maximize your service growth with 5 simple rules
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Maximize Your Service Growth With 5 Simple Rules. Presented by: Don Reed, CEO, DealerPro Training. Don Reed | DealerPro Training | CEO | [email protected]. Question?. - PowerPoint PPT PresentationTRANSCRIPT
Don Reed | DealerPro Training | CEO | [email protected]
Maximize Your Service Growth With
5 Simple Rules
Presented by: Don Reed, CEO, DealerPro Training
Don Reed | DealerPro Training | CEO | [email protected]
Question?
Is it possible to increase traffic and improve owner retention with an average CSI rating, while lowering sales and reducing Net Profits?
In other words, can a successful marketing campaign result in your dealership losing money?
Don Reed | DealerPro Training | CEO | [email protected]
Consider the Following Average monthly customer pay RO’s = 1,000 @ 1.5 HPRO
Marketing Campaign Produces 10% increase in RO’s 100 Additional Incoming Service Calls 100 Additional Service Appointments 100 Additional Maintenance Menu Presentations 100 Additional RO’s to Dispatch 100 Additional Vehicles to Inspect 150 Additional Technician Hours 100 Additional Vehicles Requiring Parts 100 Additional Vehicles to Park 100 Additional Outgoing Phone Calls for Advisors 100 Additional Customers to Cashier 100 Additional Active Deliveries 100 Additional Next Appointments to Schedule
Don Reed | DealerPro Training | CEO | [email protected]
Marketing Case StudyStart Up of New Quick Lube Center
Midwest Dealer -2012
LaborSales Gross Margin
PartsSales Gross Margin
Sales RO
# CPRO's ELR HPRO
Total Gross
7 Months-11 $924,640 $707,888 77% $763,474 $307,215 40% $235 7,265 82.05 1.6 $1,015,103
7 Months-12 $802,587 $578,481 72% $733,768 $270,791 37% $193 8,001 80.34 1.3 $849,272
Variance -$122,053 -$129,407 -4 -$29,706 -$36,424 -3 -$42 736 -1.71 -0.3 -$165,831
Percentage -13% -18% -5% -4% -12% -8% -18% 10% -2% -19% -16%
4
736 New Customers Produced a Net Loss of $165,831
How Can You Prevent This From Happening
in Your Dealership?
Don Reed | DealerPro Training | CEO | [email protected]
Follow These 5 Simple Rules
Rule #1 – Define Your Marketing Plan Goals
Rule #2 – Evaluate Your Capacity for Growth
Rule #3 – Train Your Service Team
Rule #4 – Measure Performance Daily
Rule #5 – Prepare a Profit Improvement Plan
Don Reed | DealerPro Training | CEO | [email protected]
Rule #1: Define Your Marketing Goals
Increase Customer Pay Traffic
Improve Customer Retention
Raise CSI
Increase Sales
Build Net Profits
Don Reed | DealerPro Training | CEO | [email protected]
Rule #2- Evaluate Your Capacity for Growth
Shop Productivity (Total Hours Billed Divided by Total Hours Worked - Benchmark @ 120%) Current Shop Productivity % ____ Goal for Shop Productivity % ____
Number of Technicians Current Number _____ Need to Hire _____ Skill Level _____
Number of Service Bays _____ Number of Lifts _____ Need to Add _____
Don Reed | DealerPro Training | CEO | [email protected]
Rule #2- Evaluate Your Capacity for Growth
Customer Driven Processes Parking Spaces Service Reception
• Number of Service Advisors (12–15 customers per day) • 15 Minutes Per Customer• Service Greeters
Cashier Process• Back-up Plan• Service Advisor?
Waiting Room Capacity
Don Reed | DealerPro Training | CEO | [email protected]
Rule #3-Train Your Service Team
3 Customer Touch Points
1.Phone Calls
2.Walk-ins
3.Website
Don Reed | DealerPro Training | CEO | [email protected]
Shocking Facts About Service Writers
81% of all Customer Pay Labor Comes From the Phones
86% Try to Diagnose the Customer’s Concern on the Phone
81% Quote Mechanical Repair Prices Before They Know What’s Really Wrong
95% Quote Higher Prices Than Independent Shops, Allowing the Customer to Shop other Places
57% Do Not Offer the Customer an Appointment
The Aftermarket Does Just the Opposite
Don Reed | DealerPro Training | CEO | [email protected]
Rule #3 – Train Your Staff for Growth
1. Phone Calls – Incoming
• Appointment Coordinators/Call Center NOT Advisors = More Appointments!
