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It's A New Year: Time To Educate Your Customers PDF Print E-mail
Written by David Brown   
Friday, 04 January 2008 06:44

A common complaint I hear from service managers across the country concerns the loss of gravy, maintenance-type repairs, and rightfully so, since the automotive repair business generated millions of dollars in service labor, parts, and accessory revenue last year. The kicker is dealerships across the United States, both domestic and foreign, retained less than 20 percent of the service repair business. When you stop and think about it, that is sad-every one of those vehicles at one point in time was sold from a dealership just like yours, but 80 percent of them never come back!

The manufacturers offer little or no help concerning declining maintenance repairs. Each new model comes with a new maintenance schedule, which prolongs the period of time between fluid changes or eliminates them altogether. It is normal to hear todays customers say, I dont have to service my transmission, anti-freeze, or replace my platinum spark plugs for 100,000 miles. Too often, however, customers fail to read the fine print regarding towing, terrain conditions, and driving habits. Has your dealership staff been trained to educate your customers?

The independent shops do a great job persuading your customers they have the very best service. We have all heard Nobody beats Midas, nobody. The perception is that the dealership service department is too expensive, and the repairs take too long. We must change this perception one customer at a time. Statistics say that if a proper introduction is given to the new or used car buyer from sales to service regarding scheduled maintenance, 50 percent of the customers will return to the dealerships service department. If there is no introduction, less than five percent will return to the dealership for the first service visit.

Let us consider what constitutes a proper introduction. First, the training must begin in the sales department, not in the service department. When a car is sold, the new or existing customer should be:

1. Informed about when their new vehicle will require maintenance service.

2. Advised of the competitive prices your dealerships maintenance and service department offers and given a menu of the services available.

3. Advised that your dealership employs factory-trained technicians and has factory parts in stock.

4. Told that your dealership has access to the latest technology from the manufacturer.

5. Introduced to your service manager and staff.

6. Assisted in scheduling their first service at your dealership (many dealerships offer free or special pricing for a lube, oil, and filter to get the customer in for the first maintenance visit).

What kind of service introduction is given to your customers? How many used car buyers are properly introduced to your service staff? Which customers typically spend more money with the service department: The new or used car buyer? Are you targeting them?

We educate our customers on being completely satisfied based on CSI (customer satisfaction index) scores, and we should. The customer has so many choices on the survey. Think about it! A customer has to choose to be completely dissatisfied, dissatisfied, somewhat satisfied, satisfied, very satisfied, and completely satisfied. How many customers, unless they are educated, are completely satisfied? Why dont we educate our customers on preventative maintenance type repairs, as well?

The number one reason why the dealership service business leaves thousands of dollars on the table in unperformed maintenance repairs is the customer did not know the service was needed or recommended by the advisor. Microsoft giant, Bill Gates says, If you think the cost of training is expensive&hellip-try not educating your employees and let them wait on your valued customers. If every service consultant would offer 100 percent of his/her customers in the service lane needed maintenance, no service department in the United States could handle the business.

Get the results you deserve. Train your people to educate your customers, keep the business at your dealership where it belongs, and accelerate your service profits in 2008!

David Brown, president of Brown &- Associates consulting firm, has 36 years of experience in the automobile field, including 16 years in the GM parts division and the Chevrolet Motor division. If you have any questions or comments about this article, please call 866-578-8773or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .


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