How to Match Service Marketing to Your Service Process for Maximum ROI
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1 How to Match Service Marketing to Your Service Process for Maximum ROI with Don Reed, CEO - DealerPRO Training Moderated by Mike Bowers, Executive Editor - DealersEdge
2 Don Reed, CEO - DealerPRO Training DealerPro Training is the Largest Performance Based Fixed Operations Training Organization in North America. Don Reed is the founder and prime mover of DealerPro Training. With 26 years of success in all aspects of a dealership - from parts manager to dealer principal, Don knows what it takes to succeed. It takes a well trained team. And Don has built a team of the best and brightest - 22 Fixed Operations Specialists averaging 23 Years of Experience. This group of experts has trained in more than 700 Dealerships in the U.S. & Canada Achieve 100% Service Absorption The 4 Essentials to 100% Service Absorption Service Advisor Sales Training Service Management Training Technician Sales Training Training the Customer Telephone Training On-line Maintenance Menu Interactive On-line Training Parts PRO Training Sales Training Telephone Training Control Obsolescence Increase Stock Order Performance Body Shop PRO Reduce Cycle Times Increase Productivity Sales per Transaction Insurance Company Relationships
3 How to Match Service Marketing to Your Service Process for Maximum ROI Presented by: Don Reed, CEO, DealerPRO Training
4 What Are Your Marketing Goals? Increase Customer Pay Traffic Improve Customer Retention Raise CSI Increase Sales Build Net Profits
5 Question? Is it possible to increase traffic and improve owner retention with an average CSI rating, while lowering sales and reducing Net Profits? In other words, can a successful marketing campaign result in your dealership losing money?
6 Consider the Following Average monthly customer pay RO s = 1.5 HPRO Marketing Campaign Produces 10% increase in RO s 100 Additional Incoming Service Calls 100 Additional Service Appointments 100 Additional Maintenance Menu Presentations 100 Additional RO s to Dispatch 100 Additional Vehicles to Inspect 150 Additional Technician Hours 100 Additional Vehicles Requiring Parts 100 Additional Vehicles to Park 100 Additional Outgoing Phone Calls for Advisors 100 Additional Customers to Cashier 100 Additional Active Deliveries 100 Additional Next Appointments to Schedule
7 Marketing Case Study Start Up of New Quick Lube Center Midwest Dealer Labor Sales Gross Margin Parts Sales Gross Margin Sales RO # CPRO's ELR HPRO Total Gross 7 Months-11 $924,640 $707,888 77% $763,474 $307,215 40% $235 7, $1,015,103 7 Months-12 $802,587 $578,481 72% $733,768 $270,791 37% $193 8, $849,272 Variance -$122,053 -$129, $29,706 -$36, $ $165,831 Percentage -13% -18% -5% -4% -12% -8% -18% 10% -2% -19% -16% 736 New Customers Produced a Net Loss of $165,831 How Can You Prevent This From Happening in Your Dealership?
8 Follow These 3 Rules Rule #1 Evaluate your Capacity for Growth Rule #2 Train your Staff for Growth Rule #3 Measure Performance Metrics Daily
9 Rule #1- Evaluate Your Capacity for Growth Shop Productivity (Total Hours Billed Divided by Total Hours Worked - 120%) Current Shop Productivity % Goal for Shop Productivity % Number of Technicians Current Number Need to Hire Skill Level Number of Service Bays Number of Lifts Need to Add
10 Rule #1- Evaluate Your Capacity for Growth Customer Driven Processes Parking Spaces Service Reception Number of Service Advisors (12 15 customers per day) 15 Minutes Per Customer Service Greeters Cashier Process Back-up Plan Service Advisor? Waiting Room Capacity
11 Rule #2-Train Your Staff For Growth 3 Customer Touch Points 1. Phone Calls 2. Walk-ins 3. Website
12 Shocking Facts About Service Writers 81% of all Customer Pay Labor Comes From the Phones 86% Try to Diagnose the Customer s Concern on the Phone 81% Quote Mechanical Repair Prices Before They Know What s Really Wrong 95% Quote Higher Prices Than Independent Shops, Allowing the Customer to Shop other Places 57% Do Not Offer the Customer an Appointment The Aftermarket Does Just the Opposite
13 Rule #2 Train Your Staff for Growth 1. Phone Calls Incoming Appointment Coordinators/Call Center NOT Advisors Do NOT Quote Prices for Mechanical Repairs over the phone Avoid Diagnosing Over the Phone Sell Appointments at 15 Minute Intervals
14 Rule #2 Train Your Staff for Growth 2. Walk-ins Drop offs & Waiters Never Say NO Can Do Versus Can t Do Allow 20% of Schedule for Walk-ins & Up-Sells Must Have Capacity to Sell
15 Rule #2 Train Your Staff for Growth 3. Website Interactive Online Maintenance Menus Current Service Specials Build Value in Your Dealership Services Online Appointment Scheduling
