If you are a baseball fan like I am, you have most likely watched a game or two on TV or have gone to the ballpark to root for your favorite team (St. Louis Cardinals for me). In doing so, you have undoubtedly noticed the constant display of Player Statistics at the bottom of your TV screen or boldly displayed on the huge electronic scoreboard. For each batter who comes to the plate we see their Batting Average, RBI’s (Runs batted in), # of Home Runs, OBP (On base percentage), and for pitchers we see their ERA (Earned run average), number of games won versus lost, number of starts, how many innings pitched, etc. We even see the speed of every single pitch he makes displayed on the screen. Why? Maybe it’s because we as fans want to see and evaluate the performance of each player. Maybe it’s because the team’s coaches want to see and evaluate their individual player’s performance as well as that of the team. Maybe it’s because the opposing team’s coaches and players want to see and evaluate the other players’ performance. Or, just maybe it’s all of the above. When performance is measured it improves.
Top Performers are identified as such through constant, on-going performance evaluations. If you can’t evaluate their performance then how can you identify their status as a Top Performer? All of the players inducted into the Baseball Hall of Fame do not have the same stats. They are all different yet they all excelled in the sport of baseball and became the best players in the game. As a Dealer, General Manager or department manager you can learn a lot from this analogy because unless you have the stats on every individual on your team you cannot possibly evaluate their performance. You can’t identify their strengths or their weaknesses. You can’t measure improvement or failure accurately or fairly. You don’t know who needs training and what they need trained on. Now let’s take this concept of “you can’t manage what you don’t measure” and look at it from the perspective of “Front End” versus “Back End.”
The vast majority of Dealers have processes in place to measure the performance of their sales team every single day so they can evaluate their performance. Here are some typical examples:
Finance & Insurance Department:
• Gross Profit Per Retail Unit-New & Used
• Finance Penetration as a percent of total vehicle deliveries
• Extended Service Contract Penetration as a percent of total vehicle deliveries
• GAP Penetration as a percent of total vehicle deliveries
• Lease Penetration as a percent of total vehicles financed
• Number of contracts pending loan approval
• Total F&I Gross Profit produced Month to Date
This is typically measured for each Finance Producer as well as the entire F&I department and is done so DAILY so that you can effectively identify the Top Performers from the Underachievers and act accordingly.
New & Used Sales Departments:
• Gross Per Retail Unit-New & Used
• Number of units sold Month to Date
• Number of “UPS” Month to Date
• Number of Demos Month to Date
• Number of Written Proposals Month to Date
• Closing Ratio of UPS to Closed deals
• Number of Appointments for the day
• Number of T.O’s
• Conduct a lot walk to view inventory additions/deletions
• Number of Phone UPS Month to Date
• Wholesale Profit/Loss Month to Date
• Internet Sales Leads Month to Date
• Number of Internet Sales closed Month to Date
• Results from advertising campaigns
• Used Vehicle Reconditioning Cost PUVR
Most of these measurements are calculated for each Salesperson and each Manager for the same reasons as listed above for the Finance Producers and they are done DAILY. Most sales departments start their day with a brief Sales Meeting to review many of the items listed above. These are the typical 23 “Front End” processes that separate the average Dealer from the Top Performing Dealer. How would you rate your Sales Department?
Okay, now let’s cross over the demarcation line to the “Back End” of your dealership and take a look at the Service & Parts Departments and identify the typical processes for evaluating their performance DAILY. I emphasize DAILY not monthly.
Parts Department:
• Wholesale Parts Sales
• Counter Retail Sales
• Repair Order Sales
• Gross Profit Margin
• Lost Sales
• Fill Rate
My experience has been that far too many Dealers, GM’s and Parts Managers measure all of the above for the department but too often fail to do the same for each parts employee. For example do you run a DAILY Exception Report for each employee to identify the “Unauthorized Discounts?” Do you review a Performance Report DAILY by employee to identify their performance on parts margin—Wholesale, Retail Repair orders and Retail counter? Do you compare your performance to the benchmarks in our industry? Do you measure dollar sales per employee? Do you measure transactions per employee? Remember, if you only measure the performance of the department, you can’t effectively identify the Top Performers from the Underachievers. You can’t identify their individual strengths and weaknesses.
