PDF - Fixed Ops Magazine

Transcription

GE Capital
LIKE A BANK:
We provide your customers with a
way to pay.
UNLIKE A BANK:
We help you drive customer
satisfaction, loyalty, and sales.
At GE Capital, we understand it’s critical to retain and grow a loyal
customer base. Offering your customers CarCareONETM credit card
financing can help you strengthen relationships, increase service
sales and create satisfied customers by making it easier to access
more of the expert, quality services you provide.
Together we’ll build increased loyalty that drives consumers to say “yes”
to your service transactions. Stop just banking and start building.
Start offering CarCareONE today. Enroll by calling 1-866-209-4457.
Visit us at NADA, booth #4607 to take advantage of our 3-month
test drive.
Call 1-866-210-1646 for more details.
Visit us at www.gogecapital.com/automotive.
imagination at work
*All costs will be waived during the 3 months except actual usage charges.
Actual usage charges relate to discount fees (pay as you use) associated with the promotional financing program.
Credit is extended by GE Capital Retail Bank. © 2013 General Electric Company. All Rights Reserved.
TABLE OF C ON TEN TS
January / February 2014 || Fixed Ops Magazine
p.
p.
p.
p.
p.
p.
p.
Five Qua lit ies of M arke tin g Ge n iu s
18
The Key Role it Can Play in You r Store
24
..A LOT Mor e Tir es
30
Set t ing Your C ustome r’s Fi rst Appoin tme n t -- an d M u ch M o r e
36
Esta bl ishing a Cu stome r Re ten tion Process
42
46
p.
56
p.
p.
64
How to Sell Tires
RFID Systems
An Eight-Step Plan
p.
Using (Paint) Protection
p.
The Benef it s of Au tomotive Pain t Prote ction Fi lm
l et t er fr om t he p ub l i s h e r
52/54
C o mpan i es to S ee at t h e
20 14 NADA E x p o
p.
Dealership Websites Need to Embrace
Smart Chat
p.
Paperless Repair Order Processing
p.
Using New Technologie s to Do the Best For Cu stome rs a nd
Your Dea ler ship
Ta r g et ing Mor e Service-Focu se d Traff ic
I mpr ov ing Efficien cy an d Service
Losing A Customer Hurts More Than
You Think
p.
Finding New C u stome rs Wi th Low Ac qu isition Costs
72
Effect ive C r oss-Sellin g in the De ale rship
76
An Over v iew of This Importan t Proce ss
80
6
Taking Advantage of Advancements
in Friction Car Wash
68
p.
p.
60
Detailing Makes Dollars and Sense
Your Service Retention Metrics are
Wrong
p.
p.
Smart and Smarter
10
p.
A New Par adig m to GRO You r Se rvice Bu sin e ss
New Opportunities With Digital Signage
p.
Parts E-Commerce
p.
Dealing With the End-of-the-Month
Crunch
82
84
86
88
90
8
91
s ervic e depar t m en t
To d ay ’ s Tir e C h a ng i ng T ec h no lo g y
par t s depar t m en t
D o Y o ur Pa rt s R ea l ly E x i st ?
b ody s ho p
A r e Y o u a Fir ef i g h t er ?
admin i s t r at i on
B a c k To B a sic s In t h e S er v ic e B ay
p r icin g s ur vey
Timi ng C h a i ns a nd S er p ent i ne B elt s
I n dus t r y N ew s an d E ve n ts Ca l e n d a r
A dver t i s er s Di r ec to r y
p.
91
N ew P r o duc t s
p.
95
M arket p l ac e
Sta r t Sell ing Eve ryd ay Li ke It’s the Last Day of the M on t h
DON’T ”SUB OUT” YOUR PROFITS
Learn How To Operate A
Successful Detail Center
Within Your Dealership...
At America’s most advanced detail training center
A productive Detail Center can pay for the ENTIRE labor costs of your
clean up shop and net you money. Learn hands-on at the Simoniz® Garage
how to build a profitable detailing business from facility set up to training to
marketing to hiring. Our all inclusive training will open your eyes to the profit
that lies within the detail business.
REVENUE
TYPICAL PRO FORMA
$195,000*
TOTAL EXPENSES
Labor - 50%
Product Cost -10%
Advertising – 1%
Utilities – 2%
Uniforms – 1%
Commissions – 5%
$ 97,500**
$ 19,500
$ 1,950
$ 3,900
$ 1,950
$ 9,750
OPERATING CASH FLOW
$ 60,450
*based on 6 daily services at $125 per ticket
**based on 3 full-time detailers
SOUP TO NUTS
Industry Standard Training manuals
“I guarantee when you complete
this training course at the
Simoniz® Garage, you will leave
with all the knowledge and training required to run a successful
detail business.
—Tom Palancia, Detail Operations
Training Manager,
Simoniz USA
DON’T ”SUB OUT” YOUR PROFITS
CONTACT
TOM PALANCIA
800-227-5536 ext. 242 OR
[email protected]
JIM DORSEY
800-227-5536 ext. 166
[email protected]
letter from the publisher
A recent issue of Automotive News cited a new customer care program from MercedesBenz USA. Called MB Select, it gives Mercedes-Benz dealers virtually free rein to spend
up to $2,500 of the factory’s money to address and solve an owner’s issues with the
newly-redesigned 2014 S-class sedans. An identical program is also in-place to spend up
1 7 8 5 3 S a ntia go Blvd., St e. 107-467
to $1,000 without factory preapproval to ensure the prompt resolution of problems with the
Vil l a Pa r k, CA 92861
new CLA sedan, which was introduced in October.
P h o ne 7 1 4 -803-5476
F a x 7 1 4 -2 7 6-0255
The thinking behind MB Select, which was prompted in large part by the manufacturer’s
Info @ F ixed OpsMag.com
poor showing in the 2013 J.D. Power and Associates Customer Service Index Study, is
w w w. F ixed OpsMag.com
to bring the level of customer care and satisfaction into line with the stated goals of Mercedes-Benz to deliver the best cars in the world and for their owners to experience the
highest level of attention to any issue that may arise with “no questions asked.”
I applaud MBUSA for taking this stance to address head-on the kinds of vehicle or customer service issues that could sink a newly-formed relationship in a matter of hours. If the
vehicles (and the people who sell and service them) aren’t performing at the top of their
game, this could be one very painful (and expensive) solution.
P ubl ish er / Edito r ial / Advert ising
Nick West
Phone: 714-803-5476
Fax: 714-276-0255
Nick@FixedOps Mag.com
Dealerships have always had the freedom to either push the factory to cover the costs of
“save this customer” types of fixes or to simply absorb the costs themselves because it
was just the right thing to do for the customer, both for their short-term happiness and for
their long-term satisfaction with both the brand and with the store. This MBUSA program
Ar t Dir ector
Ma r ia P usparan i
[email protected]
takes these approaches to a higher level of customer retention thinking.
It’s obvious to me that most every other OEM – especially the growing number that compete in the luxury category – will be watching this program with great interest. Will similar
programs appear from other manufacturers? Will they be publicly announced (the Mercedes-Benz announcement has already been widely discussed in online consumer sites)
or will they continue to be unspoken policies that give some dealerships the freedom to do
whatever it takes to “make it right” for the customer?
One final thought. Should programs like MB Select be the province of luxury brand dealers
alone? I’ve believed for a long time that, to its owner, EVERY vehicle is worthy of white
glove treatment and a prompt resolution of any problems. While the dollars are different,
in most case I bet we’d find that the owner of a $20,000 car has a similar proportion of
their net worth invested in their vehicle as the $90,000 car owner has invested in theirs.
A problem can be both painful and upsetting for the owners of either of these vehicles. A
prompt resolution benefits everyone.
The manufacturers and dealers that eliminate the red tape and adopt a make-it-right-now
policy will benefit in the long-term.
Fixed Ops Magazine is published by Prism Automotive,
LLC, 17853 Santiago Blvd., Suite 107-467, Villa Park,
CA 92861; phone 877-349-3367. Subscriptions are free
to qualified subscribers in the U.S. who are active as fixed
operations directors or service managers of franchised
automobile dealerships. Additional subscriptions are
available at: $30/year/US; $45/year/Canada; $90/
year/other foreign. Single issue price, $10. Periodicals
postage paid at Fort Worth, TX. POSTMASTER:
Send address changes to:
Fixed Ops Magazine, 17853 Santiago Blvd.,
Suite 107-467, Villa Park, CA 92861.
Reproduction or use, without express written permission
of publisher, of editorial or graphic content in any
manner is prohibited. The statements and opinions
expressed herein are those of individual authors and
do not necessarily represent the views of Fixed Ops
Magazine or Prism Automotive, LLC. The appearance
of advertisers does not constitute an endorsement of the
products or services featured. All rights reserved.
Nick West / Publisher
Ph on e : 7 1 4 - 8 0 3 - 5 4 7 6
E-mail:
N i c k @ F i xe d Ops Ma g. c o m
p. 6
To v iew th e Digital Edit ion of
F ixed Ops Ma gazine, visit:
www.FixedOpsMag.com
I N D US TR Y N E WS & EVENT S
OEConnection Launches
MarketPlaceDirect -Helps Dealers Sell OEM Parts on eBay Motors
OEConnection, the Parts e-commerce technology leader for OEM distribution networks, has announced the launch of MarketplaceDirect, a webbased solution that will make it faster and easier for dealerships to sell
genuine original equipment parts on eBay and other online marketplaces.
MarketplaceDirect is the company’s second product introduced in the last
year to help dealers reach DIY auto repairers online.
“MarketplaceDirect is the tool dealers have been looking for to help them
capitalize on the power of eBay, where tens of thousands of auto parts are
sold daily,” said Mark Tomasetti, OEConnection Senior Vice President and
Chief Commercial Officer. “eBay is a great marketplace for selling parts
and can best serve as a complementary channel if dealers can efficiently
manage their parts listings and order fulfillment. MarketplaceDirect automates the entire workflow directly through the OEConnection portal, making it easy for dealers to reach millions of auto parts buyers worldwide,”
Tomasetti added.
Seamlessly automating the upload process of data and photos, MarketplaceDirect integrates with a dealership’s Parts inventory and allows dealers to
create their own Parts list based on pre-defined criteria. The solution populates each listing with information needed for eBay, including quantity, pricing, part numbers and detailed OEM catalog diagrams. When a part sells on
eBay, a dealer sees the order information in the OEConnection portal and
uses the system’s order management functionality to complete the order.
MarketplaceDirect is currently available to all OEM brand franchise dealers
in the United States.
DealerRater Helps Dealers Boost
Visibility of Service Business with
Launch of Certified Service Center
DealerRater, the world’s premier car dealer review website, has announced
the launch of its new Certified Service Center Program. Recent studies
show that online searches for auto repair and maintenance have grown
66% in the past three years and have even surpassed growth in car and
truck searches by 8% in the past year alone. DealerRater’s Certified Service
Center Program enables auto dealers to boost the visibility of their Service
Department and grow their Service business with a suite of tools featuring a
unique Service Center Review Page packed with Service-specific information, such as amenities, hours, photos, top-reviewed service employees, as
well as special offers and coupons.
“With the jump in online searches for auto maintenance and repairs, dealers need to differentiate their Service business from independent centers
as well as local dealership competitors,” said Chip Grueter, President at
DealerRater. “We’ve carefully designed our new Certified Service Center
pages to provide dealerships with critical customer connection points -- like
Service scheduling and special offers -- while also benefiting from priority
placement in Service center searches on our site and improved SEO for key
auto repair search terms.”
Key highlights of Certified Service Center include:
- Enhanced and Unique Service Center Review Page
- Premium Review Page Ad Placement
- Service Appointment Requests
- Special Offers & Coupons
- Priority Placement on Search Results
- Service Employees Highlighted
- Improved SEO
- DealerRater Car Recall Page Links
- Service-Specific Point-of-Sale Tools
Dealer.com CRM Receives
ADP Dealer Services
Third-Party Access
Program Certification
Dealer.com, a leading provider of marketing and operations software for
the automotive industry, has announced the successful completion of
ADP Dealer Services Third-Party Access Program for its Customer Relationship Management (CRM) solution. As a result of the certification,
dealers can more efficiently track and report Sales and Service progress
in real-time through the direct push and pull of historical data, customer
information, Service repair orders and Sales promotions between Dealer.
com’s CRM product and ADP’s Dealer Management Software (DMS).
“By integrating with ADP’s DMS for our CRM product, we are bringing
greater efficiencies to the car selling process,” said Alex Snyder, Senior
Director of Product Design at Dealer.com. “When the key elements of
data are consistent and can easily be integrated into a common platform
like Dealer.com’s, we’re able to alleviate a lot of the painstaking red tape
that hampers efficiency. For instance, now our dealers will be able to
push deals they’ve penciled in our CRM directly into ADP. This alone will
save them a lot of time and effort and help them get back to doing what
they do best: selling cars.”
The certification covers existing functionality of Dealer.com’s CRM and
anticipates future features, including the ability to push current client deals into the ADP DMS. This particular functionality leverages the
Dealer.com Pencil Tool, which allows dealers to present payment options
instantly by simply entering a vehicle’s selling price. Pushing current sales
deals from the Pencil Tool to ADP’s DMS enables dealers to better track
the success of their promotions and revenues.ing only 12-14 gallons of
water and less than 2 ounces of chemicals to clean a car.
Continued on Page 96
EVENTS
Jan u ary 2014
24-27 / NADA Convention and Expo
Ernest Morial Convention Center
New Orleans, LA
703-821-7000 / www.NADA.org
20-23 / National Biodiesel Conference and Expo
San Diego Convention Center, San Diego, CA
573-635-3893 / www.BiodieselConference.org
M arch/ April
31-2 / The Car Wash Show
McCormick Place, Chicago, IL
312-321-5199 / www.CarWash.org
p. 8
Featu r e
Smart and Smarter
F i v e Q u a l i t i e s o f M a r k e t i n g G e n i u s By J a so n B e n n i c k
Albert Einstein once aptly stated that,
‘the difference between stupidity and
genius is that genius has its limits’.
When it comes to automotive marketing, dealerships sometimes tend to get
a bad rap due to some forthright and
sometimes
questionable
marketing
practices. While some consumers see
a dealership lot peppered with colorful
tents and balloons and drop by for a test
drive, others might put their foot on the
gas for fear of experiencing a less-thansavory Sales encounter.
Throw enough mud on the wall. Spray
and pray. Swing hard enough. It’s all hit
and miss. We’ve heard and lived these
clichés and, unfortunately, some endure
these stigmas simply because that’s all
they’ve ever practiced. Most of us know
that there’s a better, more efficient practice -- but it’s hard to change!
With over 18,000 active new car dealerships sprawled across the country
and over two-hundred million licensed
drivers traversing our roads and freeways, the opportunity for dealer sales
is undaunted. We offer a never-ending
litany of products, discounts, incentives
and Service opportunities all competing
for the consumer’s attention. And with
Herculean levels of messaging being
dished up daily to consumers, how is it
that some dealerships consistently drive
numbers to record highs, while others
struggle and fight desperately just to
turn a respectable profit?
p. 10
The answer? Smart marketing. That’s
correct -- just simply being smart about
how to market. In fact, not only being
smart, or even smarter, but being the
smartest in their business.
While dealership technology, resources and size may render an advantage,
the deciding factor between good and
great is most frequently how smart you
are with the resources available to your
dealership.
Having now been in this business long
enough to learn what works and what
doesn’t, I thought I’d share some simple
secrets of how numerous dealerships
have become some of the smartest I’ve
witnessed when it comes to driving results.
Five Smartest Marketing Habits
1. Stay Focused
In our world, ‘focused messaging’
means selectively delivering the right offer to the right customer at the right time
-- plain and simple.
It’s a balance. Some dealerships narrow their targets too much and miss
out. Others reach out with broad offers
to everyone and miss the opportunity
for relevance while wasting valuable
resources. You don’t have to sacrifice
broad market communications; you simply have to adapt messaging whether
by make, model, age or driving situation
and reach the right person. When it’s
done right, I consistently see wide eyes
staring in disbelief at the ROI numbers
achieved.
p. 11
For example, pulling multiple lists by
model year based on mileage from the
DMS with specific target trade-up messaging relevant to each sub-segment
could mean sending out a dozen different messages, while still driving a broad
market campaign. Waste is eliminated
and the dealership benefits from a coordinated campaign with each customer
seeing personalized benefit.
Another example is evident when we
look at dealers who consciously target
repair services to sustain engagement.
Regular customers who demonstrate
loyalty through ongoing minor service
are often more engaged when offered an
aggressive Service discount ‘performed
by a factory certified technician using
OEM parts in a clean shop with a warm,
friendly and comfortable waiting room’.
Again, remaining focused is key, but the
effort can set up an even stronger relationship and will almost certainly result
in longer-term loyalty, ultimately leading
to new vehicle replacement sales.
In short, calculated communications of
how your dealership cares for customer well-being can be a powerful tool if
focused as make-, model- and ownerspecific.
2. Market in Multiples
Federal agencies have been cracking
down recently on violations of consumer protection laws regarding prohibited
advertising methods. Thus, smart marketing also means taking advantage of
current regulations and approaching the
consumer from multiple channels in an
effort to actually make contact through
any of them at the same time.
Rather than delivering a single offer to
a target vehicle owner using a single
medium, a simple yet smart solution to
achieve better results is to apply this
same creative content across multiple
channels concurrently. For example,
send the customer a direct mail piece
with a matching e-mail so if the e-mail
went to their junk folder, at least they
can receive the mail piece, and vice versa. Sounds too obvious, but the simple
p. 12
“Regular customers who
demonstrate loyalty through
ongoing minor service are often
more engaged when offered
an aggressive Service discount.”
fact that multiple channel delivery increases response by a significant factor should not be overlooked, especially
when over 75% of direct mail is dropped
in absence of a corresponding e-mail
message.
Multi-channel communication is not
strictly limited to mail, as it could also
apply to corresponding banner ads in a
customer portal, targeted advertising to
defined customer groups or even a ‘mail
chase’ pre-recorded message phone
call to customers who have given proper
consent for phone messaging.
Orchestrating a uniform campaign with
all possible communication channels
running at the same time for a single
message will outsmart the potential loss
of contact by way of wrong addresses,
incorrect emails or missing phone numbers.
Bottom line, the smartest dealership
marketing techniques include utilizing
multiple channels and not putting all
your eggs in one basket, as you never
really know how many will arrive at the
other end.
p. 13
3. Get Personal
Personalized marketing has not only become the trend, it’s the most effective
methodology in use today for obtaining
consumer response.
The real question facing dealerships is
how to effectively personalize communications while remaining accurate and
legitimate in messaging. This is largely
solved with good DMS housekeeping
and personalizing only what is appropriate.
For example, using a dynamic and automated software application operating
through rich, real-time DMS integration
will serve up timely and appropriately
personalized Service reminders that can
trigger engagement. E-mail, calls and
direct mail pieces, each displaying the
vehicle owner’s name, vehicle model,
VIN, current mileage, last service and
recommended next service – all based
on service plans and current DMS information – can provide the customer
a unique message experience that is
richly personalized and all performed
automatically.
These types of automated services mine
the DMS throughout the day for new
deal and repair information changes,
helping to make every communication
relevant. Whether targeting outstanding
repairs which may have been declined,
or advising of timely Service needed,
personalized communication that is relevant can increase results by a factor of
2 or 3X.
Keeping an up-to-date and cleansed
DMS, while harnessing the power of
technology to generate appropriately
personalized vehicle communications,
will give the dealer an edge and the customer confidence that their dealership is
‘on the ball’ and will yield more consistent results.
4. Be Timely
Timing is everything. Just as your engine
will run rough when the timing is off, the
same goes for how effective marketing
performs when poorly timed. The difference, however, is more critical. Untimely
p. 14
communications cannot only lose customers, but wind up never contacting
hundreds, if not thousands, of customers, compounding waste and demonstrating an apparent lack of diligence.
Effective communications on scheduled
maintenance, annual state inspections,
customer birthdays, vehicle anniversaries, model trade cycles, lease expiration, extended warranty opportunities,
new vehicle accessories, tires and many
more greatly depend upon the timing of
their arrival with a vehicle owner. Dealers
who simply broadcast generalized offerings or untimely targeting end up wasting thousands of dollars and dramatically reducing their effective ROI.
Smart dealers are experts at taking advantage of timely seasonal or uniquely
localized events. For example, after
Hurricane Sandy several dealerships in
the northeast and New York area reached
out to thousands of their customers with
campaigns, letting them know they had
moved cars out of their showroom floors
and were serving up hot soup, warm
food and giving out blankets to those
in need. While truly a humanitarian gesture, the goodwill and timely messaging
earned the confidence of thousands of
locals while generating positive headline
news. Once life returned to normal and
the damage cleared, those dealerships
witnessed hundreds of new (and lost!)
vehicle owners coming in for Service
p. 15
and replacement sales, all as a result of
the trust earned on the basis of timely
proactive marketing.
Importantly, had the dealerships timed
their campaign too late or at an inappropriate point, customers could have
viewed the same messaging as offensive, rejected the dealership efforts as
profiting on disaster and business could
have been negatively impacted.
Based on years of tracking communications results, clearly targeted timing is
just as vital to effective marketing as the
discount, offer or incentive being sent to
the customer.
5. Go Mobile.
I saved the best for last, as this tip truly
warrants being kept foremost in mind
in a changing communications environment. Let’s begin with several current
facts to put this one in a better perspective:
• 43% of mobile device users check email on their device at least 4 times daily
• 55% of mobile device users check for
communication before using the bathroom
• 56% of consumers said an e-mail they
viewed influenced what they purchased
• 82% of smartphone users check and
send e-mail with their mobile device
• 90% of smartphone owners access
the same e-mail account on mobile as
desktop
• 91% of Americans now have a mobile device and 67% are checking their
phones for messages, alerts or calls,
even when they don’t notice it ringing or
vibrating.
Only 6 years ago, less than 1 million
Americans had mobile phones. Today,
that number is over 250 million. This
blistering growth dictates an undisputable trend in today’s marketing: go mobile.
Dealerships face marketing challenges
in reaching both new and existing customers, yet all customers share the
commonality of being on mobile devices. Dealerships who want to effectively
p. 16
make this transition can do so by first
driving routine marketing efforts into emails and also ensuring those communications are ‘mobile friendly’. This means
sending e-mails which can ‘adapt’ electronically into an easy-to-read vertical
format when opened and viewed on
most common mobile devices.
Mobile offers both intrusive communications and practical customer-friendly
support. It should become a staple in
web applications for appointments, Service and Sales but must be uniquely designed to for the format, easy to open
and simple to use.
Dealerships are also learning that text
messaging can be more effectively used
instead of live calls for minor and fast
customer touch, such as Service alerts
and notifications. This is facilitated by
a concerted effort to capture the customer’s most current mobile number
at Service or Sales, and informing the
customer they will be sent text messages when Service is complete as well
as other simple reminders. While text
messaging to solicit customers now requires express written consent, no such
consent is typically required for strictly
informational or notification messages,
such as appointment reminders or even
special order parts arrival.
Vehicle owners are living on their mobile
devices to communicate and expect this
same medium to be used when being
serviced by dealerships. Harnessing this
trend makes it not only convenient for
your customers, but empowers dealers
to become far more effective in reaching vehicle owners, staying real and ensuring all those focused, personal and
timely messages will be seen.
These essential five qualities of ‘smartest marketing’ are but highlights of the
opportunities dealers become engaged
in to better utilize their vast data to enhance results. With hundreds of thousands of communications observed in
our work, I’m always impressed by the
dealerships that demonstrate ‘genius’
using common tools in innovative ways
to generate the strongest results.
Jason Bennick is the Chief Operating Officer
of AutoLoop, a Customer Engagement Management marketing solution servicing OEM
partners, dealerships and national dealer
groups. The AutoLoop Suite is an in-depth,
cross-media platform designed to monitor
DMS activity in real-time through Service,
Parts and Sales to directly manage vehicle
owner activity and retain dealership customers. Jason is a seasoned executive with
over 20 years of C-level experience, driving
AutoLoop organizational development since 2008 to its current
success, landing #71 the Inc 500 list in 2011 with a growing customer base of over 2,000 dealerships utilizing AutoLoop products
and services.
p. 17
Featu r e
Detailing Makes
Dollars and Sense
T h e K e y R o l e i t C a n P l a y i n Y o u r S t o r e By T h o m a s P a l a n c i a
Dealers all over the country are re-imagining their Service Departments. They’re
focused on being convenient and valuable to their customers. Consumers
today expect everything at their fingertips. Most retail industries have been
forced to offer more “on-site” value to
their customers. This trend is easily visible upon entering a supermarket. It’s
now common to see a bank, a bakery, a
pharmacy, a butcher shop, a sandwich
counter, video rental and even a gas station on the same premises as the supermarket.
Dealerships are following suit by installing car washes as an additional offering
to their customers. Simply serving up
free Wi-Fi and television doesn’t cut it
anymore. I’ve seen dealership Service
Department waiting areas that include
nail salons, masseuses, barbershops,
movie theatres and diners. These are
