Habits of Highly Effective Service Advisors

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1 Habits of Highly Effective Service Advisors With Ray Branch President of KEEPS Corp Moderated by Michael Bowers Editorial Director, DealersEdge Presented by DealersEdge

2 Vernon R. Branch ("Ray") has over 30 years of professional automotive industry experience. Ray is President and CEO of KEEPS Corporation located in Raleigh, NC. KEEPS is an acronym for "Key Employee Evaluation and Planning Systems". The KEEPS Corporation is a fixed operations business management and marketing consulting and training company. Ray is the founder of The KEEPS Corporation and also the inventor, designer and builder of the highly acclaimed ROAMS program. This program is the Automotive Industry's new Fixed Operations standard for measuring sales and net profit improvement performance in retail dealership service and parts departments across the country. ROAMS is a copyrighted and trademarked product. Ray started in the automotive business, as a lot of technical people do, pumping gas and changing oil in a full service station while going to school. His automotive experience includes: Technician, Professional High Performance Engine Designer & Builder, Service Writer, Service Manager, Parts & Service Director, Factory DSM, Professional Seminar Designer & Trainer, Vice-President of Fixed Operations for an 11 Dealership Group, National Director of Fixed Operations for the Eleventh Largest Dealership Consolidator in the USA, Service Field Consultant for JM&A Group, and now Founder/Inventor/CEO for The KEEPS Corporation. Ray can be reached by phone at (800) or by at vrbranch@aol.com.

3 Skills & Habits Of Highly Effective Service Advisors What Does a Highly Effective Service Advisor Look, Sound and Act Like What Are the Real Skills Needed for Success What Are the Supporting Habits Needed for Success What Tools Does the Real Pro Use Daily You Can Never Be Average to Succeed In This Job Average is the BEST of the WORST! By: Ray Branch The Keeps Corporation

4 Skill Sets & Supporting Habits Topics For Discussion 1) Highly Polished People Skills (17 Point Checklist Included) 2) Excellent Math & Written Communication Skills 3) Start Building Evidence Manual From Day One 4) Self Directed Accountability NO EXCUSES 5) Fine Tuned NO PRESSURE Selling Skills 6) Integrity 7) Your Personal Appearance & Hygiene (BIGGIE) 8) Get Excited About An 85% to 100% Commission Pay Plan 9) You Must Be Organized to a Fault

5 Skill Sets & Supporting Habits Topics For Discussion - Continued 10) Insists on Writing Up Customers At the Car (walk around expert) 11) Must Be Skilled at Using All Customer Communication Channels 12) You Must Be Able To Apply Customer Relationship Marketing Techniques as second nature 13) Have an 85% Capture Rate 14) The Performance Numbers you Must Be Able to Produce 15) Must Know How To Build Tech Relationships 16) Need The Right Temperament To Survive Daily Road Blocks And Speed Bumps

6 Polished People Skills 1) If You Can t Project Empathy With Feelings, Customers Will Never Trust You. Workshops/Training Can Help Your Personality & Attitude Make Up a Very Large Part of This Critical Skill Set People Skills Check List (Next Page) 2) MUST Genuinely Love Serving Other People 3) Your Job is Not to Be A Pretender Your CSI Scores Will Reflect the TRUE You! 4) Technical Skills vs. People Skills Discussion How Much? How Little? Any At All?

7 People Skills Check List You Must Truly Love Helping People Pretenders Have High Stress Levels (Don t Last Long) Must Have A Tiger Woods Smile! Be Polite, Courteous, Friendly High Empathy Level For People Customer Caring Temperament Not Talking Tech. Language To Customers Never Give Directions Always Take The Customer To Where They Need To Go Never Cross Arms When Listening To Customers Make Lots of Eye Contact

8 People Skills Check List Continued Never Walk Within 4 Ft. of A Customer Without Saying Hi - May I Help You? Voice Inflection Learn To Slow Down Talk NO DEEP SIGH's Near Customers Ask lots of Questions Critical For Tech Relationships Also No Short Fuses Or Get Out of This Business NOW! If You Are In It Just For The Money (You Are Headed For A Heart Attack!) Note : Personal Appearance & Hygiene Section Will Round Out This Check List

9 Math and Written Communication Skills 1) Use A Secondary Testing Process Don t Trust What You Think 2) This Skill Set Can Run As High As 15% of The Job Success Factor 3) Please don t guess TEST All Types Of Web Based Testing Available Practice Talking/Writing With As Few Words As Possible Don t Forget Typing Skills

10 Building An Evidence Manual 1) Repair Order Copies of BIG Unnecessary Repair Jobs Where Maintenance Could Have Prevented the Repair 2) Articles On Maintenance To Answer Why Do it Questions (Internet Has Millions) 3) Photos of Good Verses Bad Parts Timing Belts, Brake Pads Etc 4) Keep Bad/Broken Part Examples in A Box At Work Area

11 Self Directed Accountability 1) Develop Career Goals 2) Have A Daily Plan To Succeed 3) Only Thing Missing The Shop Specifics 4) You Must Fill In The Details Quickly 5) A Burning Desire To Succeed You can see it in Your eyes and feel it in Your handshake 6) Somewhere During the First Interview Ask the Question Do You Have a Job Description? 7) Set Sales Goals Higher Than You Usually Would 8) You Must Never Stop Studying & Getting Ready For Higher Performance Levels. There Is Always Someone Looking to Be Your Replacement.

