focus on how your customer can get more … not how they can pay less
TRANSCRIPT
Focus on how your customer can get more
… not how they can pay less
The Beginning…- 3 Service Advisors and 12 Technicians
- Average of 40 ROs per day
- 1.6 hrs per RO
- $90,000 in average gross profit per month
- New Car Sales to Service Retention: 30%
- Used Car Retention was not measured other than brand. (Standard was 18-25%)
Loyalty Program – GO BIG OR GO HOME!
A New DirectionLoyalty ProgramThe new loyalty program would benefit all customers that purchase from the dealership.
Program Benefits Include:Complimentary Oil Changes
Tire Rotations
Multi-Point Inspections
Lifetime Engine Guarantee
Car Washes
Current Complimentary Services(shuttle, towing etc.)
Ability to earn points to use offnext vehicle purchase
Challenges…1. How much will this cost?
2. If managed properly, this will be a homerun!
3. If managed poorly, this could be trouble!
4. How much will this cost?
5. This definitely sets the hook for retaining clients!
6. An oil change is a “LOSS LEADER” tool!
7. The tire rotation gives me “carte blanche” to the wheel well!
8. Every vehicle on the road NEEDS at minimum those two items maintained!
9. How much will this cost?
10. I need to “Re-Think” Training!
TrainingTrain the Staff….Educate the cus-tomer
- A customer spent 3 to 5 hours with the sales staff
purchasing a vehicle but they will spend the next 3 to 7 years as a service customer.
- OWN the program and know how to explain it to new
customers.
- Bi-weekly training sessions held as a group.
All vehicles require preventative maintenance. Allow us to perform all of your recommended preventative maintenance here at our store and we will guarantee your engine for as long as you own it.
Investment100% of Purchasing Customers OR1.5% of those who used your coupon?
Cars Sold 200
85% Retained 170
Avg. Cost of LOF $25
Monthly $4,250
Annual $51,000
Loyalty Program Example:
$19.95 LOF Mailer Coupon
6,000 pieces @$1.20 each
$7,200
Returned (1.25%) 75
Coupon Cost/Customer
$96
Annual Mailer Cost $86,400
Annual Cost/Customer
(loss per LOF)
$4,500
Total Cost $91,000
Vendor Advertising Mailer Sample:
You will spend four times the amount per customer capturing new business.
One Year Later…..
Before 1 Year After
Sales to Service Retention 30% 85%
Overall Customer Service Retention 26% 74%
CSI Average Score 78 91
Average Hours per RO 1.6 2.2
RO Count per day 40 58
Upsold Services 30% 52%
Employed Service Advisors 3 4
Employed Technicians 12 15
The service department has added and retained an additional 1,350 customers over the past year…..that’s called growing the business!
Three Years Later……Internal ChangesMore change was needed internally due to the increase in traffic and changein workflow.
- Re-evaluate technician pay plans
- Introduced Synthetic Blend oil to the program
- Introduced an “Express Service Lane”
- Prospect “the garage” by inviting our retained customers family and/or friends to become
part of our “FAMILY PLAN”
Today….
Before 1 Year After Today
Sales to Service Retention 30% 85% 91%
Overall Customer Service Retention
26% 74% 89%
CSI Average Score 78 91 95
Average Hours per RO 1.6 2.2 2.3
RO Count per day 40 58 80
Employed Service Advisors 3 4 5
Employed Technicians 12 15 20
Recapping The Progress…• This dealership started a loyalty program that made an investment in their customer.
• Investing in a “Loss Leader”… every vehicle owner has the need.
• Building relationships with people of the community that have absolutely NO reason to take their business elsewhere.
• The investment has paid off large in branding the dealership that developed a culture within the dealership and the community.
• Think about investing in your customer... FOR LIFE!
• Build relationships from that investment.
• Utilize a loyalty program that will brand your company…set yourself apart from the rest.
• GROW your business and RETAIN it.
• Your time is better spent training, listening and developing your staff.
Thank you!
Rick ManringVP of Fixed [email protected]