Lee Harkins' Thoughts

In our business, Customer Retention must be our ultimate goal! Your competition has been successful in stripping away at your business. These independent service providers are fighting for every customer they get! Your fight must include focusing on making your operation “different” than before! Remember, they disqualified your operation because of the way you were. Not changing anything and then thinking they will return is a poor strategy.

M5 can help you and your dealership develop tactical methods to advance your business. Call us for suggestions! It would be our pleasure to help.

Thank you,


Lee Harkins
President and CEO
M5™ Management Services, Inc.
leeharkins@m5ms.com

Please be sure to share your reply to the survey questions listed below. After supplying your response, notice how your operation compares to the others.

Also note, the questions will change from time to time, so be sure to check back!

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What We Have Here is a Failure to Communicate!
by: Jack Fitzpatrick

The economy may not be recovering at the speed we all would like to see, but it’s chugging along. For most of us, business is fair to midland, but by no means, good. However; things could change for the positive, almost overnight, if we would just focus on the most important ingredient of our business, the Customers.

In a nut shell, “Customer Satisfaction” is the constant driving force that customers use to determine who will be their vendor of choice. Not only in the car business, but in any purchase decision they make. Think about it. Do you go out of your way to spend money on a product or service where you feel you are not getting treated the way you should? Of course not! Why should you?

Why should this be any different in our Service department? We need to go out of our way to make sure we understand what the customer wants, and also relay back to the customer the fact that we understand, and can provide information that provides a practical solution to the issue at hand. What we are talking about here is communication!

  • Communication occurs when you transmit information to another person.
  • Successful communication occurs when the recipient of the message actually understands what you are trying to tell them and then provides feedback letting you know they understand the message. This will happen from Customer to Service writer, and also Service writer to Customer.

We are constantly communicating with each other, both with words and without, Verbal & Non-Verbal.

Because communication goes beyond the words we say, we often experience problems in our attempts to communicate effectively with others. For example; stand at your Service drive one morning, and observe the customer interaction from the time they walk through the door until they leave. You might be surprised. I hope pleasantly surprised, but, unfortunately, with the business the way it sits today, we might be on the wrong side of the fence. But that’s OK, as long as we recognize it and change for the better.

There are 3 basic ways we communicate with our customers: Verbally, Vocally, and Visually.

  • Verbally - Simple enough - the words we use to attempt communication
  • Vocalization – Not just the words we use, but how we use them (tone, inflection, pitch, volume)
  • Visualization - This is what the Customer “sees” while we are talking to them. This is by far the most powerful element of the 3 types of communication listed here.

In the “Believe it or Not” category there have been studies that have broken down the percentage of the three elements listed above, and its effect on communication. Verbal accounts for about 7% of communication, Vocal accounts for 38%, and low and behold, Visual accounts for up to 55% of how we communicate with our Customers. It’s pretty amazing when you sit and think about it.

But now let’s get back to our lane observation, and think about what we have learned from the above. Is Joe, the Service advisor, just hunting and pecking at his keyboard as the customer is telling the story of the “running rough condition” with his head down not even looking at the customer? If the answer is yes, there might be room for improvement in this area of communication at your store.

If we could improve this facet of your operation, the overall payout to your department can be increased Customer satisfaction which leads to Increased Customer Retention...which can lead to increased sales, and the ultimate goal to raise departmental net profit. Now isn’t that a novel idea?

At M5 Management Services, we specialize in helping you recognize the areas of opportunity you might have in your fixed operations, and then develop, with you, a plan for success based on proven best practices that we use on a daily basis in dealerships all across the country.

Skid Marks

Skid Marks is an ongoing article series that shares the lighter side of working in a service department. All the stories are true. Brand names and real names have been removed.

I had a shop with approximately 10 technicians, and one of them was appointed shop foreman. As a manager I was always a firm believer in the “Let your managers manage” theme. One day as I was sitting in my office which was right next to the door of the shop & heard the shop getting pretty loud & boisterous. It was about lunch time & I figure the guys were just getting hungry.

I stick my head out into the shop & yell to my shop foreman “...what's the all the ruckus”?

He assured me it was nothing and that he would handle it, and that was that. Good enough...back to work.

Fast forward to 5:30 that evening when a customer picked up her car, and cashed out and all was well and good. Two minutes later she returned.

I asked...

”Mrs. XXXX is everything Ok”?

“Oh yes, everything is fine” she said “You might want to give this back to whomever’s lunch this might be”

After she says that she hands over a ½ a cheeseburger that she found on her dashboard. My face turned as red as the ketchup on the burger!

I guess the ruckus I heard in the shop was the boys blowing off a little steam having a bit of a food fight. Mrs. Smith was a regular customer so recovery was fairly simple, but I addressed it the next day, and it was over and done with, but just goes to show you that sometimes you just have to laugh even when things don’t go exactly to plan.

If you have a funny story that you'd like to share with your peers in the industry please send them to newsletter@m5ms.com and we will include them in a future Skid Marks article. Please remember that we will remove ALL brand names and real names.

Survey Questions - Updated 02/09/11
by: Tim Harkins

Occasionally we will change the questions on our survey. When we do, we will share with you the overall results of the previous survey to see how your answers differed from your peers in the industry.

Our surveys are short and always completely anonymous, so we'd love to see your responses.

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Click here to see the results from the previous survey.

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