12 NO PRESSURE Selling Skills 1) Stop Using a variable selling system 2) YOU must change the variable to a consistent rock solid selling system 3) Must be in writing 4) A suggested selling system See Next Page - EXAMPLE 5) Use a controlled empathy level Be Careful Here 6) Use SHOW & SELL not TELL & SELL 7) Find & Develop Your Own selling props More Evidence Manual Air Filter Belts Engine drive belts Tires Fluid Samples 8) Use the Customer Education selling technique In depth discussion 9) Zero prejudging of customers willingness or ability to purchase Maintenance services and repairs 10) Insist on doing walk around write ups

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17 CSI And Your Personal Income All Wrapped Up In One Powerful Process 100% Of The Time The Messenger Technique Not Just When You Feel Like It Each Car Is Driven Under Unique Circumstances Each Customer Has the Right To Know Not Your Job To Decide Who Gets Your Message This Technique Alone Will Put You In The Top 10% of Service Advisors In The Country

18 Integrity 1) Will it pass the MOM Test? Very Important Discussion

19 Your Personal Appearance & Hygiene 1) Let s get tough here 2) Invest in clothes 3) Hair cut every other week needed or not! 4) NEVER eat in your work area 5) Mouthwash always close by 6) Clean fingernails 7) I could go on & on you know exactly where I am coming from here!! NOTE: It almost seems by instinct you know you are an actor on stage each day ** It is such a privilege to watch these pro s perform on stage!! ( Ray Branch )

20 Get Excited About 80% to 100% Commission Pay Plans 1) You want no part of CAPPED pay plans 2) Why a 100% commission pay plan is not a 100% commission pay plan 3) Go Into service managers office one week prior to end of month to find out what the Spiffs for next month will be 4) Behavioral Focused pay plans will take your powerful skill set and habits to the next level

21 Organized To A Fault 1) If service department does not have a daily route sheet system build your own See Next Page - EXAMPLE 2) You need at least 2 cell phones One for Customers One for Personal 3) Keeps daily notebook on MUST DOs Franklin planner many others

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23 Insist On Writing Up Customers At The Car 1) Become a Walk Around Expert 2) You Are Now In The Top 2 or 3% Of Service Advisors In The Country 3) Don t Skip This Technique It s Worth Its Weight In Gold!!

24 Become Skilled at Using All Customer Communication Channels 1) Remember Your 85% Collection Rate 2) Instant Messaging 3) Text Messaging Quickly becoming main stream customer contact of choice WOW! Really speeds up repair approval process 4) Use all possible channels to speed up amount of work done in a day 5) Always Cell, Home & Office Numbers!

25 Apply Customer Relationship Marketing Techniques As Second Nature 1) Greets customers by name 2) Use the RO Pre-write function in DMS 2) Reviews history file for each customer appointment for next day 3) Reviews customer history file with EACH customer EACH Visit 100% of the time 4) Actively delivers 100% of all customers 5) Sends Thank you s/text messages/cards to all customers 6) Fills in slow periods with blasts to customers who may need service

26 85% Capture Rate 1) View capture rate as a must, not because Boss says so 2) Use as productivity and customer relationship development tool 3) A little extra work You can blast a large group of your customers for specials or for filling in no-show appointments

27 The Performance Numbers You Must Deliver 1) You must have high if not the highest CSI scores Know how to ASK for survey to be sent in The trust and confidence from your customers will be off the Richter scale 2) Very high effective labor rates You very seldom discount beyond your coupon programs 3) 35% or less one line Customer Pay ROs 4) 65% or greater closing ratio on Menu Selling Opps 5) 75% or greater usage of Multi Point Inspections 6) You Should be $15.00 to $35.00 in labor sales above other Service Advisors per Customer Pay RO 7) Share Value at shop standard (writing large quantities of Ro s is Not the answer) 8) Just to name a few - See Next Page Example

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29 How To Build Technician Relationships 1) Trust Until Proven Otherwise 2) Learn to Write A Technical Facts Ro 3) Ask For Help Understanding Complex Systems 4) Manage Work Mix 5) Quick Call Back for Upsell s 6) Lunch (enough said) 7) Show Respect 8) *** Let Them Observe Your Sales Presentations & Ask For Feed Back (Wow. this really works)

30 Tips On How To Survive Roadblocks & Speed Bumps 1) When service manager over promises and under delivers 2) Service manager sets unbelievable and unachievable goals 3) They think you are so good you need No Training 4) Service department has no job description 5) You have to sell from outdated service menus 6) They provide poor/inconsistent leadership 7) They have no performance review process 8) There is no performance measuring process to give you daily motivational feedback 9) There is Lots of low accountability for other employees 10) There is no attention (or just lip service) to speed bumps and road blocks through out daily operations NOTE: All Service managers can use a little dose of Miracle Grow every once in a while! Be Patient Work With Them THEY ARE WORTH IT

31 Service Advisor WalkAround With Tyler Robbins President of Automotive Training International Moderated by Michael Causey Editor, DealersEdge Presented by DealersEdge