Service Department:
• Technician’s Flat Rate Hours Produced
• Technician’s Clock Hours Worked
• Hours per Repair Order by Advisor
• Number of Repair Orders Month to Date—Retail-Warranty-Internal by Advisor
• Number of Appointments Scheduled
• # of Carryovers
• Shop Productivity
Again, based on my experience and that of my 20 Trainers working in dealerships all across the country, we can’t find very many Dealers, GM’s, Service Directors/Managers and Parts Managers who measure anything else. Those who do measure more invariably will produce more. Measure things like their Advisors’ Unauthorized Parts & Labor Discounts, Policy Adjustment, Parts Margin, Labor Margin, # of Up-sells, Closing Ratio of Up-sells, Un-sold Hours per day, # of Menu Presentations, Closing Ratio on Menus, # of Inspection presentations, etc.
For Technicians let’s measure how many completed Inspections per day, # of additional repairs sold from inspections, # of comebacks, HPRO and the number of RO’s.
To sum it up, I see most dealers measuring about 23 stats per day in their Sales Departments and only about 13 stats per day in Service & Parts. If you follow my recommendations listed above that number jumps to about 30 stats per day and the good news is it costs you absolutely nothing! Now take a pen and check off all of the stats you measure DAILY in your Sales Department and then check off all of the ones you measure DAILY in your Service & Parts Departments. How did you score—Top Performer or Underachiever? It’s all in the stats!
Don Reed—CEO DealerPro Training Solutions
Hater or Creator?
It has been said that “the world is divided into haters and creators.”
As a Creator, we must embrace the role because we find ourselves besieged by Haters.
So, how do we become Creators?
Creators are people who decide which direction to go in and take the first step.
This is where the wheat is separated from the chaff. Creators are different than others. Creators are "first steppers." They use this first step as an act of ….Faith.
Faith in themselves and the tools they possess. This Faith comes from the belief that the actions they take will result in a desirable outcome.
Creators then mold and pull and add and push and turn and twist to keep moving forward no matter the circumstances.
A Creator in the act of creating rarely questions the material given to him or her.
No doubt, they seek the best material, but in the end, they still accomplish what they set out to do with what they have.
Creators are people who others want to follow. It's a natural instinct all people have. When someone is in the act of creating and there is Leadership, Pride and a Sense of Accomplishment, everyone wants to be close to the person who is responsible.
Who wouldn't?
Haters.
Haters question everything and everybody. They have little belief in themselves and thereby want to control an outcome by proxy.
They know that if anything anyone is trying to accomplish turns out bad, they can stand on one side, pointing their finger while saying "I told you so, I told you so."
Haters would rather tell you and everyone in earshot why it is dangerous to do anything new, when they tried something new something bad happened to them, how many times they had something bad happen to them, how many times they have seen others have something bad happen to them, etc...
They use this to create a feeling of control over themselves and others while never realizing that they gave up control when they decided to stand and watch instead of Create and Take Action.
Haters are out to prove themselves right and everybody else is wrong. They spend more time deciding how the world should run if they were in charge and yet take no charge of their world. Life is what happens to them.
There is not one spark of Creation anywhere.
So, at the end of it all, will you be remembered as a Creator or a Hater?
As a Creator, we must embrace the role because we find ourselves besieged by Haters.
So, how do we become Creators?
Creators are people who decide which direction to go in and take the first step.
This is where the wheat is separated from the chaff. Creators are different than others. Creators are "first steppers." They use this first step as an act of ….Faith.
Faith in themselves and the tools they possess. This Faith comes from the belief that the actions they take will result in a desirable outcome.
Creators then mold and pull and add and push and turn and twist to keep moving forward no matter the circumstances.
A Creator in the act of creating rarely questions the material given to him or her.
No doubt, they seek the best material, but in the end, they still accomplish what they set out to do with what they have.
