Results With Service Sales Kit

S
U
C
C
E
S
S
S
T
O
R
I
E
S
|
2
0
1
Results With Service Sales Kit
Ourisman Chevrolet
2
Results with Service Sales Kit
Ourisman Chevrolet
Successful dealerships actively uncover issues in their business and find the
best tools and processes to solve them. Through industry-leading integrated
solutions and award-winning consulting and support, Reynolds works with
dealers to make business better.
Room for Improvement
Beginning the Change
The service department is one of the most important profit
centers in any dealership. Ourisman Chevrolet in Rockville,
Maryland, needed to make their service department more
profitable. David McFadden, Fixed Operations Director, knew
that without some significant changes, his service department
was going to lose market share to competitors.
Ourisman Chevrolet chose Service Sales Kit because they
felt it was the most advanced technology available and would
help them accomplish
their sales and customer
service goals. While the
solution works with both
desktop and tablet PCs,
David felt that tablet PCs
would greatly improve
their customer service.
Using the tablet PCs,
service advisors can greet
customers, write up the
repair order, explain the
report card and vehicle inspection, and electronically capture
the customer’s signature at the vehicle. Service Sales Kit puts
every advisor through the same write-up process every time.
Advisors and technicians at Ourisman Chevrolet had been
using a generic paper form for conducting multi-point vehicle
inspections. They frequently failed to fill out the paper
form and the results of the multi-point inspection were not
presented to the customer. Even when advisors did fill out
the paper form, it was impossible to document and track the
results. Customers who had declined recommended services
were not documented or followed up with at a later time.
Advisors and technicians frequently failed to fill out the paper form and
the results of the vehicle inspection were not presented to the customer.
David McFadden was looking for ways to make his service
process better and his staff more accountable for results. At
the 2010 NADA convention he saw a mobile tablet solution
from a technology provider that got him thinking about the
benefits that such a tool would bring to his dealership.
Dave compared that tablet with Reynolds’ Service Sales
Kit. He realized that Service Sales Kit is more than just
a mobile computer, but also the complete selling and
process management tool he needed to enforce a proactive,
consistent write-up process.
© 2012 The Reynolds and Reynolds Company. All rights reserved. 1016300 01/12
Making significant changes in a dealership’s processes are
not easy. To make changes take hold and be successful, the
employees need to jump on board with the plan. Ourisman
Chevrolet’s technicians recognized the importance of
conducting thorough vehicle inspections and filling out the
multi-point vehicle inspection form so the advisors could
communicate effectively with customers. “With Service Sales
Kit, there is consistent buy-in from the employees because it
is exciting for them to use,” explains McFadden. “There is also
a significant increase in customer excitement because of the
interesting presentation.”
Technicians and advisors are able to see that more work is
being sold as a result of using the vehicle inspection and the
multi-point inspection. David makes sure the same technician
who recommended the service gets the work if the customer
comes back at a later time. The system makes it easy to track
recommended services that the customer declined.
2
Results with Service Sales Kit
Ourisman Chevrolet
Measurable Results
Since implementing Service Sales Kit, Ourisman Chevrolet
has seen measurable improvements in:
•Customer Pay Hours Per RO.
•Customer Pay Labor Sales per RO.
•Customer Pay Parts Sales Per RO.
•Total Customer Pay Hours.
•Total Customer Pay Labor Sales.
•Total Customer Pay Parts Sales.
$210
Customer pay
labor sales
per RO
Customer pay
parts sales
per RO
+ 19.1%
$200
$200.86
+ 16.4%
$190
Ourisman Chevrolet averaged an
increase in customer pay service
and parts revenue of $37,532 per
month in the first three months
after installing Service Sales Kit.
The consistent, enforceable write-up and multi-point
inspection process that Service Sales Kit provides is the
driving force behind Ourisman Chevrolet’s profit increases
in the service department. The increase in upsell revenue is
a direct result of more thorough inspections by technicians
using the multi-point inspection form, and more consistent
presentation of the vehicle report card by advisors.
$192.54
$180
$170
$168.54
$165.35
$160
Pre-Install Post-Install
Pre-Install Post-Install
Total customer pay parts sales per month
$140K
+ 10%
$130K
$130,626
$120K
$118,733
$110K
Pre-Install
Post-Install
Total customer pay labor sales per month
$150K
This success isn’t limited to their Chevrolet store. “Having the
technicians complete the report card has helped the advisors
recommend and sell needed repairs,” explains Brian Smith,
Service Manager at Ourisman Hyundai of Bowie.
The Ourisman dealerships are utilizing the Forced March
feature of Service Sales Kit, which enforces a consistent
write-up and presentation process for each advisor and every
vehicle that comes into the shop. This has resulted in more
thorough inspections, and more services recommended.
Customer pay labor hours went from 1.8 hours per repair
order to 2.2 hours per repair order, representing a significant
22% improvement.
+ 21.2%
$146,725
$125K
$121,086
$100K
Pre-Install
Post-Install
© 2012 The Reynolds and Reynolds Company. All rights reserved. 1016300 01/12
Customers love being able to see the report card and its easyto-understand color coding, with red items needing immediate
repair and yellow items needing to be serviced soon. An
estimated 10-15% of their customers even come back to the
service department with the report card from their last visit in
hand, telling the advisor what they need to have done. These
customers are literally selling needed repairs to themselves
With improved tracking and reporting features, Ourisman
Chevrolet; can now conduct calling campaigns based on
declined services. The campaigns have brought in even
more revenue.
