Resource Center - Industry Articles
Increase Service Sales & Profits: Easy as 1-2-3!
by Randy Johnson, Founder and President, Car People Marketing , May 15 2009
What if I told you there was a way you could instantly increase your service department's sales and profits and what if I told you anyone can do it and that it was as easy as 1-2-3...would you believe me? Sound too much like a Sham-wow commercial or a TV offer - well stay with me camera guy, this isn't a joke and it isn't rocket science and it isn't $19.95 if you call right now. It is however, powerful stuff that works, so stay tuned. It's all about customer retention and service traffic.
Here's the deal as simple as I can make it - and like I said, it is easy as 1-2-3. First, or number one, if I could show you how to get more customers to call and come in your service department that would be good and you would just naturally have more opportunities and make money right? Next, number two, if you could get the customers that do come in to buy more when they visit, you would make more again, right, of course you would? And, third, number three, if you could get those customers to come back more often and refer others, again...you would make more money - I told you, this isn't rocket science. So let's take them one at time and let me show you just how easy this really is to accomplish.
One: Get more customers to call and come in. I call this creating opportunities. Just for fun, have your operator count how many calls come in to your service department each day and compare the number of incoming inquiry calls to the number of repair orders you write. If you need more calls you need to advertise more, if you need more repair orders, you need to teach your advisors how to become service sales people that know how important the phone calls are, how to answer the phone and how to invite and get more customers in when they call. My guess is that you probably need some of both, more calls and more repair orders.
To get more calls, make sure you are advertising and spending wisely. Make sure you are saying the right things to the right people at the right time and make sure you have a good deal, like a low priced oil change to entice customers to call in the first place. Aggressively go after customers that were in your store and haven't returned and then go outside of your database to attract new ones.
To get more repair orders, or customers, make sure you train your advisors on the proper way to answer the phone...a polite, enthusiastic greeting, and the importance of giving features, benefits and advantages that help entice customers in. Make sure they know to invite each customer in by saying this simple phrase on every call, "lets see when I can get you in for service...I have openings today or tomorrow, which is best for you?" Just asking for the appointment will instantly get you more traffic and increase your traffic from the same number of opportunities you already have. Ghost call your store to see how they do and see what it feels like to be a customer - it will open your eyes and probably shock you - so be ready.
Two: Get customers to buy more when they visit your store. I call this maximizing opportunities. When customers arrive, make sure they are acknowledged quickly and courteously. Nothing stops a customer from spending more than feeling unappreciated or ignored. Also, make sure every single car gets a multi-point inspection report completed... no matter how many miles a car has on it or how new it is. This is the key to additional service selling. If advisors or technicians say it is a pain to do, or they want extra pay to do it...let them know that this is a condition of employment, just like being on time, not showing up drunk or practicing good hygiene. By doing an inspection report on every car you are giving customers good news (because often times a car doesn't need any additional services) instead of always just giving bad news. This builds trust and even if a customer doesn't do all the recommended repairs or services right then, they often return later to get the work done if it is documented and explained properly.
When advisors relay the message that a car needs an additional service or repair, make sure they do it in a positive way. "Whew, are you sitting down?" is not a good way to open up a conversation to try to sell something. I suggest this instead, "Mr. Customer, I have some information about your car and I have some good news. Our certified technician found that it does need a X service or repair, and I have the parts in stock, which come with a X mile warranty and he can get started right away. The good news is that the bill is less than I thought it would be, $ X ...for tax and everything. He can have it completed by about X o'clock, so I guess the question is do you want to wait here or do you need a ride?" The result is usually more positive if you make the presentation more positive.
Three: Get more customers to come back and refer others. I call this one...ensuring future opportunities. This is a really simple one that can't be overlooked. It involves some simple things that most of us should have learned in grade school. Like, always do what is right, keep people informed, do what you say you will do, be understanding of others and give customers real reasons to return when they need service. Imagine how much better your customer retention would be if you valet delivered each car when it was completed. What I mean is...have the car moved to the drive to make leaving easy, let the customer see you remove the seat cover and floor mats and take a white rag and dust the dash, steering wheel and top of the drivers door panel. Kind of like - the white glove treatment, and the customer is watching you do it. Wow. They will want to return because no one else does that for them. Take customer retention to the next level by offering membership in your dealership's rewards club, remind customers that services are due with enticing offers and always remember to stay in touch via email (the most popular way to communicate today.) All of this works together with your advisors and management staff to ensure customers want to return.
So there you have it...increased service business easy as 1-2-3. Again, this isn't rocket science. It does take commitment and focus. It takes management and it takes a team of people that care. Hold a short training meeting each week and just keep reviewing the 1-2-3 items listed above. It isn't that hard, but it takes self-discipline - are you ready to rock yet? Fact is, the survival of the whole dealership depends on service and parts today. Enough is not enough anymore. You have to be better, you have to rise to the occasion, you have to get customers to call and come in more, spend more when they are in and return more often with friends and neighbors.
I know times are tough (getting tired of saying that) because to tell you the truth, the times are what we make them...and I think we just need to make them good. Don't panic and don't cut or cancel all of the good stuff that made you famous to begin with...that is stupid, you cant save yourself into a profit and you know it. Don't stop advertising. Don't cut staff to the point your store gives bad customer service which results in a further decline in business. Don't cut your service hours. Don't focus on the negatives, believe in the positives. Ask yourself this question every day...would you hire you or fire you based on your actions today. Your job is to be the motivator, the ram rod, the coach...it is your job to push through. It is your job to create and maximize and ensure future opportunities. This is the recipe for success and it's as easy as 1-2-3. Call me if you have a question - I answer my own phone and I would love to talk to you.
Randy Johnson is Founder and President of Car People Marketing.
Contact Randy at 866.227.7337 http://www.carpeoplemarketing.com/index.aspx