Creators are people who others want to follow. It's a natural instinct all people have. When someone is in the act of creating and there is Leadership, Pride and a Sense of Accomplishment, everyone wants to be close to the person who is responsible.
Who wouldn't?
Haters.
Haters question everything and everybody. They have little belief in themselves and thereby want to control an outcome by proxy.
They know that if anything anyone is trying to accomplish turns out bad, they can stand on one side, pointing their finger while saying "I told you so, I told you so."
Haters would rather tell you and everyone in earshot why it is dangerous to do anything new, when they tried something new something bad happened to them, how many times they had something bad happen to them, how many times they have seen others have something bad happen to them, etc...
They use this to create a feeling of control over themselves and others while never realizing that they gave up control when they decided to stand and watch instead of Create and Take Action.
Haters are out to prove themselves right and everybody else is wrong. They spend more time deciding how the world should run if they were in charge and yet take no charge of their world. Life is what happens to them.
There is not one spark of Creation anywhere.
So, at the end of it all, will you be remembered as a Creator or a Hater?
***Service Drive Manager and Service Advisors Needed Immediately (Ft. Worth)
SERVICE DRIVE MANAGER MUST HAVE 5+ YEARS EXPERIENCE AND ADVISORS MUST HAVE 2+ YEARS EXPERIENCE!
Allen Samuels Dodge/Hyundai is looking for qualified people to join our team. Our talented teams of professionals perform at high levels due to their efforts and proven processes that are performed 100% of the time.
Please send resume to rheywood@dealerprotraining.com or fax to 727-230-7502
We provide professional training by a Fixed Operations Specialist.
Allen Samuels offers unlimited earning potential, with an extremely generous compensation program in addition to industry leading benefits. Top performers deserve top pay. If You have the Desire and Drive, We have the Vehicle.
Job Summary:
Service Drive Manager is responsible for leading a team of advisors, perform set processes and making sure that their team performs the same processes with each and every customer.
The service advisor is responsible for the highest quality customer service and selling additional needed service to customers. The service advisor is the dealership's first-line customer-relations and service representative.
Job Responsibilities:
*Perform service drive processes 100% of time with every customer.
o Greet each customer in a prompt, courteous manner, let customers who are waiting in line know that they will be helped soon
o Communicate with service customers to determine the nature of the mechanical problems
o Secure agreement from customers before repairs; cover cost estimate; and approximate time when vehicle's work will be completed
o Obtain customer and vehicle data
o Maintain a dealership-prescribed standard for "hours per customer repair order written"
o Inspect all vehicles for bodywork, notify the customer if work is needed and provide an estimate for body shop work
o Advise customers on the care of their cars and the value of maintaining their vehicles in accordance with manufacture's specifications, using maintenance menus
o Keep a daily log of repair orders written, status as well as carryovers
o Handle minor customer complaints and misunderstandings
o Communicate the need for additional work when needed; explain the details to the customer, including the additional cost and time consideration and document properly on repair order
o Follow up progress of each repair order during the day, contact customers by telephone regarding changes in the estimate or time promised
o Handle telephone inquiries regarding work in process and appointments and return phone messages promptly
o Deliver vehicles to customers and answer any questions, review work performed and explain charges and coverage
o Interpret warranty information and policies to customers
o Advise customers of parts ordered and make an appointment to have them installed before customer leaves
o Assist the service manager as necessary
o Follow company safety procedures to avoid exposure to fumes, dirt, dust and harsh chemicals
o Demonstrates behaviors consistent with the Company's Vision, Mission, and Values in all interactions with customers, co-workers and suppliers
o Adheres to all company policies, procedures and safety standards
Required Experience
Qualifications:
o Must meet company's requirements for employment
*CSI skills a must with proven sales history
o Must have valid driver's license
o Ability to drive manual transmission vehicles
o Demonstrated customer service skills
o Previous service advisor experience 2 years +
o Ability to read and comprehend instructions and information
o Sales experience (preferred)
o Excellent verbal and written communication skills
o Professional appearance
*Must have valid Texas driver's license
Physical Requirements & Working Conditions:
o Exposure to inclement weather
o Ability to operate an automobile
o Prolonged periods of standing, stooping and bending
Allen Samuels Dodge/Hyundai is looking for qualified people to join our team. Our talented teams of professionals perform at high levels due to their efforts and proven processes that are performed 100% of the time.