16 Rule #3 Measure Performance Daily # Of Incoming Calls # Of Appointments Service Advisor Daily Performance Tracking Performance Board for Advisors Technician Daily Performance Tracking Performance Board for Technicians Track Sales Results by VIN # Marketing ROI Profit Pro Forma
17 Rule #3 Measure Performance Daily # Of Incoming Calls Going Up Going Down Stagnant Record Phone Shops for Accountability # of Appointments Schedule 15 Minutes Apart by Advisor Sell 80% of Capacity Per Day Follow-up on All No Shows to Reschedule
18 Rule #3 Measure Performance Daily Service Advisor Performance Average # RO s per day, per Advisor Customer Pay & Warranty Internal RO s What s Your Policy? Service Advisor Performance Metrics Margins - 75% & Parts at 42 45% Sales Per RO Hours Per RO Month to Date Sales and Travel Rate CSI Trends Closing Ratio Upsells vs CPRO s
19 Rule #3 Measure Performance Daily Technician Performance Productivity # of Hours Produced vs # of Hours Worked # of Multi-Point Inspections Completed # of Additional Service Requests Total Gross Profit Produced MTD # of RO s Customer Pay, Warranty & Internal
20 Marketing ROI Without Training Current # CPRO's 500 HPRO 1.3 Increase/Decrease ELR $85 CP Labor Sales $55,250 Margin 75% CP Labor Gross $41,438 P/L Ratio 90% CP Parts Sales $49,725 Margin 40% CP Parts Gross $19,890 Total CP Gross $61,328 Cost of Marketing Per Month Variable Gross Profit $61,327 Increase/Decrease n/a Annualized 12 months Plan A $85 $51,425 75% $38,569 90% $46,283 40% $18,513 $57,082 $2,500 $54,582 -$6,745 -$80,943 NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to HPRO declines by.2 produces ROI of -270%
21 Marketing ROI With Training Current # CPRO's 500 HPRO 1.3 Increase/Decrease ELR $85 CP Labor Sales $55,250 Margin 75% CP Labor Gross $41,438 P/L Ratio 90% CP Parts Sales $49,725 Margin 40% CP Parts Gross $19,890 Total CP Gross $61,328 Cost of Marketing Per Month Variable Gross Profit $61,327 Increase/Decrease n/a Annualized 12 months Plan A $85 $51,425 75% $38,569 90% $46,283 40% $18,513 $57,082 $2,500 $54,582 -$6,745 -$80,943 Plan B $85 $60,775 75% $45,581 90% $54,698 40% $21,879 $67,460 $2,500 $64,960 $3,633 $43,599 NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to HPRO declines by.2 produces ROI of -270% Plan B: RO count increases 10% to HPRO remains the same produces ROI of + 145%
22 Marketing ROI With Training & Profit Improvement Plan Current Plan A Plan B Plan C # CPRO's 500 HPRO 1.3 Increase/Decrease ELR $85 CP Labor Sales $55,250 Margin 75% CP Labor Gross $41,438 P/L Ratio 90% CP Parts Sales $49,725 Margin 40% CP Parts Gross $19,890 Total CP Gross $61,328 Cost of Marketing Per Month Variable Gross Profit $61,327 Increase/Decrease n/a Annualized 12 months $85 $51,425 75% $38,569 90% $46,283 40% $18,513 $57,082 $2,500 $54,582 -$6,745 -$80, $85 $60,775 75% $45,581 90% $54,698 40% $21,879 $67,460 $2,500 $64,960 $3,633 $43, $85 $74,800 75% $56,100 90% $67,320 40% $26,928 $83,028 $2,500 $80,528 $19,201 $230,412 NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to HPRO declines by.2 produces ROI of -270% Plan B: RO count increases 10% to HPRO remains the same produces ROI of + 145% Plan C: RO count increases by 10% to 550--HPRO increases by.3 w/training, produces ROI of + 768%
23 Maximize Your Marketing ROI Evaluate Your Capacity Prepare Your Profit Improvement Plan Train Your Personnel Measure Performance Daily It s Time to get Serious about Service
24 We are offering Today s Webinar Attendees a FREE 2-day In Dealership Profit Potential Analysis & Profit Improvement Plan for Achieving 100% Service Absorption Don Reed CEO DealerPro Training Solutions 1020 Taylor Station Road, Suite B Gahanna, OH (614) dreed@dealerprotraining.com
25 Dealership Name: Profit Improvement Plan Application Additional Dealerships: Y/N: Date: How Many: Your Name: Your Position at the Dealership: Address of your Dealership: Best Number to Reach You: Best Time to Call: # of Technicians: # Customer Pay RO's: Address: # of Service Advisors: Estimated CP-HPRO: What Concerns do you have in Fixed Operations? DealerPro $200K Club - In-dealership Performance Driven Training Pro Performance 20 Groups - Top Performer Training Service Manager Pro - In-dealership Performance Management Training Online Pro Performance - Virtual Interactive Online Training & Certification Service Drive Pro - In-dealership Performance Sales Training Call Center Pro - Appointment Sales Training Pro Profit Builders Workshop - Dealer, GM, Fixed Ops Manager, Controller Pro Performance Builder Workshop - Fixed Ops Managers, Advisor Signature: Sales Mgr.: Preferred PIP Date(s): Dealers Edge Webinar Special Offer In-dealership 2-day Profit Improvement Plan---NO CHARGE (Dealer agrees to reimburse for minimal travel expenses not to exceed $995)
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