When Ray Kroc discovered the McDonald brothers in the 1950’s, he was amazed by their modern and mechanized restaurant that oozed efficiency. They had turned the burger and milkshake business into a science, and were pumping out orders much faster than similar establishments at that time. Kroc knew he had found a gem and wanted to expand this process-oriented restaurant across the nation. And he did.
Process is key in any business and dealerships are no different.
So what does this anecdote have to do with your dealership? McDonald’s restaurants are franchised businesses- just like over 16,700 automotive dealerships. Both industries need similar processes in place in order to run their operations effectively. This is the first blog in a three-part series that will cover a few areas where defined processes and attention to detail can transfer from restaurants to auto dealerships.
We’ll start with multi-point inspections. When Ray Kroc first began to expand the McDonald’s business model into franchises across the country, he understood that each restaurant must run as well as the last, and he paid very close attention to the details. The same goes for service techs performing multi-point inspections.
…dealerships lose more than half of their service customers within 3 years of ownership.
For example, if a service technician misses a worn belt, that customer may go somewhere else to have it repaired later on. So not only did you lose a customer, but you also have the liability risk of a missed maintenance issue. On average it costs around $600 per vehicle to gain a new customer, so dealerships can’t afford to keep losing over half of their service customers within 3 years of ownership.
You don’t have to be Ray Kroc to achieve success in your dealership; however, you can learn from his achievements and implement similar processes with help from your DMS.
Multi-point inspections help dealers grow revenue, gain trust and create a positive relationships with customers. However, many dealerships have moved away from multi-point inspections for several reasons.
To increase the profitability of your service drive, it’s time to re-introduce the multi-point inspection process to your technicians.
First, make sure you are using your DMS-provided electronic multi-point inspection. Secondly, as Ray Kroc once said, “None of us is as good as all of us,” meaning everyone needs to be on board with the implementation of new processes. Handheld tablets will allow techs to easily interact and engage with customers when reviewing inspections. These interactive conversations can lead to additional sales, creating a proven process and a reward-driven habit.
Below are some additional tips for creating a proven process in your service drive.
When customers are not waiting for their vehicle work to be completed the advisor should:
- Let the customer know that he or she will be following up with them in regards to the multi point inspection
- Call and review the findings of the multi point inspection with the customer.
- Provide a very detailed solution for the customer’s service needs.
- Present a low pressure pitch on the suggested fixes.
Attention to detail is important in over-the-phone reviews as well. Be sure to be transparent about the maintenance being addressed. This will allow the customer to feel well-informed of the service options that are suggested.
Make sure you are utilizing all the features of your automotive Dealer Management System:
- Send the report via text or email for the customer to review, and allow them to select which service items they want completed.
- Your internal DMS messaging system will retain the messages. This alleviates playing “phone tag” between missed calls to the customer or advisor.
- Allow the customer to pay online.
- Have their vehicle ready for pickup with a vehicle concierge.
These tips go hand-in-hand with our last blog series, Your Fixed Ops should be more like Amazon, that highlights how customers are now expecting most shopping experiences online.
By using all of your Dealer Management System’s tools, following a strict process, and playing close attention to detail, you set your service team up for success. Stay tuned for part 2 of our blog series on how you can be the Ray Kroc of reporting in your dealership.
For more information on Dominion’s DMS offerings, call 877.421.1040 and start implementing better processes today!READ MORE >