Category Archives: Service Advisor Training

Don Reed of DealerPro Training teaches Auto Dealers How to Maximize Marketing ROI at Digital Dealer

Don Reed of DealerPro Training teaches Auto Dealers How to Maximize Marketing ROI at Digital Dealer

Don is leading a workshop at the Digital Dealer Conference in Orlando next week.

 

FOR IMMEDIATE RELEASE

 

PRLog (Press Release) - Apr. 29, 2013 - Don Reed CEO of DealerPro Training Solutions is delivering a powerful workshop on “How to Maximize Marketing ROI” for Automotive Dealers in Orlando next week at the Digital Dealer Conference.

Don has been leading workshops, seminars, 20 Groups and association meetings for over 25 years, including a “Top 10″ rating as a NADA presenter. Don has been a “working dealer”, having owned franchised dealerships in two different states.

Next week Don tackles the subject of how Automotive Dealers are staying competitive in the ever changing Customer Service business. His workshop is focused on how any Dealer can turn Marketing Dollars into Service Customers.

Digital Dealer is the premier educational conference and exposition dedicated to Internet and technology solutions for automotive professionals. Digital Dealer events deliver the largest array of speakers, peer to peer opportunities, and exhibit hall all carefully designed to impart cutting edge business strategies. With an audience of the industry’s most progressive dealers and managers and the most innovative conference format, Digital Dealer provides the ultimate learning and networking environment.

There is more information about Digital Dealer at their website:

http://www.digitaldealerconference.com/

Did you THRIVE or SURVIVE in 2012?

By Leonard Buchholz

Every year about this time we begin to contemplate. What was our final score for 2012? How did we end up? Did we just SURVIVE or did we THRIVE?

For most of you, that reality was written months ago and on the 10th of January you’ll be reading the results you already suspect.

You may even be feeling some anticipation (much like a kid on Christmas morning).

For those of you who spent more time on the “naughty side of retail life” you are hoping for a miracle to turn poor effort and lack of accountability into a Kodak perfect picture moment when you open your present (EOY Financial)…only get ready for the stinky picture…the one with the sad tear-streaked face when you finally tear open your package of coal.

And for the rest of you…”Smile!” click…click…click post it to FB ‘cause you got a HappyFace!

So, the real question is, did you THRIVE in O12 or did you just SURVIVE O12?

Here are 3 Thrive/Survive Reality Checks for you to contemplate right now.

Did you have a significant increase in Service Customer Pay Gross Profit? Let’s define significant. Was your increase at least 20% or more? Before I get a slew of “Hey, we got ___(fill in the blank) and it was significant to us” emails, you have realize that any organization that experiences an increase in Gross Profit, whether they are selling soup or nuts, that is greater than the year before would consider it “significant”, “fantastic”, “beyond expectations”…you get the point.

It just so happens that 20% is considered significant and noteworthy (and all that other stuff) because most of the business world runs on extremely small margins and mucho dinero is made every day in this  country by people smarter than me betting on the tiniest increase and decrease in those margins.

Imagine what a day at the stock market would look like if the Fortune 500 companies all reported a 20% increase in Gross Profits. Wow.

So, yes, 8, 10, even 18% is a nice number when it comes to a Gross Profit increase. But 20% and above is pretty damn significant.

Those dealerships that are thriving…INCREASE! Those that are surviving…SAME! So, I have to ask the question, did you start 2012 with the Goal of staying the SAME or did you want an INCREASE in Service Customer Pay Gross Profit?

Next Thrive/Survive Reality Check is your Service Customer Pay RO Count. In 2012, did you INCREASE your Customer Pay RO Count or did it just stay the SAME?

2012 will be a pretty good Sales year when all the numbers are tallied. Last I read, total sold units in 2012 will be somewhere north of 14 million and represents an overall increase of nearly 14%. 2011 was not all that bad (relatively speaking and compared to previous years) when it hit over 11 and a half million units sold. So, that would indicate that based on these numbers, there are additional Service Customers in the marketplace looking for a Service Facility.