32 Tyler Robbins - President, ATi Based in Canada, Tyler is a charismatic speaker with the proficiency to interface with North America s top Manufacturer Executives, Retail Dealers and Dealership staff from General Managers to Lot Attendants with the utmost respect. With a 20+ year Automotive career thus far, Tyler served as Dealer Principal of a high volume Import Dealership, and in domestic dealerships throughout his career served in the capacities of; General Sales Manager, Fixed Operations Director, Service Manager, Sales Manager, Body Shop Manager, Service Advisor, Appointment Coordinator, Sales & Leasing Consultant and Fleet Manager. Over the past 5 years, as a Professional Facilitator, Consultant & Trainer, Tyler has delivered both, formal workshops and in-dealer Implementation & Training for numerous Manufacturers and a number of North America s largest Dealer Groups and Dealers. He has also been a special guest motivational teacher/speaker at Manufacturer Conventions & National Meetings. Although his knowledge is vast, his specialty is Fixed Operations; specifically, Service Management Development, Accessory Advantage, service financial analysis and dispatching methods. He is often quoted in Auto Industry Publications, writes a monthly article for Fixed Ops Magazine and is a regular contributor to several other Industry publications. As President of Automotive Training International, ATi has grown significantly and Tyler has become one of the most sought after Automotive Facilitators in North America, for both speaking engagements and In-dealership Consultations and Training.

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43 THE SERVICE WALK- AROUND

44 WHY SERVICE WALK-AROUNDS Customer Satisfaction Increased Sales Increased Retention

45 SERVICE WALK-AROUNDS 1. Greet Customer at Vehicle HOW-TO 2. Verify Appointment and acknowledge timeliness 3. Verify Primary Concern & Customer Contact Information utilizing Pre-RO 4. Determine if any additional concerns have surfaced since making the appointment 5. Invite Customer into the Drive (out of their vehicle) 6. Gain permission from Customer to get in their vehicle to obtain mileage 7. While in vehicle; Verbally announce the mileage to the Customer Release the hood Cut the wheels to the right Visually check for anything to identify for the Customer 8. Upon exiting the vehicle: Provide customer with a copy of the maintenance menu, opening to and identifying the appropriate mileage interval, due at this time 9. Briefly overview the Walk-Around procedure to the customer, inviting them to participate with you

46 SERVICE WALKAROUNDS HOW-TO 10. Starting at the left front wheel, walking around the vehicle, with the customer, check each tire as well as the vehicle in general for any obvious concerns that should be addressed, ending at the hood. (Note: This is NOT to be a Damage Control Walk-Around) 11. While under the hood: Present customer with Complimentary Inspection Sheet Present any specials/features/accessory promotional items Identify any under-hood obvious concerns and ask for the sale Any identified concerns from the walk-around ask for the sale Ask for the sale of the recommended maintenance 12. Overview Repair Order from scratch for verification of all concerns, both those from the appointment and those added operations from the walk-around. 13. Determine status update timing, estimated completion time and alternative transportation requirements 14. Escort the Customer to the waiting lounge/loaner vehicle/etc, assisting the Customer with the transfer of any items from one vehicle to the other

47 SERVICE WALK-AROUNDS Walk-Around Tools The following items, at a minimum, are to be assembled together in a Pre-Service Package. This Pre-Service Package is utilized by the Service Consultant during the Write Up/Reception Process. 1. Pre-Written Repair Order (Pre-RO) 2. Vehicle History 3. Manufacturer Warranty/Recall Printout 4. Service Maintenance Menu 5. Complimentary Inspection 6. Special Order Parts Order Slip/Receipt 7. Service Consultant Business Card OTHER Pre-Service Package Options o o o Accessory Brochure/Menu Service Special(s) Extended Service Contract Brochures New/Used Vehicle Flyers Detailing Brochure/Menu Service Consultant/Technician Biographies Informational Handouts What to do in the event of an accident What your Check Engine Light really means The importance of Wheel Alignments

48 SERVICE WALKAROUNDS DO s & DON T s DO DON T

49 SERVICE WALKAROUNDS WHEN TO IMPLEMENT Once you ve established Service-By-Appointment as the primary process within your Service Operation. Once you ve established how you will handle the Non-Appointment Customers at Service arrival Once you are prepared to honor the Appointment/Reservation process, and not simply handle Customers in the order in which they arrive Once you ve worked through the required contents within your Pre-Service Package

50 ADDITIONAL RESOURCES

51 The Service Walk-Around By: Tyler Robbins Do it right and the rewards are endless Do it wrong and watch your business erode away! The retail industry has, for the most part, begun a major transformation in the process of handling customers at the time of Service Write-up. The Service Walk-Around, certainly amongst manufacturers and dealers has become an almost inevitable topic of discussion. It is most certainly, one thing I get asked about a lot and frankly, is one of the primary focuses of my business. I have been invited to speak to various industry functions and groups, host Tele-Seminars and deliver one and two day workshops on this very topic, so it was about time; I expressed my two cents worth in this format too. Amazingly enough, most of the questions I am asked are about the how, although, I would say that without question, the biggest challenge with the Service Walk-Around is not in the how, but in a thorough understanding of the why. When I ask dealers why they want to do Walk-Arounds, I hear things like because that s the way the industry is going, right? or because I m spending X amount of dollars per month in policy expenses because customers are accusing us of damaging their vehicles, and we have no recourse even if we didn t. Realistically though, if controlling your policy expense is your primary reason for performing Service Walk-Arounds, don t bother, your customer base is eroding on you fast enough, you don t need to make it worse by pointing out to your customers what is wrong with their vehicle. Frankly, the Cover your butt Walk-Around serves no one except the dealership, and it does so by alienating your customers, and putting your service personnel in a WE vs. THEY environment. Think about it from the customers perspective: You arrive to your Service Facility to have your vehicle maintained, and the Service Person asks you to go-out to the vehicle with them to check for damage. So you say, fine, walk back to your vehicle and spend the next 3-4 minutes walking around the vehicle while the person who is supposed to be Advising you of needed services or Consulting you on your maintenance points out all of the dents, scratches, etc. Gee doesn t that sound like fun!

