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!

Visit us at:
www.M5MS.com

M5 on Facebook

M5 on Twitter

Please take a moment to take our short, 3 question, survey.

Click here to start the survey.

 

One of the Best Customer Retention Tools is in Every... Glove Box?
by: Bruce Gamble

When providing on-site training for service advisors we always discuss “tools” they have available to assist in building customer retention and to expand their book of business.

The most obvious tools are items like multi-point vehicle inspections forms, service due reminder decals, and items found during the walk-around process. These and others help build rapport with each customer for that lasting relationship. One of the most important tools is the vehicle maintenance logbook.

The maintenance logbook has been in every owner’s manual packet since...well way before I started in the car business in the ‘60s. It was used by the owner to keep track of what work had been performed on their vehicle. The import owner was educated to follow the manufacturer requirements to a “T” and have the booklet stamped and signed off by dealership personnel. Staff that had recently worked at an import store before coming to a domestic dealership in most cases, educated domestic owners.

Today, in either dealership, I rarely find this logbook being utilized. When I ask why, I get some of the same statements:

  1. What’s that?
  2. We just use the computer.
  3. My customer doesn’t care.
  4. I don’t have enough time.
  5. They don’t use that anymore.
  6. I remember the logbook we used to use it.

Why is this book important to the owner?

  1. The logbook can be used simply to keep track of general maintenance completed on the vehicle.
  2. Updating the logbook is a free service provided by the dealership.
  3. To show that maintenance requirements have been completed.
  4. Reminder of which service is due next.
  5. Increase vehicle resale value.

Why is this book important to the advisor?

  1. To determine what services have been completed.
  2. To determine which required maintenance service is now due.
  3. Free service provided by you.
  4. To update services not performed at your dealership as a courtesy.
  5. Build relationship with the customer.

Let me relate a personal story. I met a father and his son to test-drive a 10 year old vehicle I owned. After they returned the father asked me if I could provide him with all the maintenance “paper work” on the vehicle. I told him I didn’t think I had all of them. He then offered me $1,000 less for the vehicle than what I was asking. I said, “Maybe this will do”. I went to the glove box and removed my vehicle maintenance logbook and showed him where all the required services had been signed and stamped by the local dealer. Do you think I got my $1,000 dollars back? You darn tootin’.

This is one of the most important customer retention tools still available for use today. When was the last time you updated your customer’s logbook?

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.

As a Service Manager in Northern California I thought I had seen everything until:

A couple came thru our service drive for an oil & coolant change, they informed my service advisor they would like to wait for the car. After a few minutes the gentleman asked if there was a restaurant in walking distance, as his wife was pregnant. The advisor pointed them to a restaurant directly across the street from the dealership.

Twenty minutes later the advisor received a call from a woman asking to speak to the gentleman who dropped off his car. We informed her that he went to a restaurant with his wife. The caller, to the advisor’s surprise, identified herself as THE WIFE. She said she would be right down and hung up the phone. She quickly showed up in the drive mad as hell. Before the advisor could alert the gentleman his wife was waiting for him, he had walked back into the drive. You can’t imagine the fight that took place in the drive. The wife wanted to know who the pregnant lady was and why she was there. The poor guy tried to come up with an answer but failed miserably. Things got so bad we had to call the police to quiet the three-some. We gave the gentleman his car free of charge; we just wanted him, his wife and the pregnant lady out of the service drive.

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.

www.m5ms.com | © 2009-2011 M5 Management Services, Inc. All rights reserved.