the conveniences that make “waiting”
a bearable thought for customers. Most
dealerships have added “while you wait”
oil changes, brake inspection and brake
work, fluid flushes, tire services, etc. to
their menus. Yet they seldom think of
adding appearance services. I believe
this is an oversight that should be considered – and remedied.
which doesn’t bother them, as long as
the vehicles are ready quickly. Many
dealerships sub-out the Detail work and
totally relinquish control of the cleanup
shop. That’s a courageous move, considering that customer satisfaction is
directly effected by the appearance of
their vehicle. I don’t believe I’m alone
in wanting as much control as possible
over what my customers receive with my
name on it.
your mechanical services, dealers can
add a revenue stream that was once an
expense, while building customer loyalty. Operating a retail Detail Department
means you can offer a viable automotive
service to your existing customer base
while ensuring the highest quality in
the everyday cleanup shop production,
such as new car get-ready and tradein vehicles. I believe you’ll see your CSI
scores skyrocket.
It’s become common practice for many
dealerships to view the Detail section
of their Service area as a nuisance. I’ve
heard it referred to as a “necessary evil”
to which Dealer Principals and Service
Directors pay little attention. They know
little of what goes on “back there” --
The truth is, with a little effort and a vendor partner that offers not only product
solutions, but P.O.S. material, as well as
technical and sales training, the Detail
Department can quickly become a viable in-house profit center. Simply by
treating your Detail services as you do
The start up costs for this “add-on business” are minimal, unlike many new businesses or services you bring on-board.
The amount of inventory you will need is
minimal. Any new inventory would be to
update the products and tools that allow
the technicians to efficiently perform the
p. 18
p. 19
newly-offered Detail services in a convenient timeframe to ensure that customer
expectations are exceeded.
Consider the largest expense of the
cleanup shop as it stands -- labor. Now
consider that a successful retail Detail
operation can pay for the ENTIRE labor
in the clean up shop and net money.
There would be very little, if any, advertising needed other than effective POS
material.
Lets look at an example of a retail Detail
operation at a typical dealership.
Lets say this dealership sells roughly
100 cars a month and produces 200
repair orders a week. The Service Advisors are able to sell 6 additional daily
Detail services at $125 each. With 3
full-time Detail Technicians performing
the services five days a week, the total
detail revenue would be $195,000 annually. With the total expenses being labor,
p. 20
(50% or $97,500), product costs (10%
or $19,500), advertising (1% or $1,950),
utilities (2% or $3,900), uniforms (1%
or $1,950) and commissions (5% or
$9,750), you’re left with $60,450 operating cash flow. If each retail service took
two hours to perform, there would still
be 15 additional man-hours per day for
the technicians to devote to the makeready and reconditioning work. In this
example, the Detail operation has now
absorbed the entire operating cost of
the detail shop -- and netted a profit.
the same strict standards as the Service
Technicians with regard to quality and
efficiency.
I’m not saying this evolves without effort. The most important (and necessary) elements for success are commitment and training. The dealership needs
to be committed to seeing this program
to fruition. The Technicians need to be
committed to hone their craft. Time
needs to be taken for proper training for
all staff that are involved in selling -- as
well as performing -- the Detail services.
The Detail Technicians should be held to
customer loyalty.”
“Simply by treating your
Detail services as you
do your mechanical
services, dealers can
add a revenue stream
that was once an
expense, while building
This high performance level can be attributed to “process”. The way in which
vehicles are processed needs to be a
standard protocol. There’s no room for
shortcuts. Each Technician should perform the services identically to ensure
that the customer receives the same
high quality service (and results) consistently.
p. 21
All too often, I’m confronted with Technicians who “have been detailing for 20
years” or some similar time period, but
are consistently “inconsistent” in the
eyes of the Service Director. Unfortunately, the time in which someone has
held a title does not ensure that they actually know what they’re doing.
“This high performance level
can be attributed to “process”.
The way in which vehicles are
processed needs to be a
standard protocol. There’s
no room for shortcuts.”
Detail Departments are plagued with
poor time management and inconsistent services due to shortcuts or poor
product knowledge. Training eliminates
this and teaches the Technicians to take
pride in their work. It’s no surprise, then,
that the Detail Department staff can be
p. 22
somewhat of a revolving door. If everyone sticks to the same process, training can be done in-house, ensuring that
there’s little downtime in production as
roles are filled.
In addition, I’m always surprised at how
little Detail Technicians know about the
products they use everyday. Product
knowledge is key for safety reasons
as well as speed. We’ve all heard the
phrase “the right tool for the job” in relation to the ease of accomplishing something vs. struggling with the “wrong
tool”. The same can be said for appearance products. There’s a certain amount
of analysis needed in every detail when
attempting to remove stains or with regard to paint correction. Knowing which
product to grab (and when to grab it) will
speed up the process and avoid unnecessary damage to customer vehicles.
The Service Advisors need to be onboard with educating your customers
as to how they can best help maintain
their investment -- including it’s appearance. There needs to be proper communication between the Advisors and the
Technicians performing the services. It’s
important to remember that the Service
Advisor sets the customer expectation
and it’s up to the Detail Technicians to
exceed it.
It’s been my experience that when Detail Departments that are viewed as an
asset and treated accordingly, services
are performed at higher levels. Everyone
wins when the highest potential is realized – including, most importantly, the
customer.
Thomas Palancia is the Detail Operations and
Training Manager for Bolton, Connecticut-based
Simoniz USA Inc., the company that pioneered
the “Express Detail Model”. His responsibilities
include business, technical and sales training for
dealerships, car washes, quick lubes and detail
shops all over the world, as well as product development. Thomas also oversees “The Simoniz
Garage” -- the company’s state-of-the-art training
facility, R&D lab and operating detail shop in West Hartford, Connecticut.
We recaptured 638 customers who had
not been in for service in more than 1 year,
totaling $183,134 in additional revenue.
– Schepel Auto Group
25% of the customers in your database no longer
own the vehicle you think they do.
Unlock profit by targeting the right customers.
Advertising
Mobile
Reputation
Management
SEO and
Social
Targeted
Marketing
Web
learn
how
with a twist
888.841.8130 | nakedlime.com/mkt
Protect your customers. Get more of theirs.
p. 23
Featu r e
How to Sell
More Tires
… A LOT M o r e T i r e s By D a n B r a n c a c c i o
According to industry experts, 78% of
all replacement tires are sold by the first
car care professional that informs the
consumer of the need. Stop and think
about this for a minute: all you have to
do to sell more tires is “train” your customers to return to your shop for routine
tire checks. When a customer returns
for a regular tire check and you notice
that they are ready for new tires, there’s
a 78% chance that they will buy them
from you. Considering that new car
dealerships sell just 7% of all replacement tires, these are pretty awesome
odds.
The challenges with this model are: how
do you encourage your customers to
return to your shop on a regular basis,
and how do you train your staff to take
advantage of these visits.
Actually, training your customers to return to your Service drive is much easier
than you may think. All it takes is discipline and a “Tire Inflation Maintenance
Program.”
A Tire Inflation Maintenance Program is
exactly what it sounds like: a program
wherein you maintain a customer’s vehicle tire pressure. If you think about
it, leveraging tire inflation maintenance
to increase customer traffic and retention makes perfect sense, as an inflation check / calibration is very simple to
perform and is also the most frequently
requested and required maintenance
service on every vehicle.
p. 24
For years, most Service departments
have counted on regular vehicle breakdowns and oil changes to drive traffic.
(Remember -- it wasn’t that long ago
that cars did routinely break down!)
However, the days of replacing carburetors, points and condensers, mufflers and many other archaic parts are
far behind us. That good news for most
consumers is bad news for those of us
in the vehicle Service business: cars just
don’t break down like they used to.
It also wasn’t very long ago when an oil
change was the most frequently required
service. Virtually every make and model
called for an oil change every 3 months
or every 3,000 miles; about four times
each year. However, the oil change has
now devolved into an almost annual service on most makes and models, with
some requiring no more than one every
14,000 miles.
Tire inflation maintenance, on the other
hand, has evolved into the best Service
to leverage for traffic, as it’s required
by every vehicle manufacturer 12 times
each year! In fact, tire inflation maintenance is listed as a required monthly
service in every owner’s manual of every
vehicle sold in this country. It’s also the
reason that tire stores sell almost 70%
of all aftermarket tires -- because that’s
where your customers are going to have
their tires checked!
Despite conventional thinking, the reason your dealership doesn’t sell many
tires has nothing to do with price. (You
don’t charge substantially more than
most tire stores do for your tires.) But
it has everything to do with ignoring a
customer’s tire service needs, or, more
specifically, their tire inflation maintenance needs.
Frankly, consumers would rather have
factory-trained technicians work on their
vehicles. But you don’t get them because you simply don’t have a mentality
that is conducive to tire sales. Get a customer in the habit of visiting your shop
for simple tire services and you’ll be the
shop that sells that customer tires when
they need them. To do this, you need to
install and embrace a tire inflation maintenance program and make tire calibrations fast and easy for your customers.
For example, manufacturer and worldwide supplier of nitrogen generation and
inflation equipment since 1966, NitroFill
also provides a comprehensive tire inflation maintenance program launched
about 10 years ago. The program begins
with the use of nitrogen for tire inflation.
As an inert gas, nitrogen is not only a
superior inflation medium (yielding better fuel economy, longer tire life and
enhanced safety) but it’s also “unique,”
meaning that it still isn’t available everywhere and its use alone compels customers to return to their selling dealer
for pressure checks and top-offs.
But the program doesn’t count on this
alone to drive customers -- far from it.
The NitroFill program also contacts each
customer via Facebook, text message,
e-mail and / or newsletters every month
-- consistent with every tire and vehicle
manufacturer’s recommendations -- and
reminds them to return to their specific
dealer for a complementary tire pressure check and calibration. The company reports that while the average US
consumer visits their car care professional 1.2 times per year, customers on
their Tire Inflation Maintenance Program
return to their dealers, on average, 4.5
times annually -- almost 4 times more
often.
p. 26
“Training your customers to
return to your Service drive is much
easier than you may think.
All it takes is discipline and a
“Tire Inflation Maintenance Program.””
Where Science Hits the Streets
Find out why more
service managers
are switching to
TERRACLEAN
Visit us at booth
number 7219
TerraClean offers value added
services that improve customer
satisfaction and retention, which
directly affects a dealership’s
bottom line.
TerraClean MiST effectively treats
mold, mildew and bacteria.
Consumers appreciate breathing
clean and healthy air while driving.
TerraClean decarbonization system
cleans all the way to the tail pipe,
providing a drive away difference.
TerraDiesel Emission Service restores
fuel economy and performance by
cleaning Injectors, EGR, and After
Treatment Systems.
Our philosophy is simple - “make tools and chemicals
that work and make it easy for technicians to do their
job”. We know that when you believe in a service, you will
not only suggest the service to more of your customers,
you will also have confidence in using them yourself.
1-888-70-TERRA (83772)
1-905-615-6820
www.terraclean.net
To ensure further customer embracement and participation, each nitrogen
conversion also includes a selection of
customer benefits (chosen by the dealer to fit their specific needs) which can
include Tire Repair and Replacement
Coverage, Wheel Repair and Replacement features, Roadside Assistance and
many other “Auto Club” benefits.
The Tire Inflation Maintenance Program
also automatically registers new vehicle tires with the corresponding tire
manufacturer and enables the dealer
to track each customer’s tire wear and
all vehicle Service needs online. In addition, the program provides an almost
endless array of data sorting, marketing
and customer contact options, enabling
the dealer to take advantage of the rich
data base that the program builds via
customer and vehicle registrations as
well as the monthly Service reminders
each customer receives. On command,
Service Managers or Fixed Operations
Directors can compile a comprehensive,
sorted list of customers due for specific
vehicle-services within a set range of
dates to send an instant Service reminder to each customer, personalized with
the customer’s name, vehicle information and upcoming services due, along
with the Dealer’s full contact information, to schedule an appointment. Each
correspondence features seemingly
endless customization possibilities.
Every chance that an advisor gets to
see a customer should be viewed as
an opportunity to build a relationship
and maybe, just maybe, recommend a
needed service. Utilizing a comprehensive Tire Inflation Maintenance Program
provides that opportunity. With the national average dollars per RO at an alltime high ($246), can you really afford
not to engage a program offering tangible value to every customer and, more
importantly, one that compels that very
same customer to return to your service
department?
Pompano Beach, Florida’s Performance Nissan dealer, Bobby Serpentini, estimates that his Service
Department will capture an additional $300,000 in customer-pay
revenue directly related to their
Tire Inflation Maintenance Program
implementation, which is included
with every new and used vehicle
they sell. “Even if only half of my
vehicle buyers come back just one
extra time in 12 months following
delivery, we are making a meaningful dent in the business that
my Service Department was previously losing to one of the 15 tire
stores that are a stones-throw from
here.” Mr. Serpentini continues:
“We will do everything possible
to prevent defection, and once a
customer experiences the level of
service and integrity that our dealership’s Service team provides, we
know they will be with us for good.
A tire inflation maintenance program helps us bridge that gap from
Sales to Service.”
p. 28
“While our focus is
tires, these regular
visits also provide the
dealer with an
opportunity to view
each vehicle’s
odometer, oil change
sticker and
Service records.”
With over 6,000 franchised new car
dealerships utilizing the company’s Tire
Inflation Maintenance Program, NitroFill
stands by its claim that the program,
when properly embraced, will increase
the average customer return rate by
400% and hence, will have a tremendous impact on a dealer’s tire and Service sales. According to company President, Jay Lighter, “Our customers not
only return to their dealers far more often, they return to their dealers with the
expectation that the dealer’s staff will
be inspecting their tires. This lessens
the surprise factor and makes the sale
of tires, wheel alignments, rotating and
balancing and other services much easier.” Lighter furthers, “While our focus
is tires, these regular visits also provide
the dealer with an opportunity to view
each vehicle’s odometer, oil change
sticker and Service records. What we do
better than anyone or any other product
is provide traffic. And because you can’t
sell anything to a customer that isn’t
in your Service drive, nothing is more
important.”
Dan Brancaccio Vice President of
Sales for Pompano Beach, Floridabased Vehicle Safety Solutions, LLC
FIXED OPS ADVANTAGE
The CARQUEST® Fixed Ops Advantage Program is designed to align and support today’s dealerships
aftermarket “All Makes & Models” services philosophy.
• Quality Products (OE Exact Form, Fit and Function) • Rebate Program and E-Ordering Incentive
• Unmatched Product Availability and Service
• Customized Training (Selling Services
• Consolidated Supplier (Products, Supplies,
and Technical)
Collision, Tools & Equipment)
• Consumer Education Tools.
• Aggressive and Consistent Pricing Across a
Nationwide Footprint
Great people, great products, great prices!SM
CARQUEST.com
Featu r e
RFID Systems
S e t t i n g Y o u r C u s t o m e r ’ s F i r s t App o i n t m e n t
- - a n d M u c h M o r e By Ro g e r S m i t h
How much time do you spend each day
reminding your staff how to do their job
or to follow your process? It’s not all
day, but it feels like it sometimes! With
all they have to focus on, maybe they
need some help. You can give it to them
with an RFID (Radio Frequency Identification) system.
At the time of a new vehicle delivery, the
Salesperson should set the first Service
appointment with their customers, but
this almost never happens. This is too
big an opportunity to give up on. With an
RFID zone in the delivery area, the customer’s first Service appointment can be
set automatically.
“At the time of a new
vehicle delivery, the
Salesperson should
set the first Service
appointment with their
customers, but this
almost never happens.
This is too big an
opportunity to
give up on.”
It will be shown on the display board
in the delivery area indicating that their
salesperson will confirm a time with
them for the selected day or choose another day that works better. It will also
display a congratulations and thank you
message that can be from the dealership owner, GM or from the company
p. 30
in appreciation of the purchase. If the
salesperson still doesn’t follow through,
don’t worry. The system can e-mail a
thank you message to the customer with
a link to change their appointment date
and time, if necessary.
Appointment reminders should be sent
several weeks prior to, and the day before, their appointment, as well. This
will give you the best odds of retaining
the customer in Service. It only takes
a couple of customers to return -- who
wouldn’t have otherwise returned -- to
cover the monthly cost of the RFID system. While they’re in the delivery area,
wouldn’t that be a great place to pro-
mote accessories, Service contracts,
and anything else that you want to show
on a flat screen display board?
Greeting the customer by-name is another important first step, especially
when you’ve waited on them before and
you should remember it. When I was an
Advisor, I had a terrible time remembering customer’s names. Even the customer that I had to ask their name in the
morning…by the time they returned to
pick up their vehicle, I had to ask again.
How embarrassing! But it wasn’t just
me; customers didn’t remember my
name either. That made for an uncomfortable situation for both of us.
WHILE EXPLORING THE BEST
NEW ORLEANS HAS TO OFFER
AT NADA 2014,
DISCOVER THE BEST DEAL
THE SHOW HAS TO OFFER
AT BOOTH #6131.
ASR Pro
We didn’t invent the electronic multi-point inspection process.
We perfected it.
www.asrpro.com | 1-888-927-7770
p. 31
Remember when the normal greeting
was “Hi, what’s your name and do you
have an appointment?” Now imagine
your customer arriving with their name
in lights and a welcome message from
the dealership on a flat screen in the
Service drive or write-up area.
“With a picture of the
Advisor, both the
customer and Advisor
will know each others
names. With the
appointment time and
requested alternate
transportation listed,
you’ll look like you
know what’s going on!”
With a picture of the Advisor, both the
customer and Advisor will know each
others names. With the appointment
time and requested alternate transportation listed, you’ll look like you know
what’s going on! Then, at the end of the
day, they can be welcomed back in their
loaner vehicle, so you can’t go wrong.
The processing of paperwork will go
faster with notifications to all the proper
people.
Between welcome pop-up messages,
your RFID system should be promoting
everything from maintenance to a great
sales promotion that ends this month,
on the display boards. What are you doing currently to promote vehicle Sales,
Service contracts and Accessories to
your Service Department customers?
This will get noticed and get results.
Wouldn’t it be great if the Salesperson
could remember their customers, as
well? Now they can with an advanced
notification of all their customer’s Service appointments over the next three
days. The advanced notification should
show key pieces of information, so
the salespeople can determine which
customers they’ll need to rearrange
p. 32
their schedules for. The Sales Manager
should be able to see these as well,
sorted by Salesperson, and be viewed
from a PC or mobile device.
Customer and vehicle info with mileage, the customer’s total spending
since purchase, what’s getting done and
how much it will cost give the Salespeople the key information they need to
make sure they’re available when their
customer is scheduled. Then when the
customer arrives, the Salesperson will
receive a text message from the RFID
system allowing them to reconnect with
their customer. They’ll instantly get all
the important details of the visit such
as customer name, year, make, model,
miles, alternate transportation and work
to be performed. Maybe they’ll get the
customer to trade in that prime, low
miles vehicle on a new one!
RFID will even help with test drives by
displaying, “Thank you for considering
Northtown Lexus for the purchase of a
Black 2014 Lexus RX350” Of course, I
recommend that your message should
say something else and be changeable
anytime. If the test drive ends by pulling through the drive or other RFID zone,
the message is displayed on the Service
drive arrival board. You can even record
which Salesperson took them on the
test drive if they wear an RFID name tag.
Has your store ever had a Sales customer get impatient or leave while you’re
searching for the vehicle they wanted to
test drive? Is it in the back lot, in the
shop or at the remote storage lot? You
can spend a long time looking and even
lose a deal by not knowing. Would you
like the GM to get a text message if a
vehicle passes through a perimeter entrance zone after-hours? How about the
police? I’ll bet your insurance company
would appreciate it.
How is the arriving customer’s experience when a few of the Advisors wander
off to talk to the Techs or to the Parts
team and there aren’t enough staff to
wait on them because several Service
Department customers arrived at once?
Customer service drops along with
p. 33
with ticket averages. You need all hands
on-deck, which can be done automatically by texting all Advisors, the Service
Manager and even the GM, if desired.
The RFID system should have a pre-set
limit of how many customers (and over
what time period) will trigger these notifications.
You know how some dealerships have
their winterize special still running in
May? Your display boards should have
preset start and stop dates for all content to prevent this and make managing
content a breeze. Displays boards can
run looping content between greetings
with HDTV commercials from you or the
manufacturer, Service menu prices, tire
promotions, your new extended hours,
national, regional and dealer specific
promotions, accessories, seasonal messages or anything else you can dream
up. Some suppliers have a library of
content to choose from, so you don’t
have to work too hard at looking good
and up-to-date.
“How is the arriving
customer’s experience
when a few of the
Advisors wander off
to talk to the Techs or
to the Parts team and
there aren’t enough
staff to wait on them
because several Service
Department customers
arrived at once?”
Some RFID systems will identify the
RFID zone right on the route sheet, making everyone in the dealership sound like
they know what’s going on every step of
the way. (Imagine that!) Each time the
vehicle is scanned in a new zone, a time
and date stamp can be recorded to a
permanent history record for each vehicle.
RFID antennas scan a small tag located
on the back of the rear-view mirror and
link to your DMS to pull customer and
vehicle data only while at your dealership. The tag shouldn’t contain any customer or vehicle data, making it completely private and secure.
Here are some other important things
to consider when choosing a system:
Certified DMS integration is critical and
will be even more important as the DMS
companies get tougher on hostile interfaces. Accuracy rate of scans is also important. Every vehicle should be read as
it passes through a scan point. Can the
system read through the Service drive
door allowing hardware mounting inside, preventing the need to drill through
the building facade to mount unsightly
antennas?
RFID systems improve communication,
organization, efficiency and accountability, resulting in increased profits,
higher CSI and greater customer retention. Customers always expect more
and RFID takes them to the next level.
With some RFID systems now well below
$10k installed and under $1k per month,
you should be able to generate a significant return on investment while wowing
your customer with both an impressive
image and superior customer processing and handling. In the end, your staff
will get some help and your customers
will get a consistent process every time.
After 25 years as Fixed Operations Director of a mid-size dealer group, Roger Smith
wanted to create process solutions for dealerships. As the CEO and founder of Service
Dynamics, he’s designed Auto Arrival RFID
and the Shop Watch Service Management
System with solutions such as web appointments, scheduling, integrated route sheets,
texting, e-mail, digital display boards, menus
and inspections, Service reminders and
more.
p. 34
“Gross labor sales
are up 130%”
Randy Yockey
Co-Owner
Friendly Ford
Roselle, IL
Premium Service Kit – a part of Reynolds Retail Management System.
reyrey.com /rms | 888.853.2617
© 2014 The Reynolds and Reynolds Company. All rights reserved. 1006542-3 1/14
p. 35
Featu r e
An Eight-Step Plan
E s t a b l i s h i n g a C u s t o m e r R e t e n t i o n P r o c e s s The economic downturn in recent years
had a major impact on the profitability of
the automotive industry nationwide. New
vehicle sales were at an all-time low and
dealerships began placing a greater emphasis on Fixed Operations and vehicle
Service to generate additional revenue
and sustain their businesses.
Today, auto manufacturers and dealerships are reporting record-breaking new
and used vehicle sales. The same dealers that refocused their efforts in Fixed
Operations and vehicle Service are the
ones who were not only able to sustain
revenue during the recession, but are
now reaping the rewards of increased
sales.
It’s been said that Sales sells the first
car and Service sells the next several
cars. Over the years, there have been
several great articles written about the
steps to Service retention. Different writers have different approaches: some use