52 Tell me though, in this scenario, which is unfortunately played out thousands of times every single day, what is the benefit of this exercise for the customer? You re right THERE ISN T ANY! Now you can say to me, but Tyler, Although there is no benefit to the customer, I am saving a ton in policy expenses. I will concede that you probably are saving policy expenses, but at what cost? Unfortunately in this industry, more so than most other industries, we structure all of our policies, procedures and processes based not on what is best for business, but on the exceptions that pop up. Realistically, of 100 customers who come into your service department with scratches, dings, etc on their vehicles, how many will actually accuse you of having made those? 1? 2? So, rather than just dealing with those 1 or 2 exceptions, your prepared to implement a process to alienate the other 98 or 99 out of 100 customers. Does that make sense? I know when I do business with anyone, I want to be appreciated for having chosen them to do business with, certainly not to be considered a potential expense to them. In fact, as a customer, if I were put through the Damage-Control Walk-Around, I would simply leave and choose to do business with some one else who demonstrates that I am important to them because I do business with them, not a potential liability to them. As you can probably sense, we are talking about Why we should do them, and a little of what not to do. So, if we are not going to perform these Walk-Arounds to protect ourselves why are we going to do them? We will worry about the how later. Naturally, with the Why question - we can assume the standard buzz-phrases Increases in Labor Sales, Customer Satisfaction and Customer Retention, but before you discount them on their name alone, let s explore these one at a time. Increased Labor Sales When you approach the Service Walk-Around, with the intention to provide the customer with a more participative rather than witness type of Service experience, the dynamic of a Service visit changes dramatically. Consider this from the traditional, stand behind a counter or podium perspective. As a customer who doesn t receive a Walk-Around essentially, the customer is watching you type. To make matters worse, we ask the customer their mileage and when they don t know, we guess, writing on the Repair Order (or whatever number we guess at). Tell me, how do you make a competent and convincing maintenance presentation, which is based on mileage, when you don t confidently know exactly what it is? Take it a step further, do you think the customer will be more or less apt to buy your menu when you re guessing?

53 If you and the customer go to the vehicle together, there is no margin of error, there are no misunderstandings and your maintenance presentation is considered more relevant. Since you and the customer are already at the vehicle, what if you quickly walked around looking for any obvious concerns, so that the customer could take care of everything on this visit? What if you even popped the hood and you and your customer, at the same time, discovered an oil leak or a heavily corroded battery? Would the customer ask you to take care of it? Yeah, they probably would, and now you aren t even selling are you? The customer is increasing the labor sales all by themselves. Customer Satisfaction The benefits of the Walk-Around from Customers satisfaction perspective really comes down to understanding what satisfies customers. Satisfaction is not about Loaner cars or premium coffees in the lounge, or your hours of operation or any other amenity for that matter. To satisfy a customer, very simply, you have to exceed their expectations. Now, I realize that customers have to expect loaner cars, etc, but of the Service Write Up experience, their expectations are very low. Realistically, they expect to stand there, never will you look at them, you stare at the computer screen typing as they speak, and they very simply watch. When you think about they are not a participant to the write up, as mentioned, they are really just a witness to it. Imagine if they actually were made an active participant in the write up experience would that exceed their expectation? Ask yourself this question too Is the witness experience one that they can receive at other dealers or at your competitors? I know it is and so do you, but that leaves you to ask another question If the customer can receive the same experience anywhere they go, why would they come to you? Customer Retention When we create an environment where a customer feels that they are receiving a different, more actively participative experience, then naturally that experience exceeds their expectation. When customers, as an active participant, begin identifying additional concerns on their own vehicles, simply by being an active participant in the write-up experience our sales go up too, and we have ultimately created an experience that a customer wants to experience again! That s Retention at its finest! Tyler Robbins AUTOMOTIVE TRAINING INTERNATIONAL Cell: Tyler@ATi360.com WEB: WEB: WEB:

54 ACCESSORY ADVANTAGE By: Tyler Robbins Why is it that most Sales Managers, Service Managers and Parts Managers take in a frustrating deep breath when the topic of accessories comes up? For the most part, they ve yet to find the formula that works in the dealership to make it profitable and equitable for the entire dealership. The challenge within the dealership is not so much a lack of focus, but it s a lack of dealership focus as a whole. We all know that the dealership is broken down into its individual departments and that they are each their own individual profit centers. Unfortunately, for the most part, this is also the root cause of most dealership s inability and ineffectiveness to successfully sell accessories. Let s examine a typical dealership accessory initiative: The Dealer or GM attends a manufacturer-driven accessories seminar, where, unfortunately, the focus is not on the How but the Why dealerships should sell accessories. We all know the why we don t need to be sold on the why! He/She comes back from that seminar, calls together the departmental managers and essentially dictates that they get into the accessory business because of all of the why reasons that we all know. The reality here essentially means that the dealer expects the new and used inventories to be accessorized, not that the dealership truly gets into the accessory business. Naturally, the parts and service managers get excited because the brunt of this initiative is falling on the shoulders of the Sales Manager. The Sales Manager becomes frustrated, as he recognizes that his inventory is about to increase by $200+ per unit and unfortunately believes his competitiveness in the market will dwindle as a result of this Accessory initiative that benefits Service and Parts not him.