Which begs the question, where did all of the Customers from 2011 and the first 6 months of 2012 go for Service? Was it your Dealership? If not, why not? What is keeping the Customer you worked so hard to sell from coming into your Service Drive for Service?

In every Dealer that we complete a Profit Potential Analysis and review the previous 2 years of RO Counts, I can honestly say that in my experience, there is always room for growth. In fact, I do not believe I have heard any Dealer Principal say “No thanks to increasing the Customer Pay RO Count in our store, we have enough.”

So if you have not had at least a 10% INCREASE in Customer Pay RO Count in 2012, that would be an excellent place to begin your Goal Setting Process for 2013.

Lastly, have you had an INCREASE in CSI or stayed the SAME? Honestly, the CSI Score is without a doubt, the craziest number ever to have been invented to measure a Dealerships performance. Sometimes it can feel like you are trying to hit a mouse in a hurricane with a beach ball.

And many Dealerships consider it a Success just to maintain “Zone Average.” I get it. But the Dealerships that are THRIVING have invested themselves into a new thought process when it comes to CSI…changing the “gottadoit” to the “wantadoit” and the P-step Program “Process,Participation,Prevention” and making a difference in their CSI Score.

SURVIVING means every week/month when the new scores come out, the Service Manager and General Manager have a moment referred to as “Show-me-the-money-or-get-out-the-honey.” Either you hit the numbers or you start spreadin’ the honey. It can be fun in a kinda “You bet your job” sorta way, I guess.

Take a minute on the morning of Jan 10th to consider and ponder and contemplate 2012. Look for other areas you consider vital and important to your business, your Dealership. And take a look at the three areas we just talked about, Service Gross Profit, Customer Pay RO Count and CSI.

As the zero one three business year kicks off in your store and you are starting to write your Goals are you thinking of SURVIVING or THRIVING?

My best guess is you have started to consider THRIVING the year away. Thrivein2013

Techno me, Train me or Tank me…which is it?

It is an age old diametrically opposed argument. On one side, we have technology. On the other side, we have personnel.

I can’t sell anything without a great Multipoint Inspection.
I can’t sell anything without a professional Sales Process.
I must have both in order to be effective.

In recent years there has been a migration to technology because we have come to expect that our Dealerships will be modern, fully equipped Service Centers that have the best tools and equipment because that’s the image that has been built through extended advertising.

It’s also why people have come to believe that going to the Dealer is always more expensive.

What has happened (IMHO) is that technology has become a crutch to be used instead of a professional Sales process and effective person to person communication skills. And becomes the scapegoat when the technology does not produce the Sale.

If I had to choose between the two, I’ll choose the professional Sales Process and Communication Skills because our business is still a person to person elbow rubbing “Hey, how are you doing?” smile on your face take care of the Customer business.

If you have a Service Department that is staffed with people and not extraterrestrial aliens or vampires, then they can be trained to present Multipoint Inspections using a Sales Process that produces consistent results.

In fact, over the past 11 years, we have been dong this very same thing in Service Departments all across the country and have helped them produce dramatic and spectacular results…using the same technology (Electronic MPI, Electronic Menus, Electronic write up, On line Appointment Scheduling, CRM Software, you name it…)  that was already in place and did not generate the expected results because they are simply tools when it comes right down to it.

The perfect example of the difference between training and technology exists in our own collective history. Remember OBDII? What happened when “Software Download” and “Electronic Diagnostics” took over our industry? In the beginning, there was a period of time when the plug in connector was viewed as a precursor to volcanoes and the return of the dinosaurs. The end of the world!

We had to train all of our Technicians to use the new technology. When we completed that re-training, our success in diagnosing the vehicle and repairing it the first time increased dramatically. (Which coincidentally has lead to a considerable decrease in warranty repair work.)

But there was still the Customer.

Why didn’t all of this new technology which made concerns easier to diagnose, lead to a decrease in defects per sold unit and increase the reliability (to name a few of the benefits), lead to an automatic increase in CSI, increased retention and more maintenance visits at the Dealership?

Because you can’t train a computer to smile, ask how you are doing, make a friend, build a relationship, remember their preferences, make recommendations based on priorities, remember that they are always your Customer and not a problem to be dealt with and lastly, you can’t teach a computer or build a software application that has Pride and Professionalism.