four steps and some, ten steps or more.
The point is, no matter how many steps
you have, they’re useless if they’re not
a part of your overall Service process.
You must train your staff and have a system to track and document successes
as well as list actions that need to be
improved.
Step 1: Introduce Customers to Your
Service Department
p. 36
By T e r r y L . W i l l i a m s
p. 37
The first step in the retention process is
the introduction to the Service Department. Once a customer is in your dealership and you’ve sold them a car, it’s crucial to emphasize the importance of your
Service Department and showcase what
differentiates you from the competition.
Explain to the customer that your dealership only uses genuine parts sent directly from the manufacturer. Tout the
benefits of your factory-trained Technicians and Service Advisors who possess in-depth knowledge of the operation and mechanical aspects unique to
their vehicle. You should take that opportunity to drive home the importance
of scheduled maintenance and give a
brief overview of the maintenance required while discussing the benefits
of extended Service contracts. An extended Service contract is an excellent
way to build customer loyalty once the
vehicle is outside of the manufacturer’s
warranty. It’s a way to give customers
peace of mind.
they will typically go elsewhere. You
can have any prepaid maintenance you
want, but if you aren’t servicing vehicles
in a timely manner, that free maintenance won’t be utilized and customers won’t come back to the dealership.
Most customers defect from the dealership because of the perceived convenience of going elsewhere.
Step 4: Perform a Multi-Point Inspection
“Having a service
clinic allows you
to reach out to
customers who
haven’t been to
the dealership in a
long time.”
Another way to introduce them to your
Service Department is to offer prepaid
maintenance plans upon the sale of the
vehicle. If purchased, these plans can
lay the groundwork for loyalty to the
dealership.
Step 2: Provide Services in a Timely
Manner
If a customer comes in for an oil change
or a small repair, you should be able to
get them in and out quickly. Customers
place significant value on express Service. If a customer needs an oil change,
and the dealership doesn’t have time,
p. 38
customer retention strategy. If you don’t
remind customers of their scheduled
Service visits, then you set yourself up
for potential no-shows. The goal is to
increase the number of Service appointments made and decrease the number
of no-shows. When you have appointments, your techs have scheduled plans
for each respective day. If those cars
don’t drive into your bays, you have
to fill that gap and provide additional
work to your technicians. It’s important
to send those Service reminders. There
are software Service providers out there
who have software packages that allow
dealerships to call customers, confirm
appointments and, if necessary, reschedule.
To remedy this problem, many OEMs today have quick lanes dedicated to small
repairs and most dealerships have existing bays that offer customers the opportunity to come in and have a quick
Service experience. People who want
convenience and a quick service go to
McDonalds. If you want a longer experience, go to Ruth’s Chris Steak House
and wait. The goal here is to provide a
Ruth’s Chris experience in a McDonalds
time frame.
Step 3: Schedule the First Maintenance Appointment
Be sure to put the appointment in your
system so you can contact your customer and remind them of their scheduled Service visit.
Being able to communicate with a customer prior to their Service appointment
is one of the most critical steps in any
Every time a customer comes in for a
visit, it’s an opportunity for the dealership to reinforce and build customer
trust. They should -- at every single visit
-- perform a multi-point inspection. This
inspection allows dealerships to show
customers the health and condition of
their vehicle. It’s like going to the doctor
for a physical. Whether it’s your blood
pressure or your cholesterol, you expect
a doctor to provide the results of the
tests they ran. The same goes for your
customer. That customer is expecting
their dealer to give them a report on the
overall health of the vehicle.
I did hundreds of repair order analyses
over my years in the business. One of
the key things that I came across is that
many dealers did only what the customer requested when they came in. If they
came in for an oil change, they did the oil
change -- and that’s all they did. Many
did not perform a multi-point inspection
and neglected to tell the customer anything about their vehicle’s vitals.
Dealerships can perform these multipoint inspections and reassure their
customers that their vehicles are OK.
They are most likely to purchase services from someone who has continually
been reporting on the health of their vehicle with each visit and has repeatedly
provided a good Service experience.
solution for your
service center
AutoPoint is the first, best & only comprehensive platform
for automotive service centers. AutoPoint ensures maximum
productivity and revenue generation while developing
trust and consumer confidence.
The new AutoPoint makes it fast, easy and affordable.
see us at nada. booth 5819.
autopoint.com
formerly MPI
p. 39
If you’ve done the due diligence of a
multi-point inspection, you have an opportunity to let customers know what
their vehicle needs and to talk about the
services that you offer. This is where the
dealership could be pulling in additional
revenue and it all starts with a multipoint inspection.
Step 5: Sell in the Service Lane
While the customer is in the Service
lane, you have the opportunity to sell an
extended warranty contract or a maintenance contract, depending on the OEM.
If you can train your Service Advisors
to communicate with the customer and
say, “Your vehicle has 30,000 miles on it,
you may want to look into purchasing an
extended Service contract. Here are the
benefits of the contract as you’re starting to get toward end of warranty coverage,” a lot of customers will purchase
that day. For some OEMs, finance companies allow customers to finance the
contract at that time or pay cash for it.
It’s a retention item that keeps the customer coming back to your dealership
throughout the course of their extended
Service maintenance contract.
Step 6: Seize Available Opportunities
Along with these points, reinforce the
importance of scheduled maintenance
any time a customer comes in. It’s an
opportunity to take the customer into
the showroom and introduce them to the
new makes and models. In some cases,
when people come in with their vehicle
aging and outside their warranty coverage and a Service Advisor offers to walk
a customer into the showroom to look
at some of the new products, customers have traded in the vehicle they were
bringing in for services and purchased
new vehicle.
Step 7: Schedule a Service Clinic
Another critical part of the retention process is utilizing Service clinics to bring
customers into your dealership. Having
a clinic allows you to reach out to customers who haven’t been to the dealership in a long time. You can go into your
DMS and retrieve the names of custom-
p. 40
ers who have not been in lately. Send
that group of customers direct invites
to the dealership for a Service clinic. At
Shell, we have quite a few retention programs. When the dealers purchase from
us, we allow them to utilize tools and
services to increase customer retention
and, more importantly, to help drive customers back to purchase new vehicles
from that dealership.
Step 8: Set the Next Service Appointment
Once a customer has come into the
dealership and you’ve implemented
each step, set the next Service appointment prior to the customer driving away.
It’s critical to have the customer in front
of you when setting the next appointment. Explain that you are setting it up,
give them something to confirm the appointment and then follow up with some
sort of communication.
In the past, dealerships did what the
dentist office used to do and sent mail
reminders that the customer themselves
had filled out. A lot of old strategies and
processes that were in-place are still
the same. The difference is technology.
When verifying and confirming that first
appointment, you can connect with customers in many ways such as e-mail,
text messages and social media. Some
dealerships have apps for their customers to utilize. There are many different
technologies and processes available,
so it’s important to find what works for
you and for your customers. What one
dealer may utilize in their prospective
market may not be what is convenient
for the next.
After each appointment, it’s important to
make a final follow-up call to your customer to find out how the experience
was, if they were satisfied and, if not,
ask what happened so you can make
improvements in the future. Let the customer know that you take servicing their
vehicle very seriously. For example, engage with your customers, find out what
their driving habits are and offer the best
engine oil change solution based on
their individual needs.
If you’re looking to generate additional
revenue at your dealership, implement
these strategies, increase your Parts
and Service revenue and watch your
customer loyalty grow.
Terry Williams has spent 25 years
working for two auto manufacturers and Shell Oil in the U.S. and
Canada and has experience in all
facets of automotive dealer operations including Sales, Finance,
Warranty Auditing and Fixed Operations.
p. 41
Featu r e
Using (Paint)
Protection
T h e B e n e f i t s o f A u t o m o t i v e P a i n t P r o t e c t i o n F i l m By E r i c K e l l e r
Anyone who has ever driven home in
a new vehicle has wished for a way to
retain that new car or truck’s pristine
paint job. After all, the vehicle’s stunning curb appeal was an important part
of its initial allure. Paint protection film
provides such an opportunity, while allowing dealerships the chance to add
significant gross profit from a tangible
product.
Protection Film’s Increasing
Popularity
Increasing awareness of the benefits of
automotive paint protection film should
come as no surprise, as a struggling
economy often inspires consumers to
focus on ways to protect their investments and preserve capital.
For consumers, installing paint protection film requires a relatively low initial
investment yet delivers years of protection from stone chips, scratches and
abrasions on hoods, headlamps, fenders, rocker panels, door edges, mirrors
and more. The film can help retain the
value of the vehicle without compromising its aesthetics, especially for those
who are passionate about preserving
the original paint.
For dealerships, the return on investment for paint protection film can be calculated in both dollars and CSI. Whether
the product is preloaded before the car
is sold or offered individually, paint protection film can generate significant revenue across the dealership’s Sales, F&I,
p. 42
Service and Parts Departments as the
customer progresses from a buyer to an
owner.
Additionally, protected vehicles often
require less reconditioning costs, generating larger profits for dealerships when
the vehicle is traded back in.
Paint Protection Film 101
The common thread among automotive
paint protection films is that they are almost all made from clear, flexible polyurethane that offers outstanding impact
resistance from stones and other road
debris. Higher quality films employ protective clear coats to shield the polyurethane from contamination and deterioration encountered in the environment.
These will usually have smoother, more
invisible surface textures and are flexible
enough to offer seamless coverage over
almost any contour. Some films even
exhibit self-healing properties that allow scratches in the film to repair themselves over several minutes at room
temperature.
Though it may look to some as simply
a piece of plastic, a well-constructed
paint protection film is actually quite
complex. To work properly and maintain
its appearance, it must resist rocks, insect acids and bird droppings, as well as
automatic and coin operated car washes while shedding contaminants such as
oils from the road, exhaust gases, tree
sap, dust, pollen and practically any car
care product on the market. It must hold
up to both scorching summer heat and
arctic winter conditions while being impervious to ultra-violet radiation and all
the while maintaining its gloss. (Simple!)
ANY REPAIR.
ANY METAL.
EVERY TIME.
ELEKTRON
MultiTool Aluminum Repair Station
and MultiMig 522 Welder
CHIEF GOLIATH
Pulling Rack
CHIEF LaserLock™
Live Mapping
Fix any metal on any job with Chief collision repair equipment.
Vehicles are evolving, but so is Chief’s collision repair equipment. Pull full-size trucks, measure multiple points in real time
with Live Mapping™ and repair all types of metals – including aluminum – with the perfect weld every time. Plus, we have a
hands-on technician training program and the most precise and comprehensive vehicle specification database in the world.
Bring the dream team of Chief products to your shop.
Visit chiefautomotive.com/dreamteam/fo today to learn why
Chief is your single source for collision repair equipment.
p. 43
Paint Protection Film Packages
Paint protection can be offered in an
array of different packages at varying
price points to appeal to different consumer groups and is often bundled with
other protective or corrective products
such as paint sealants, LoJack and door
ding or road hazard warranties.
Small coverage options such as door
edges, door sills, trunk ledges or door
handle inserts can cost the dealership
as little as $45 installed while retailing
for $199, making them attractive preload options. Larger coverage options
such as the leading edge of the hood
and fenders, the front bumper and sideview mirrors can cost upwards of $600
depending on the size and complexity of
the coverage, but can easily command
as much as $1,495 retail.
However, unlike bolt-on products such
as wheels or brush guards, protection
film is a product that requires highly
skilled installers to apply it properly.
Experienced factory-certified technicians can make the difference between
success or failure in a program simply
because, if the Sales or Service Department staff doesn’t believe in the product’s quality, it won’t get sold. Most film
manufacturers offer training classes either on-site or at their own facilities with
durations from one day to two weeks.
And, as with anything else, the quality
of the training depends on the experience of the trainer and his or her ability
to convey knowledge.
Some dealerships have been successful hiring on-site certified installers provided they have a clean, sheltered, welllit space to work in, while others have
been equally successful utilizing local
independent installation centers recommended by the film manufacturer. Most
installation centers will send their installer to the dealership to do the work
as long as the aforementioned clean,
sheltered, well-lit space exists for them
to use when they get there. Ultimately,
whether to take the program in-house
depends on the dealership’s volume,
structure, available personnel and space
constraints. Dealerships are running
p. 44
successful paint protection film programs using both methods.
How it Works
While some paint protection film across
the country is cut in bulk from a roll and
then trimmed on the car, most in the car
business opt for pre-cut templates to
mitigate risk to the vehicle. In this scenario, the installer navigates a software
program to find the vehicle and coverage package of choice and then outputs
the data to a digital plotter. The plotter
cuts the various vehicle patterns onto
the bulk film, minimizing waste and
guaranteeing accuracy. Using this type
of system not only eliminates the risk of
damage to the vehicle, but also provides
consistent, repeatable results time after
time.
Though cutting the patterns by machine
guarantees the parts will be the same
from one car to the next, it’s advisable
to do your homework on the pattern
provider. In the confluence of art and
science that is paint protection film, if
engineering the film to withstand all the
rigors of the environment is the science
of the business, pattern design is the art.
Is Paint Protection For You?
It’s increasingly clear the paint protection film industry is here to stay. With
the introduction of new brands and new
technology, paint protection film itself
has undergone decades of modernization, eliminating most if not all of the undermining weaknesses present in early
product offerings. Consumers have now
embraced protection film not just because it helps them retain the resale value of their vehicle, but because it truly
is what it was originally advertised as…
invisible.
Following this trend, dealerships are
capitalizing on the increased demand
offering comprehensive protection programs, which drive more profit to the
bottom line. Even in a smaller volume
store of 40 to 50 units per month, a wellstructured paint protection program can
generate as much as $500,000 in gross
profit annually. Best of all, it’s a tangible
product the customer can touch and feel
when they pick their car up, and it’s a
product they use and from which they
benefit every day, rather than just when
something bad happens.
Eric Keller is the Business Development
Manager at XPEL, a leading provider of
paint protection film solutions. Keller works
one-on-one with dealerships across the
country to tailor profitable automotive protection film programs that boost CSI and
increase revenues, helping them meet their
long-term business goals.
p. 45
Featu r e
Taking Advantage
of Advancements in
Friction Car Washes
Using New Technologies to Do the Best For
C u s t o m e r s a n d Y o u r D e a l e r s h i p By To n y S m i t h
Perhaps no business sector is more
attuned to the ratings of the American
Customer Satisfaction Index (ACSI) than
the automobile industry. Auto dealers
obsessively monitor the ACSI, which is
an economic indicator that measures
the satisfaction of consumers across
the United States economy, like skiers
check the snow reports for Vail or Breckenridge or Stowe, knowing that a low
ACSI score can have a harmful effect on
their businesses.
To their credit, auto dealers have taken
the ACSI ratings to heart and the auto
industry is one that performs consistently well in the ACSI reports. It’s easy to
see why customer satisfaction is such a
huge part of the auto industry’s success:
next to a home, purchasing a vehicle is
most consumers’ second-largest investment, while vehicles have become an indispensable part of everyday life and, as
such, any maintenance or repairs must
be completed in the most timely and effective manner.
Auto dealers also often feature a car
wash so that Service vehicles can be
returned to the owner looking their absolute best following a maintenance or
detailing appointment. Therefore, dealers should not underestimate the importance that an efficiently operating
car wash has to their overall ACSI. After
all…you can do great things for the customer in terms of repairing or detailing
p. 46
a vehicle, but all of that is for naught if
the car wash is not providing a quality
cleaning, is not operational or, worse
yet, is damaging vehicles.
The New Age of Friction Washes
When choosing a type of car wash for
their sites, there has traditionally been
one -- and only one -- choice for the
auto dealer market: a friction-style wash
system that features brushes or softcloth strips that actually contact the vehicle and are used to remove any dirt or
grime. While some friction washes are
a good choice for the auto dealer, too
many of them are relying on wash technology that has been available since the
1960s. This means that they are likely
not providing an efficient, quality car
wash for their customers, while also
unknowingly incurring higher operational costs due to the added expense
of maintaining old technology or greater
wash downtime.
There are several areas where the use of
advanced friction-wash technology can
not only improve customer satisfaction,
but also lead to a healthier bottom line:
• Brush Control. Most legacy frictionwash systems still rely on hydraulics and
air cylinders to control the movement of
the wash’s brushes as they contact the
vehicle.
20
r
u
o
Y
e
s
a
Incre
y
t
i
l
i
b
a
t
fi
Pro
%
You can with NADA 20 Group.
On average, new 20 Group
members see their net profits
as a percentage of sales climb
nearly 20 percent within the
first year.*
Attend an upcoming FIXED OPS
20 Group meeting and discover
your profit potential.
CHRYSLER
April 7-8
Denver, CO
GENERAL MOTORS
April 17-18
San Antonio, TX
HONDA
May 19-20
New Orleans, LA
MERCEDES BENZ
May 22-23
Miami, FL
NISSAN
June 12-13
Boston, MA
IMPORT SERVICE
May 14-16
New Orleans, LA
*Results based on actual 2012 new 20 Group member performance.
nada20group.org • 800.557.6232
p. 47
The main issue with hydraulically controlled brushes is that there is no sensitivity in the movement of the brush
arms, which are controlled by electronic
pulses. This means that if the brush hits
a mirror it has the potential to knock that
mirror off the vehicle due to slower response time and overall limited ability to
control the brushes. These older hydraulically actuated wash systems will also
have higher maintenance costs, which
affects the operator’s bottom line both
in terms of repair expenses and excessive wash-system downtime. By comparison, next-generation friction-wash
systems are now incorporating electronic variable frequency drives (VFD)
to control the movement and impact of
the brushes on the vehicle. In addition
to improved wash quality, over the past
half dozen years, VFD-driven enhancements have helped make friction washes safer and more efficient.
Auto dealers should select a car wash
that has the ability to closely monitor all
brushes, ensuring that the brushes are
providing optimal contact, orientation
and speed while allowing their customers to receive a clean vehicle every time.
Newer car wash technologies have also
brought several added benefits to friction washes, including:
o Auto-retract top-brush balancing systems
o Sensors for vehicle side positioning
o VFD control for all brushes, including
the top brush
o Vehicle cleaning pressure that compensates as the system ages
o True torque math that is used for all
brush control
o Trolley side-brush cleaning integrated
into the system control
o Real-time vehicle surface area factored into the system control
o Control of each brush based on overall
system performance
o Variable brush rotation speed during
wash passes
o Sophisticated system software monitors more than 20 operating conditions
for each brush
o Optimized cleaning algorithms integrated into total wash system
p. 48
p. 49
• Brush Materials. Traditional frictionwash “brushes” do not actually contain
bristles, but are instead strips of cloth
that facilitate the washing or wax-applying processes. While these cloths have
performed admirably over the years,
the next generation of brushes is constructed of a closed-cell foam material
(generally neoprene) that is much softer,
quieter and more efficient during wash
operation than the cloth strips. An added benefit is that dirt doesn’t cling to the
neoprene brushes as readily as it does
to cloth, so they are easier to keep clean
and will lower possible vehicle damage due to debris clinging to the cloth
brushes.
• Bay Construction. Traditional friction-wash systems, with their narrow
tunnels and intimidating floor-mounted
treadles that must be driven onto precisely, can cause consternation for the
driver as the vehicle is entered into the
wash. New-age friction-wash systems,
however, feature treadle-free open bays
that make navigation into and out of the
wash easier for any driver, no matter the
size or type of vehicle, including SUVs,
pickups and even dually trucks. These
newer wash systems can also offer retractable side and top brushes, which
increases the size of the wash envelope
and offers an inviting and safe wash bay.
Recognizing the needs of auto dealers
who operate car washes on-site, PDQ
Manufacturing has developed two lines
of Friction In-Bay Automatic Vehicle
Wash Systems. Both offer an open-bay
configuration, Gen5 Intelligent Brush
Control, low water and chemical consumption, energy-efficient design and
low maintenance costs.
Conclusion
The vehicle owner has two major goals
at the completion of the car wash experience: a clean and damage-free vehicle.
When the vehicle is put in the hands of a
customer after it’s washed, it’s imperative that those conditions are satisfactorily met, lest the vehicle owner lose
confidence in the dealer’s ability to protect a most prized (and costly) posses-
p. 50
sion. That’s why dealerships are doing
their customers a disservice if they are
not including the most up-to-date friction car-wash technology at their wash
sites. The advancements in frictionwash technology -- and the wash’s corresponding ability to meet the two basic
requirements of the wash experience -in the past decade have been profound.
Choosing to ignore these advancements
and continue to rely on friction-wash
technology that may be decades old is
just asking for a lower level of customer
satisfaction.
Tony Smith is the Vice President of
Sales, Auto Dealer Sector for De Pere,
Wisconsin-based PDQ Manufacturing,
Inc. PDQ Manufacturing is recognized
as the technological leader in vehicle
wash systems, providing superior
quality, outstanding support and products that contribute to its customers’
profitability. Brands include WashTools
Conveyorized Tunnel Systems, LaserWash® In-Bay Automatics, Tandem® RiteTouch Vehicle Wash
Systems, ProTouch® ICON Friction Vehicle Wash Systems, Access® Customer Management Systems and MaxAir™ Dryers.
Products are sold and supported worldwide through an extensive distribution network.
Keeping In Touch
While there have been unquestionable advances in friction car-wash technology in
recent years, one thing this
new technology hasn’t been
able to do is make it possible
for the car wash operator to
physically be in more than one
place at a time. Fortunately for
them, however, some washsystem manufacturers have
developed advanced washcontrol systems.
These systems use a Web browser that can be accessed via personal
computer, tablet or smartphone without the need for any special software,
which gives the operator real-time access to all key operating functions
of a dealership’s wash equipment. Additionally, operators can remotely
configure wash packages, program machine functions and monitor sales
or wash activity over the Internet, which can eliminate unnecessary visits to wash sites. The wash-control system can also be programmed to
automatically send alerts to the operator’s devices or provide updates on
critical issues that may be occurring at a wash location, with the ultimate
goal to provide maximum uptime for the car wash
This capability to remotely access all pertinent site information helps
eliminate the challenges that site operators face every day as they look to
maximize the performance of their wash equipment. The result is a wash
site that is more efficient, cost-effective and safer to operate for customers and site personnel.
p. 51
Co mpanies to See at th e 20 14 NAD A E xp o
ADP Dealer Services / 2109 and 2953
ASR Pro / 6131
BG Products / 3339
Big Ass Fans / 7235
Borroughs Corporation / 5453
p. 52
DealerSocket / 6147
DMEautomotive / 6827
Fixed Ops Magazine / 4678
GE Capital / 4607
Hunter Engineering / 4019
BP / Castrol / 4845
Infomedia / 7019
Challenger Lifts / 2739
JohnDow Industries / 1546
Dealer-FX / 4467
Mighty Auto Parts / 2052
DealerMine / 6413
MOC Products / 1827
DealerPro Training Solutions / 7245
MPi/AutoPoint / 5819
Co mpanies to See at th e 20 14 NAD A E xp o
NADA / 3701
Rome Technologies / 5118
Rotary Lift / 1627
NADA University / 3701
Rousseau Metal / 5813
Naked Lime / 3444
Service Dynamics / 4300
National Biodiesel Board / 5257
NCM Associates / 4355
Terra Clean / 7219
TSD / 4839
NitroFill / 4400
Wildeck / 4309
PDQ Manufacturing / 4418
Petra Oil Company / 6231
Wynn’s/AutoEKG / 4901
Pflow Industries / 4801
Reynolds and Reynolds / 3454
p. 54
XPEL / 2010
Xtime / 6735
714-803-5476
Featu r e
Dealership Websites
Need to Embrace
Smart Chat
T a r g e t i n g M o r e S e r v i c e - F o c u s e d T r a ff i c Consider this:
· Dealership website traffic is surging
(doubled year-over-year)
· Roughly 1-in-3 website visitors are
seeking vehicle Service / Maintenance
information
· 95% of dealership website traffic has
traditionally remained anonymous
· Most of today’s dealership website
Service chats (and offers) are irrelevant
In the last couple of years, chat for dealership websites has generated buzz and,
considering the pure potential of this online communications platform, it’s well-
p. 56
deserved. Before chat’s appearance,
most dealership websites were static,
non-interactive dead-zones, offering
dealers little opportunity to engage with
the growing number of visitors to their
websites. And, with data confirming that
direct traffic to dealership websites is
surging (doubling from 2012 at mid-year,
according to Automotive News), having
tools to engage with this new wave of
customers hitting your website is critical.
Now, all the “chat” about chat, and the
focus of most dealership chat solutions, has been about driving vehicle
By B r a d T i t l e
sales. But look at the recent research
from AutoTrader. In reviewing 3 million
dealer site visits, they found that 32%
were NOT shopping -- they were looking for vehicle Service specials, trying to
make a Service appointment, etc. Onein-three of your website visitors wants
to “talk” Fixed Operations. So, not only
do dealerships need to create a stronger
Service / Parts presence at their sites,
Fixed Operations and Service and Parts
Directors and Managers need to use
chat platforms to identify, engage and
convert these Service and Parts seekers. This is un-mined gold.
Get Fixed.
Digitally.
You’re already holding in your hands the industry’s #1 Fixed Operations information resource for new
car dealership Directors and Managers.
But there’s more.
Fixed Ops Magazine has several free online online resources. And if you and your associates aren’t
already receiving them, well...you should be.
- Fixed Ops Weekly Fix E-Newsletter: Every Friday, keep up on the latest Industry News and
New Products from the world of Service, Parts and the Body Shop.
- The Fixed Ops Magazine Digital Edition: Read your favorite publication in print or online wherever you
like. And sign up an unlimited number of your fellow Directors and Managers to receive the magazine,
as well.
- Special offers from leading companies: Sign up for free webinars, learn about new products and
services, or receive advance information that will help you and your dealership.
How? Just do this:
Send an e-mail to [email protected]
with your name, title, dealership name and e-mail
address. In the subject line put,
“Sign me up!”
That’s it.
But there’s a bonus...
Send us that same information for your Service
Manager, Parts Manager, Body Shop Manager and
General Manager and you’ll all be signed up for
these free online extras.
(You can even take the credit...)
Sign up today!
It’s all free. But it’s all valuable.
p. 57
site visitor, finally make truly relevant,
personal chat and website communications possible.
The problem is, because 95% of traffic to dealership websites has remained
anonymous and unidentifiable, sifting
out the Service traffic is a huge challenge.
What are these 95% doing? Which ones
are shopping vehicles? Which ones are
hunting for the best Service specials -or comparison-shopping accessories?
Which ones were at Service appointment pages and never set that appointment?
And how is a dealership to identify these
things before those 95% of visitors disappear from the site? Well, chat is certainly one way. But, unfortunately, most
Chat 1.0 platforms are a pretty passive
solution that need the consumer to ask
for or give information.
Another way is to push Service / coupon offers to that customer (with a linkthrough to actual Service appointments)
and, if the customer bites, it’s a Service
shopper and lead. This is, of course, too
imprecise and annoying: why should
that Service customer get bombarded
with leasing offers? Or get interrupted
by a chatter that wants to explain “hot
deals” on new models? And why should
vehicle shoppers get hit with oil change
specials?
Perhaps this explains why only about
20-30% of dealerships have embraced
website chat. It’s a pretty underwhelming
percentage, given the powerful potential
of online chat to have relevant, real-time
conversations with site visitors. And for
p. 58
those dealerships that do engage chat
tools, most focus on vehicle sales, not
on Service and Parts where, as we all
know, a dealership’s life-sustaining revenue comes from.
The first wave of chat solutions were
brilliant at talking at dealership site
visitors, and adept at interrupting them
constantly. But the chats that were initiated, and the published offers they
served up, often had nothing to do with
what that visitor was actually interested
in or actively looking at. So those chats
were like the boorish party guest who
corners you, raves on about himself and
is unable to take the hint that you are
completely uninterested. And irrelevant
offers and chats do not convert.
These early platforms lacked site analytics engines and behavioral tracking
technology, so they couldn’t collect all
the data on what that visitor was actually doing, from what exact pages they
were visiting to how many times they
visited to the site. So first-generation
chat was, by nature, limited to serving
up “spammy”, untargeted conversations, ads and offers.
Here’s the good news: emerging, new
technologies can now take chat -- and
website intelligence -- to a whole new
level. New site analytics engines and
behavioral tracking technology are appearing that can finally make a dealer’s
once-invisible website traffic totally visible. And, by collecting data on every
And this has critically positive ramifications for Fixed Operations, because this
kind of technology, which tracks every
URL a visitor hits, can finally identify
customers hunting Service, Parts, Body
Shop and Accessories. What parts are
they looking for? And have they ever
been to the website before? Then they
can make chat and Service coupons laser relevant. This new technology finally
makes chat solutions hyper-relevant to
the Service side of the dealership.
New Chat 2.0 Technology – A Service
Customer Targeting Machine
So, what can the new site analytics
engines and behavioral tagging, tracking and scoring technologies – the next
“Chat 2.0” wave – make possible for
Fixed Ops? In a nutshell, because they
relentlessly gather info on what each
site visitor is doing and is interested in,
they can then smartly put all that rich
data in motion, identifying visitors who
are interested in Service or Parts or the
Body Shop and then engaging and reengaging them with calculated actions
in real-time, whether with chat, or beyond, including personalized published
offers.
It’s as if your website suddenly gains
eyes and a brain. It knows whether that
visitor is interested in buying a car, getting a 30,000-mile service, or shopping
for an accessory. How can this play out
on the website? If the customer is looking at the dealership hours on a Service
page, the chat agent could let them
know that there’s an express line available for customers who book ahead.
And, if the website has an appointmentsetting function, the chat operator can
push that URL right to the customer. The
operator can also tell if this customer is
a frequent or first-time visitor, and if frequent, where they have been spending
the most time.
But the opportunities with this new targeting technology go way beyond chat;
the website will have the brains to know
which Service offers to display to that
specific consumer based on where that
consumer has been on the website.
If dealerships want to effectively target
both the Sales AND Service customer
that visit their site, they need to be sure
to choose the new Chat 2.0 technology
that:
· Tracks every single site visitor and
analyze every page they visit and every
inventory click, and then decode the
URLs to build a dynamic profile on each
unique visitor.
· Captures how many times that customer has visited and for how long
· Smartly engages that shopper via all
channels, whether through what’s published on the site right before their eyes,
or in chat messages / interruptions or
through social sharing components.
· Transfers all this robust customer
data seamlessly and transparently to
the in-house dealership -- or third-party
-- call center.
Whatever chat platform you consider,
make sure that intelligent, new analytics
engines and behavioral tracking technology power it. Discover which visitors are interested in Service or in Parts
and firmly close the door on the boorish party guest. Start making your online
conversations to Service Department
customers polite, meaningful, relevant,
targeted and efficient.
Pump up your Fixed
Operations in 2014.
At NCM, we make getting in shape easy and efficient with a
holistic approach to Fixed Operations improvement that includes:
• NCM Institute Management Training
• On-Site Service Department Tune-ups
• 20 Groups for Fixed Ops Directors and Managers
• NCM axcessa® Reporting Tools
Exercise your right to better performance in 2014 by calling or going
online for more information.
Brad Title is CEO and Co-Founder of
West Palm Beach, Florida-based Gubagoo, which offers behavioral engagement
and scoring technologies for automotive websites, and is the first dealership
website solution that successfully makes
anonymous traffic identifiable and converts the 95% of dealer site traffic that
traditionally defects. Title has over 20
years automotive experience in the areas
of product vision, CRM, BDC, Database
management, Lead Management and Behavioral Engagement
and founded Cowboy, one of the very first web-based CRM and
ILM tools which was acquired by Cobalt in 2002.
877.803.3631
ncm20.com/pumpitup
A S S O C I A T E S
Consulting H Education H 20 Groups H Data Management H axcessa
p. 59
Featu r e
Paperless Repair
Order Processing
Imp r o v i n g Eff i c i e n c y a n d S e r v i c e By J i m L e m a n
To be competitive in automotive Sales
and Service in the marketplace ahead,
auto dealers will need to focus on how
work flows through their Departments.
The idea is to improve the delivery of
goods and services to customers as
well as improve efficiencies throughout
the dealership, especially in the paperintensive vehicle Service function.
“Most dealerships today are significantly ineffective in how work flows through
them, and the need is to speed-up processes without skipping the steps that
add value to the customer,” says Rich
Appleby, a former Dealer-Operator and
now a Fixed Operations consultant with
Performance Management Training, Virginia Beach, VA.
Some BMW, Volvo and Honda dealers,
for example, are now using paperless
document capture systems to replace
the endless mountains of paperwork required for selling and servicing automobiles. They say going paperless makes
them more streamlined, sleeker and
faster to respond to customers and their
OEMs.
For example, Marcey Uday-Riley, who
leads an organization development practice for IRI Consultants in Detroit, notes
that scanless and paperless document
management technology for dealerships
is like Electronic Medical Records (EMR)
in healthcare.
p. 60
“Fields Volvo of Northfield, IL is a LEED-certified dealership, recognized for energy efficiency.
Their paperless repair order system with SAFE technology fits nicely with Fields’ environmentally conscious culture, notes Pat Hubert, GM. The dealership is saving $100,000 a year in gained
savings, including increased technology productivity and expense elimination.”
Cutting-edge efficiency improvement
Electronic Medical Records has revolutionized healthcare in that it makes
patients’ records accessible digitally at
every approved point in a hospital or
doctor’s office – locally or across the nation.
“Tools that consolidate repair order data
as EMR does patient data are cutting
edge, because a big issue in dealerships
is the paperwork and its communication
with the OEM and the customer,” said
Uday-Riley, who consults with auto and
heavy-duty truck dealerships, OEMs
and suppliers.
“That feedback loop,” she added, “has
historically been time- and paper-intensive, but leaning or streamlining the
dealership to remove waste and expense means identifying technology solutions like this.”
The dealership uses paperless technology from Canon Solutions America
called IDEAS (Intelligent Dealer Electronic Archiving System) using Scanless
Automatic Filing Engine (SAFE™). The
system reduces the paperwork burden
placed on Service Technicians and Service Advisors by automatically capturing, categorizing and indexing repair
order documentations, without the need
to print and scan documents.
She pointed out that every vehicle serviced first undergoes a computer diagnosis, which generates a lot of paperwork itself. “The entire Service process
creates inspection reports, check-in
sheets, ROs, a customer RO copy, accounting RO and tech notes. Some customer Service files were from 10 to 30
pages of paper -- per visit,” Hubert said.
“Most dealerships
today are ineffective
in how work flows
through them, and the
need is to speed-up
processes without
skipping the steps that
add value to
the customer.”
“We liked how the system fit into our environmentally conscious culture here,”
said Pat Hubert, General Manager, noting that Fields Volvo is a LEED-certified
dealership, recognized for its energy efficiency. The dealership captures rainwater for flushing toilets and irrigation
purposes. It uses windmill and solar
technologies. Interior and parking lot
lights use LED lighting and motion detectors to conserve power.
“But what sold me,” she added, “was
that as I watched Technicians, I’d noticed how much paperwork they had to
deal with to service a customer and I felt
there had to be a better solution.”
“Our big challenge was the nightmare of
paper storage, on and off site, plus lost files.
Paperless saves a lot of time for a lot of people,” said John Mantione of the Intelligent
Dealer Electronic Archive System, used at
numerous Fields Auto Group dealerships.”
p. 61
“Now all that, except for a few pages,
goes right into IDEAS where it’s filed by
RO number so that all related paperwork
is where it should be and easily searched
and found in seconds,” Hubert said.
Prior to having paperless technology,
the volume of Service-oriented paperwork the dealership had to file and store
required space in the shop and at an offsite facility, as well.
“Some of this paperwork has to be saved
for 10 years,” Hubert noted. “Plus, customer information that’s not on printed
paperwork is more secure for the customer and us.”
“Paperless repair
order processing
can pay big
dividends in many
ways for
your store,
boosting revenue,
efficiency and
customer
satisfaction
and retention.”
p. 62
“Fields BMW in South Orlando is one of several dealerships in the Fields Auto Group family
using paperless repair order technology in its Service Departments. The technology improves
warranty audit success by vastly reducing the amount of paper repair orders and supporting
paper documents needed to satisfy OEM warranty audits. “Having this technology is the difference between me paying my OEM and my OEM paying me.” Vice President and GM John
Mantione says.”
Reduces RO processing risk
John Mantione, Vice President and
General Manager for Fields Auto Group
Florida, said this paperless technology’s
ability to index all RO-related documents to the repair order mean all documents related to satisfy a warranty claim
for a particular vehicle are accessible
electronically and immediately. Because
of this, he said, use of the system has
reduced warranty chargebacks significantly.
manufacturers, found that dealerships
using technology like Canon’s IDEAS
can save a single Service Technician
up to 50 minutes per day by not having to shuffle paper repair orders and
other documents.Those 50 minutes per
day, when multiplied by 15 technicians
(typical for a medium-size dealership
Service Department) amount to 12.5
hours of lost time each day. Factoring in
20 workdays a month, those lost hours
equal 250 lost hours per month.
“Having the system was the difference
between me paying my OEM and my
OEM paying me!” says Fields’ Mantione.
“Because documents are captured electronically from the source, the integrity
of the archive is reliable due to the vast
reduction of human error.”
This rate of lost productivity, multiplied
by an hourly labor rate of $95.00, equals
$23,750.00 per month or $285,000.00
per year in gross labor revenue loss.
Furthermore, for every $1.00 of Labor
realized there should be a conservative
$1.00 in Parts revenue realized.
Going paperless is also saving the group
in other important ways as well, Mantione adds. “Our big challenge was the
nightmare of paper storage, on-site and
off-site, plus lost files. Some of our repair order files can be 25 or more pages
of paper, which we now avoid having to
print, scan and store. Our Techs also no
longer have to print and staple hardcopies. Paperless saves a lot of time for
a lot of people.”
Improves bay turn
Fields Volvo’s experience is similar, according to its GM, Hubert, delivering a
savings of $100,000 a year. “Since we
installed paperless technology in the
Service Department we’ve eliminated
about $50,000 in labor cost per year to
manage all of our paper files for warranty and compliance. It also makes our
Technicians more efficient. It took lots of
time to print up to 32 pages of paperwork for some repairs. Now, they simply
hit a button and that information is captured and stored,” she said.
API International, Inc., an independent
automotive consulting firm that specializes in dealer Electronic Archiving Certification programs for several vehicle
“Furthermore, by eliminating paper ROs
and supporting paperwork, that efficiency translates here into Technicians saving about 10 minutes per customer.
As our 13 Techs typically serve three
customers per day, they’re generating
another 30 minutes a day on the clock,
which means the ability to service three
additional customers each a week.
4. Improves security and compliance:
Keeps sensitive customer financial information away from prying eyes. Helps
dealerships comply with consumer protection laws.
At our average RO sale and labor rate,
that’s another $50,000 a year just in labor sales,” Hubert added.
5.Reduces costs: Frees up staff once
needed to file and search for misfiled or
missing documents and frees up paper
document storage space and budget for
revenue-generating uses. Reduces or
eliminates document destruction costs.
For Chris Previtire, Service Director for
Center BMW, Sherman Oaks, CA, the
benefit of paperless warranty processing is shop efficiency as well. “For me,
our Service Administrators and our Warranty Clerks, a paperless system eliminates the chaos of running around looking for documents,” he said.
Paperless repair order processing can
pay big dividends in many ways for your
store, boosting revenue, efficiency and
customer satisfaction and retention.
Jim Leman has been writing
about automotive retail operations since 1992.
“Our Techs can now focus on diagnostics and repairing cars, not handling
paperwork,” he added, noting that vehicle turn is now 10 minutes faster. “By
condensing the repair time per vehicle,
we’re able to get another customer in
more quickly and, in most cases, out the
same day.”
Canon’s IDEAS is compatible with multiple dealer management and Service
drive systems and is a perfect fit for
dealer and auto groups that have a mix
of different business processing systems.
Dealers experienced with this technology say that going paperless saves them
money five ways:
1. Reduces OEM warranty chargeback
costs: Some dealers have reduced warranty chargeback costs to less than 1
percent – a huge reduction.
2. Improves productivity: Fewer paper
documents being handled by technicians can save 30 to 50 minutes a day,
improving Tech productivity and Service
bay utilization.
3. Reduces processing: Document
printing, scanning, copying and handling are significantly reduced and in
some cases eliminated, saving time and
money to otherwise print and file paper
documents.
p. 63
Featu r e
Losing A Customer
Hurts More
Than You Think
F i n d i n g N e w C u s t o m e r s W i t h L o w A c q u i s i t i o n C o s t s By R i c h Ho l l a n d
The revenue from your Service Department is your bread & butter. While vehicle sales may fluctuate based on the
prevailing economic conditions, car
owners always need Service. Technology companies are increasingly bringing
vehicle Service pricing transparency to
consumers. Mobile apps like OpenBay
(which is funded by Google) allow consumers to price shop anonymously and
pool independents with dealerships in
exchange for a percentage of revenue.
Price wars similar to those occurring in
your Sales Department may be looming
on the horizon. It’s just a matter of time
before the Internet brings this pricing
transparency to Fixed Operations.
Can your dealership survive with a decreased absorption rate due to your being forced to lower your Service pricing?
Over their lifetime your current customers are worth tens, if not hundreds, of
thousands of dollars. In today’s world,
customers are not just looking for convenience but they’re also looking for
the best experience at the lowest cost.
Dealers can find themselves constantly
scrambling to replace customer defections through acquisition to grow and
maintain Service Department revenue.
The loss of a customer has more impact
than many business owners realize.
Most dealers only consider the customer acquisition costs involved in replac-
p. 64
ing them, which include advertising,
marketing and direct mail. Few however,
factor in the time it takes to profitability recoup acquisition costs and get in
the black on that new customer. Dealers
should also consider the lost opportunities that exist between when a customer
defects and the time it takes to acquire a
new customer; such as through referrals
and recommendations.
Depending on the reason for defection, there is also the potential negative word-of-mouth that a lost customer
brings. Whether they defected because
of a poor customer experience, or a
perception of higher prices, custom-
ers can easily share their feelings with
their friends and family. And now many
choose to also share those feelings with
the world through social media online
reviews.
Having a concrete plan in place to maximize your efforts in retention is vital.
Here are four areas to begin evaluating
which can assist in developing an effective strategy.
1. Marketing: What percentage of your
marketing resources are dedicated to
retention marketing? It’s far less expensive to keep a current customer than to
acquire a new one. Be sure to touch all
of your communication channels in your
retention marketing. Consider integrating some retention marketing messages
into your traditional advertising. This
type of offer entices current and previous customers who may happen upon it.
And it could also influence new customers to choose your dealership because
they’ll gain the perception that you care
about your customers.
specials, don’t just post them on your
website. There are many available free
ways to spread that message. Don’t just
continuously deliver a message of “buy
a car.” Offer valuable information on
Service intervals or OEM recalls. Provide
useful information that the customer will
appreciate and value.
2. Efficiency: Ensure that you have sufficient processes in place to offer a more
efficient and convenient experience for
your customers and minimize wasted
resources in your dealership. Evaluate
pain points that may be costing your
staff time or effort that you could alleviate through technology. Efficiency helps
to decrease costs and increase revenue
by allowing employees to handle more
customers. This can then lead to a Service workload increase.
“Dealers can find
themselves
WWW.BORROUGHS.COM • MADE IN THE USA.
NADA BOOTH #2372
constantly
scrambling to
replace customer
defection through
acquisition to
grow and maintain
Service Department
revenue.”
Use e-mail campaigns specifically targeted to previous customers, especially
customers that haven’t been into your
store for over a year. Send a monthly enewsletter to them to stay top-of-mind.
This way, when they (or a family member
or an associate) are ready to buy a vehicle, they think of you first. Entice them
with offers through direct mail campaigns to communicate that you value
their business. Utilize your staffing resources to reach out to these customers
and invite them into the store. Use social
media to build a following and reward
them with offers and coupons there as
well. If you have any Service Department
• Iron-Clad Warranty
• All Steel Construction
• 400 lb. Capacity Drawers
• Tip-up, Slide-in Upper Cabinet Doors
• Swing Doors for 100% Accessibility
on Lower Cabinets
Workstations, Toolboxes, Mobile Carts, & Racks
Easy to Configure
Optimizes Floor Space
Retrieve Tools Quickly
p. 65
“What
percentage of
your marketing
resources are
dedicated to
retention
marketing?
Use technology to communicate with
your customers in all steps of the Service
process, from the initial vehicle inspection and preliminary recommendations
to the more detailed recommendations
made by the Technician. Multiple methods of communication including text
messages, online status reports, automated e-mails and phone calls free up
your staff and increase response rates.
3. Experience: Make sure that your
customers feel valued and appreciated
through providing a world-class customer experience. This includes ensuring that those waiting have a nice
comfortable place to sit, can watch television or surf the Internet with free Wi-Fi.
Or perhaps offer shuttle service to work
or a nearby mall or restaurant.
Customers value convenience. The less
time they spend sitting in your lounge
waiting, the less they feel as if your Service Department takes too long. Consider a pick-up and drop-off option for
Service in which you get their vehicles
while they are at work and deliver them
back at the end of the day. People are
busy and one of the main attractions
that big chain independents market is
speed and convenience. Offer these two
things and you can decrease defection
to these independents.
p. 66
4. Follow-Up: Following up with your
customer post-Service is critical to
identifying any problems that your customer may have experienced in their
visit to your store. This gives you the immediate opportunity to fix the problem
and not lose a customer over an issue
that could have been resolved. It also
provides valuable feedback that can
then be used to evaluate processes and
staff. Pay attention to all of the issues.
Document them and review on a regular
basis. Reoccurring problems should be
easy to identify and steps can then be
taken to fix them.
It’s far less
expensive to keep
a current
customer than
to acquire
a new one.”
Today, technology exists that makes it
very easy to communicate and follow
up with customers. The availability of
instant communication has conditioned
customers to expect businesses to respond quickly with instant information
and answers. For instance, if you don’t
do so already, take advantage of your
existing resources such as your website
and offer online appointment scheduling. Ask the customer what the best
way to reach them is and then use that
method to get a faster response to Service recommendations.
You might also want to consider emailing service recommendations if
you are unable to reach the customer
by phone or text message. Don’t use a
HTML-heavy template, as they present
difficulties reading on smartphones. You
want the customer to be able to reply
to you quickly, so that the Technician
doesn’t have downtime and / or moves
on to work on another vehicle. You can
also e-mail surveys to customers asking about declined services. Just as you
would follow up with that customer who
came into your dealership and didn’t
buy a vehicle, you should also be following up with that sale you didn’t make in
your Service lane.
“Adopting
practices
and strategies
that focus on
retention,
experience,
efficiency and follow-up allows the
dealership
to increase its
customer
satisfaction
and loyalty.”
Adopting practices and strategies that
focus on retention, experience, efficiency and follow-up allows the dealership to increase its customer satisfaction and loyalty. These, in turn, generate