Please send resume to rheywood@dealerprotraining.com or fax to 727-230-7502
We provide professional training by a Fixed Operations Specialist.
Allen Samuels offers unlimited earning potential, with an extremely generous compensation program in addition to industry leading benefits. Top performers deserve top pay. If You have the Desire and Drive, We have the Vehicle.
Job Summary:
Service Drive Manager is responsible for leading a team of advisors, perform set processes and making sure that their team performs the same processes with each and every customer.
The service advisor is responsible for the highest quality customer service and selling additional needed service to customers. The service advisor is the dealership's first-line customer-relations and service representative.
Job Responsibilities:
*Perform service drive processes 100% of time with every customer.
o Greet each customer in a prompt, courteous manner, let customers who are waiting in line know that they will be helped soon
o Communicate with service customers to determine the nature of the mechanical problems
o Secure agreement from customers before repairs; cover cost estimate; and approximate time when vehicle's work will be completed
o Obtain customer and vehicle data
o Maintain a dealership-prescribed standard for "hours per customer repair order written"
o Inspect all vehicles for bodywork, notify the customer if work is needed and provide an estimate for body shop work
o Advise customers on the care of their cars and the value of maintaining their vehicles in accordance with manufacture's specifications, using maintenance menus
o Keep a daily log of repair orders written, status as well as carryovers
o Handle minor customer complaints and misunderstandings
o Communicate the need for additional work when needed; explain the details to the customer, including the additional cost and time consideration and document properly on repair order
o Follow up progress of each repair order during the day, contact customers by telephone regarding changes in the estimate or time promised
o Handle telephone inquiries regarding work in process and appointments and return phone messages promptly
o Deliver vehicles to customers and answer any questions, review work performed and explain charges and coverage
o Interpret warranty information and policies to customers
o Advise customers of parts ordered and make an appointment to have them installed before customer leaves
o Assist the service manager as necessary
o Follow company safety procedures to avoid exposure to fumes, dirt, dust and harsh chemicals
o Demonstrates behaviors consistent with the Company's Vision, Mission, and Values in all interactions with customers, co-workers and suppliers
o Adheres to all company policies, procedures and safety standards
Required Experience
Qualifications:
o Must meet company's requirements for employment
*CSI skills a must with proven sales history
o Must have valid driver's license
o Ability to drive manual transmission vehicles
o Demonstrated customer service skills
o Previous service advisor experience 2 years +
o Ability to read and comprehend instructions and information
o Sales experience (preferred)
o Excellent verbal and written communication skills
o Professional appearance
*Must have valid Texas driver's license
Physical Requirements & Working Conditions:
o Exposure to inclement weather
o Ability to operate an automobile
o Prolonged periods of standing, stooping and bending
Optimism Abounds in Fixed Operations
Over the past couple of months I’ve conducted several workshops for NADA and the Detroit Auto Dealers Association. In attendance were Dealers, GM’s and Service Directors and I was amazed at the level of optimism displayed by all. Dealers are selling more cars and trucks. Retail service traffic is increasing and net profits are improving. Great news for us all!
Many dealers tell me that the dealership closings in their markets have resulted in more customers coming into their dealerships for both sales and service. This of course is a positive trend but my concern is this: “What are you going to do with the additional service customers when they show up?” Have you prepared your service team for these new opportunities? Do you have a customer friendly appointment process, on-line, on the phone and in person? Do you have the proper selling processes in place to professionally engage your customers? Once you get these new customers do you have the right processes in place to keep them coming back?