That is why you still need a smiling, professional Service Advisor.

Hey, you can keep paying those monthly fees for “stuff that don’t work” or give us a call. It’s up to you.

Why “Old School” Communication is the new “Class Dismissed”

Fierce Leadership (Sketchnotes)

Fierce Leadership (Sketchnotes) (Photo credit: murdocke23)

Clearly there is a huge gap between what “we” (old school) managers and Leaders consider useful and proper communication,  motivation and Leadership techniques and what the “new” generation responds to.

There is a choice to be made.
A. Keep doing what you’ve been doing and keep getting the same results while expecting a different outcome.
B. Do something different.

In this business “transitional people” are a given. We attract people because we are the largest OJT training industry on the planet. ANYBODY can work in the Car Biz because we accept everybody.

The only people we reject (and that’s not a given either) is the people who cannot pass the smog test or background check…but I can guarantee you this…nearly half if not more reading these words do neither when hiring. It’s not an accusation or condemnation…it’s just the way it is.

So, having to deal with a generation who does not respond the same way, think the same way and act the same way should be no real surprise. What is a surprise is how much “old school” wants to hold on to the familiar and safe ways of management and Leadership style rather than adapting and overcoming this communication and Leadership gap.

Do we hold them to established Dealership standards of conduct? Yes
Do we hold them accountable to established performance goals? Yes
Do we expect professional behavior while on the job? Yes
Do we monitor and coach on a regular (daily) basis? Yes

HOW we communicate those standards of behavior and professionalism is where we need to to grow. HOW we hire and train is where we need to change. HOW we grow our own pool of qualified and professional people is HOW we overcome the challenge of finding qualified people.

This generation, like any other generation, still wants to Succeed. Just not in the manner we have defined Success! Identify and qualify that definition and you will have the employee you want and an employee you can count in in the future.

Keep applying “Old School” Communication and Leadership techniques and it will be “Class Dismissed”.

Make Your Next Coaching Session Memorable and Powerful

Every Coaching session can be effective if you follow certain steps to improve your chances of a Successful outcome.Be Specific and Get Results!

There is one word that is critical in determining the outcomes. That word is “Specific.” There is an old saying that goes like this. “The more specific you are the better your results” and it applies to everything.

Want to improve your Communications? Be Specific.

Want to have greater Results in everything you do? Be Specific.

Want to achieve more Goals and be more Productive? Be Specific.

When conducting Coaching sessions, the same rule applies.  Here are three tips you can use to make your Coaching sessions memorable and powerful.

1st, Be Specific. Which means you Mr./Ms. Coach need to be an excellent observer and note taker long before a Coaching session begins. You will want to write down Specific Actions and Behaviors you observe the person you are Coaching so that you can describe them accurately in your Coaching session.

Coaching sessions that do not start out with Specific Actions and Behaviors soon turn into cry fests, pity parties and he said/she said “No I did not” unproductive meetings that do nothing to encourage or correct Actions and Behaviors.

2nd, you will need to have a Specific Goal for the Coaching session’s outcome. If you want Sally Service Advisor to improve her phone answering skills and increase the number of appointments she makes on a daily basis, then that is the basis for a Coaching session Goal. You will need to fill in the Specifics to complete the picture.

And lastly, no Coaching session is complete without a firm follow-up date to go over results and progress. If you fail to follow-up the message you send to the person you are Coaching is “Coaching sessions are not that important.” Everybody likes to feel that the Coach is interested in their progress and they want to tell you of their accomplishments. Set a firm date to let that happen.

Coaching sessions can be powerful tools to increase performance and build team synergy. Be Specific, Be Specific, Be Specific.

The difference is paper-thin

“The difference between genius and insanity is paper-thin.” Old Japanese proverb.

There is an inherent truth in that statement. How many times have you said to yourself “That’s crazy!” about something someone did only to find out later that it wasn’t really crazy at all and in fact was genius.

Those Dealerships that are Profitable in their Fixed Ops are not that different from those Dealers that are not Profitable. It’s paper thin actually.