3
Results with Service Sales Kit
Ourisman Chevrolet
Quality Vehicle Inspection
Customer Name: JOHN WALKER
Phone: (H) (513) 435-8844
Service Advisor:
INSPECTION RESULT - OK
Date/Time:07/20/2011 15:36:27
Odometer:
RO:
Tag: 1530
Vehicle Year/Model: 00 CHRYSLER CIRRUS
VIN: 1C3EJ56H6YN160061
Technician:
WILL REQUIRE FURTHER ATTENTION
REQUIRES IMMEDIATE ATTENTION
Green Yellow Red
Front / Rear Brake Linings
Washer fluid
Transmission fluid
LF
RF
Brake fluid
Green
Green
Power steering fluid
Yellow
Yellow
Red
Coolant
Red
Engine oil
4X4 Transfer case,front drive axle and clutch reservoir fluids (truck only)
LR
RR
Operation of horn,interior lights, exterior lights(turn,hazard,brake)
Green
Green
Windshield washer spray, wiper operation, and wiper blades
Yellow
Yellow
Red
Windshield for cracks, chips and pitting
The electronic report card
easily shows customers what
services are essential (red
items) and what services are
recommended (yellow items).
Red
Radiator, heater and air conditioning hoses for leaks and damage
Inspection Not Taken
Engine air cleaner
More than 50% remaining
Having a record of
recommended services not
only helps sell more, but
saved the dealership from a
$1,500 lawsuit. A customer
claimed the dealership did
not recommend a timing belt
replacement and therefore
was responsible for damage to the car after the belt snapped.
Fortunately, “after we showed the multi-point inspection form
and proved that we did recommend a timing belt replacement,
the case was dismissed,” explains McFadden.
Oil and/or fluid leaks
20% to 50% remaining
Constant velocity (CV) drive boots (if equipped)
Less than 20% remaining
Exhaust system (leaks, damage, loose parts)
Steering and steering linkage
Shocks/struts and other suspension components for leaks and/or damage
Check Tires / Tread Depth
LF
Accessory drive belt(s)
Brake system (lines, hoses and parking)
RF
Green
Green
Yellow
Yellow
Red
Red
Ourisman Chevrolet has seen these amazing results in only the
first three months after installing Service Sales Kit. They have
been able to transform their customers’ experiences and change
the whole service write-up process for the better. Customer
satisfaction is high and employee utilization and buy-in of the new
process are leading to strong results. With the benefits of Service
Sales Kit just beginning, Ourisman Chevrolet is looking forward to
a bright future.
Wheel end for end-play and bearing noise
Engine cooling system, hoses and clamps
Clutch operation (if equipped)
Check oil life monitor(if equipped - reset if oil and filter changed)
Inspect and lubricate transmission drive shaft, u-joints and shift linkage
(if equipped)
Inspect and lubricate suspension
Rotate tires
Replace air cleaner
Inspect pollen filter(if equipped)
Headlamp alignment (visual)
Inspect fuel tank, cap and lines for damage and leaks
Heating, ventilation and air conditioning check
Debris in radiator and/or condensor
State inspection due
LR
RR
Green
Green
Yellow
Yellow
Red
Red
7/32" or Greater
4/32" to 6/32"
650
3/32" or Less
Check Battery Performance
628.7
Good
Fair
Bad
Actual Cold Cranking Amps
Factory Cold Cranking Amps
Service Sales Kit also provides a way to document preexisting vehicle damages. According to David McFadden,
“We had $500 to $1000 in damage claims per month before
we installed Service Sales Kit. After we started using Service
Sales Kit to document vehicle damages, we have had almost
no claims against us.” Advisors are now able to mark any
vehicle damage on their tablet PCs in front of the customer,
before the customer signs off on their requested service.
This system works so well, Keith Breeden, Service Manager
at the dealer group’s Honda store, says, “Through the use of
the vehicle inspection in Service Sales Kit, we have virtually
eliminated vehicle repairs due to fraudulent damage claims.”
Help advisors capture
quick exterior upsell
opportunities.
600
550
555.7
500
Pre-Install
Upsell Hours
Post-Install
Upsell Hours
$65K
$60K
$61,151
$55K
$50K
$48,840
$45K
Pre-Install
Upsell Labor
Post-Install
Upsell Labor
Consistent Results:
“Service Sales Kit bridged the gap between our customers
and advisors. Presenting an electronic maintenance
menu to the customer on the service drive has really
helped sell factory recommended services because we
can match this information to the owner’s manual, which
gives us credibility.”
David Lantz, Service Manager,
Ourisman Chrysler Jeep Dodge
Looking Ahead
The results that Ourisman Chevrolet has experienced are not
unique. Reynolds conducted a study of dealerships who had
recently installed Service Sales Kit. Those dealerships saw the
same kind of results that Ourisman Chevrolet experienced. On
average, dealerships who installed Service Sales Kit saw an 11%
increase in hours per RO, and a 21% increase in upsell hours.
“Time is money in a service department! Service Sales
Kit gives my staff the tools they need to do a thorough job
quickly and more efficiently. Since everything is electronic,
they don’t forget to complete the vehicle report card and
I can hold everyone accountable. The management
reporting identifies weaknesses (and strengths) in specific
areas, so I can address employee issues quickly. If it was
all taken away tomorrow, I’m not sure how we would run
our shop effectively.”
Ron Lane, Service Manager,
Ourisman Volkswagen
© 2012 The Reynolds and Reynolds Company. All rights reserved. 1016300 01/12
4