55 So what happens? After a week or so of constant prodding by the dealer, the Sales Manager reluctantly picks a real dog vehicle from the inventory for an accessory. The Parts department reluctantly orders the part with as slow a delivery as possible and provides the service department with, lets say - a spoiler at the standard 40%+ markup; Service installs the spoiler at the top book flat rate and at the highest labor rate. If the spoiler requires painting, the paint shop will provide all of their services at the top rate as well. So lets assume that the installed spoiler at the above pricing structure is $350 the Sales Manager, bitter about bearing the brunt of this initiative, feels he needs to make some gross on this initiative as well, so the Market Value Adjustment/Addendum for the Spoiler on the new vehicle ends up being listed at $599 if not more. So where does that leave us? Well, first let s look at what doesn t happen this Dog vehicle, which is either a bad color or oddly optioned in the first place, now has an MSRP with addendum almost $600 higher than all of the other vehicles on the lot, making it even more difficult to sell. Maybe this is part of the Sales Manager s plan make the vehicle so difficult to sell that the accessory can be blamed for the lack of its sale. So forgetting about who made how much, look at this situation from the customer s perspective you have just told the customer, either verbally or in writing that a Spoiler at your dealership costs $600 when they buy the car. They will make their own assumptions as to how much it will cost to get it installed after the fact at your dealership if they don t want it on the new vehicle at delivery. Do you think they will assume it is higher or lower after the fact? If you re thinking lower who are you trying to fool? So, you want to know why customers don t even ASK you for pricing on accessories the Showroom has already established that you are 2-3 times HIGHER than the rest of the market, and they may have even told the customer that they are better off to buy a model without the accessories and have it done at John Doe s Performance Center, because they are cheaper. Now, lets assume that the customers haven t already been tainted by the showroom and they arrive in service and do in fact inquire about an accessory. What is going to be the Service Advisor s reaction when the customer inquires?

56 If you thought, immediate frustration you re right! Service Advisors live in a day to day environment where their job is to get as much work in and out in the same day as possible. In the mind of the Advisor, accessories are just another program of the month. The frustration is not caused by the customers inquiry as much as it is frustration at what the Service Advisor is about to go through in an effort to get this accessory. The immediate assumption on the advisors part, and 99% of the time, it is not inaccurate, is that the part will not be in stock. The parts manager, having been burnt before ordering accessories for the showroom, and wanting to maintain his pricing matrix, doesn t want to order any accessory without getting some kind of partial payment, if not full payment. Don t customers love prepayment? The Advisor not knowing how long it will take a technician to perform the installation and not wanting to look it up in the book, asks one of the techs how long. The technician, not wanting to get burnt, overestimates the time, either as a deliberate overestimate or as a best guess plus one hour. So after about 20 minutes just gathering the pricing information for the customer, the Advisor returns to the customer, and just to cover himself, in case of whatever tacks on an additional $50 to the estimate. So look at what has transpired, the customer has waited approximately 20 minutes to get a price on the accessory, and, to make matters worse, the parts price is inflated to maintain the matrix, the labor is inflated to cover the techs and finally, the advisor, to protect himself has inflated it all again. This is the way we have always done it right? Is it working? Are you in the accessory business? I think it is very clear that you aren t! Do you want to be in the ACCESSORY Business? Realize that if we expect different results, you had better change what you are doing. Here are the first steps: First and foremost, let s say that the dealership delivers around 50 new per month. Over the year, they deliver 600 vehicles.

57 A dealership this size would service about 30 vehicles per day which is approximately 600 per month, which is almost 8000 customers per year. If you had to concentrate your efforts on selling accessories or anything else for that matter who would you target? Why is it we work so hard to sell accessories to the 600 and completely ignore the 8000? The law of averages should kick in here and concentrate your efforts more so on the 8000; it will net you more results! Secondly, why is it when the word ACCESSORY is spoken, the entire industry thinks Spoiler? Not only are spoilers more difficult to stock, they require more technician skill and time. From now on, when you hear the word accessory think Bug Deflector or Cargo Net they are easier to stock and install, and frankly, if you do the math, they generate more gross profit as a percentage per sale than a spoiler does! When selling accessories, for the most part, you are selling a want moreso than a need. I have always treated accessories like candy at a checkout counter at the supermarket it s an impulse kind of purchase. Most people, in a service department, aren t likely to make a $350 or $600 impulse buy of a spoiler, are they? Would they moreso with an $89.95 bug deflector? Thirdly, keeping in mind that there are 8000 people going through your service department every year; why is the dealership s ONE accessory display in the dealership in the showroom? I am not suggesting that there shouldn t be a showroom display I am suggesting that those 8000 in service might be more inclined to buy something that they know you have! Don t be afraid to have more than one display in the dealership! The more attention you have on accessories the more likely customers will think of you when it comes to accessories! Fourth; STOP trying to hit a home run on every accessory! To be competitive in the accessory market is the same as being competitive in the maintenance services market. You don t have to be the least expensive, but you can t be the highest! Accessories should be priced like maintenance a lower ELR and a lower Gross on the parts! Finally, with respect to the pricing have the same price for buying accessories at your dealership in all departments, don t mark it up in the showroom and mark it down in service. One price overall demonstrates your integrity and realistically, makes it easier for everyone in the dealership to quote prices!

