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

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

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Follow Up On Refused Work
by: Lee Harkins

I spoke with a number of people lately who told me their fixed operations have been going great. Congratulations!

But it's not the time to allow any of your staff to start believing everything is so wonderful that we can't get better. We can really grow our business if we keep everyone focused on the mission at hand.

The mission is improved profitability built on a foundation of customer retention.

Many stores have purchased customer-relationship management software to improve their communications with clients. One of the strongest tools incorporated into most of the CRM systems is a reminder/follow-up process for unsold work for something discovered during an inspection of the customer's vehicle.

A number of stores will set up operation codes in their dealership-management systems to generate a follow-up letter or post card sent to the customer as a reminder for reconsidering the dealership for the work.

This is a great opportunity for increased business. Too often, this work is forgotten. Let's discuss a few ways to improve the capturing of this work.

Follow-up:
A showroom customer looks at a car but doesn't buy right away. Do you forget about them? No. You expect the salesperson to follow-up. The same expectation should apply to your service department.

Type of Work:
Typically, potential work the dealership should follow up on relates to tires, batteries and brakes. Other work can be added, but these areas are some of the lower-hanging fruit.

Develop a Follow-up Report:
This report should run daily to provide a tool to follow up with these customers. A reasonable time frame should be established for each call.

In all red-code situations (requiring immediate attention), the service manager should call the customer the next day.

It should be a call of concern: The dealership's recommended additional work was not purchased, and the manager is calling to see what assistance they can offer.

If the customer still doesn't buy, send a letter and then have someone call the customer again after the letter is sent.

Yellow-code operations (not requiring immediate attention) should be reviewed and a reasonable time frame developed.

For tires and brakes, call two weeks after the service visit. Send a letter one week after the visit. As an option, include the price for the work. If tires are recommended, provide the customer with a good, better and best level of tires.

If your dealership offers a price match guarantee, it should be mentioned in the call or letter.

Should You Discount the Job?
I'm a big supporter of not discounting as part of the follow-up strategy. I don't think the first call should have any mention of a discount. Use this as a last resort only.

The commitment to making these calls is extremely important. This is work that the customer needs, and your staff knows it. You should make every effort to earn this work.

Too many dealerships are losing this work to other service providers without fighting for it. Get the gloves on and go after it!

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.

Back in the early 80's when I was a Parts Manager, I never had enough room so I had two storage bins in the bullpen in the back of the dealership. The dealer's son kept goats in the bullpen to keep the grass down. He had one male goat that had only one horn and was mean as hell. As time went on this one goat was all that was left, and by that time he would attack anyone that stepped foot in the bullpen. We had to distract him just to get into the bullpen so we could work without being attacked.

So one day the dealership gets sold and evidently nobody told the new dealer about this mean one horned goat. So the new dealer comes out back in his $1000 suit to look over the bullpen and of course the goat goes right for him. The goat rams him "you know where" and runs out of the bullpen. So after that you see about 5 people chasing this one horned goat down the road. It turned into a comedy of errors.

They did eventually catch the goat.

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.

Click here to start the new survey.

Click here to see the results from the previous survey.

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