increased referrals and recommendations, which lead to new customers with
low acquisition costs. Allocate resources sufficient to accomplish this as these
customers are the ones you already
have; the least expensive to keep, the
most valuable to your dealership… and
the easiest ones to lose.
Richard Holland is President of AutoPoint, a leading provider of revenue
and retention solutions for automotive
dealership Service Departments. Prior
to joining AutoPoint (formerly MPi), Holland was the founder, solution architect
and president of Arkona, where he was
responsible for navigating Arkona from a
“start up” to being the most successful
entry into the Dealer Management System (DMS) space in the last 40 years. He
negotiated the 2007 acquisition of Arkona by DealerTrack, Inc.
and remained to lead the management team through a successful transition.
p. 67
Featu r e
Your Service
Retention Metrics
are Wrong
A N e w P a r a d i g m t o “ GRO ” Y o u r S e r v i c e B u s i n e s s By Do u g V a n S a c h
Your dealership’s Service retention rates
are lying to you. Well, maybe not lying, but they certainly aren’t telling the
truth. In most cases, customer Service
retention rates (considered by many as
the gold standard for evaluating Service
center performance) not only provide
an inadequate measure of success, but
they are a likely cause of bad data that
will lead you to make poor business decisions.
“In most cases,
customer Service
retention rates
(considered by
many as the gold
standard for
evaluating Service
center
performance) not
only provide an
inadequate
measure of
success, but they
are a likely cause
of bad data that
will lead you to
make poor
business
decisions.”
We believe that retention strategies are
enormously important to the health of
our customer’s business. So important,
in fact, that when the math proved how
bad classic retention metrics are at measuring what’s really going on, we invented a new, accurate metric for measuring
retention called GRO™ (Gross Revenue
Optimization).
But let’s start by looking at how classic
retention metrics are failing our industry.
Put simply, classic customer retention
rates measure the percentage of customers who return for another Service
visit within a specified timeframe, often
12 to 18 months. So why is it that so
many dealers experience an increase
in retention rates but at the same time
experience a contradictory decline in
p. 68
revenue? There’s a major lack of business reliability in this measure and it’s
this blind focus on retention that’s leading your dealership astray.
The primary issue is that retention rates
focus on one simple question – did a
customer return or not? It’s a measurement of success that’s too general. In
a normal retention rate report, retention rates assign equal value for any
customer regardless of where they are
in the customer lifecycle, whether they
just purchased a vehicle or are in for
their second Service visit. As a result,
improving the retention rate of a firsttime customer has the same impact on
the overall retention rate as improving
the retention rate of a customer who has
already had 5 Service visits. It’s just an
average of the overall population. Blanketing the main focus over a huge (and
extremely diverse) population is causing your dealership to lose a significant
amount of potential revenue that could
otherwise be found when differentiating
customers.
The traditional retention metric does not
account for the revenue potential for different groups of customers (think different stages of loyal customers) and also
fails to address the difference in importance of retention based on a customer’s stage in their lifecycle. As a result,
dealerships can easily improve retention rates for the wrong customers and
thereby fail to have a material impact on
their business performance. This is often seen in the average dealer’s focus
on the late Service lifecycle over the
more profitable early Service lifecycle.
Instead, your dealership needs to focus
on the new and more reliable metric that
we call GRO. GRO measures a store’s
ability to capture a customer’s revenue
potential throughout the customer lifecycle and answers the question, “what’s
the lifetime value of each customer?”
GRO addresses the difference in importance in early and late lifecycle customers by assigning more weight to early
lifecycle conversion. For example, if a
dealer improved their first Service customer retention rate by 10%, their GRO
score would also improve by 10%. If the
same dealer improved their retention
rate by 10% of a customer with 5 prior
Service visits, their GRO score would
only improve by 0.8% due to the lower
likelihood of a typical customer reaching
the 5-visit stage of the lifecycle. GRO is
a more effective measure of the future
value potential created by changes in
retention rates across the customer lifecycle than the simple retention rate metric used by many dealers.
A dealership has the opportunity for
many more lifetime Service visits from a
new customer than a late lifecycle customer. And while retention rates evaluate these later (and more likely) Service
visits, GRO focuses more on the early
lifecycle customer, identifying areas for
additional transactions and providing a
higher likelihood for more loyal customers later on in the lifecycle.
The GRO metric is calculated by dividing the realized revenue (which represents the amount of revenue a store is
currently capturing at each stage of the
lifecycle) by the potential revenue (which
represents the total revenue available
from during their lifetime).
p. 69
GRO is presented as a percent, e.g.
7.5%, which happens to be the auto
industry average, and it represents the
percentage of total revenue potential a
store is capturing today.
“GRO measures a
store’s ability
to capture a
customer’s
revenue potential
throughout the
customer lifecycle
and answers
the question,
“what’s the lifetime
value of each
customer?”
In a 2013 retention rates comparison
study, the GRO score and the annual retention rate for a national sample of over
150 automotive dealers as of August
2012 was calculated to test the predictive power of the GRO metric. It found
p. 70
that GRO was 70% more reliable in
predicting Service revenue growth than
retention! In a world where fractions can
separate top and bottom performing
companies, the difference is monumental.
To better understand GRO, let’s review
some of the key inputs for GRO for a
typical dealer. The chart labeled “Retention Rate by Lifecycle Stage” shows
the retention rate at each stage of the
lifecycle for one dealer that represents a
major OEM brand.
This dealer clearly has an issue relating
to first visit retention since only 38.1%
of customers are retained for their first
Service visit. Improving the first visit retention rate would lead to a corresponding improvement in retention at each
downstream stage of the lifecycle while
improving the 5th visit retention only impacts the likelihood of visits beyond the
5th visit.
Since only 1.7% of customers make it
to the 5th visit, the dealer would be better served to focus on first visit retention. GRO accurately accounts for the
increased importance of improving first
Service visit retention while the normal
retention rate metric most dealers use
today does not.
“A dealership has
the opportunity
for many more
your first Service visit percentage, it’s
a good place to start. And while we’re
not recommending to completely abandon retention rates quite yet (they’re still
likely important to your OEM), using a
GRO measured strategy will give dealers
a single measure to gauge their overall
success. It’s with GRO that you’ll begin
to see the entire picture, seizing the lifetime value of every customer.
Doug Van Sach is Vice President, Strategy & Analytics for
DMEautomotive (DMEa), the industry leader in science-based,
results-driven automotive marketing. Doug leads DMEautomotive’s strategy and analytics
function, which manages the
strategic direction of DMEa’s
products and programs, including Journey NXT, Driver Connect 2.5 and DMEinsights. He
has extensive experience developing and implementing direct
marketing and digital strategies at OEMs, automotive dealer
groups and aftermarket chains.
lifetime Service
visits from a new
customer than
a late lifecycle
customer.”
And some dealers are already making
the switch, realizing the value that GRO
brings to their dealership. “For the first
time, the GRO analysis tool gave the JM
Lexus Service Department an accurate
representation of our customer retention
rate over an extended period of time,”
said Charles Brooks, Service Support
Manager at JM Lexus. “Based on a review of the research data presented, we
have made a strategic decision to shift
more of our retention efforts to the initial services that are closer to the buying
process. We feel this will increase our
customer engagement and improve our
overall results over time. We will be able
to observe our progress through GRO.”
GRO will grow (pun intended – my apologies) to be an important measure of
the true health of your Service Department business. You can get started on
a GRO oriented strategy by following
the example of JM Lexus, determining
your first Service visit percentage and
deploying strategies designed to boost
it as high as you can. While there’s a
lot more to GRO than simply improving
p. 71
Featu r e
New Opportunities
With Digital Signage
Eff e c t i v e C r o s s - S e l l i n g i n t h e D e a l e r s h i p
By L a n c e Bo l d t
Vehicles are increasingly more reliable
and longer lasting. The median age for
passenger vehicles on American roads
is currently 11.4 years. As you know, this
hits the dealership hard: the perceived
need for a new vehicle is diminished.
Fixed Operations, which shoulders the
burden for the bulk of dealership profits, finds itself needing to generate more
revenue in the face of less warranty and
maintenance work. Waiting for stuff to
break won’t carry the day.
Think of the challenge of getting customers in the door for the dealership:
• Sales relies on people getting the itch
for a new vehicle
• The Service Department may only see
a customer once or twice a year because of longer Service intervals
• Parts and Accessories – a low rate of
customer traffic
• The Body Shop relies on an unpleasant and unpredictable event that occurs
once every seven years for the typical
vehicle owner (although perhaps more
often for the parents of some over-confident and under-experienced teenage
drivers…)
Sales gets the bulk of the marketing
budget. Service/Parts/Accessories follows far behind, usually with a rather
inbred strategy of reaching out to people who at one time bought a vehicle at
the dealership. Body Shop marketing…
well… (cue a lone cricket chirping).
p. 72
When my oldest son was about seven
he wanted to do some fishing so I got
him a beginner’s rig. He was quite successful. His big question after landing
the first fish was, “Now what do I do?”
My response: “Is it big enough to keep?
If it is, are you going to eat it? And, by
the way, if you’re going to eat it, you will
need to kill, clean and cook it.”
At the end of that day, we brought home
a nice pan sized sunfish (named “Sunny”) in a bucket to show Mom and he
enjoyed it for dinner.
Why the fish story? Well, logic dictates
that the most valuable prospect is the
one that’s on the hook (in the store).
Whatever was done or spent to get
someone to cross your threshold is a
sunk cost – and it goes to waste if you
don’t convert it into a sale and / or a relationship.
To my mind, one of the great advantages
of the dealership is that it’s kind of like
an automotive department store. Whatever brings me into a given department
today can be turned into an opportunity
to make me a customer of another department.
Of course many dealerships realize
this and train to cross-promote departments. Some succeed and others suffer from the reality of human nature: we
tend to maximize our contracts – we sell
what we get paid to sell.
I think a solution lies in a technology infrastructure to supplement cross-selling
training – a solution that’s always working in the background.
A portion of the screen or the playlist
can feature used vehicle walk-arounds,
helping guests see what you have on
the lot in a very efficient manner.
Let’s take a tour of digital signage content for the Showroom, Service Department, F&I, Parts & Accessories and the
Body Shop and how that content can be
used to introduce and support other Departments.
The Showroom is the best place to introduce accessories. It’s estimated that
$18 to $20 billion dollars a year is spent
on accessories in the aftermarket. According to SEMA, nearly a quarter of all
The Showroom
Visitors have a fair amount of downtime
in the Showroom and the dealership has
spent a great deal of money on making
it a “tool” for the Sales process. Custom
digital signage will not only reinforce
variable Sales, but can also be used to
cross-sell Fixed Ops opportunities as
well.
customers who buy a car or truck from
your dealership will accessorize it somewhere else within 90 days of purchase.
And they’ll spend, on average, between
$1,000 and $3,500 to do it. Customers
can become excited about personalizing
their new vehicle by content that features dealer-installed and other accessories that can be rolled right into the
financing package.
Powerful tools to help you Discover,
Deliver & Retain your customers
“Digital signage
content for the
Showroom,
Service Department,
F&I, Parts &
Accessories and the
Body Shop can be
used to introduce
and support other
Departments.”
Since the main purpose of the Showroom is to move iron, digital signage
there would focus on the new vehicles
you sell. Take advantage of the millions
spent on content by the manufacturers
you represent to create excitement and
a buying atmosphere on the floor.
Come see us at NADA 2014, Booth #6735.
Visit www.xtime.com to learn more!
p. 73
Since the objective is to encourage the
customer to become a source of recurring revenue, content that introduces
them to your Service Department is very
important. Make sure that they understand that your Service Department can
handle all of their Service and Repair
needs -- including new tires!
You may also want to use the Showroom
display to plant the seeds for various
F&I products. Visualizing protective undercoating or even an engaging graphic
covering extended warranty benefits will
set the stage and provide a base of understanding prior to arriving at the F&I
department.
The Service Department
The Service department has multiple
customer environments that are conducive to digital signage. The area around
the Service Advisors lends itself to digital menu boards that highlight services
and specials and that reinforce your
brands. Customers may spend several
hours in the waiting lounge so content
there can educate on the benefits of
maintenance services and can also have
a strong entertainment element to help
the time pass more pleasantly. Dedicat-
p. 74
ed signage in the Accessories area can
depict the full array of your offerings.
The Service Department is ideal for promoting Accessories, tires and appropriate F&I products. Vehicle sales can be
originated in the Service Department by
displaying new and used vehicles.
The time that your customers spend
in the Service Department can also be
used to introduce them to the Body
Shop. Minor dent repair / PDR, bumper
restoration, pinstriping, headlamp restoration and detailing can all be featured,
encouraging viewers to freshen up their
vehicle.
F&I
Time spent in the F&I department is a
stressful part of the buying experience.
Digital signage can present F&I products
in a way that eliminates confusion that’s
inherent with unfamiliar concepts when
decisions have to be made.
“The area around
the Service
Advisors lends
itself to digital
menu boards that
highlight services
and specials and
that reinforce
your brands.”
An introduction to the Service Department would also be very appropriate to
play in the F&I Department.
The Body Shop
Perhaps the best opportunity for digital
signage in the Body Shop is while a potential customer is waiting for their estimate to be prepared. Think about the
things you would want them to know
when you return with the estimate: Parts
sourcing, your guarantee, how their insurance company fits in, their rights under the law, etc.
It’s also an ideal time to upsell items that
may not be covered under the collision
claim like bumper restoration, detailing,
dents and dings and even repainting.
What a great opportunity to convert a
collision repair customer into a mechanical Service and Repair regular. Digital
signage will make your case for why
your Service Department should be their
first choice for routine preventive maintenance. Why wouldn’t you have a thorough mechanical inspection done while
the vehicle is in for repair to present to
the customer? You’re likely to uncover a
number of maintenance items and needed replacements like tires and batteries.
Many collision customers will have
mixed feelings about their damaged vehicle. What a great time to highlight the
new and used vehicles you offer!
Bringing It All Together
There’s a tremendous opportunity for
digital signage to aid in the missions of
the various departments at the dealership and to deepen the relationship with
customers through cross-selling. Digital
signage, properly deployed, will leverage money spent on getting people into
the Showroom for the benefit of Fixed
Ops and overall dealership profits.
A single technology platform to control
the content displayed on the various
screens (and the website), the ability to
upload dealership-generated content,
and powerful content creation tools integral to the platform all increase the ease
of use and the power and effectiveness
of your digital signage strategy.
A comprehensive digital signage plan
will increase sales across all departments, give proper exposure to Fixed
Operations and create and strengthen
customer relationships.
Lance Boldt is Vice President and
Co-Founder of AutoNetTV Media,
Inc. AutoNetTV produces video,
motion graphics and 3D animation content for automotive digital menu boards, digital signage
and automotive websites.
p. 75
Featu r e
Parts E-Commerce
A n O v e r v i e w o f T h i s Imp o r t a n t P r o c e s s By T e d F e l l o w e s
“In a world … changing really quickly,
the only strategy … guaranteed to fail is
not taking risks.”
Mark Zuckerberg
I’ve never seen anything like today’s
traffic jam of Parts e-commerce and
related services. Dealerships face over
50 solutions choices across several
solution-types and many providers. For
many, it’s a confusing chaos leading to
inaction and wrong choices.
Does your store have the expertise,
mindset and team to transition its Parts
business successfully? Are you ready
to try (additional) e-commerce solutions
and services, discontinue those that fail
and re-invest in success?
This article is an introduction to the services and products enabling online marketing, sales and fulfillment of Service
Parts, accessories and merchandise.
In this piece I’ll provide: (1) a solution
framework; (2) an approach to solution
selection; and (3) insights on Service
Parts e-commerce success.
Framework. A range of distinct Parts ecommerce solution types has emerged
to meet each market’s and each buyer’s
needs. One-size does not fit all.
E-commerce consists of seven distinct
markets:
- Automotive Retail:
- Service Parts
- Accessories
- Merchandise
p. 76
-
Automotive Wholesale:
Collision
Mechanical
Dealer-to-Dealer
Truck
Buyers’ needs vary across markets by:
(1) urgency (for example, independent
repairers must often have parts in-hand
within hours); (2) buyer price sensitivity
(most consumers search for the lowest
price for each part); (3) buyer loyalty to
a seller (driven by delivery routes, return
policies and credit).
Marketplaces. The most widely known
of a half-dozen e-commerce solution
types is an online “Marketplace”. Of
these, eBay Motors and Amazon matter
most to dealerships. Marketplaces are
“Does your store have
the expertise, mindset
and team to transition
its Parts business
successfully? Are you
ready to try (additional)
e-commerce solutions
and services?”
the leading channel for online selling of
automotive Parts, accessories and merchandise to the public. Marketplaces
emphasize lowest price nationally (and
locate local sellers as well).
“The most widely
known of a
half-dozen
e-commerce
solution types is an
online
“Marketplace”.
Of these, eBay
Motors and Amazon
matter most to
dealerships.”
A key to e-stores is the online embedded Parts catalog. Dealer e-stores are
provided by independent suppliers and
by automakers. Retail transactions account for the vast majority of e-store
transactions, though e-stores also capture a small (but growing) slice of the
wholesale trade.
The e-stores that achieve stratospheric
volumes do so via SEO, SEM, PPC and
other online marketing mechanisms
similar to those for online vehicle marketing.
Portals. The leading solution type for
online wholesale Parts trade is a “portal”, which aids existing dealer-shop relationships, often providing parts availability, matrix pricing, as well as opening
and populating DMS Parts invoices.
Dealerships successfully selling Parts
via marketplaces discount significantly.
(Often, dealerships make profit only due
to “back-end” automaker incentives).
Delivery is typically via FedEx or UPS –
taking from a few days to a week. While
Retail transactions make up 90% or
more of marketplace Parts transactions,
wholesale buyers occasionally use marketplaces to find deeply-discounted
parts (such as idle or hard-to-find parts).
The economics of marketplaces can be
challenging, as the seller must also pay
the marketplace a moderate commission on sales. Until recently, only basic
automotive Parts were sold in volume
via marketplaces, as comprehensive accurate listings were difficult to generate
and the marketplaces did not provide
effective fitment filtering. Then, in 2010,
eBay delivered Parts fitment filtering
(good and continuing to improve) and,
more recently, introduced listing tools
and services.
e-Stores. Dealer “e-stores” are the
other leading online route to the buying
public. A dozen firms offer e-stores to
dealerships preconfigured to support
OE Parts or Accessory sales. High-volume e-stores have deeply-discounted
prices and don’t display the dealership’s
brand. The other category of e-stores
are directly associated with dealerships’
brands, link to dealers’ vehicle websites
and typically offer parts at MSRP or with
small discounts or changing limitedtime discounts (often via coupons).
p. 77
Most portals provide integration into
wholesale repairers’ systems, greatly
simplifying online ordering (and later
billing / auditing). While most portals are
not automaker-controlled (Toyota, BMW
and Ford being exceptions), automaker
pricing incentives for buyers have made
portals very popular and successful recently. Portals are leaders in DMS (and
other dealer system) integration.
e-Sourcing. A solution type which shifts
leverage from dealers to wholesale buyers (shops, fleets) is grabbing headlines.
Sometimes called “bidding” or “quoting”, they are “e-sourcing” solutions for
the purpose of this article. Unlike portals
that make it difficult to compare prices
across suppliers, some buyer-centric esources enable buyers to conveniently
ask for bids or quotes from multiple
suppliers (concurrently or sequentially).
E-sourcing has sparked strong emotional reactions, and now litigation. Dealers
with wholesale Parts businesses should
be concerned and watchful. But opting
out may not be realistic. And you may
find some earn their fees, while others
don’t.
Direct-Access. A new-ish solution has
gained a foothold, providing buyers
direct access to dealerships’ DMS or
EPCs. I refer to these as “Direct Dealer-System” e-commerce. Their niches
include truck fleet repair centers and
some auto mechanical wholesale purchases – particularly, buyers who can
specify Part numbers and place orders
with little support from dealership personnel.
Locators. The final solution covered
here – “Parts locators” – is also the oldest, having been marketed to dealers
since the mid-1980’s. Parts locators
are the leading approach in dealer-todealer wholesale trade and support
several use cases from same-day fill to
idle liquidation to back-order referral.
Parts locators can be open or closed
(restricted access) and can also be
based on Parts inventory databases,
real time inventory checks and broadcast requests.
A possible future online outlet for Part
sales is worth a brief mention. The concept is based on marketplaces / locators in Europe and Asia designed as a
sales channel for dealers in North America, selling to specific customers or the
local public.
Solution Selection. Picking an automated dealership solution has looked
like this: first, build a list of objectives,
then a list of available solutions and,
finally, pick the one solution that best
meets the objectives at an affordable
price. Not so for Parts e-commerce.
Dealers need separate online solutions
for each market served. Even within a
single market, dealers benefit from participating in all solutions delivering profitable incremental sales.
p. 78
Each e-commerce solution is, in essence, a sales channel. Also, buyers
may force specific solutions on dealerships, even though you (the dealership)
must pay for it. To gain / retain customers, dealers must enroll in solutions favored by buyers.
There is no single “best” or “right” solution. Instead, to succeed, you will
implement multiple (likely overlapping)
e-commerce solutions.
Insights. In working with automakers,
truck makers, dealerships, wholesale
buyers, dealer and shop system providers and insurers in North America, Asia
and Europe in recent years, several patterns stand out for successful online
programs:
1. Automakers pricing incentives attract
buyers and make dealer success with ecommerce likely
2. Buyer-selected e-sourcing solutions
often succeed (sometimes after adjustments)
3. When e-commerce is used to enrich
buyer communications (for example, live
chat and order reviews) success is more
likely than when e-commerce eliminates
communication workflows
4. Parts photos / drawings, videos and
illustrations boost sales
5.E-commerce that simplifies and
speeds ordering via integration will fare
better than solutions that do not
6. E-commerce is not an island; it thrives
when supplemented by marketing services
7. High-volume wholesale trading benefits from specialized capabilities to
eliminate walls between sellers and buyers (for example, real-time availability,
delivery automation and DMS invoice
population)
8. The most successful dealers are active in five, ten or even more e-commerce solutions
Dealerships that implement many Parts
e-commerce solutions are likely to experience a failure or two. But they will
live to benefit from the lessons learned.
Dealers that don’t may see their retail
and wholesale Parts businesses raided
by competitors. Coach John Wooden
put it best: “Failure is not fatal, but failure to change might be.”
By market and solution type, list the
e-commerce solutions your store uses
now (and how successfully), those discontinued and under consideration now.
Any voids? Or patterns?
Future articles will explain how to succeed in each Parts e-commerce market
and with each solution type as well as
explore hybrid solutions, special cases
and exceptions, in addition to integration, marketing services and delivery
management.
During 30 years focused on Service Parts systems and information services from the dealership, vehicle-maker and buyer perspective,
Ted Fellowes has been a leader in dealer systems innovation – first EPC, first dealer Parts
e-commerce and first web Parts locator. He
has served in executive roles with Bell & Howell (now, Snap-on) and OEConnection. Five
years ago he launched Fellowes Research which now has clients
in North America, Asia and Europe, including vehicle manufacturers, consulting / investment firms, DMS providers and Fixed Ops
solutions providers. Fellowes is the leading expert on automotive
Service Parts e-commerce.
Distinctive by nature
• Organization
• Durability
• Quality
Visit us
at
Booth
#5813
Flexibility
Service & Parts Storage Equipment
" The freedom to choose your own solution. "
Overview of Rousseau’s products
1.866.463.4270
[email protected]
rousseau-automotive.com
p. 79
Featu r e
Dealing With the
End-of-the-Month Crunch