58 Lastly, but certainly not the least is to market your accessories effectively. A blanket 10% off accessories promotion hasn t worked up to this point, why do we continue doing the same thing and expect different results? Incorporate accessories into all of your marketing, be that mailers, point of purchase materials and naturally your Service Menu. You need your customer base to associate accessories with your dealership. Realistically, most dealerships view accessories as an afterthought, and always have, and until they make a dramatic change in their approach, will experience the same level of success, or should I say, same level of lack-of-success in selling accessories until they do! Remember always, the definition of Insanity Doing the same thing and expecting different results! If you don t know where to get started or see accessories as a daunting task, get help! A few days of professional help will go a long way to get your ball rolling, and bottom line is, again, the definition of Insanity you ve tried to do it yourself for years without success, are you going to do the same thing and expect success now? Whether it be getting help or genuinely seeing the light and approaching the whole accessory business with a new perspective I leave you with one question: What are you going to do differently in your dealership to sell accessories? Tyler Robbins ATi is North America s Leader in Fixed Operations Training & Solutions and Walk-Around Training. For ALL Fixed Operations Training, Consulting, Mentoring, On-Site Implementations, Accessory Software and Industry Leading Management Tools ATi is YOUR Solution! Get ATi and Tyler Robbins working for you! Tyler@ATi360.com

59 CONVENIENCE & PRICE A New Perspective By: Tyler Robbins Automotive Dealers have been losing customers to the aftermarket companies for a long time, and it wasn t until recently that the majority started to do anything about it. Manufacturers solicited the market research and had been telling the dealers for years that customers defect to the aftermarket primarily over convenience and price. They also determined that oil changes, tires, batteries and brakes were the first and biggest maintenance and repair services that drove customers to the aftermarket. So what happened? We all know, Oil changes, brakes, tires and batteries became part of the dealers service initiative and in all fairness, most dealers did a reasonably, if not very good job of becoming price competitive on these services. Additionally, dealers reluctantly accepted that fact that Saturday is a day that they need to be open for service, and although even today, they are not truly committed to Saturday s at least they are open part of the day with a skeleton shift! See, the belief was that price and hours of operation were the keys to solving the price and convenience issue but have the defections stopped? NO! The reality is we still haven t retained customers for even the first service. Before they ever experience our prices or our convenience, they have defected away and don t try to hang your hat on the We sold the vehicle outside of our market excuse. Just as many were sold INTO your market too, and frankly, even without those, do we have 100% first service retention on the vehicles sold within our own market?

60 Real world dealership experience example: A customer, looking for buy a new vehicle arrives at the dealership and see s two of the same model that interests them; one, with a spoiler and one without. Now we all know that the spoiler was sold to the new vehicle department and then marked up by the new vehicle department so let s say that the price the customer sees is $599. So the customer, not knowing the price is lower if it is installed in service, assumes that spoilers at your dealership are $599. The customer may not know how much a spoiler should be, but he s pretty sure that they would be less at some aftermarket chain store. So, without the sales department ever knowing any of this, the customer happily buys the vehicle without the spoiler. But the customer WANTED a spoiler, so off he goes to the local Auto Guys aftermarket shop to get his spoiler. While the customer is waiting for his spoiler to be installed, what does he do? He roams through their shop and see s aisles and aisles of stuff. The stuff that he sees is everyday things washer fluid pyramids, car cleaning chemicals, vanity license plate brackets, local sports team front license vanity plates, Roadrunner rubber floor mats, Scooby-Doo steering wheel covers, pine tree air fresheners, decals of a cartoon character defacing any one of a number of other automotive manufacturer logos and a whole host of other automotive paraphernalia. What's even more amazing is that none of this stuff is locked down. He can pick it up, look at it, touch it, and maybe even try on that particular NASCAR hat. Auto Guys doesn t seem to think he s going to steal anything or they would have locked it down or maybe even hidden it all behind the counter. Additionally he sees tires, batteries and of course the sign that says something like Oil Changes done while you wait for $ But this visit to Auto Guys was to get the spoiler installed, which once it s finished, he pays for and leaves. Remember, this customer has a brand new vehicle, and after a couple of weeks, like most customers with a brand new vehicle, decides he wants to clean it, so where does he go? Back to Auto Guys to get supplies! And when he s there, he finds this bucket and in the bucket are car wash, a wash mitt, tire dressing, wax and a new chamois all in this bucket what a great idea! So he buys this kit and home he goes to clean his new vehicle.

61 After a month or two, after having cleaned the vehicle a few times, he realizes that the carpet floor mats that came with the vehicle are beginning to reach that point, where normal cleaning just isn t what he wants it to be he fears the carpet will wear out, so back to Auto Guys to pick up those Roadrunner rubber floor mats, and while he s there, picks up one of those I d rather be Golfing plate brackets. Sound typical? Consider what has transpired here, but let s not look at it from an automotive perspective. This customer is going to the corner convenience store to pick up milk and bread, not because of the service they provide, and certainly not because of the price he knows the supermarket would have better pricing on milk and bread he s going there because he KNOWS they have what he needs. Now, relate the example to the car dealership. This customer is going to Auto Guys because he KNOWS they have all of the paraphernalia that he needs, and oh, they also do oil changes. When the time comes that this customer is finally due for his first service, he has already been to Auto Guys two, three maybe even four times they MUST be more convenient, he s there all the time anyway! You see, it has nothing to do with their hours of operation, it has everything to do with their ability to meet ALL of his automotive requirements, and we re not talking about service and repairs.