In my last article for ADM I addressed the Five Rules of Engagement for service customers whereby I outlined how a dealer must hold their service team accountable for following the Rules as outlined below:
• Rule #1: Offer an Appointment to 100% of the incoming service calls
• Rule #2: Conduct a Vehicle Walk-around with the customer
• Rule #3: Present a Maintenance Menu at the time of write up
• Rule #4: Complete a Vehicle Health Check with every RO
• Rule #5: Conduct an Active Delivery of the vehicle back to the customer
Interestingly enough, J.D. Powers conducted a recent study of new car dealers’ service departments measuring a dealer’s performance in following Rules 2 thru 5 and Worldwide Phone Pops evaluated the dealers performance with Rule #1 after shopping over 9000 dealerships nationwide. Let’s review the results of each of these.
Starting with Rule #1, Worldwide Phone Pops states that 57% of all Service Advisors do not ask the customer for an appointment. Why would a dealer allow that to happen? Why would you not hold everyone accountable to offering 100% of your service customers an appointment? (My dentist does!) To make matters worse, Phone Pops states that 38% of operators keep customers on hold too long causing hang ups. So the question is are you going to let this happen to all of the new opportunities that we are all so excited about? Would it be acceptable for your salespeople to only offer 57% of your phone ups an appointment to come into your dealership to test drive a new or used vehicle? Do your phone ups stay on hold for prolonged periods of time waiting for a salesperson to speak to them?
The survey from J.D. Powers shows that Rule #2 did not fare much better since only 53% of the Service Advisors conducted a walkaround. My guess is this means that the remaining 47% of Advisors performed the function of a clerk preferring to stay at their work station waiting for the customer to come to them. When you install a walkaround process you will discover that your customers like it and your CSI will most likely go up along with your sales and gross profits.
The walkaround is a perfect lead in to a Maintenance Menu presentation, Rule #3. Survey shows that only 29% of Service Advisors made recommendations for other maintenance or repairs. Even more interesting is the fact that 46% of the customers said YES to have additional work performed on their vehicle at the time of write up. That sounds like a Closing Ratio of 46%! How would you like that closing ratio on extended service contracts in your finance department? What happens when the 29% becomes 100%? Most likely your menus sales will triple!
Rule #4 is what I call the Vehicle Health Check or multi-point inspection. It’s really like giving your customer’s vehicle a “physical check up” to insure they are in fact driving a safe and reliable vehicle. Survey shows when an Advisor calls a customer and reviews the results of the Vehicle Health Check and makes recommendations for additional repairs or maintenance services that a whopping 56% of them said “YES”. Now we have a 56% closing Ratio which in my book is a great job! Are your Technicians inspecting 100% of the vehicles in your service department every single day? Are your Service Advisors reviewing the results of the inspection with every customer?
The Active Delivery, Rule #5, is one of the most important processes for building owner retention and increasing CSI. This process is quite simple and costs you absolutely nothing: Always retrieve the vehicle and bring it to the customer—never send the customer to find their vehicle. J.D. Powers states that 23% of Advisors had their customer wait alone while their vehicle was retrieved and 5% of Advisors waited with the customer while the vehicle was retrieved and 16% of Advisors escorted the customer to their vehicle. So, let’s be generous and give the Advisors a combined compliance ratio of 44%. By now I’m sure you see where I’m going with this scenario-----56% of the customers were simply told where the vehicle was. When you deliver a new or used vehicle to a customer do you tell them where it’s parked and tell them to have nice day finding it? Again, this is a very simple process that costs you absolutely nothing. Why not make it a rule starting today!
Yes, optimism abounds in fixed operations and that optimism will turn in to record sales, record profits and record CSI scores for those dealers who choose to make the Five Rules of Engagement company policy and then holds their service team accountable for 100% compliance. You might hear a few moans and groans from your underachievers but remember—you are not running a Democracy here!
Don Reed
CEO-DealerPro Training Solutions
Many dealers tell me that the dealership closings in their markets have resulted in more customers coming into their dealerships for both sales and service. This of course is a positive trend but my concern is this: “What are you going to do with the additional service customers when they show up?” Have you prepared your service team for these new opportunities? Do you have a customer friendly appointment process, on-line, on the phone and in person? Do you have the proper selling processes in place to professionally engage your customers? Once you get these new customers do you have the right processes in place to keep them coming back?