• Do NOT Quote Prices for Mechanical Repairs over the phone
• Avoid Diagnosing Over the Phone
• Sell Appointments at 15 Minute Intervals
Don Reed | DealerPro Training | CEO | [email protected]
Rule #3 – Train Your Staff for Growth
2. Walk-ins – Drop offs & Waiters
• Never Say NO
• Can Do Versus Can’t Do
• Allow 20% of Schedule for Walk-ins & Up-Sells
• Must Have Capacity to Sell
Don Reed | DealerPro Training | CEO | [email protected]
Rule #3 – Train Your Staff for Growth
3. Website
• Interactive Online Maintenance Menus
• Current Service Specials
• Build Value in Your Dealership Services
• Online Appointment Scheduling
Don Reed | DealerPro Training | CEO | [email protected]
You Can’tYou Can’t
ManageManage
What you Don’t What you Don’t MeasureMeasure
Don Reed | DealerPro Training | CEO | [email protected]
Rule #4 – Measure Performance Daily # Of Incoming Calls
# Of Appointments
Service Advisor Daily Performance Tracking
Performance Board for Advisors
Technician Daily Performance Tracking
Performance Board for Technicians
Track Sales Results by VIN #
Marketing ROI Profit Pro Forma
Don Reed | DealerPro Training | CEO | [email protected]
Rule #4 – Measure Performance Daily
# Of Incoming Calls Going Up – Going Down – Stagnant Record Phone Shops for Accountability
# of Appointments Schedule 15 Minutes Apart by Advisor Sell 80% of Capacity Per Day Follow-up on All No Shows to Reschedule
Don Reed | DealerPro Training | CEO | [email protected]
Rule #4 – Measure Performance DailyService Advisor Performance
Average # RO’s per day, per Advisor Customer Pay & Warranty Customers @ 12 – 15 Internal RO’s – What’s Your Policy?
Service Advisor Performance Metrics Margins - Labor @ 75% & Parts at 42 – 45% Sales Per RO Hours Per RO Month to Date Sales and Travel Rate CSI Trends Closing Ratio – Upsells vs CPRO’s
Don Reed | DealerPro Training | CEO | [email protected]
Rule #4 – Measure Performance DailyTechnician Performance
Productivity
# of Hours Produced vs # of Hours Worked
# of Multi-Point Inspections Completed
# of Additional Service Requests
Total Gross Profit Produced MTD
# of RO’s – Customer Pay, Warranty & Internal
Don Reed | DealerPro Training | CEO | [email protected]
Marketing ROI Without Training
NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month
Plan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270%
Current
# CPRO's 500HPRO 1.3Increase/DecreaseELR $85 CP Labor Sales $55,250 Margin 75%CP Labor Gross $41,438 P/L Ratio 90%CP Parts Sales $49,725 Margin 40%CP Parts Gross $19,890 Total CP Gross $61,328Cost of Marketing Per MonthVariable Gross Profit $61,327Increase/Decrease n/aAnnualized 12 months
Plan A
5501.1-0.2$85
$51,425 75%
$38,569 90%
$46,283 40%
$18,513 $57,082$2,500 $54,582-$6,745
-$80,943
Don Reed | DealerPro Training | CEO | [email protected]
Marketing ROI With Training
NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month
Plan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270%
Plan B: RO count increases 10% to 550---HPRO remains the same produces ROI of + 145%
Current
# CPRO's 500HPRO 1.3Increase/DecreaseELR $85 CP Labor Sales $55,250 Margin 75%CP Labor Gross $41,438 P/L Ratio 90%CP Parts Sales $49,725 Margin 40%CP Parts Gross $19,890 Total CP Gross $61,328Cost of Marketing Per MonthVariable Gross Profit $61,327Increase/Decrease n/aAnnualized 12 months
Plan A
5501.1-0.2$85
$51,425 75%
$38,569 90%
$46,283 40%
$18,513 $57,082$2,500 $54,582-$6,745
-$80,943
Plan B
5501.3
$85
$60,775 75%
$45,581 90%
$54,698 40%
$21,879 $67,460 $2,500 $64,960$3,633
$43,599
Don Reed | DealerPro Training | CEO | [email protected]
Marketing ROI With Training & Profit Improvement Plan
NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per monthPlan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270%
Plan B: RO count increases 10% to 550---HPRO remains the same produces ROI of + 145%Plan C: RO count increases by 10% to 550--HPRO increases by .3 w/training, produces ROI of + 768%
Current
# CPRO's 500HPRO 1.3Increase/DecreaseELR $85 CP Labor Sales $55,250 Margin 75%CP Labor Gross $41,438 P/L Ratio 90%CP Parts Sales $49,725 Margin 40%CP Parts Gross $19,890 Total CP Gross $61,328Cost of Marketing Per MonthVariable Gross Profit Per Month $61,327Increase/Decrease Per Month n/aAnnualized Profit Improvement
Plan A
5501.1-0.2$85
$51,425 75%
$38,569 90%
$46,283 40%
$18,513 $57,082$2,500 $54,582-$6,745
-$80,943
Plan B
5501.3
$85
$60,775 75%
$45,581 90%
$54,698 40%
$21,879 $67,460 $2,500 $64,960$3,633
$43,599
Plan C
5501.60.3
$85 $74,800
75%$56,100
90%$67,320
40%$26,928 $83,028 $2,500 $80,528$19,201
$230,412
Don Reed | DealerPro Training | CEO | [email protected]
Rule # 5 Profit Improvement Plan
DefineDefine Your GoalsYour Goals
EvaluateEvaluate Your Capacity Your Capacity
TrainTrain Your Personnel Your Personnel
MeasureMeasure Performance Daily Performance Daily
TrackTrack Marketing ROI Marketing ROI
Contact Info
Full Name:
Company:
Job Title :
Email:
Don Reed
DealerPro Training
CEO
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