62 Customers DO clean their vehicles, and buy cartoon character accessories and vanity plates, plate brackets, and they DO proclaim their personal interests in bumper stickers, decals, etc. and dealers aren t interested in this business and if they are, they ve got it all hidden in the parts department for fear customers might steal it. NEWSFLASH don t worry about them stealing it they re not coming to you for it! With maintenance and repairs becoming less and less can we afford to drive anymore of them away? Tyler Robbins ATi is North America s Leader in Fixed Operations Training & Solutions. From Consulting, Training, On-Site Implementations, Accessory Software and Industry- Leading Management Tools ATi is YOUR Solution! Get ATi and Tyler Robbins working for you! Tyler@ATi360.com ATiROAMS is your Fixed Operations Microscope! You ve heard the expression If you can t measure it, you can t MANAGE it ATiROAMS is the ultimate Management Tool not A Best Practice The BEST Practice!

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64 ATi Client Feedback ATi is the most effective Service Advisor Training we ve ever had. Many companies are out there training Walk-Arounds, but ATi goes beyond training, they actually worked with us right on our Drive to incorporate the Walk-Around into our existing operation and we are experiencing increases across the board in Tire Sales, Fluid Sales, Accessories, our labor and parts are up and our customers are telling us that they love the new attention they are getting. Now more than ever, getting ATi to work with you on your drive is simply the recipe for success Glenn Fagen Fixed Operations Director - Ferman Chevrolet of Brandon Brandon, FL Automotive Training International s Service Process Training & On-Site Implementation are an absolute necessity for any Dealer/Service Manager who wants to bring their operation into the 21 st Century. ATi worked with us to implement an effective Appointment Process, a Walk-Around Process that actually benefits the customer as well as us, and the Pre-Scheduling Appointment process he helped us develop means that we have more business coming in our door now then we ever did! Kim McGennis Service Manager - Acura of Langley Surrey, BC ATi Service Walk-Around Training was the most Real-World Training I d ever participated in, they came to our dealership and worked with us to implement it successfully. Even with some reservations on the part of my Advisors once we set, they couldn t dispute that it works and that increases in Service sales were the result. Craig Ell Service Manager - Regina Honda Regina, SK I really enjoyed your class and took away quite a few nuggets This was one class that I went to that I actually got nuggets that will work and not just pie in the sky. Most classes I spend hours in only to come out with maybe one idea that really isn t that good. This class was very refreshing and I really had a good time. I enjoyed the ending the best. Because you recognized that we are leaders, not just managers, it is a hard concept for some people to grasp. I want to thank you for influencing me, for that is what makes a leader different from a follower (influence). It is hard to find consultants in your line of work, at least in the automotive industry that actually read leadership books and get it. I commend you on being one of the few who believe in furthering your leadership skills. Dee Buelow Fixed Operations Director - Earnhardt Ford Chandler, AZ

65 Client Feedback So many training programs are just that, nothing more than a program, they come and they go and have no lasting affect. Your training was not a program at all; it was a sustainable change in the way we do business and your training and coaching was anything but typical. Working side by side with us in the Service drive and at our counter; we integrated the skills and lessons you showed us (not told us) within our existing operational practices, and we have fun every time you visit too and my staff, my dealer and I couldn t be more pleased with the results! Your help with our process, maintenance menu and point-of-purchase marketing materials and presentations, combined with the selling skills you taught us have made our dealership the Top dealership in our Region, Group, one of the top in the country! Since your training, our: Customer Pay RO count is up 14% Customer Pay Hours are up 31% Customer Pay Hours/RO are up 19% Customer Labor Sales are up 29% Customer Pay Parts are up 31% Customer Labor Gross is up 30% John Caines Service Manager Hamilton Mazda Hamilton, NJ In all the classes I have been to yours was the first to really address real issues openly with some real solutions. Don Anderson Service Manager - Murray Chevrolet Gresham, OR Since you ALWAYS get to hear about the negative, and almost never get to hear about the good I thought I d take a second to tell you all Well done! I just spent two days with ATi in the Service Profit and Performance Workshop. I always enter the classroom expecting to find a way to learn at least one thing, but sometimes you have to mine pretty deep to find something worthwhile. It always seems like you always get a lot of superficial quick-fix stuff, and only one or two really good concepts that you can adapt to your business. Not this time. This was well worth the time and money. I came away with at least a dozen good ideas plus I got to spar with the instructor over a couple of concepts that should develop into systems that will generate increased traffic and sales. Nicely done! Greg McConiga Service Manager - O Daniel Mazda Fort Wayne, IN

66 Primary Contact: Tyler Robbins Cell: Fax:

67 Telephone Training Skills With Angela Burmeister Professional Telephone Skills Trainer, Phone Pro Moderated by JeriLyn Klein Bier Editor, DealersEdge Presented by DealersEdge

