M5™ Management Services, Inc. Newsletter
August 25, 2010

 
 

Lee Harkins' Thoughts

Thank you for the support and belief in our company! Because of you, our clients, we are able to expand our team and have Jack Fitzpatrick on board. Jack has a wealth of experience working with dealerships across the country in all areas of fixed operations. If he can be of assistance to you, or your staff, please do not hesitate to call him.

Lee Harkins


President and CEO
M5 Management Services, Inc.

 
 
 

 
 

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Jack Fitzpatrick joins M5™ Management Services, Inc.
by: Tim Harkins

Jack has over 20 years of automotive industry experience, with the majority of that experience in the Service department. While Jack started his career in the sales department at a Lincoln Mercury Mazda store in New York, he quickly gravitated toward the service department and in no time was one of the top performing Service Advisors. Just as in the sales department, Jack was a leader in customer satisfaction and generating gross for the company.

Then Jack was presented with the opportunity to move into a Hyundai store where he spent close to ten years advancing over time from Assistant Service Manager to the Parts and Service Director of two Hyundai locations.

While in Hyundai retail, Jack was selected to the Service Manager’s advisory council for the Eastern region and was always rated among the top performers in retail labor sales and customer satisfaction for Hyundai’s Eastern region.

Jack then had the chance to start consulting directly with Hyundai dealers on the east coast that struggled with customer satisfaction and proper retail service process. Jack has a passion for customer service and Service Advisor training. “People buy from who they like”, Jack says. “Isn’t that what life is all about, building relationships?”

Jack’s unique combination of Retail and Fixed Operations consulting experience lends credibility to the “best practices” that he implements at the service department level, since it comes from real world, in-dealership experience.

Jack was born and raised in New York, but now resides in Connecticut with his wife Melodie and son’s Billy and Connor. He enjoys fantasy football and is a big New York sports fan.

Welcome to M5, Jack, from all the Team! Lee, Susan, Tim, Dave, Jim, Bruce, and Steve!

 
 
 

 
 

The Perception of Conveneience
by: Lee Harkins

Convenience drives our lives! We are a time-hungry society; we need and demand more – period!

As consumers, we are no different than our customers. We demand convenience in what we do, as well. We have developed a dependence on it everywhere we turn. It never ceases to amaze me how the employees of many of your dealerships hold the customer in contempt because they are in a hurry, but are the first to complain if they don’t get their way in a retail setting. What are we not getting? I believe it’s very simple, we have double standards. One, for how we think the customer should behave and, the other, how the customer does behave. Who gives a flip how we think the customer should behave? They demand we perform in accordance to their wants, or they leave. It’s that simple!

As consumers, we all set a level of expectation of how long something should take. In some cases, our expectation is manipulated to believe it should be for a given time. Oil changes are a great example. The quick oil change industry has done a grand job in selling a perception of convenience. Words such as: express, quick, 10 minutes, laser, jiffy, and EZ have been used in the names of these businesses to sell a perception to the consumer. Obviously, it’s to say, “We are quick”.

Over time, convenience will change. What was once convenient is no longer compared with the new product. A great example is the cell phone; remember your first cell phone? The first one I remember seeing was hard-wired in the car. The next generation was the bag phone. That was more convenient than the first. Then we had the brick phones and then this innovative thing called the flip phone. They just keep getting smaller and smaller. Now look at how convenient it is to carry one. Why? Because we, the consumers, demanded it!

Now, let’s apply all this to your parts and service department. As a group, we are perceived to be in-convenient to the consumer. We can improve our perceived value by just a few little things:

Customer Promise Times

Every customer you serve will ask your advisor’s three questions at the time of write-up. One of which is, “when will my car be done?” It is not an option for the advisors to answer this question, it’s a requirement! If an expectation is not established by the advisor, the customer will develop what they think is a reasonable time based on their emotions and what little knowledge they may have on the needed repairs. The expectation is set in their minds unless we provide a time, or at the very least an agreed to time, for an update. Your entire service and parts operation should be structured to focus on giving the customer a time for an update or completion of repairs – period! Use yourself as the motivation. Let me take your car for two days; give you evasive answers when you ask me when your car will be done. Let’s see how you like it! Chances are, you will not return.

Massive amounts of money have been spent to teach the service advisors how to sell. For the most part, I believe, we have been successful in running our customers off. It’s not what the customer wants. The repair completed in a convenient amount of time is their most important desire. Couple together evasive answers with pressure to buy, and you have customer defection.

Keeping the Customer Up-Dated

Your advisors can supply accurate promise times maybe 80% of the time. The other 20% is simply providing accurate up-dates. Keeping the customer “in the loop” is important to long-term retention. Your customers, I believe, are somewhat forgiving, if they know the repair process is involved and complicated. The advisors must set an expectation for the customer and manage it aggressively.

Write-up Process

The customer wants to be written up at their car, or at the least, have time at the car where they can say, (pointing to a component) “That’s what’s making the noise, that thing right there”.

I ask advisors why they do this and almost 100% reply, “Because that’s where I’m most comfortable, I can sell better there”. In some stores you don’t have a write-up lane and the advisors work behind a desk. They need to get out from behind the desk and walk to the car. Having the porter check the car in doesn’t count. Don’t you think the customer may buy more business if they are comfortable in the setting?

Quick Service

This is a big one! The most significant advantage to your dealership is not the added service and parts sales. (It’s nice, don’t get me wrong.) It’s the additional traffic pulling on your lot! Changing your brand from traditional dealership service to a new “convenient-focused, while you wait” type of service operation will drive new and old customers in. After all, we are in the car selling business first and foremost and fixed operations is a support function of the sales departments. Having your customers consider you first for their maintenance and repair needs is the ultimate goal from a retailing perspective. Drive the habit in their minds you are the solution to their automotive needs!

An option for a quick service or an express lane type operation in your dealership varies from stand-alone facilities, integrated stand alone, to fully integrated. Having an identity that sells convenience is a driver of your success in this arena. Development of a convenient brand can be huge improvement.

Convenience is the number one purchase intent behind the need for repair or maintenance. Conveying this every time we are given the opportunity is important in maintaining or growing our business. Rejuvenating the focus of your staff on selling convenience can be your game changer!

 
 
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