S t a r t S e l l i n g E v e r y d a y L i k e I t ’ s t h e L a s t D a y o f t h e M o n t h If the selling style in your Fixed Operations Department seems to begin each
month at a “relaxed” or “leisurely” pace,
only to gradually become more intense,
more urgent or more pressured as the
end of the month approaches, you’re
probably just like many other dealerships. So read on.
However, today is the start of a new ballgame. It’s a new month and you have
at least thirty days to reach your new
monthly sales goal. So it seems acceptable to maintain a more relaxed style,
because after all, you’re making a fair
amount of sales and everything seems
to still be moving smoothly.
In the average retail establishment,
roughly 80% of monthly sales are made
in the last two weeks of each month.
Just over 60% of those sales are made
in the last seven days of the month. And
it’s not uncommon for the biggest sale
day of each month to be the last day of
the month.
Monday’s relaxed style turns into Friday’s relaxed style and this Friday turns
into next Friday. Then all of the sudden,
you get your first commission check
for the month. You quickly realize that
the pace you are on is not a pace that’s
going to deliver your needed monthly
sales goals or desired income. The push
is back on. You pick up the pace, you
become more assertive with your customers, you push your teammates to
step up the pace. Each day that passes
becomes more and more intense. Each
day becomes more pressurized. Until finally it’s the last day of the month and
with that final big push, somehow, some
way, you get the numbers you need.
As surprising as these statistics may
seem, they actually represent a very real
and understandable pattern in sales.
Mentally and physically drained from
just barely hitting last month’s sales
goals, your team comes in on Monday
with a more relaxed attitude.
You still help customers, but you’re not
as persistent with these customers as
you were just the week before. After all,
you were intent on hitting last month’s
sales goals to ensure you made the income you needed. And time was running out.
p. 80
Sound familiar? It does to me because
this is how I used to be. It describes exactly how I worked in some of my earliest sales jobs. It was almost like it was
part of the sales culture. I noticed not
only associate sales people working this
way, but the management staff as well.
By J e f f Co w a n
“By selling
everyday of the
month like it was
the last day of the
month, my sales
skyrocketed.
I found that since
there was less
pressure on me to
make a sale like
there was during
the big push at the
end of each month,
I started making
more sales.”
“Here’s the
big surprise;
once you get
in the habit
of selling
everyday like it’s
the last day of
the month,
it quickly
becomes a habit
and is easy
to maintain.”
Then one month at the end of the month,
tired of the “Big Push” and the brain
damage that comes with it, I wanted to
know what would happen if I sold the
first day of the month and everyday of
the month as if it were the last day of the
month. And for me this marked a turning
point, It was literally career-changing.
By selling everyday of the month like it
was the last day of the month, my sales
skyrocketed. I found that since there
was less pressure on me to make a sale
like there was during the big push at the
end of each month, I started making
more sales. I was able to be much more
relaxed when working with my customers while at the same time being more
confident and persistent. It allowed me
to come across as more helpful and professional instead of desperate, like I had
during the month-end “Big Push”. In
short, I was able to combine the relaxed
style I had delivered in the past during
the first half of each month and combine
it with the persistence I had at the second half of each month. And it made a
huge impact.
My income increased by 50% the very
first month I started selling everyday of
the month like it was the last day of the
month. And it only increased from there.
So think about it. Are you like I used to
be -- and like so many salespeople still
are today, taking it easy the first half of
the month and then going for the “Big
Push” in the second half?
If you are, what I‘m suggesting here
may be the easiest way to increase your
income you’ve ever considered. And
here’s the big surprise; once you get
in the habit of selling everyday like it’s
the last day of the month, it quickly becomes a habit and is easy to maintain.
That’s the way I see selling in a way that
will give your Fixed Ops Department
better -- and more consistent -- results.
So starting today, I challenge you to
sell everyday like it is the last day of the
month. If you do that consistently, I’m
confident that you’ll quickly find that the
actual last day of each month will be
much more satisfying – and profitable.
Jeff Cowan is President and
Owner of Jeff Cowan’s PRO
TALK, Inc.
p. 81
SERV I C E D E PT.
Today’s Tire Changing
Technology
By P e t e L i e b e t r e u
Today’s tires can make tire changing a
challenging and time-consuming process. Traditional tire machines are suitable for traditional tires, but servicing
the rapidly-growing number of difficult
OEM assemblies requires a much more
capable machine. Dealerships must now
look ahead to consider what assemblies
they will be changing in the future when
investing in a tire changer, and not simply what they have been changing up to
this point.
Traditional assemblies account for just
22% of today’s OEM fitments. Low-profile tires now represent 51% of all OEM
fitments, with heavy assemblies (over
30”) representing 14%, run-flat tires accounting for 10% and large-diameter
tires (over 20”) making up the difference
at 3%. Once considered “special fitments”, these tire and wheel combinations are now the norm and dealerships
must equip themselves accordingly.
Today’s more capable machines can
handle these assemblies with minimal
risk of wheel damage, provided that a
trained Technician operates them. While
these machines may be able to handle
diverse OEM fitments, tire changing with
them is still a process with extreme variations. These tire changers also require
p. 82
that the Technician make a number of
critical decisions when handling different tires. This can cause inconsistent
cycle times and increases the chance
for mistakes.
Today’s most capable machines are fully
automatic and this solves many problems that difficult OEM assemblies pose
for conventional tire changers. Against a
skilled and experienced Technician, an
automatic tire changer may be slightly
slower on the simplest assemblies, but
in the long run -- and with today’s tires -the time spent changing larger numbers
of tires will cumulatively be less.
Fully automatic tire changers add safety
for both the operator and the assembly. These machines typically place the
operator away from the tire changer,
which eliminates pinch points. The most
advanced fully automatic tire changers
have wheel lifts to protect the operator’s
back and inflation controls to keep the
operator away from the assembly. They
also do not allow the tire to be mounted
or demounted in an unsafe TPMS location through constant TPMS monitoring.
All rim and near-rim contact on these
advanced machines is plastic and the
automatic procedure protects both rim
and tire.
The fully automatic procedure on these
machines also saves a tremendous
amount of time by streamlining the tire
changing process. Fully automatic tire
changers use the same procedure for
every wheel and create a standard cycle
time, which increases productivity. The
best fully automatic tire changers handle
virtually all tires, including tricky OEM
fitments, in around two minutes on average.
“High capability fully
automatic tire
changers eliminate the
experience gap between
technicians in a shop. By
using the same process
High capability fully automatic tire
changers eliminate the experience gap
between technicians in a shop. By using the same process every time and reducing the number of critical decisions
that an operator must make, the best
fully-automatic tire changers can elevate your tire-changing team of differing
experience levels to make them a team
of experts. These machines allow any
technician to change any tire that comes
into the shop, regardless of difficulty.
Fully automatic tire changers also simplify training. Technique is no longer a
requirement for tire changing, and a
technician can learn on one tire and apply the same skills to all tires. With these
premium machines, the old “push here,
pull there” technique learned through
mistakes (and busted knuckles) no
longer applies. The most advanced of
these tire changers include on-board
instructional videos and on-screen animations that can guide new operators
simply and quickly.
Conventional tire changers were suitable for conventional tires, but the assemblies of today demand more than
a tool – they demand a solution. Some
tire changers provide more solutions
than others, and the best of these can
handle difficult OEM assemblies through
a single and easy process while saving
time and eliminating mistakes. Fullyautomatic tire changers streamline your
tire-changing operation and increase
productivity to such an extent that they
become a partner in your shop’s overall
success.
Pete Liebetreu is a Senior Product Manager for Bridgeton, Missouri-based Hunter Engineering
Company.
every time and reducing
the number of critical
decisions that an
operator must make,
the best fully-automatic
tire changers can
elevate your
tire-changing team of
differing experience
levels to make them a
team of experts.”
p. 83
PA R TS D E PT.
Do Your Parts
Really Exist?
Facebook, Twitter, Instagram, eBay,
Amazon, iTunes … none of these existed
20 years ago. Today, they’re seemingly
critical to the lives of every Gen Y’er and
Millenial in America. Last week, when
I was taking away my teenage daughter’s iPad for the weekend -- so that she
could experience the real world -- she
told me, “but if I’m not online, it will be
like I don’t exist!”
Like it or not, all of our lives are becoming more and more interwoven with the
world of the Web. The habits of today’s
consumers are intricately tied to the
digital world, with more online car shopping, more customers scheduling Service appointments online, and so on,
every year.
So, what about your Parts Department?
How is the digital age affecting how your
customers shop for Parts? I’m afraid we
need to take a lesson from my teenager:
If your parts aren’t online, it’s like they
don’t exist!
The old axiom of retail is, “You can’t sell
it if it’s sitting in the back room.” Today’s
version is, “You can’t sell it if it’s not online.”
Dealers have long understood the need
to market their new and used vehicles
online. However, too many times, Fixed
Operations have been left in the dust -and the Parts Department is no exception.
From the dealers we have worked with,
we’ve learned that the potential for
p. 84
By Ky l e M c K e e a n d A n t h o n y N a v a r r a
dealership growth in Fixed Operations
is exceptional. But, as dealers embrace
the Internet to grow other Departments,
they’re not doing it in Fixed Operations.
Unfortunately, over the last few years,
according to NPD Research, franchise
dealerships’ share of Service dollars
being spent has continued to decline,
while independent shops continue to
grow. We think some of this is because
most independents have a stronger online presence than most franchise car
dealerships when it comes to Fixed Operations. If you’re not convinced, just
look at the websites of any of the big
box parts and repair chains (Pep Boys,
NAPA, Midas, etc.) or even some of
the websites of your local independent
competitors. Generally, you can search
for Parts, get an estimate, make an appointment and make contact quickly
and easily online.
“You can’t
sell it if it’s
not online.”
How many of those tasks can your potential customers do on your website?
Convincing your dealer to bring your
parts Web pages up to the level of your
new or used car pages may seem like a
daunting task and more of a long-term
goal than a quick fix. We’ve put together
a list of 10 things you can do now.
Here are the top 10 ways to market your
Parts in a digital world:
1.) Get engaged online
• Find automotive blogs and post a comment or an article. If you post on someone else’s blog, they will likely post on
yours. If you give them feedback, they
will give you feedback. These sites and
communities appreciate helpful information. This is an effective way to get your
message out online.
• Share your message via social media
channels by posting articles and tweeting messages about your Parts Department offerings.
2.) Early or late, just adapt
• The days of shunning technology are
over. If you’re not jumping in with both
feet, at least put a toe in the water. You
could be missing out on great opportunities to increase your sales. Read a
trade publication, stay current on trending technology and take hints and advice from your online community (that
you already established in #1.)
3.) Use digital solutions to expand your
sales
• Consider selling on eBay or other online marketplaces. There are several
ways to sell parts that don’t involve customers physically coming to your parts
counter. Go digital to expand beyond
your current market.
• Use e-mail marketing to remind your
customer base that they can rely upon
you to provide them with the Parts they
need.
4.) Consider a paid search campaign
• Running a paid search campaign, such
as Google AdWords, puts your parts in
front of more customers. When they’re
searching for Parts online (and they
most certainly are!), you will be on the
page and have an opportunity to grab
those sales.
• Change your paid search campaigns
with the seasons, offer compelling messages and go after conquest business.
“The home page of your
dealership’s website
is not just for vehicle
sales anymore. Make
certain that Fixed
Operations, including
the Parts Department,
is well represented.”
5.) Get on the home page
• The home page of your dealership’s
website is not just for vehicle sales anymore. Make certain that Fixed Operations, including the Parts Department, is
well represented, and remember to stay
“above the scroll”!
• Your virtual front door (your Parts Department Web pages) should include
these elements:
o Description of Parts and Accessories
o Educational documents
o Why Buy messaging
o What the customer can expect from
your dealership
o Hours and directions
o Contact numbers and e-mail
o Dealership-specific offers as well as
OEM offers
o Tell your customers you have tires …
and will price match (if applicable)
o Consider live chat for customer inquiries
o Create a Parts menu to showcase
popular Parts with availability and pricing
6.) Sell obsolete parts online
• Give your stale parts their own page
on your website. List the parts with the
part number and a description. Include
pictures and have a pricing strategy to
move them off your shelves.
• Use search engine optimization (SEO)
best practices to help ensure your page
is at the top of the search results when
consumers are searching for needed
parts.
• Consider using a provider that specializes in selling obsolete inventory. This
will allow you to get all the available dollars out of your aged inventory and reinvest them in your new digital efforts,
like new webpages or a paid search
campaign.
7.) Get smart about shipping
• Selling more online likely means shipping more, so get familiar with online
shipping tools. There are websites that
will help you check pricing and keep it
all organized, once your parts are on
their way.
• Work with your website vendor to offer “real-time” shipping integration with
trusted companies, such as UPS, FedEx
or USPS.
• Consider free shipping for promotions
or special offers to help move items that
have been around too long.
8.) Get mobile
Smart phones don’t just facilitate phone
calls -- they facilitate sales. If you really
want to ramp up sales, you need a solution that can deliver your products to the
clients that don’t just buy online, but buy
on their phone. Look for an online selling solution that offers a shopping app
available for download by customers.
Make it easy for your customers to buy
from you!
9.) Use video
• Create a YouTube account for the Parts
Department or use the dealership’s YouTube channel, if one is already established.
• Create and post videos on why OEM
parts are preferred, or why it’s important
to change cabin air filters, wiper blades
and spark plugs. Upload and showcase
videos of your dealership, your people
and your “Why Buy” messaging.
• Focus on your advantages. Anyone
can try and beat you on price, but that’s
only one attribute. Focus on your unique
attributes, like convenience, factory
spec parts, warranties, offering a fullytrained staff, service with the sale and
overall value.
10.) Be an SOB!
• That is, be a Student of the Business
-- the digital business. Work with your
digital vendors to find someone that is
willing to help you learn. Get involved
and keep up-to-date on the latest news
and tips.
In nearly all of our 10 steps is the need
to focus on your strengths. What makes
you the best choice? What do you have
to offer?
With the average age of automobiles on
U.S. roads over 11 years (according to
Polk), now is the best time to ensure that
consumers find your Parts Department.
Having an online presence is the key
to moving more Parts in today’s fastpaced, virtual society. So you have to
ask yourself one question: If a part sits
on your shelf and it isn’t listed online,
will it ever be found?
Your Parts really do exist! Get them -and your Department -- online!
Kyle McKee is the Operations
Manager for ADP’s PartsVoice,
Cash Discovery Program and
eBay Made Easy solutions. He
has over 10 years combined
Fixed
Operations
experience
working for ADP and in Service
for two franchise dealerships.
Tony Navarra is a Performance
Improvement Consultant for Cobalt, an ADP company. Tony has
over 20 years experience in the
auto industry, having held nearly
every position in a dealership,
including General Manager, over
three successful dealerships.
p. 85
BOD Y S H OP
Are You a Firefighter?
I was in a dealership Collision Center
once and the Director said something
that I’ve heard a thousand times before:
“I’m just a fireman; some days I feel
like all I do is put out fires!” Now, anyone who has sat in that chair for more
than 3 minutes knows exactly what he
means. There is a seemingly endless
string of “fires” on any given day -- from
two techs calling in sick on the last day
of the month, to a piece of equipment
going down, to parts have to be ordered
in from Tumbleweed Junction and the
stagecoach only runs once a week (it left
yesterday), to the tech standing in your
office at 3:45PM who says, “This new
headlight assembly is broken and the
car has to go today.” Sound familiar?
ounce of prevention is worth a pound of
cure. The ten minutes you invest now to
inspect the parts when they come in, or
to write a complete and thorough supplement, will save you hours of scrambling on a busy Friday afternoon.
Well, Collision Center Directors -- guess
what? You are a fireman, so deal with it.
There will always be something that will
derail your plans on any given day, but
the truth is we have more control over
these disasters than we want to admit.
Don’t get me wrong -- there will always
be times when the fire is truly beyond
your control and you’ll have to make the
tough decisions necessary to put it out.
But what about the other times?
problem, or it
Maybe it’s time we became Super Firefighters. Maybe, instead of waiting for
someone to call your office to report a
fire that’s already burning out of control,
you could pro-actively look in advance
for situations that will erupt if left alone.
Maybe we can put a few systems in
place to prevent the fire from even starting.
I know what you’re thinking; “I’m too
busy to do that.” But we all know that an
p. 86
“A poorly
written estimate
(or supplement)
can masquerade
as a Parts
can morph into
other delays.”
By now, you’re probably wondering what
exactly we can do, and where do we begin? In reality, the list of ways for a fire to
break out is endless, so we can’t include
them all, but we can start with what are
likely your most recent fires, and a few
ideas to stimulate your thoughts.
I know that the first thing that will come
to your mind will be Parts delays, but let
me caution you that most Parts problems are self-inflicted. Let’s put our firefighters hat on and trace the fires back
to where they started, drilling down to
the real causes, so we can prevent them
from happening again.
By J i m S h a w
Were your most recent fires caused by
“Parts issues”? If the answer is “yes”,
here’s where the “drilling down” comes
in. Were the delays created because the
Parts person forgot to order that bumper cover, or was the part mispackaged,
damaged, lost by the tech, or, (here’s
where the smoke comes into play), were
needed Parts overlooked on the estimate (or supplement)? A poorly written
estimate (or supplement) can masquerade as a Parts problem, or it can morph
into other delays, such as waiting for reinspections (which will be blamed on the
insurance company) or creating scheduling conflicts with other work coming
in, making it all late. Determining the
correct answers to these questions will
start you toward fire prevention, saving
you time in the long run.
Continuing down the “Parts delay” path,
are supplements in your shop completed and submitted in a timely fashion? Even if you answered “yes”, are the
Parts ordered right away, or do you wait
for an approval (again, creating the illusion of a Parts problem)? Next (and yes,
we’re still on Parts issues) how many
times have you seen an estimate (yours
or an insurance company’s) for damage
down the right side, but the estimator
inadvertently clicked on the “Left Front
Strut” instead of the “Right Front Strut”?
Do your Estimators “proofread” the estimates before ordering their Parts? What
about decals or emblems needed for
a new fender? If the estimate includes
a new “Right Fender” but no decals
or emblems, isn’t that something that
should be caught (fire prevention) before
placing the order?
“Maybe we can put
a few systems in
place to prevent
the fire from
even starting.”
Remember what I said about “selfinflicted”? Now, let’s finally talk about
the Parts Department. Do you get good
support from your Parts Department? A
savvy Parts person would pick up on errors like this. Do you have a dedicated
Parts person? Parts get back-ordered,
cross-shipped, discontinued and orders
are cancelled every day. Do you get updates during the day on the Parts you
are expecting? Do you check them in
when they arrive to make sure you get
what you ordered, that they are in good
condition and that they are for the correct side of the vehicle? As I said earlier,
we don’t have the room to include all of
the ways that fires can develop if left unattended, in fact we’ve only scratched
the surface on Parts issues alone.
I think you’re probably starting to get
the picture, but let’s look at another idea
that will help fix some of the issues already covered and pave the way for
even more fire prevention.
Any honest Collision Center Manager or
Director will tell you they have more
trouble getting cars out of the shop than
getting them in. In the interest of fire prevention, do you keep a production log
and have daily production meetings?
You should review the progress and status of every vehicle in your shop at least
twice a day; even more often if the vehicle has to go that day. If you are already
doing this, you are well on your way to
being a Super Firefighter. If not, you’re
missing the boat. Would the fireman in
you rather find out about a broken headlight at 9:00 in the morning when there’s
still a chance to prevent a four-alarm fire
or at 4:30pm when Mrs. Jones and her
four screaming kids are in the customer
lounge, impatiently waiting to take delivery of her minivan so she can pick up the
in-laws who landed at the airport half an
hour ago? (Go ahead, tell me that’s never happened!)
As usual, I’ve raised more questions
than I’ve provided answers for. That’s
where you come in; it’s why you get the
big bucks. If you want to make your life
easier, you’ll become a Super Firefighter
and actively look for where fires can
break out and prevent them before they
even get started. If not, you’re doomed
to having the same fires over and over,
always wondering how they erupt. The
choice is yours.
Jim Shaw is an Associate with Halifax,
Nova Scotia, Canada-based Automotive
Training International. With an extensive
background in Fixed Operations, he
specializes in Collision Center Management Training, Collision Center Process
Implementation and Estimator Training.
p. 87
A D MI N I S TR ATI ON
Back To Basics In
the Service Bay
By S t e v e R e e l i n g
I love a good business adage. Many
popular adages tend to focus on being
the biggest, being the fastest, being the
best: “Swing for the fences” or “Bigger
is better.” But the reverse can also be
true: “Keep it simple” or “Get back to
basics.”
Several years ago, as I walked the aisles
of my local home improvement center,
I realized it was time to replace my old
barbecue grill, which had developed
several unattractive rust spots and no
longer provided even heat across all
burners. So, as I stood staring at the
field of potentials replacements, the
salesman detailed all the glorious features and benefits of each, walking
me through the line of options until we
reached the Starship Enterprise of all
grills: stainless steel throughout, double
wide shelves, extra storage, three (count
‘em – three!) side burners, and so much
more. My eyes glazed over and I began
to drool. How much simpler would life
be with this baby? Oh yeah! “Besides,”
the salesman regaled, “we have a convenient monthly payment plan to ease
the financial burden.” What wasn’t to
like about it? I walked out of the store
with my prize, having spent three times
as much as originally anticipated, but
sure that my family would pat me on the
back for bringing home such a wonder.
And old Uncle Bob would love to take
the old grill off my hands. This was a win
for everybody!
Recently, with several grilling seasons
now under my belt, I took stock of just
p. 88
how good a deal I’d really made. Of the
three side burners, I’d used only one -once. And the magnificent electric rotisserie accessory that I just knew would
loft me into neighborhood folklore was
still in its original sealed box; it was simply too difficult to install. And because
of the size of the behemoth, my daughters were forced to relocate their favorite
sunbathing spots to the opposite end of
the deck in plain view of the boys next
door (gasp!). Plus, it takes four people
to move the monster to clean out the
leaves that constantly congregate in
piles underneath.
“Let’s get back to
basics -- eye contact,
listening, selling and
servicing based on
need. In between new
vehicle purchases,
customers usually
see their Service
Advisor many times
more often than their
Salesperson.”
My cost for that shining example of topof-the-line barbecue technology was
such that I figure I would need to charge
$15.00 per burger to turn a positive ROI.
The only way I’ll ever recoup my money
from this grill is if I’m buried in it -- which
my wife has threatened to do numerous
times.
Where did I go wrong? Well, while I had
specific objectives on what features and
benefits I wanted out of a new grill, I allowed myself to be sold up to a product
I could never hope to fully utilize. I didn’t
follow the most basic of adages -- keep
it simple.
A similar scenario is playing out in dealership Service Departments across the
country when it comes to Service lane
software. The trend in the Service bay
over the last few years has been to
take advantage of the multitude of new
technologies to become more efficient,
to capture incremental sales and to increase customer satisfaction.
Do you need to have the biggest, best,
most robust system on the market to
satisfy your customers, or is all that
technology actually hindering your efforts? There are numerous software
programs available that offer everything
you could possibly ask for from a Service menu program -- from a simple
VIN-based menu that tells the customer
what services are scheduled that day, to
highly-elaborate programs that include
tablet devices with built-in videos and