There are hundreds of things you can do but there are 3 that will make an impact almost immediately. 

First, get committed to making a change. The Dealerships that are Profitable in Fixed Ops decided that what they were doing was not working. They looked at the results they were achieving and realized it did not meet their expectations.

That is a crucial first Action Step. Make a Commitment to Making a Change. Nothing will happen and nothing will change without this first step.

Second, they got Training. Yes, I am employed by a Fixed Ops Training company. Yes, I come from a background that includes providing Seminars and Training to companies all across the country. Yes, I am biased.  But I’m not wrong.

You can’t argue with results. Every Successful Organization on the Planet we live on has a Training Program. You are a product of Training. Whether it’s a formal education or school of hard knocks, you have been Trained. Your Success to this point can be traced to the Training you received along the way.

Fixed Operation Department Personnel that have been Trained will outperform and out sell an untrained Department every time, no exceptions.

Third, they monitor for results and Coach on performance daily.  And you know what? The employees in that Dealership expect it. They want to know how they are doing. They want the feedback.

The difference between Profitability and Profit Loss is paper-thin. Start by doing these 3 Action Steps and get results.

What’s that noise in your service drive?

Have you ever blown up a balloon and then just let it go and listen to the sound it makes? If you have children or a crazy Uncle Lenny, chances are you’ve heard this noise before. It is so distinctive that once you’ve heard it, you are not likely to forget it the rest of your life.

I’ve heard this same noise in my head many times in the service drive right after an Advisor says something he or she shouldn’t have. In our business there are many things that must happen to make sure that the Customer has a great experience.

And it all starts with a person to person interaction. This “point of no return “occurs when the Advisor opens his/her mouth and says…______________.

In the past few years I have heard some things come out of the Advisors mouth that were, quite frankly, ridiculous, stupid and condescending. Here are a few that sounded bad (think balloon noise) when I heard them and still sound bad along with a list of alternatives that you might consider using.

  • “We can’t take you today/tomorrow/etc.” or “You’ll have to make an appointment.”
  • “Can you come back tomorrow, I’m afraid we’ve overbooked.”
  • “We don’t offer __________.”
  • “We don’t do____________.”
  • “We don’t take those coupons” or “Those are too old for me to use.”
  • “What’s your name (Bud, Chief, Boss, Miss)?” or “Wow. That’s a strange way of spelling your name.”
  • “Is that your mug shot?” referring to a Customers  driver’s license
  • “Don’t stand there. You are blocking my light/view etc.”
  • “Can I help you?”
  • “Do you have an appointment?”
  • “Man, your car looks bad. What’dja do…run it into a ditch?”
  • “No.”

I can’t make these up folks. I have heard this and many more on the service drive from Advisors who thought they were being cute, funny, friendly…whatever. In some cases, doesn’t it sound like they just didn’t care? Yeah, it sounded like that to me too.

Let me ask you this. When you say these things out loud, how do they sound to you?

When you hear them in your own voice, does it make you want to stay and do business or does it make you want to reach over the counter, grab that silly Advisor by both ears and ask them “Hey, are these broken? Because what you just said to me, your Customer, did not sound so good just now. Let me say it back to you and you tell me what you think.”

Here are the alternatives.

  • “Mr./Ms. Customer, I can work your vehicle into the repair rotation and give you a report late today or possibly tomorrow. Would that work with your schedule?”
  • “Mr./Ms. Customer, I can work your vehicle into the repair rotation and get it back to you tomorrow. Does that work with your schedule?
  • “Mr./Ms. Customer, here is a list of services we provide to all of our Customers. In order for me to take care of _______, I would need to send it to another specialty repair facility that handles these types of repairs. Would you like for me to take care of it or is this something you would like to do?”
  • “Mr./Ms. Customer, this is one of the very few services we don’t provide, however, I have made a list of someone locally that does this type of service, and I’ve taken the liberty of calling them and advising them that you will be in contact soon.”
  • “Mr./Ms. Customer, these coupons are from a previous campaign and they have expired. What I can do is____________.”
  • “Hello, my name is __________, and yours is?”
  • “Thanks for providing a license for me to copy the information from. It makes things easier.”
  • “It’s going to take me a minute to complete the paperwork. Would you like a cup of coffee or a seat while you are waiting?”
  • “Hello, my name is ________ and I can help you.”
  • “What brings you into the Dealership today?”
  • “We can take a look at your vehicle. Let’s get started on the paperwork.”
  • “Yes” or “Let me see what I can do.”

