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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Play Ball!
by: Jim Richter

Sometimes it’s easier for people to understand something if you can relate it to a game or activity that is commonly known or played; in this case I like to compare our Customer Service business to the game of Baseball since there are so many similarities. Don’t believe me? Then read on...

Balls and Strikes

In baseball a ‘ball’ is a pitch that misses the strike zone. In our business it is an unsuccessful attempt to get a customer to agree to perform an activity that we will get paid for. For example a Service Advisor attempts to interest a customer in a maintenance service when they come in on an oil change coupon, but doesn’t know enough about it to sell the job. No harm done to the customer, but no gain for us either.

A ‘strike’ would be an attempt to upsell far beyond what the customer needs, resulting in a resounding “NO!” Examples of this may be flushes that are not called for by the factory or are premature to the service schedule. Once again we get “NO!”, but now we have a customer who is fast losing confidence in us. We may get up to 3 opportunities to make this mistake, by which time the customer is “OUT!” meaning we’ve lost them for good.

Runs, Hits, and Errors

This is the fun part of baseball where all the action is, just as it is in the service drive. A well trained team will score runs every day and win the majority of their games, resulting in good Repair Order penetration as well as good Customer Retention. Think about it for a minute; how many baseball games are won by Home Runs? Baseball is a game of Singles, Doubles, and Triples as well as Walks and Home Runs, all of which result in Runs Batted In (RBI’s.) Most of the Home Run greats were also at the top of the list for Strike Outs.

Derek Jeter amassed his record 3,000 hits in the following breakdown (© Time, 25JUL11):

  • Singles 2,221 (74%)
  • Doubles 480 (16%)
  • Triples 62 ( 2%)
  • Home Runs 237 ( 8%)

So too we win by scoring runs with a combination of hits, very few of which are really Home Runs. Let’s take a look at some of them.

A ‘walk’ would be similar to the oil change that doesn’t do anything else. Hopefully they didn’t have a discount coupon for it, but at least we retained their business. Nothing lost, but not much gained either.

A ‘single’ would be akin to the oil change with the associated inspections due at that mileage; a minor service if you will. Today this is probably the most common opportunity and, while it is not very profitable, it does tie the customer to you and gets them in the habit of maintaining their vehicle by the factory standards.

A ‘double’ is more like the maintenance service along with some scheduled replacements such as wipers, and filters and unscheduled ones like tires and lights which are found when we do a proper walkaround with our customers. If we’ve done our job correctly early on, the sale here should be pretty simple and we’ll keep our customer with us and not at a competitor.

A ‘triple’ is where it all starts to pay off. We not only get our scheduled maintenance, but now there are some repairs to be done as well and the customer doesn’t question when that work will be done because we’ve earned their trust much earlier in the life cycle of the vehicle. By not getting greedy we are now in position to reap the benefits of our patience.

A ‘home run’ only happens about 10% of the time, and this is because most of the vehicles on the road today don’t need much in the way of major component services but every 105,000 miles, and with timing belts going away that will present even fewer opportunities in the future. If we “invent” services that customers don’t want or need, and pressure them into buying them, the odds of seeing them for triples and home runs are very low.

An ‘error’ is a mistake that we make handling a customer, and let’s be honest, we all make them occasionally. Rather than try to cover them up it’s best to own up and make it good with the customer. Sure they’ll be getting something extra from us, but hey they advanced a base and are still in our ballpark.

The long and the short of all this is that the Coach, you, needs to train the team to make all the plays, not just the spectacular ones. Professional baseball is played by experienced athletes who train regularly, and are skilled in their particular field. You don’t see newbies in the major leagues, that’s what the minor leagues are for. Employ quality people and retain them with coaching, training, and progressive payplans. Don’t make the mistake of just going for ‘the number’ every day; you won’t get there and it will probably lose a number of customers that you’ll need in the future. Be patient and invest in your customer base, it will pay off immensely.

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 days of my career when I was a DSPM for (car maker), I met with an angry customer in a shop on Long Island. The gearbox in his (car) had seized and the dealer had declined repairs because the sump was empty when it was towed in.

After meeting with the owner of the vehicle I learned that he owned a trucking company and did all of his service in the company shop, not at the dealership. He swore that his techs had “just changed the oil a few days ago” and there was no reason that the gearbox would be empty of oil since it had not been serviced. We put the car on a lift and drained 10 QUARTS of oil from the engine, not the 5 that it was supposed to have. It seems that they drained the gearbox and refilled the engine.

You would think that the story would have ended here, but it didn’t. The owner filed a claim in small claims court and the arbitrator found that the manufacturer should not have placed the two drain plugs so close together that even skilled techs would mistake one for another. We were forced to replace the gearbox!

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.

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