Process Management

Selling Extended Warranty Contracts

Planning For Success

During a recent dealership visit I asked a manager why she used a lateral support team system. The answer took me back when she said “That’s the way it’s always been done.” When thinking about her statement it came to me that many times we get stuck into processes or procedures that may need changed or altered. These changes are never acted on because many managers dislike change and operate in their comfort zone. Let’s look at some innovative ways to analyze what processes are right for your dealership and be innovators for change when needed. Some guidelines for process management must start with a clean slate. Have an open mind towards change and begin by interviewing at least twenty customers asking them how your company is doing. Then ask what you could do better and listen to their comments closely. It won’t be long and you will begin to see patterns on operations problems your company should deal with. An example of a common concern is why it takes so long an oil change at the dealership. A quick lube might take twenty minutes when an average dealership takes sixty. If your customer stated this believe me they are not alone. Your customers will quickly point out areas of opportunity for you to look at ways to improve your process. Back to the oil change example you might find it takes ten minutes to inform your customer an air filter is needed to be replaced. If the customer was asked as they were written up if they would like the air filter replaced if needed it takes four seconds. If this happens your Lube Technicians get backed up waiting for authorizations and the rest of your customers suffer longer waits. After you understand the concerns your company has ask yourself the following question “What process or procedure could we install to correct this concern in the future?” Think through different options then involve your staff for discussion. They will have some valuable input on operational issues and feel a strong team effort to address concerns. Ask your staff the same questions on ways we could improve customer service and your operations and listen to them as you did for your customers. After all they know more about day to day operational issues then most managers. You will find most staff members will rally behind change when they are involved. It is a common mistake to not involve them and just implement change. This practice creates stress and makes implementation harder to achieve. Successful Managers develop the team and praise input on a daily basis. They consistently look for ways to improve and manage the process involving the team every step of the way. Setting up process management step by step should be as follows. 1. Interview your customers for suggestions 2. Interview your staff for operational suggestions. 3. Determine the best process to implement that will correct concerns. 4. Discuss with the team for input and concerns. 5. Review progress and look for any needed changes. Process management should review existing systems for ways to improve also. Look at how your customers are received. How do you handle dispatch? Is there a system in place for customer follow up? Do you explain services performed to every customer before delivery? Are your advisors cashiers and bookers? What is the best way to make appointments? How is your dealership doing at customer retention? Do you have a customer shuttle service? If you think about it your company is full of processes that are never looked at because that is the way we have always done it. Now is the time to be creative and develop ways to further customer satisfaction and retention. Sales departments are challenged to develop gross and dealerships must rely on fixed operations to cover expenses. The fact is that even in good times fixed operations can carry the load for consistent profits allowing sales staff to be more aggressive. Fixed coverage is the percentage of expenses the fixed operations team covers in the dealership. Fixed coverage is more important to develop now then ever. Many dealerships will survive this period of slow new and used car sales only with prosperous fixed operations. We must understand the importance and determine to do our part to carry the added responsibility. Good process management will find additional profits that are especially needed now and in the future. It amazes me how we accept the fact that we lose most of our customers after the new car warranty expires. The truth is we have many advantages over the independent repair shops. These include special tools, Technician training, and factory parts support. If you think you lose your out of warranty customers due to cost you are wrong. If this were true we could only eat extra value meals for $3.99 The fact is we lose our customers to poor operational processes, inconvenient hours of operation, and lack of developing an understanding with them on what makes us better. We allow poor communication from our staff that makes us look like crooks. Develop processes that involve your customer showing them what you need to do for their vehicle. Ask if they want you to retain old parts. Seeing is believing, and selling needed repairs. Seeing is also retaining the customer. It is time for you to review all areas of your operation for process improvement potential. Keep an open mind and leave no stone unturned. Never forget the only reason we are here is to serve the customer. There is no hope of retaining them without us placing them first.

This month let’s look at ways to improve your customer service and satisfaction. I find that there is gold in managing your processes to take proper care of customers. Every thing we do should have a thought out process.