It’s not that hard. It’s just common sense and common courtesy. Just take a second and think before you open your mouth to say something. That extra second or two is the difference between sounding Professional and sounding  ridiculous, stupid or condescending. Don’t make balloon noises.

Professionals know that effective verbal communication is the key to high CSI and repeat business.

Original or Commodity-part 2

Most consumers have lumped “service”, whether you are a dealer or an independent repair facility, as a commodity. Which means you compete in a market with everyone else even though the market is not a level playing field.

Customer relationship

Customer relationship (Photo credit: Claudio Cicali)

How do you distinguish yourself from everyone else? How do you stand above the rest?

By providing an experience that the customer can’t stop talking about.

While advertising, facility, market position, location, etc. all have a role in the overall service business development and retention strategy, when the customer comes into the service drive, they still need to talk to someone.

And that “someone” in your dealership is the experience.

When your customer needs to have service on their car they think back and remember what happened the last time they took the vehicle in for service and they form an opinion and make a decision.

So the question is, are your personnel providing the level of service that a customer would remember? Would your customer form a favorable opinion of your service department and their experience? Would they make a decision to come to your service drive? Are you the service department they can’t stop talking about?

When you compete as a commodity, you never see the customer because they pass 6 other repair facilities on the way over to your dealership. In their mind they can get the same level of service there as they could anywhere else.

Distinguish yourself from the rest by having the most professional personnel trained to provide the highest level of service and you will be above the commodity crowd.

There is too much waiting

Waiting

Waiting (Photo credit: Wikipedia)

Don’t you think there is too much waiting going on? I don’t mean the kind of waiting we do for a burger at the local drive thru or waiting for the mail to arrive.

And it’s not the other kind of waiting we do these days “plugged in” as we are.

Heck, we all know that in this “electronic” age, society is way too fast and by being so, has turned us into petulant whiner babies when it takes an extra millisecond to download the “game of the week” into our phone.

Not that kind of waiting.

It’s a different kind of waiting and it is keeping your Dealership from becoming profitable.

Did you know that we are the only species on the planet that will wait for a favorable outcome with little more than the faint a wisp of hope? It’s true.

It’s why we play the lotto. Did you buy a ticket in the recent mega-millions game…the one worth over 600 Million dollars?  Me too.

That is waiting for a favorable outcome based on hope. How did it turn out for you? Same as me?

I didn’t win either. And while this kind of “hope” might be great for the lotto, it has absolutely no business in your business.

Let me show you what I mean.

You have had or know someone who has one right now…the underperforming Service Advisor. Maybe it’s an underperforming Sales person.  Hey, dare I say it, maybe an underperforming General Manager.

Anyways, this person is working in your Dealership. And because I have a special place in my heart for Fixed Ops, let’s look at what waiting based on hope does for your underperforming Service Advisor.

Every day you come in and there he or she sits. And in your mind you picture the day that Fred or Sally suddenly “gets it.” They start following a write-up process. They begin to use a script and become experts at answering the phone and making appointments. They become expert Sales people by using the simplest of Sales processes called a “feature/benefit” presentation and start increasing their close ratio on additional service requests.

And each day nothing happens. They do not become better at anything. They continue to do the same things day in and day out.

You? You are waiting for something to happen that causes a change that results in a different outcome based on this hope.  How’s that working for you?

There is one other problem waiting for that problem to correct itself. Your Advisor does not know they need to change. I’ll bet my lotto ticket on it.

In fact, if I was in your store and I asked them how they think they are performing their duties as a Service Advisor, what do you think their answer to me would be?

If you are the Service Manager and Fred or Sally is working for you, you are living the “waiting for a favorable outcome based on hope” in your store right now.  This is akin to watching the sky for a rainbow and running to the end of it anticipating a pot of gold.