customer-facing touch screens to educate your customers, and other features
to track your inspections, recommend
upgraded services and automatically integrate with your DMS.
Are all of these capabilities what your
Service Department team really needs?
Or are what they really need just some
basic tools to service their customers
when they are in the Service lane?
Complicated technology can go offcourse in two ways: 1) it distracts us
from what’s important, and 2) it often
does not get used. Bells and whistles
that prevent or delay the Service Advisor from that interaction are detrimental
to good customer service.
“More and more
dealers today
service all makes
and models.
Additionally,
every dealer
wants to service
the used cars
they sell. And so,
I suggest, the time
for menus
has come again.”
Let’s get back to basics -- eye contact,
listening, selling and servicing based
on need. In between new vehicle purchases, customers usually see their
Service Advisor many times more often
than their Salesperson. A good basic
electronic menu system (or any other
technology tool for that matter) is quick,
easy and accurate without taking away
from that person-to-person relationship.
Basic Service menus are a proven tool
but many dealerships have gotten away
from them. Many dealerships have
menus that are out-of-date. Why? The
problem is that paper menus are almost
impossible to keep up-to-date due to
price changes. Schedules vary greatly
from make to make, model to model,
and year to year. Many veteran Advisors
know their own makes, but not every
make. When, exactly, were the cabin
filters discontinued from model X? How
often does the timing belt need to be replaced on model Y?
More and more dealers today service all
makes and models. Additionally, every
dealer wants to service the used cars
they sell. And so, I suggest, the time for
menus has come again. But this time,
thanks to technology, basic menus come
in the form of electronic Service menus
to provide your Advisors and customers
with quick answers regarding necessary
maintenance. Present the right services,
at the right time, and at the right price
for every make and model that comes
into your lane.
I read an article by J.D. Power and Associates a while back that talked about
customer perceptions on being upsold.
Those who did not perceive being upsold rated their satisfaction with their
dealer 140 points higher than those
who believed the dealer had tried to upsell them. That’s 140 points! More than
enough to cause a mass exodus from a
dealership that’s pushing services his
customers don’t want or feel that they
need. Great skill is required by the Service Advisors in explaining the need for
-- and the value of -- those extra servic-
es. Printed vehicle- and customer-specific menus help Advisors deliver good
customer service.
This same article also predicted a continuing decline in dealership Service
volumes for new in-warranty vehicles,
making it even more imperative for dealers to hold onto their share of Service
customers. You can scare them away by
offering more than they need.
Sometimes it’s good to take a step back
and analyze the cost / benefit ratio. Yes,
incremental sales are a good thing. Efficiency is a good thing. Improved customer satisfaction is a good thing. But
are you getting all that from the maintenance Service menu software you
bought? You want to earn and keep your
customers’ loyalty and business, while
also keeping an eye on your bottom line.
Sometimes the fact that software
doesn’t do everything for you allows you
to stay front and center with your customer. It allows you the opportunity to
walk the customer around the car and
make those repair decisions together.
Your Service Advisor is the expert, the
Service Department’s “face” to the customer. At that moment, they are the
Service Department. That simpler menu
software might also allow you to grow
your profits as well as your revenue by
not costing much to use.
Determine what features and benefits
you need to grow your business and
stick to them. Don’t buy more than you
really need, or you could end up like me,
wondering how to get that old rusty barbecue grill back from Uncle Bob.
Steve Reeling is a Product Manager
at Richfield, Ohio-based OEConnection with over 20 years experience in
software development in SaaS, B2B/
B2C e-commerce, supply chain management and Service retailing and merchandising.
p. 89
P R I C I N G S U R VEY
THIS ISSUE:
Tim in g C h ain s a n d S e rp e n t i n e B e lt s
Minneapolis MN
2009 Infiniti QX56,SUV, 5.6 V8
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
Timing Chain/Water Pump Kit
Installation of Timing Chain Kit
Serpentine Belt
Installation of Serpentine Belt
Timing Belt/Water Pump Kit
Installation of Timing Belt Kit
Serpentine Belt
$73.50
$71.40
$72.00
$89.95
$150.00
DriveWorks
Dayco
Dayco
Kia
Kia
Serpentine Belt
$70.00
$135.20
$88.00
$60.00
$100.00
Belt Brand
Gates
Dayco
Dayco
Chevrolet
Chevrolet
Serpentine Belt
Belt Brand
$729.45
$1,880.00
$398.00
$1,732.50
$709.77
$336.00
$932.00
$1,890.00
$329.04
$2,400.00
Orlando FL
2010 Kia Sportage, EX, SUV, 2.0L in line 4
$300.00
$399.00
$259.99
$438.00
$163.16
$358.40
$562.33
$449.75
$443.48
$405.00
Monmouth NJ
2008 Chevy Cobalt, Base Sedan, 2.2 in-line 4
$366.00
$281.48
$553.00
$595.00
$424.06
$880.00
$962.00
$1,008.00
$900.00
$1,184.50
Gary IN
2010 Ford Fusion SE, Sedan, 2.5 in-line 4
$642.00
$436.97
$223.72**
$653.57
$155.73
**This price includes the water pump only. They cannot replaced the timing belt on this vehicle.
$639.00
$678.40
$375.60**
$863.50
$840.00
$71.99
$56.00
$62.98
$52.00
$60.00
$39.99
$41.99
$46.00
$48.00
$77.00
$30.00
$34.18
$72.00
$30.00
$40.00
$83.99
$39.95
$37.98
$22.98
$59.69
$63.60
$75.00
$100.00
$140.00
$110.00
$69.00
$40.00
$73.80
$82.02
$105.00
Belt Brand
Dayco
Welpak
Dayco
Infiniti
Infiniti
Belt Brand
Gates
Gates
Dayco
Ford
Ford
InteliChek shops local, regional and national competition for automotive dealerships, providing market
intelligence to improve customer retention, identify new trends, conquer new business, analyze competitive
activity and identify areas of improvement.
For this month’s feature, InteliChek contacted a selection of independent retailers, mass merchants and new vehicle
dealerships to obtain current pricing on Timing Chains and Serpentine Belts. Four markets of varying size were selected. InteliChek requested and verified retail prices via phone calls, using specific vehicles, and vehicle services.
In that way, direct and useful comparisons can be made. While InteliChek allows the retailer to suggest a brand of
Timing Chains and Serpentine Belts, efforts are made to steer the retailer to providing prices for major brands to
allow for accurate pricing comparisons
For more information on InteliChek, visit www.intelichek.com.
p. 90
N ew p r od u c t s
Kafko International Oil Eater Parts
Washers
Kafko International has introduced a unique line of Oil Eater Flex Line parts
washers that include ready-to-use units with basic, premium and professional
level features. The water-based systems have a modular design, interchangeable features and add-on options. Each includes six gallons of eco-friendly Oil
Eater Original cleaner/degreaser and a three year limited warranty.
The basic level unit includes: a 440 lb. capacity working tray; flow-thru brush
with adjustable fluid control; adjustable “goose neck” spigot; Oil Eater skimmer pads to soak oil from the reservoir tank; stainless steel drain screen;
26-gallon soaking capacity and a thermally protected 350 GPH pump.
The premium model has all of the basic model features plus a preset fluid
heater, low fluid level protection switch and a secondary 50 micron fluid filtration. The professional model adds a high-impact HDPE lid, pump protector
drain magnet, 20-piece cleaning brush kit and 10w moisture resistant LED
work light.
Canon’s IDEAS Paperless Repair
Order Technology
Canon’s Intelligent Dealer Electronic Archive System (IDEAS) is a powerful
digital document management system that eliminates paper ROs and supporting documents. Because of its efficiency, Technicians are typically able
to service more customers in a given week, increasing monthly revenue for
the dealership. By eliminating paper ROs and supporting paperwork, that efficiency translates into Techs saving about 10 minutes per customer. If a Technician serves three customers per day, they’re generating another 30 minutes
a day on the clock, which means the ability to service three additional customers each a week. At a typical RO sale and labor rate, that’s another $50,000 a
month just in labor sales.
The Service process creates inspection reports, check-in sheets, ROs, customer RO copy, accounting RO and Tech notes. Now all that can go right
into IDEAS where it’s filed by RO number so all paperwork is where it should
be and easily searched and found in seconds. Thanks to Canon’s SAFE™
(Scanless Electronic Filing Engine) technology, dealers using Canon’s IDEAS
enjoy a simplified OEM warranty audit because the technology ensures that
all related documents are filed, indexed and readily available when requested.
IDEAS ensures that warranty documentation is automatically validated to ensure that all the information required by the OEM is present before a repair
order is committed to the archive.
Canon’s IDEAS is compatible with multiple dealer management and Service
drive systems and is a perfect fit for dealers and auto groups that have a mix
of different business processing systems. IDEAS saves money five ways: reduces OEM warranty chargeback costs, improves productivity, reduces processing, improves security and compliance and reduces costs.
Challenger Lifts DX77 Double Scissor
Lift
Challenger Lifts announces the newest ALI-certified member of the most
comprehensive product lineup of automotive lifts in the industry. The DX77
double scissor lift was engineered with efficiency and productivity in mind.
It can easily lift all makes and models (within rated capacity) with its synchronized hydraulic system. Diamond plated flip-up and drive-thru approach
ramps provide added value with the option to extend the platform length to
accommodate longer wheelbase vehicles.
DX77 also offers versatility in installation. Install the double scissor lift above
ground with outriggers or for a clean showroom finish, flush mount it with the
included flush mount frame.
Advertisers Directory
ACT Auto Staffing
Page 95
ASR ProPage 31
AutoNetTVPage 67
AutoPoint / MPi / Mobile Productivity Page 39
BG Products
Inside Back Cover
Borroughs Corp.
Page 65
Carquest Auto Parts
Page 29
CBT NewsPage 15
Chief Technologies / Elektron
Page 43
Dealer-FXPages 9, 11
and 13
DealerMinePage 63
DealerPro Training
Page 83
DealerSocketPage 41
EcoPower / Safety-Kleen
Page 95
GE Capital
Inside Front Cover and page 3
Herkules Equipment
Page 95
Hunter Engineering
Page 77
ITW ProAP / AutoEKG
Page 37
Mark VII Car Wash Equipment
Page 7
Microcat / IFM / Infomedia
Back Cover
Mighty Auto Parts
Page 49
MOC ProductsPage 21
NADA University
Page 47
Naked Lime Marketing
Page 23
NAPA PRO Link / NAPA Auto Parts
Page 95
NCM Associates
Page 59
NitroFillPage 53
PartsVoice
Pages 45 and 95
PDQ Vehicle Wash Systems
Page 17
PennzoilPage 95
Pflow Industries
Page 61
Reynolds and Reynolds
Page 35
Rome Technologies
Page 75
Rotary Lift
Pages 69 and 95
Rousseau Metal
Pages 79 and 95
Royal PurplePage 33
Service Dynamics
Page 19
Shell Advantage Marketing Solutions / SAMS
Page 25
Simoniz USAPage 5
TerraClean Products / Uview
Page 27
TSD Rental Management Software
Page 51
WildeckPage 71
XtimePage 73
p. 91
n ew p r od u c t s
Borroughs IMPACT Workstations
With Borroughs new IMPACT Workstations, dealerships have
all the customizability they need to build the workstation that
will do the job, at an affordable price.
- Reinforced swing door cabinets with 3-point locking system
- Most spacious and durable upper cabinets in the industry, with tip-up slidein doors
- Best ball bearing drawer slides in the industry
- 400 lb capacity drawers with full-length handles and heavy-duty keyed barrel locks and rubberized liners
- Doors affixed with full-length piano hinges
- Optional door frame kit
- Choice of stainless, maple butcher block or painted steel worksurface
COATS X-Series Tire Changers
COATS’ popular line of X-Series tire changers has been refreshed
to include new features and increased clamping capacity. The
X-Series tire changers now come standard with a best-in-class
clamping range of 6 to 24 inches and also offer the following new features:
· Hybrid Duckhead: Floating tail conforms to the rim to mirror its radius and
places tire in optimal position for installation. This feature is a COATS exclusive.
· Single-point Bead Blast: Provides a powerful, concentrated blast to seat
beads more quickly. This feature is a COATS exclusive.
· Manual Bead Depressor and Duckhead Roller Combo: Design ensures the
bead stays in the drop center and the tire bead does not roll back over duckhead.
· Hybrid Leverless Power Duckhead: Positions the bead in the optimal position for less bead stress during installation or removal. This feature is a
COATS exclusive.
The X-Series has been one of COATS’ most popular products for years because of its durability and capability to tackle a wide variety of applications.
The new X-Series machines have added more advanced features and capability to help shops get the job done right the first time.
Balcrank
Systems
Fluid
Inventory
Control
Balcrank has the most comprehensive line of fluid inventory control systems
in the industry. From the entry level Director Jr. to the powerful, full-featured
Synergy system. Balcrank has the right product for every application.
Director Jr.: Manages 1 fluid for up to 10 dispense points. Simple, easy to
install and use, the Director Jr. has been in use since 1987. Typical customers
include smaller dealerships.
Spectrum 100: Manages up to 4 fluids to a maximum of 16 dispense per fluid
points, 2 fluids to 32 dispense points, or 1 fluid to 64 dispense points. PIN
security, printed job tickets, tank level management functions including current level, tank capacity and low level alert. Typical applications include small
to medium dealerships.
Fusion 2.4: Wireless system manages up to 16 fluids, 250 dispense points
and 250 user ID’s. Fusion 2.4 is totally wireless, communicates directly between keypads and dispense valves. Typical applications include car dealerships, HD fleet, truck and bus facilities.
Synergy: The ultimate in Fluid Inventory Control systems. Unlimited number
of fluids including oil, grease, DEF, windshield wash fluid and anti-freeze. Synergy controls up to 255 dispense points with total simultaneous dispense
capability. Network and DMS interface available as well as full tank monitoring and real-time inventory levels. Today, the needs of dealerships are more
complex, the fluids are many and the challenges of managing and accurately
monitoring these fluids are difficult. Wireless has its limitations, communication problems and risks with all electronic controls mounted in the handle.
Synergy brings you real-time information and seamless communication without interruption, interfacing with DMS software. Typical applications include,
large dealerships and heavy-duty fleet / truck / bus facilities.
Bardahl Radiator Anti-Rust & Water Pump
Lubricant
Inhibits rust and corrosion. Lubricates water pump, bearing and
seals. Reduces deposit formation in radiators.
Lista International’s Redesigned
Automotive Service Bay System
Lista International presents its newly-redesigned Automotive Service Bay
System, specially designed for the automotive Service and repair industry.
When organization, precision and performance are critical, Lista delivers with
highly functional and flexible workspaces. Integrated Service bay and workbench solutions are feature-packed and give Technicians quick and easy
access to tools, parts and equipment. Lista’s Service bay solutions get the
job done, radiate professionalism and help to retain customers and skilled
personnel.
A full range of workbenches, storage cabinets, toolboxes and mobile work
centers can be custom configured to meet the individual demands of every workspace and will turbo-charge any Service bay. Workbenches provide
plenty of room for Technician assembly and tear down operations and promote optimal organization and productivity. Sleek, durable and easy to maintain counter and workbench surfaces handle the daily rigors of any Service
Department. Surfaces come in stainless steel, galvanized steel and 1-3/4”
thick butcher block.
Lista offers many accessories for above the work surface areas. These allow
users to custom configure their bays with overhead lockable cabinets, shelving, a computer display area and other options to build the ideal workstation.
Optional mobile carts safely store and transport tools and other items to the
point of repair.
p. 92
Inhibits rust and corrosion
Lubricates water pump, bearings and seals
Reduces deposit formation in radiators
Unique chemical formula that works as you drive
Specifications:
ENGINES: Gas, diesel
PRODUCT SIZE:
6x16.9oz
Shure High-Density Heavy-Duty Drawer
Systems
Features:
• Endless configurations
• All drawers include dividers and partitions
• 2 widths, 2 depths & 3 drawer heights are available
36” & 48” widths, 18” & 24” depths
3”, 6” & 9” drawer heights - 3” - 250 lb. capacity, 6” & 9” - 400 lb. capacity
• No mounting kit required to install drawers
• HD-2 units include back panels and end panels or closed configurations
• Additional drawers can be purchased as single or multiple units
N ew p r od u c t s
JohnDow/Dynamic TPMS Sensor
Storage Cabinets
JohnDow Dynamic has introduced its new line of TPMS Sensor
Storage Cabinets. With the explosion of the TPMS market, JDI has placed increased emphasis on the sensor storage needs of the TPMS service installer.
The single door TPMS-90 cabinet will hold up to 90 DVT-sensors
that are stored in separate rows for easy identification. Up to 72 DVT-sensors
can be stored in the TPMS-72P two-door deluxe cabinet along with up to 28
boxes of service kits and accessories. A pull-out drawer is added to hold essential TPMS service tools. Both cabinets can be locked for additional security. The cabinets can be wall-mounted or mounted to the optional TPMS-CS
cabinet stand. This stand is a convenient way to locate either cabinet close
to the work area or any open area in the shop. These products provide an
affordable storage solution to the TPMS category and will continue Dynamic
TPMS’s efforts to be a leader in TPMS technology.
The Dynamic TPMS brand features the multi-application DVT (Dual
Valve Technology) sensors. The six Dynamic-DVT pre-programmed sensors
provide 85% brand-to-brand coverage for domestic and Asian vehicles. In
addition to the DVT-sensors, TPMS service rebuild kits and TPMS mechanical
tools are also part of the Dynamic TPMS product line.
Mark VII SoftWash DF® Auto Dealer
Carwash System
SoftWash DF is the only automatic carwash for car dealers sold in North
America that carries the seal of conformance to the Association of the German Automotive Industry’s specification for safe vehicle washing, which was
developed through a joint effort by BMW, Daimler, Opel, Porsche, Volkswagen and others. This detailed spec dictates types of chemicals that can be
used, minimum dimensions and clearances required, avoiding protruding
parts (spoilers, spare tires), acceptable hydrodynamic loads, water usage
and pressure, mechanical loads, buckling resistance of the vehicle body and
special considerations for washing of convertibles and coupes. Everything is
designed around ensuring a high quality, damage-free wash.
Based on the same technologies found in Mark VII’s SoftWash XT®, which
cleans cars at thousands of convenience stores and retail carwashes
throughout North America, SoftWash DF is fine-tuned for car dealers to give
customers superior cleaning results while minimizing the initial investment
and the use of consumables. As little as 12-14 gallons of water and less
than 2 ounces of chemicals are all that’s required to clean a car. Chemicals
are conveniently located on-board the SoftWash DF, eliminating the need for
an equipment room or having messy chemical drums in the wash bay. Allelectric operation eliminates the risk and hassle of hydraulic leaks present
in other auto dealer systems. SofTecs® foam gently washes and polishes,
including a triple brushing effect on the hard-to-clean front and rear of the
vehicle. Customers are delighted by driving off in a clean car and the dealers
benefit from both improved customer satisfaction and lower operating costs.
Stanley® Vidmar® Automated Tire
Carousel
The Stanley® Vidmar® Tire Carousel is fully motorized and offers
quick, easy storage and retrieval of various tire sizes up to 44
inches in diameter. The carousel allows one operator to rotate carrier frames,
locate desired tire sets, stop at proper position and remove tires safely at floor
level all with the push of a button. Additional features and benefits include:
- Reduces risk of injury with automated lifting
- Maximizes storage efficiency by fully utilizing vertical storage space
- Multiple preconfigured sizes or can be custom-configured to exact specifications
Hunter Releases Powerful New
Generation Swing-Arm Tire Changers
Hunter Engineering Company has released a new generation
of Swing-Arm tire changers with more rigidity, power and performance than
models currently on the market. The TCX53 Performance, TCX51 Professional and TCX50 Standard tire changers are each heaviest in class with more
stiffness to handle today’s tough tires. Each tire changer also uses Hunter’s
PowerOut™ bead loosener for the most powerful in-class bead breaking capability.
New generation Swing-Arm tire changers feature an easy-to-use adjustable
tabletop that provides a 10- to 26- inch clamping range. All four tabletop
jaws adjust simultaneously for mistake-free clamping and hi-grip jaw covers
add mounting torque and protect wheels. Each tire changer is available with
a unique 110V or 220V motor that is faster than popular alternatives and
doesn’t slow down under load like air motors.
The TCX53 Performance tire changer is 15% heavier than competing models
and features Hunter’s patented bead press system with multiple press arms.
The bead press system speeds and eases clamping, lubricating, demounting
and mounting for the very toughest wheel and tire combinations.
The TCX51 Professional tire changer is 10% heavier than competing models
and features the most power in-class bead press arm. The press arm pushes
the tire into drop center for mounting and demounting operations and is built
on the same frame as Hunter’s patented bead press system.
The TCX50 is a simplified version of the TCX53 Performance and the TCX51
Professional, but can be upgraded easily with optional bead press arm or
bead press system.
MAHA USA Wireless Mobile Column
Lifts with Precision Ball-Screw Lifting
Technology
MAHA USA has introduced its new and redesigned MCL family of ball-screw-powered mobile column lifts. The wireless lifts
are the first of their kind in the industry. The new lifts also exponentially expand the variety of tire profiles and vehicles that can now be
served by wireless mobile lifts.
The MCL 12 and MCL 15 lifts are completely new products, while the MCL 16
and MCL 18 have been significantly redesigned. The architecture of MAHA’s
new mobile column lifts are engineered to accelerate the velocity of maintenance activities by providing a flexible vehicle lifting system that creates a
more open, productive and accessible work space.
The new lifts boost productivity through superiority ergonomics and by expanding application flexibility. Not only can you lift a wider variety of vehicles
with the new lifts, but once the vehicles are elevated, they enable Service
Technicians to operate virtually unencumbered.
All base frames for the MCL wireless ball-screw lifts have been redesigned
and each base frame now features a lower profile and longer leg structure
that increases the columns’ stability, allowing them to engage low clearance
vehicles more effectively. The main support column of each lift is formed from
a solid, one-piece, hot-rolled I-beam, giving it superior rigidity and stability,
while reducing load and stress on interior structural welds.
MAHA wireless ball-screw column lifts are up to 30 percent lighter than wireless hydraulic column lifts that require heavy hydraulic fluid, cylinders, hoses,
valves and pumps. Unlike hydraulic lifting equipment, precision-engineered
ball-screw lifting mechanisms lift at a constant speed, are 90 percent efficient, are impervious to cold weather and are environmentally friendly.
p. 93
n ew p r od u c t s
Royal Purple Introduces New Six Ounce
Max-Clean High Performance Fuel System
Treatment
Premium synthetic lubricant manufacturer Royal Purple® has introduced a new six-ounce size for its Max-Clean® fuel system treatment, a high performance synthetic cleaner that helps maximize fuel system
performance.
Previously only available in 20-ounce containers, the new six-ounce
bottle of Max-Clean is a cost effective option to keep engines clean, along
with the added benefits of Max-Clean’s fuel stabilization, reduced emissions
and increased horsepower. One six-ounce application treats up to 20 gallons
of fuel.
Max-Clean is formulated with state-of-the-art detergents to deeply
penetrate and clean injectors, carburetors, intake valves and combustion
chamber surfaces. Independent testing has shown that regular use of MaxClean will:
· Restore lost fuel economy
· Maximize horsepower
· Prevent harmful deposits and buildup
· Reduce emissions
· Stabilize fuel during storage
Royal Purple Max-Clean is both EPA and CARB compliant and is
safe for use in all 2- and 4-cycle gasoline and diesel engines. It is compatible
with ethanol blended fuels and will not harm vehicle emissions equipment.
Equipped with the Shockwave package, the SPO12 can lift a vehicle weighing
up to 12,000 lbs. 80 inches in just 25 seconds and lower it in 19 seconds. This
is twice as fast as any other lift’s rise and descent, which means technicians
can complete more jobs each day using a Shockwave-equipped SPO12. That
means more money in their pockets, and greater profitability for the shop.
Shockwave’s speed is made possible in part by its DC power unit.
Shockwave-equipped lifts are battery operated with a built-in charger, which
eliminates the need for expensive 220V wiring. The lifts can even be used
during power outages, so a vehicle is never left stranded in the air.
Getting the vehicle positioned on the lift is also easier with Shockwave-equipped lifts thanks to their patent-pending Spotline™ laser spotting
guide. Spotline projects a green laser line into the middle of the bay. To center
a vehicle, the technician simply lines up the middle of the hood or dash with
the laser line and drives onto the lift. The new Shockwave-equipped SPO12
comes with adjustable frame-contact adapters for use with trucks and other
body-on-frame vehicles. The SPO12 is nearly two feet taller than the standard
10,000 lb. capacity SPO10 two-post lift to provide clearance for utility bodies,
roof racks and other overhead equipment.
Tecalemit NEXUS Nitrogen Generator
Combining the essence of design, manufacturing and marketing in a modern and innovative piece. The NEXUS range is designed to cover every application of digital nitrogen inflation from small passenger car to large commercial off-road vehicle tires used in very demanding
environments. Offering both membrane and PSA technology allowing the
buyer a choice of models which best suit their needs.
Protect Paint with XPEL ULTIMATE
Self-Healing Protection Film
XPEL(tm) ULTIMATE Paint Protection Film delivers unsurpassed
clarity and durability, providing vehicle owners with years of protection from
stone chips, scratches and abrasions on automobiles, motorcycles, RVs,
power-sport equipment, bicycles and more.
Developed with an innovative material, XPEL’s ULTIMATE is a virtually
invisible urethane film that features a clear coat and special elastomeric polymers that “heal” over time, naturally eliminating swirl marks and fine scratches. The film’s low surface energy enables XPEL ULTIMATE to shed contaminants such as road grime, air pollution and tree sap, which are responsible for
staining and yellowing conventional films, while its strength protects painted
