyota • Conference Speaker / Keynote Speaker / IS20 Group Speaker / Seminar Speaker / NADA Speaker • Former General Manager of Dealer Synergy • Former Director of Business Development Hudson Toyota, Nissan, CJD
- 4. Fixed vs Variable Operations • Service & Parts. • Fixed means unchanging. • Fixed operations calls traffic customers. • Fixed traffic is more consistent. • Expenses are more stable & fixed. • Sales & F & I • Variable means not consistent. Liable to change! • Variable operations calls them ups. • Up traffic varies based on a number of factors. • Expenses are more up & down based on advertising, inventory, floor plan interest, commissions and bonuses.
- 5. Establish Your Core Values Teamwork - the good of the team comes before the personal comfort or agenda of any individual team member. Integrity - we always do what is right, not what is easy, cheap, popular or convenient and we can do so without excuse. Urgency - we service one another and the customer quickly and find reasons to fix things now rather than to delay, to be or procrastinate. Personal Growth - employees are expected to work as hard on themselves as they do on their job… getting better is not an option! Attention to Detail - we will become brilliant in the basics and pay attention to getting the “little” things right. Extreme Ownership - to act at all times as if your name is on the building. Consistency - delivering excellence to every guest at every touch point. Every Team Member Will Exemplify These & Hold Each Other Accountable No Matter What Position You Are In
- 6. Area’s of Focus Appointments Problems in the Service Lane Status Updates Wait Times Scheduling CSI Service BDC Staffing Pay Plans The Guest Experience The Condition of the Customer’s Car When Returned Cars Not Getting Done Right
- 7. Questions to Ask to Help Improve The Guest Experience How can we create an overall world class guest experience before, during and after the service? Before the Service • How are we currently handling the guest after the sale and before the service? • Are we setting the 1st service appointment at the delivery? • Do we have a “Preferred Customer Program”? • Do they know what they can expect while servicing their vehicle with us? ToyotaCare - ToyotaCare Plus - Oil Changes For Life - Lifetime Limited Powertrain - Tires for Life • Are we introducing the customer to the service staff?
- 8. • Are we making sure recall appointments have all the parts ordered if necessary before the appointment date and labeled properly & reserved in parts to match the customer name? • How are we differentiating between the “1st Time Guest” who has never been to our dealership before and a guest who has serviced with us before? • How are we handling the incoming calls to the dealership regarding recalls, service & maintenance questions, appointments, appointment changes & cancellations, vehicle details, pick up and deliveries, status updates, etc…? • Do we have a Service BDC? • Are we staffed properly in the Service BDC? • Did we establish a proper expectation to the customer regarding time and work according to the areas of concern? Questions to Ask to Help Improve The Guest Experience Before the Service
- 9. • Is the service lane set up to facilitate express lane, appointment lane or 1st time guest lanes? • What are we showing our customers in the waiting lounge while they are waiting for their vehicles? Fox News, CNN, ABC, NBC, etc… showing our competitors commercials and all the negative, stressful crazy stuff in our world or are we controlling our content, commercials, ads, video boards, etc…? • Are we maximizing signage to drive home and display what we want our customers to see? Why we ask to set up the next appointment, if the customer had a Truly Exceptional Experience? • Are we updating the customer on the status of the vehicle throughout the customers wait? Are we showing & explaining the MPI Sheets? Are we giving an explanation of the work & costs to the customer? • Are we staffed properly in greeters and those who can check the customers in? • Are we staffed properly in ASM’s? • Are we staffed properly in technicians? Questions to Ask to Help Improve The Guest Experience During the Service
- 10. • Are we advising the customer of their future service needs? • Are we offering to set up the NEXT appointment for the customer? • Are we thanking the customer for their business and continued service? • Do we have an instant survey from the dealership (not the Manufacturer) that goes to the customer once the RO closes? • Are you having the ASM or Management team calling a customer if you’re alerted to a potential problem to defuse it and correct it once it is known? • Are we having a declined op code push to the Service BDC team to call the customers who declined services and after 7 days offer them a 10% discount on the quoted price to try and get them back in? • Are you using the surveys as a way to coach and get better as a staff, in processes, staffing and scheduling adjustments? Questions to Ask to Help Improve The Guest Experience After the Service
- 11. Service BDC The purpose of the Service BDC is to provide your customer base with a team of professionals that will create truly exceptional experiences online & on the phone! Building the Team Determine the size of the team based off of the total daily R.O’s you currently run through the drive. If you’re running between 50 - 100 run with 2 - 3 people If you’re running between 100 - 150 run with 3 - 4 people If you’re running between 150 - 200 run with 5 - 6 people
- 12. Service BDC The purpose of the Service BDC is to provide your customer base with a team of professionals that will create truly exceptional experiences online & on the phone! Selecting the Team A great phone voice and phone presence is vital Customer service and customer interaction will be constant so any skills and past experience relating to that is a benefit.
- 13. Pay Plans Pay an hourly rate or salary - I suggest hourly Incentivize on revenue generating outbound calls that turn into R.O’s Create a team bonus per rep for green CSI Create a team bonus per rep for a % increase in retention Create a team bonus per rep for hitting a gross revenue goal for the month
- 14. Pay Plans Example Pay Plan for Service BDC Rep: $11.00 per hour for 90 days with $1.00 per hour bump after 90 days. Commission Opportunities: Revenue Generating Outbound Calls will pay commissions based on closed RO amounts. RO’s from $0 - $100 pays $2.00 RO’s from $101 - $500 pays $5.00 RO’s from $501+ pays $7.50 Bonus Opportunities: Increase the store retention scores (SCR Scores) by .15 basis points and each rep will make an additional $100 per month. If the store hits a total gross revenue number pay each rep an additional $100 per month.
- 15. Retention & Redemption Manufacturers say that a customer is retained when they visit your service department 2 times within a 12-month span. Redemption Intervals take place every 5,000 miles up to 30,000 miles So your goal is to figure out how to maximize your SCR (Service Customer Retention) Score So your goal is to figure out how to maximize your mileage interval impact.
- 16. The Daily Responsibilities Here’s the Outbound Call Intervals Example: 5K - Tire Rotations, Multi Point Inspections and fluid refills 10K – Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills 15K - Tire Rotations, Multi Point Inspections and fluid refills 20K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills 25K - Tire Rotations, Multi Point Inspections and fluid refills 30K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills 35K - Tire Rotations, Multi Point Inspections and fluid refills 40K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills 45K - Tire Rotations, Multi Point Inspections and fluid refills Also include other opportunities to follow up any missed appointments or missed opportunities while here. No Shows – Call to reschedule. Declined Op Codes – Offer discount 2 to 7 days after they visited and declined services. Shortfall List - Customers approaching there drop-off dates for retention.
- 19. Reporting
- 20. Reporting
- 21. Questions?