Let me ask you this. What are the odds that Fred or Sally will suddenly become the Service Advisor you want them to be merely because you are “hoping” for a change?

Your next step is one that requires Action.

Taking Action to address known deficiencies in behavior and performance will get results when hope plus waiting will not.

If Fred or Sally is working for you, do these 3 things immediately and you will have immediate results.

1st, identify the level of performance acceptable for employment at your Dealership for a Service Advisor. Is it 1.8 HPRO with a Gross Profit Margin of 73% Labor and 41% Parts, an EFL of 85% of door rate and a CSI rating above the zone? I don’t know what it should be in your store. That’s for you to decide.

But keep in mind; whatever level of performance you decide is the minimum acceptable level of performance that only keeps them employed.

2nd, counsel with Fred or Sally and tell them what the minimum level of performance is, what your expectations are, lay out the next steps they need to take to remain a member of your team and ask them if there is any reason they cannot meet those objectives.

3rd, monitor and coach daily based on your personal observations, the results from the previous days performance and the overall effort they put into their duties.

This Action will guarantee a result. No question. You will get an Advisor who can and will do the job the way it is supposed to be done in your store. Whether or not it is Fred or Sally remains to be seen.

There is too much waiting going on these days and it’s the wrong kind of waiting. Take Action, set some performance levels, begin counseling your Advisors and start monitoring for results.

If after reading this you decide to not do anything and wait for something to change based on “hope”, I’ve got a used lotto ticket for sale. Send me an email.

Webinar on Thursday; 4 Essentials to Achieving 100% Service Absorption

http://dealer-communications.com/news/free-digital-dealer-webinar-the-four-essentials-to-achieving-100-service-absorption/

The 4 Essentials to Achieving 100% Service Absorption are: 1.) Improve Profit Margins 2.) Increase Sales per RO 3.) Increase the number of RO’s 4.) Control Expenses. This workshop provides a guide to developing a “Business Plan” for achieving 100% Service Absorption focusing on management processes that will enable every dealer to increase net profits.

The Plan will focus on profit building techniques and marketing strategies for the service and parts departments that will increase sales and build Owner Retention while minimizing expenses.

Webinar attendees will learn their “true potential for profit improvement” by utilizing the 4 Essentials to 100% Service Absorption.

Join Don Reed, CEO of DealerPro Training for a Digital Dealer webinar sponsored by Dealer Pro Training on the four essentials to achieving 100% service absorption on Thursday, April 12, 11:30 a.m. EST/10:30 a.m. Central/8:30 a.m. Pacific.

What dealers will learn from the webinar:

–How to sell more appointments.

–How to increase hours per retail repair order.

–How to utilize a marketing planner to increase owner retention.

How to build a “Business Plan” for achieving 100% Service Absorption

About DealerPro Training: DealerPro’s Performance Driven Training program has helped hundreds of dealers across the nation increase their Service Gross Profits by up to 40% or more. Dealers can achieve 100% Service Absorption and 2.5 hours per customer-pay R.O. while increasing CSI. DealerPro provides in-dealership hands-on training. A one-week installation & training for service advisors and managers, is followed up with monthly in-person monitoring and training to assure dealers are achieving the best results possible. Typically, a dealer can increase Service Gross Profits by $200,000 or more. 

Don Reed is CEO of DealerPro Training. After 26 years in the automobile business as a Dealer, GM, Sales Manager, Service Manager, Service Advisor and Salesperson, Don Reed, CEO of DealerPro Training, decided to start a new career as a Consultant and Trainer, “turning around” dealerships that were in need of building their profits. As CEO of DealerPro Training, Don has worked with hundreds of dealerships and major dealer groups across the U.S., Canada and the United Kingdom to increase profits in Fixed Operations. He’s been published in AutoDealer Monthly, AutoSuccess, Fixed Ops, Dealer, RV Executive and RVPRO magazines and has conducted workshops for NADA 20 Groups, state Dealer Associations, OEM’s, RVDA Convention and has been rated a Top 10 Speaker at the NADA convention.