68 Angela Burmeister, Professional Telephone Skills Trainer from Phone Pro How does a woman with a Bachelor of Arts degree from Murray State University in the area of Criminal Justice find her way to the world of Contact Centers and training? Some have suggested a link between the two, but the jury is still out! Right out of college, Angela took her turn as a Security Fraud agent in the American General Finance contact center. After a year in the trenches, she moved on to working as a Police Officer for the City of Evansville for two years before moving to the Indianapolis area and working as a Police Officer for Butler University for three more years. After much consideration, she made the very difficult decision to remove herself from the day to day danger and stress of police work. This provided her with an opportunity to start a new career in any area that she liked and guess what she picked training! Serving as the Training and Performance Manager for two major car dealerships in the Indianapolis area, she was able to gain experience managing, training, and motivating sales, service and office staff. In addition to her time as a Trainer, she also spent two years in Telephone Sales for AT&T Yellow Pages, learning what does and doesn t work with customers from first hand experience! During this time, she won the award for the Highest Net Sales for the Indianapolis market the first year she was with the company. All of Angela s professional experiences, as well as her outgoing personality and presentation style, have made her into the diverse, interactive and approachable trainer that she is today. Since joining PHONE PRO in 2004, Angela has traveled extensively delivering programs to people who want and are willing to become their very best on the phone. Angela has trained many groups in varied industries on Customer Service and Sales techniques. Her clients include Social Security Administration, Plantronics, Amadeus IT, DePuy Codman, Forethought Life Insurance, and more! 2301 East 45th Street, Indianapolis, Indiana phone: fax:

69 Presented by: Copyright PHONE PRO

70 Transaction & Interaction The Greeting Controlling the Flow of the Call Voice Tone Tips Avoiding Not Words Tips Copyright PHONE PRO

71 Transaction Interaction Transaction + Interaction = A Positive Experience! Copyright PHONE PRO

72 The Greeting Welcome the caller Identify the Business and/or Department Identify Yourself Copyright PHONE PRO

73 The Greeting Formula Salutation Good Morning Business Identification Phone Pro Your First Name This is Brenda Copyright PHONE PRO

74 Eliminate: canihelpyou mayihelpyou howmayihelpyou speaking Copyright PHONE PRO

75 Copyright PHONE PRO

76 When you you indicate your readiness to listen and willingness to help... it connects you with the caller. Copyright PHONE PRO

77 by asking an opening question that relates directly back to the caller s opening remark! Copyright PHONE PRO

78 Yes Robert, I was wondering if you have any used Corollas on the lot. Certainly what year are you looking for? Copyright PHONE PRO

79 The Complete Call Opening Greeting Copyright PHONE PRO

80 Three Elements of Face to Face Communication Body Language (Visual Images) Voice Tone Words (Voice Tone Selections) (Vocabulary Choices) 55% 38% 7% Copyright PHONE PRO

81 Voice Tone Development Copyright PHONE PRO

82 Voice Tone Development The worst Voice Tone is This is how a neutral voice tone can be perceived. I don t care that you called, I don t care if you want to buy a car, I don t care if I help you, I simply don t care. Copyright PHONE PRO

83 Voice Tone Development The best voice tone is A positive voice tone on the phone says you are professional, confident, and willing to help. Copyright PHONE PRO

84 No one else decides for you. It s that simple. It s easy... but it s the decision to DO it that s hard. Copyright PHONE PRO

85 Voice Tone Development Lift voice tone by simply smiling. Build trust by appropriately adjusting your speed. Emphasis and Inflection can enhance or distort meaning. Copyright PHONE PRO

86 Emphasis and Inflection I never said that. Copyright PHONE PRO

87 Caution! Yellow Zone! Copyright PHONE PRO

88 Copyright PHONE PRO

89 Common Not Phrases x I DON T know if we have any in stock. x We DON T handle that in this area. x We CAN T offer that financing on that year of vehicle. x I CAN T tell you how many miles are on that vehicle. Copyright PHONE PRO

90 Instead Use Copyright PHONE PRO

91 Let s Practice x x x x I DON T know if we have any in stock. I CAN check to see if we have any of those in stock. We DON T handle that in this area. I CAN transfer you over to the service department where they can take care of you. We CAN T offer that financing on that year of vehicle. We CAN offer you a 6.9% rate on that vehicle. I CAN T tell you how many miles are on that vehicle. I CAN check to see how many miles are on that vehicle and give you a call back. Copyright PHONE PRO

92 Softer Not Alternatives Copyright PHONE PRO

93 Softer Not Alternatives I CAN T do that. We DON T do that. We WON T do that. It ISN'T possible to do that because... Copyright PHONE PRO

94 Avoiding the Not Words 1. Use positive phrasing: Can, Do, Will I CAN get someone out there tomorrow. 2. Go to softer alternatives: Isn t, Haven t, Aren t The technicians AREN T available until tomorrow. and remember The gif t of it IT isn t possible to get anyone out there until tomorrow 3. Add empathy if needed: I WISH we could get someone out there for you today. 4. As a final option, use I simply, we simply, it simply, along with: Can t, Don t, Won t We simply CAN T get a technician out there until tomorrow. Copyright PHONE PRO

95 Tips Respond Promptly. A recent study shows that 90% of customers expect a reply within 24 hours or less! Create Subject lines that are specific, concise and meaningful to readers in order to capture their attention. Limit the use of Bold-face type and all Caps. IT COULD IMPLY THAT YOU ARE YELLING! Use complete sentences and keep messages as brief and concise as possible. Provide appropriate Contact information in all messages. Avoid using Emotional icons and acronyms. These are fine for personal use, yet are best avoided in business writings as they may be perceived as juvenile or even confuse the reader. Copyright PHONE PRO

96 Copyright PHONE PRO