surfaces from rocks, gravel, salt, oils, magnesium chloride and insect and
bird wastes.
ULTIMATE Paint Protection Film was designed to provide industryleading performance that’s proven to last longer than other films on the market. It offers superior paint protection while retaining its gloss and clarity for
many years.
XPEL ULTIMATE is a clear-coated polyurethane film with outstanding strength, durability, clarity and longevity. Available in rolls of varying width
and length and pre-cut in a variety of patterns, ULTIMATE is available to
protect hoods, headlamps, fenders, rocker panels, door edges, mirrors and
more. With exceptional elongation, memory and flexibility, the film installs
easier, allowing for single-piece installations, reduced labor costs and high
customer satisfaction.
Rotary Lift’s Shockwave™ Technology
Now Available to Speed Up Truck and
Van Repairs
The world’s fastest vehicle lift just got bigger. Rotary Lift’s
patent-pending Shockwave technology is now available for the first time on
a 12,000 lb. capacity lift, making it possible to service pick-ups, work trucks
and vans faster than ever.
Rotary Lift has expanded its productivity-enhancing Shockwave offerings beyond 10,000 lb. capacity two-post and SmartLift inground lifts to
include its popular SPO12 two-post lift.
The SPO12 features a symmetric design that keeps a heavy vehicle’s center
of gravity directly between the columns for maximum stability while performing repairs.
p. 94
Snap-on Releases One of the
Largest Software Upgrades for European
Vehicles
The newly updated European software for the Snap-on Software
Upgrade 13.4 includes the latest FIAT® 500 diagnostics coverage for engine,
transmission, ABS, airbag, body control, instrument, electric power steering
and more. The Snap-on optional European coverage is also available for nine
other European makes including Audi®, BMW®, Jaguar®, Land Rover®,
Mercedes-Benz®, MINI®, Smart Car®, Volkswagen® and Volvo®. This update is one of Snap-on’s largest upgrades for European makes and models to
date.
Diagnosing and repairing European vehicles is challenging, so
Snap-on has added more depth to its European software. Software Upgrade
13.4, like previous upgrades, gives Technicians true OEM-specific coverage
to tackle jobs from general repair, to driveability, to body control and HVAC
issues.
AutoCheckMate LLC Announces
Integration of Their Automated
Capture Zone and Hand-Held ACM307 Systems
Newton, New Jersey-based AutoCheckMate, a leader in Digital Vehicle Inspection since 2005, has finalized a deal with Mercedes-Benz Manhattan to install the latest “Capture Zone” technology at their new location.
The Zone was originally designed for high volume dealers who needed to
document vehicle condition in a matter of seconds. The dealership requested
integration of the hand held system in order to input damage entries with
images that will allow them to provide customers with prompt proposals for
body damage, rim and ding repairs, along with windshield and tire repairs or
replacements.
As the vehicle approaches the Zone, the VIN is scanned off the door
jamb and any sellable damage repairs are noted. The vehicle then enters the
Capture area where multiple images from every angle are shot and sent to the
ACM Server, easily retrieved using the last few numbers of the VIN. The ACM
website is user friendly and allows the dealership to utilize the data to end
arguments over damage claims, while increasing sales and customer service
by being proactive rather than reactive.
MA RK E TP L A CE
T:3.5”
T:2”
AMERICA’S MOST
TRUSTED OIL.*
pennzoil.com
*Based on a survey of licensed drivers conducted by a leading research firm January 2005 – December 2010. ©2011 SOPUS Products. All rights reserved.
More dealersPZ1-128
choose Smartlift.
78751_PZ_PZ1-128.indd 1
4/19/11 2:33:49 PM
Find out why the Rotary Smartlift is the #1
dealer choice for inground lifts.
Prepared by:
Southfield, MI • 248.354.9700
by
Sarah Wilde / Beth Powell
Fonts
Fonts:
Helvetica Neue (37 Thin Condensed, 47 Light
Condensed), Agenda (Medium)
Link Name:
78751_PZ_PZ1-128.tif (CMYK; 300 ppi; 100%)
Used Swatches:
Shown: SL210X 10,000 lbs. capacity
Cyan,
Magenta,
Yellow,
Black
FixedOps_Smartlift_Ad_2011.indd 1
Printed At
100%
SmartLift
®
www.rotarylift.com
8/10/2011 9:33:48 AM
p. 95
I N D US TR Y N E WS
Continued from page 8
AutoCheckMate Announces
integration of Their Automated
Capture Zone and Hand-Held
ACM307 Systems
Newton, New Jersey-based AutoCheckMate, a leader in Digital Vehicle Inspection since 2005, has finalized a deal with Mercedes-Benz Manhattan to
install the latest “Capture Zone” technology at their new location. The goal
is to have every vehicle that enters their building drive through the Zone,
where hi-res images are shot from every angle. The pictures are stored by
VIN at AutoCheckMate.com and are available for review within minutes,
eliminating arguments over false damage claims. ACM will also be integrating their hand-held device, allowing the Service Department to quickly note
any damage, allowing them to increase sales by providing customers with
prompt repair proposals on body damage, rims, dings, etc.
A 25 year veteran of the car business, ACM Sales Manager John DeVita
explains why Digital Vehicle Inspection is an integral part of Thready Connectivity. “For too many years, new car dealership departments have had
issues working in harmony. Today’s most successful dealers realize the
value of less arguing and increased productivity, so they’ve implemented
systems of transparency and logic that encompass the whole-store approach. Utilizing Digital Inspection and Damage Entry on everything from
Service vehicles to lease returns is an important aspect of that approach.
It’s all about improving the customer experience by offering them a combination of the latest technology available and the highest level of Hospitality
and Personal Service. This includes being proactive rather than reactive,
exploiting “Big Data” to gather as much information as possible, and using
that info to follow up, promote sales and improve Customer loyalty.”
“Considering that most dealers perform some type of visual inspection on
Service, loaner, lease return and new Sales vehicles, Digital Inspection and
Damage Entry is a simple and effective way to dramatically improve the
effectiveness of this process. It ends the arguments over damage claims
which, in turn improves the overall Customer Experience and the Dealers
bottom line,” says Mr. DeVita.
Audi of America Endorses
DealerSocket’s Auto CRM
and ILM Solutions
Ford Launches New Warranty
for Ford Genuine and Motorcraft
Parts
Ford Motor Company has announced the launch of a new warranty on Ford
Genuine and Motorcraft service parts for unlimited mileage for 24 months
from time of purchase or installation.
The Ford backing, clarity of terms, labor coverage and access to Ford’s
nationwide network for coverage provides greater value and peace of mind
for all customers whether they are general consumers, fleet operators or
independent repair facilities.
“Ford is dedicated to constant improvement in all we do. Ford Genuine
and Motorcraft replacement parts are approved by Ford engineering,” said
Frederiek Toney, Vice President, Ford Motor Company and President, Ford
Customer Service. “In the unlikely event a part fails, our new warranty
demonstrates our commitment to quality, our customers and our intent to
provide greater peace of mind and an improved ownership experience.”
Ford also will now reimburse fleets and independent repair facilities up to
$150 in labor coverage. Ford continues a No Commercial Exceptions policy
as a commitment to fleet customers.
In addition, Ford’s Part warranty provides customers towing reimbursement
for repairs completed at any Ford or Lincoln Dealership.
If a Service part purchased under the new warranty happens to fail and the
repair is completed at a Ford or Lincoln dealership, the entire repair cost,
labor and towing will be covered. If the repair was completed at an independent installer or fleet facility, Ford would reimburse up to $150 in labor. (The
towing would not be covered.)
Ford’s previous Service Parts warranty was 12 months or 12,000 miles,
whichever occurred first, and labor was covered if the part was installed by
a Ford or Lincoln dealership. Labor was not covered on parts sold over-thecounter to a fleet or installer.
Reynolds Launches ERA-IGNITE
Advanced Training Course for
Dealership Managers
Leading auto dealer CRM, DealerSocket,
is proud to continue its 4-year integration
with Audi as its CRM and ILM solution of choice, with over 30% of the network already onboard. This strategic partnership bridges the gap between
dealers’ CRMs and Audi’s corporate digital assets and data, empowering
dealers to increase efficiency and boost sales, while better serving customers at the same time.
Reynolds and Reynolds is now offering in-depth, management-level training for dealerships using the ERA-IGNITE platform. ERA-IGNITE is Reynolds’ newest dealership software platform and a foundation of Reynolds
Retail Management System. ERA-IGNITE features a Windows®-based design and architecture that enable dealership personnel to work more productively and to access information more efficiently.
“We are absolutely ecstatic that Audi chose us to partner with on this journey,” said Reuben Muinos, DealerSocket’s Director of Business Development. “This robust partnership is so exciting because we are truly able to
make a difference for these dealerships by innovating their operations with
tools that will not only increase efficiency and profitability, but also improve
the Audi experience for their customers nationwide.”
The ERA-IGNITE Management and Control Course is an intensive three-day
program of instructor-led classroom training designed for participants who
want to expand their knowledge and further capitalize on the advantages
they can gain with ERA-IGNITE. The training, which is provided by Reynolds subject matter experts at Reynolds offices in Dayton and Houston, is
geared toward CFOs, Controllers and System Administrators.
Audi Dealers who leverage DealerSocket technology can:
“Taking this course pulled me away from the office and the steady stream of
phone calls and e-mails and into a structured environment where I could focus and really learn ERA-IGNITE with an instructor to help me,” said Sarah
Irby-Goad, Controller with BMW Mini of Sterling.
- Enroll in Audi’s Response Time Initiative and report performance numbers
- Power pipeline selling (vehicles in transit in CRM)
- Command powerful results through KPI data
- Receive integrated digital marketing pieces available directly from Audi
of America
- Experience reduced maintenance and development costs
- Get exclusive Audi preferred discount pricing
- Benefit from partnering with one of the highest in overall satisfaction with
Audi dealers nationwide
p. 96
ERA-IGNITE Management and Control Courses are offered monthly. Along
with the new ERA-IGNITE Management and Control Course, Reynolds
provides a number of other training options to help dealerships maximize
utilization of ERA-IGNITE, including Computer Assisted Instruction, OnDemand Training, ERA ‘Net classes, Free Monthly Webinars and on-site
training provided by Reynolds consultants.
Auto/Mate Announces Integration with Dealer-FX, Boosting
Dealer Service Retention Capabilities
Auto/Mate Dealership Systems has announced that its AMPS Dealership
Management System (DMS) is fully integrated with Dealer-FX’ automotive
retail marketing and software solutions. Dealerships using AMPS dealership management system (DMS) and Dealer-FX’ Service customer retention
solutions will now benefit from real-time data exchange between the two
systems.
“One of the key components to an effective customer retention marketing
program is to have all the customer information, history and vehicle history
updated instantly and accurately across the DMS and customer retention
systems,” said Mike Esposito, President and CEO of Auto/Mate.
Dealer-FX is the most recent vendor to integrate with AMPS as part of Auto/
Mate’s Open/Mate program. The open integration program ensures that all
data delivered between the DMS and third-party software programs is instant and secure. Real-time integration eliminates redundancy and ensures
accurate information for better marketing capabilities, compared with data
exchanges performed via batch deliveries. Low-cost, open integration programs benefit auto dealers by improving internal productivity and increasing vendor choices, leading to more competition and lower prices.
“Dealers using our solutions and Auto/Mate’s DMS will be able to get more
out of each system, as technological barriers are eliminated and the focus can be on improving programs and processes without having to worry
whether the data is accurate,” said Sandor Segal, Director of Business Development with Dealer-FX.
Dealer-FX offers auto dealers Service drive technology and tools that
streamline the Sales-to-Service handoff, boost online scheduling, enable
consistent electronic walkaround and inspections and more. Its customer
retention programs increase loyalty and integrate with Dealer-FX’s comprehensive suite of social media marketing, lead generation and conversion
tools, as well as their marketing and brand effectiveness programs.
A S S O C I A T E S
NCM® Announces DealerTrack
DMS Integration with
AXCESSA™ Auto Dealership
Data Management Platform
NCM CEO and President Paul Faletti Jr. has announced the completion of
a joint development effort in a client communication stating, “The Reverse
Rick engineering team, creators of NCM axcessa, recently completed full,
authorized integration with DealerTrack DMS. The DealerTrack team was a
pleasure to work with and we are excited to offer this integrated solution
to our clients. The powerful combination of DealerTrack DMS and NCM
axcessa allows for unprecedented dealership analytics, reporting and intelligence that will assist in driving profitability and creating a culture of total
transparency and accountability.”
NCM axcessa is an industry-first, cloud-based data management platform
allowing for data aggregation across the dealership’s front-end, back-end
and accounting systems and across multiple stores in a matter of seconds,
accelerating the information feedback loop and providing users with a clear
competitive advantage by shifting management focus from reactive to proactive. In addition to the incomparable actionable intelligence® axcessa
provides the dealership, many axcessa reports also include NCM Benchmark® metrics, allowing users to compare their operations with NCM’s
top-performing franchised automotive dealers, for even greater insight and
analysis.
Xtime Extends Its Leading
Customer Retention
Platform With Its New Menu 7 and Mobile 7
Applications
Xtime, the leading cloud-based customer retention management platform
for the auto Service industry, has announced the extension of its intuitive
and convenient 7 Series consumer online scheduling interface to its mobile
scheduling application and popular online Service menus. Along with the
introduction of the Consumer 7.0 online scheduling interface earlier this
year, the industry’s leading customer retention platform now delivers an
exceptional customer experience through every Service booking channel.
Xtime’s new Menu 7 displays VIN-specific factory and dealer Service recommendations, a personalized Service timeline, pricing for both factory and
dealer recommendations, the ability to book the services selected (with the
Xtime scheduling system) and is customizable to work within both manufacturer and dealer websites.
Menu 7 recommendations and prices are identical throughout Xtime’s platform, a consistency that enables all dealership personnel (Advisors, Managers, Call Center Agents) to provide accurate Service recommendations
and price quotes for services on any vehicle. Menu 7 also powers Xtime’s
online, mobile and in-vehicle telematics scheduling channels. By providing
clear, consistent Service recommendations, Menu 7 instills customer confidence and trust while providing a convenient online purchasing experience
within the Xtime platform.
“Every aspect of the Xtime consumer experience is now state-of-the-art,
which enables our dealers and manufacturers to meet the expectations
of their increasingly demanding customer base,” said Neal East, CEO of
Xtime. “By giving their Service customers a visually appealing, transparent
and convenient path to buying Service, our dealers maximize the chance of
retaining them. It’s innovations like these that give Xtime dealers an average
5% boost in Service retention.”
Insignia Group Issued Patent
for Configurator Technology
and Process
Insignia Group has announced the issuance of US Patent No. 8,566,714,
which relates to Insignia’s development software and process for building
visual assets on vehicles. Insignia’s invention supports the increasing demand within new car dealerships for presenting vehicle personalization (accessories) to customers at the point of car sale.
The patent is specific to Insignia’s process and development software for
creating configurable assets to appear on a base product. The software
invention establishes a repeatable process of associating the asset to the
base model and sub-models. This dynamic method is delivered across
many unique parts and vehicles concurrently. The rapid application saves
time, money and removes human error in managing catalog based data.
“Insignia is a leader and innovator in the vehicle personalization market
space,” says David Stringer, President of Insignia. “Protecting our technology allows us to capitalize on our efforts and bring even greater innovation
to our industry.”
Insignia Group services thousands of dealership personnel across its nationwide network of dealership affiliates. As released in January 2012, Toyota of Braintree exceeded $2.1 million dollars in accessory sales leveraging
Insignia’s technology and services. This represents the largest one-year
sales volume of accessories on new cars in the 11 years of providing vehicle personalization software solutions and process training to dealerships.
“This achievement is a testament to our commitment in providing best-inclass technologies and services to our customers,” said Stringer. “Every
process we establish has a customer included and it’s our customers which
contribute to the continual growth in our product and services,” he said.
p. 97
I N D US TR Y N E WS
Service Intervals Have
Increased Nearly 4% in Last
Year, Costing Average Dealership $91K in Lost
Revenue
DMEautomotive (DMEa), the science-inspired, results-based automotive
marketing leader, has released new findings from DMEInsights, its recently
released analytics product, revealing that the average dealership’s auto
Service interval has undergone significant changes within the last year, increasing from 140 to 145 days, or nearly 4%.
DMEa found that this five-day expansion between Service visits is costing
the average dealership $91,000 in lost revenue a year, or $18,000 for every
day of interval added. While these new realities impact dealerships and aftermarket providers alike, the total cost to U.S. franchised new car dealers
alone is $352 million+ each year. A number of factors -- including people
keeping vehicles longer than ever in history, far better built cars, people
driving less and people relying less on OEM Service recommendations in
favor of more online and mobile research -- is fueling this ongoing lengthening of time between Service visits.
Auto/Mate Integrates DMS with
MOC1 Solutions’ Fixed Ops Service
Drive Suite, Streamlining Dealers’
Service Processes
Auto/Mate Dealership Systems has announced that
its dealership management system (DMS) is integrated with two of the five modules in MOC1 Solutions’
Fixed Ops SDSTM (Service Drive Suite) technology platform. Auto/Mate
has completed full integration with MOC1 Solutions’ Track and Schedule
products, and is in the process of integrating with their three remaining
modules including Write, Inspect and Retain. Auto dealers using both systems will benefit from the ability to streamline processes in their Service
Departments.
“Dealership Service Departments have made great strides in the last few
years towards automating many of their processes, and integration between the DMS and vendors’ solutions enables this trend to continue, increasing efficiencies and profits,” said Mike Esposito, President and CEO
of Auto/Mate Dealership Systems.”
“Service intervals will only get longer and this should be a wake-up call for
every dealer, because it impacts them in diverse, costly ways,” said Mike
Walther, President and CEO of DMEautomotive. “Longer intervals don’t just
mean a lot less direct Service revenue, because when customers come
in for fewer visits in the first three years of ownership (where brand and
dealership loyalty is forged), they’re also less likely to re-purchase at that
dealership, and even CSI scores are negatively impacted.”
MOC1 Solutions Fixed Ops SDS™ platform offers a powerful unified solution that significantly increases the efficiency, consistency and transparency of the automotive Service and repair business. While MOC1 Solutions continues to sell its best-in-class SDS™ products individually, a key
differentiator of MOC1’s software suite is the ability to offer an integrated,
comprehensive “all-in-one” platform designed specifically for the Fixed Operations business.
“Many dealers use Service reminder marketing programs that haven’t fundamentally changed in years. But the new, ever-lengthening Service intervals are just further proof that it’s now imperative for dealers to start marketing to the owner, and not to the vehicle,” said Walther. “The auto industry
desperately needs to abandon the old ‘spray and pray’ approach of the old
programs and adopt a ‘new era’ Service marketing approach that’s focused
on total customer retention. That means delivering relevant, super-targeted messages based on each customer’s actual behavior and purchasing
patterns, and doing a better job communicating where their customers increasingly live: across digital and mobile channels like mobile apps. That’s
the way to reclaim those lost Service dollars, increase loyalty and get more
customers into the Service drive, more often.”
“As more dealership Service Departments go mobile and paperless, integration with the DMS is key to improving workflow and keeping customer
information current,” said a spokesperson for MOC1 Solutions.
Identifix® Launches Vehicle
Search by VIN in Direct Hit®
Identifix, a leader in vehicle diagnostics for over 25 years, has unveiled its
newest feature in Direct Hit: vehicle search by VIN. Subscribers can now access information even faster and more accurately by simply typing at least
10 digits of a vehicle’s 17-digit VIN when creating a new vehicle within the
online tool. There’s also an auto-suggest feature that offers a list of applicable vehicles once a Technician enters model and year information. Both
new features ensure shop owners have the exact diagnostic and repair information they need for the specific vehicle in their Service bay.
Delivering information that comes straight from the factory, Direct Hit allows
Technicians to diagnose and repair vehicles with greater speed, accuracy
and confidence without leaving the vehicle. These new search upgrades
mean they can work more efficiently and effectively than ever before.
“Our product features and functionality are driven by the needs of our customers. A vehicle search by VIN has been on their wish list for a long time,
so we’re excited to be able to deliver this and other enhancements that help
Technicians and Service Advisors increase productivity,” said Aaron Cherrington, Vice President of Product Management and Strategy for Identifix.
“As long as we continue to keep an active dialogue with both current and
potential customers, we’ll always be well positioned to help meet the challenging demands of vehicle Service and repair.”
p. 98
MPi EDGE WorldClass Moves to the
Cloud; Dealers Get More Powerful
Vehicle Inspection Software
MPi, a leading provider of revenue and retention solutions for dealership
Service Departments, has announced that EDGE WorldClass has just been
updated to the cloud. The leading vehicle inspection software is now faster
and more powerful than ever.
EDGE WorldClass™ is a powerful solution that creates trust by standardizing the inspection, estimating and recommendation processes. It empowers the Service Department and management team to build connections
with customers that drive retention throughout the lifecycle of the vehicle.
MPi recently conducted a study of the more than 1,300 new car dealerships using EDGE WorldClass and found that in 2012, the average MPi
auto dealer generated over $42,000 per month in incremental inspection
generated customer pay sales. This data was taken from a study of more
than 11,500,000 ROs written by MPi dealers in 2012.
Key improvements from the cloud update include: elimination of onsite client server; automatic, real-time updates; faster fixes; improved speed and
performance; enhanced accessibility (get access to EDGE anywhere, anytime); updated product interface; and increased security.
“At MPi, we understand dealers may have several choices when it comes to
offering vehicle inspections in their Service Department. Our commitment
is to deliver a real measurable return on investment by ensuring MPi dealers’ success in achieving WorldClass profits. For that reason we constantly
strive to improve our products and services,” MPi President Rich Holland
stated. “This change will be transparent to the end user and the roll out will
be gradual. We expect all eligible EDGE users to be fully upgraded within
six months. All upgrades will happen after hours and will not interrupt their
business or ability to use EDGE. I am excited to see the improved profitability these changes are sure to bring!”
a Se
bo t N e u
ot AD s
h A
#7
01
9
in
SERVICE SOLUTIONS THAT BUILD
TRUST, PERFORMANCE AND PROFITS.
TRY THE ALL NEW SUPERSERVICE SUITE OF FIXED OPERATION SALES PERFORMANCE TOOLS.
It will change what you believe is possible to achieve with your current resources.
Multi-point Inspection
Real-time CSI Survey
Precision Service Quoting
Microcat LIVE®
Online Booking and Quotation
AVAILABLE FOR
CHRYSLER
FIAT
GM
LAND ROVER
TOYOTA
FORD
HYUNDAI
LEXUS
Triage
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
Insight
EPC
Menus
Connect
P
P
INCLUDES SUPERSERVICE TRIAGE, the most powerful Multi-point Inspection system available with full integration to
Superservice Menus for instant pricing of parts and labor.
SUPERSERVICE WAS DEVELOPED TO GIVE GENUINE DEALERS and their service advisors a distinct and powerful
advantage to beat the competitive landscape and increase productivity, profitability and customer retention across all
areas of their dealership.
SUPERSERVICE IS THE ONLY AFTERSALES BUSINESS SOLUTION that integrates electronic Multi-point Inspection,
Customer Satisfaction Survey, Genuine OE Parts Catalog, Precision Service Quoting and Online Booking and Quotation
for most franchises. It is making a BIG difference for thousands of dealers around
the world. It’s quick and easy to install. You’ll be up and running in no time.
No hassles, no delays. Simply watch your profits grow.
See us at NADA at Booth #7019 for a
FREE service lane
value assessment!
FOR YOUR FREE TRIAL
Call us at 1-888-929-5599
[email protected]
www.superservice.com/trial
© 2013 Infomedia Ltd. The word marks and logos `Superservice’, `Superservice Menus’, `Superservice Triage’, `Superservice Connect’, `Superservice Insight’, `Superservice EPC’ and Microcat LIVE are all trademarks of Infomedia Ltd for its
service chain advantage technology products and services. All other trademarks are the property of their respective holders and used herein under license.

PDF - Fixed Ops Magazine

Transcription

Similar documents

Window Sticker

HELP THEM HELP YOU! - American International Automobile

ourisman volkswagen dealership

www.autofile.co.nz | 17 e get a lot of questions from dealers wanting

Ted Britt Ford improves sales and lowers cost with KeyAdvantage!

a Career at a New Car Dealership - Greater New York Automobile

Coleman New Pres. Dealer Transport Law - SCADA

Untitled - Cottonwood - Oxendale Chrysler Dodge Jeep

the road ahead - Geffen Mesher

Dealers Choice Newsletter_May-Aug_Final