In my last article for ADM I addressed the Five Rules of Engagement for service customers whereby I outlined how a dealer must hold their service team accountable for following the Rules as outlined below:
• Rule #1: Offer an Appointment to 100% of the incoming service calls
• Rule #2: Conduct a Vehicle Walk-around with the customer
• Rule #3: Present a Maintenance Menu at the time of write up
• Rule #4: Complete a Vehicle Health Check with every RO
• Rule #5: Conduct an Active Delivery of the vehicle back to the customer
Interestingly enough, J.D. Powers conducted a recent study of new car dealers’ service departments measuring a dealer’s performance in following Rules 2 thru 5 and Worldwide Phone Pops evaluated the dealers performance with Rule #1 after shopping over 9000 dealerships nationwide. Let’s review the results of each of these.
Starting with Rule #1, Worldwide Phone Pops states that 57% of all Service Advisors do not ask the customer for an appointment. Why would a dealer allow that to happen? Why would you not hold everyone accountable to offering 100% of your service customers an appointment? (My dentist does!) To make matters worse, Phone Pops states that 38% of operators keep customers on hold too long causing hang ups. So the question is are you going to let this happen to all of the new opportunities that we are all so excited about? Would it be acceptable for your salespeople to only offer 57% of your phone ups an appointment to come into your dealership to test drive a new or used vehicle? Do your phone ups stay on hold for prolonged periods of time waiting for a salesperson to speak to them?
The survey from J.D. Powers shows that Rule #2 did not fare much better since only 53% of the Service Advisors conducted a walkaround. My guess is this means that the remaining 47% of Advisors performed the function of a clerk preferring to stay at their work station waiting for the customer to come to them. When you install a walkaround process you will discover that your customers like it and your CSI will most likely go up along with your sales and gross profits.
The walkaround is a perfect lead in to a Maintenance Menu presentation, Rule #3. Survey shows that only 29% of Service Advisors made recommendations for other maintenance or repairs. Even more interesting is the fact that 46% of the customers said YES to have additional work performed on their vehicle at the time of write up. That sounds like a Closing Ratio of 46%! How would you like that closing ratio on extended service contracts in your finance department? What happens when the 29% becomes 100%? Most likely your menus sales will triple!
Rule #4 is what I call the Vehicle Health Check or multi-point inspection. It’s really like giving your customer’s vehicle a “physical check up” to insure they are in fact driving a safe and reliable vehicle. Survey shows when an Advisor calls a customer and reviews the results of the Vehicle Health Check and makes recommendations for additional repairs or maintenance services that a whopping 56% of them said “YES”. Now we have a 56% closing Ratio which in my book is a great job! Are your Technicians inspecting 100% of the vehicles in your service department every single day? Are your Service Advisors reviewing the results of the inspection with every customer?
The Active Delivery, Rule #5, is one of the most important processes for building owner retention and increasing CSI. This process is quite simple and costs you absolutely nothing: Always retrieve the vehicle and bring it to the customer—never send the customer to find their vehicle. J.D. Powers states that 23% of Advisors had their customer wait alone while their vehicle was retrieved and 5% of Advisors waited with the customer while the vehicle was retrieved and 16% of Advisors escorted the customer to their vehicle. So, let’s be generous and give the Advisors a combined compliance ratio of 44%. By now I’m sure you see where I’m going with this scenario-----56% of the customers were simply told where the vehicle was. When you deliver a new or used vehicle to a customer do you tell them where it’s parked and tell them to have nice day finding it? Again, this is a very simple process that costs you absolutely nothing. Why not make it a rule starting today!
Yes, optimism abounds in fixed operations and that optimism will turn in to record sales, record profits and record CSI scores for those dealers who choose to make the Five Rules of Engagement company policy and then holds their service team accountable for 100% compliance. You might hear a few moans and groans from your underachievers but remember—you are not running a Democracy here!
Don Reed
CEO-DealerPro Training Solutions
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