Fixed or Broken Operations for Car Dealerships by Joe Cala - Internet Sales 20 Group 10
1. Fixed or Broken Ops
JC Training & Development, LLC
“Developing a strategy to create a world class guest
experience before, during and after service!”
2. About Joe Cala
• Director of Business Development Sparks Toyota
• Conference Speaker / Keynote Speaker / IS20 Group
Speaker / Seminar Speaker / NADA Speaker
• Former General Manager of Dealer Synergy
• Former Director of Business Development Hudson
Toyota, Nissan, CJD
4. Fixed vs Variable
Operations
• Service & Parts.
• Fixed means
unchanging.
• Fixed operations calls
traffic customers.
• Fixed traffic is more
consistent.
• Expenses are more
stable & fixed.
• Sales & F & I
• Variable means not consistent. Liable
to change!
• Variable operations calls them ups.
• Up traffic varies based on a number
of factors.
• Expenses are more up & down based
on advertising, inventory, floor plan
interest, commissions and bonuses.
5. Establish Your Core Values
Teamwork - the good of the team comes before the personal comfort or agenda of any
individual team member.
Integrity - we always do what is right, not what is easy, cheap, popular or convenient
and we can do so without excuse.
Urgency - we service one another and the customer quickly and find reasons to fix
things now rather than to delay, to be or procrastinate.
Personal Growth - employees are expected to work as hard on themselves as they do
on their job… getting better is not an option!
Attention to Detail - we will become brilliant in the basics and pay attention to getting
the “little” things right.
Extreme Ownership - to act at all times as if your name is on the building.
Consistency - delivering excellence to every guest at every touch point.
Every Team Member Will Exemplify These
& Hold Each Other Accountable No Matter What Position You Are In
6. Area’s of Focus
Appointments
Problems in the
Service Lane
Status Updates
Wait Times
Scheduling
CSI
Service BDC
Staffing
Pay Plans
The Guest Experience
The Condition of the
Customer’s Car When
Returned
Cars Not Getting
Done Right
7. Questions to Ask to
Help Improve The Guest Experience
How can we create an overall world class guest experience
before, during and after the service?
Before the Service
• How are we currently handling the guest after the sale and before the service?
• Are we setting the 1st service appointment at the delivery?
• Do we have a “Preferred Customer Program”?
• Do they know what they can expect while servicing their vehicle with us?
ToyotaCare - ToyotaCare Plus - Oil Changes For Life - Lifetime Limited Powertrain - Tires for Life
• Are we introducing the customer to the service staff?
8. • Are we making sure recall appointments have all the parts ordered if necessary before the appointment
date and labeled properly & reserved in parts to match the customer name?
• How are we differentiating between the “1st Time Guest” who has never been to our dealership before
and a guest who has serviced with us before?
• How are we handling the incoming calls to the dealership regarding recalls, service & maintenance
questions, appointments, appointment changes & cancellations, vehicle details, pick up and deliveries,
status updates, etc…?
• Do we have a Service BDC?
• Are we staffed properly in the Service BDC?
• Did we establish a proper expectation to the customer regarding time and work according to the areas of
concern?
Questions to Ask to
Help Improve The Guest Experience
Before the Service
9. • Is the service lane set up to facilitate express lane, appointment lane or 1st time guest lanes?
• What are we showing our customers in the waiting lounge while they are waiting for their vehicles? Fox
News, CNN, ABC, NBC, etc… showing our competitors commercials and all the negative, stressful
crazy stuff in our world or are we controlling our content, commercials, ads, video boards, etc…?
• Are we maximizing signage to drive home and display what we want our customers to see? Why we ask
to set up the next appointment, if the customer had a Truly Exceptional Experience?
• Are we updating the customer on the status of the vehicle throughout the customers wait?
Are we showing & explaining the MPI Sheets?
Are we giving an explanation of the work & costs to the customer?
• Are we staffed properly in greeters and those who can check the customers in?
• Are we staffed properly in ASM’s?
• Are we staffed properly in technicians?
Questions to Ask to
Help Improve The Guest Experience
During the Service
10. • Are we advising the customer of their future service needs?
• Are we offering to set up the NEXT appointment for the customer?
• Are we thanking the customer for their business and continued service?
• Do we have an instant survey from the dealership (not the Manufacturer) that goes to the customer
once the RO closes?
• Are you having the ASM or Management team calling a customer if you’re alerted to a potential
problem to defuse it and correct it once it is known?
• Are we having a declined op code push to the Service BDC team to call the customers who declined
services and after 7 days offer them a 10% discount on the quoted price to try and get them back in?
• Are you using the surveys as a way to coach and get better as a staff, in processes, staffing and
scheduling adjustments?
Questions to Ask to
Help Improve The Guest Experience
After the Service
11. Service BDC
The purpose of the Service BDC is to provide your customer base with a team of
professionals that will create truly exceptional experiences online & on the phone!
Building the Team
Determine the size of the team based off of the total daily R.O’s you currently run
through the drive.
If you’re running between 50 - 100 run with 2 - 3 people
If you’re running between 100 - 150 run with 3 - 4 people
If you’re running between 150 - 200 run with 5 - 6 people
12. Service BDC
The purpose of the Service BDC is to provide your customer base with a team of
professionals that will create truly exceptional experiences online & on the phone!
Selecting the Team
A great phone voice and phone presence
is vital
Customer service and customer interaction will be constant so any skills and past
experience relating to that is a benefit.
13. Pay Plans
Pay an hourly rate or salary - I suggest hourly
Incentivize on revenue generating outbound calls that turn into R.O’s
Create a team bonus per rep for green CSI
Create a team bonus per rep for a % increase in retention
Create a team bonus per rep for hitting a gross revenue goal for the month
14. Pay Plans
Example Pay Plan for Service BDC Rep:
$11.00 per hour for 90 days with $1.00 per hour bump after 90 days.
Commission Opportunities:
Revenue Generating Outbound Calls will pay commissions based on closed RO amounts.
RO’s from $0 - $100 pays $2.00
RO’s from $101 - $500 pays $5.00
RO’s from $501+ pays $7.50
Bonus Opportunities:
Increase the store retention scores (SCR Scores) by .15 basis points and each rep will make an additional
$100 per month.
If the store hits a total gross revenue number pay each rep an additional $100 per month.
15. Retention & Redemption
Manufacturers say that a customer is retained when they visit
your service department 2 times within a 12-month span.
Redemption Intervals take place every 5,000 miles up to 30,000 miles
So your goal is to figure out how to maximize your
SCR (Service Customer Retention) Score
So your goal is to figure out how to maximize your
mileage interval impact.
16. The Daily Responsibilities
Here’s the Outbound Call Intervals Example:
5K - Tire Rotations, Multi Point Inspections and fluid refills
10K – Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills
15K - Tire Rotations, Multi Point Inspections and fluid refills
20K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills
25K - Tire Rotations, Multi Point Inspections and fluid refills
30K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills
35K - Tire Rotations, Multi Point Inspections and fluid refills
40K - Oil change (Synthetic), Tire Rotations, Multi Point Inspections and fluid refills
45K - Tire Rotations, Multi Point Inspections and fluid refills
Also include other opportunities to follow up any missed appointments or missed opportunities while here.
No Shows – Call to reschedule.
Declined Op Codes – Offer discount 2 to 7 days after they visited and declined services.
Shortfall List - Customers approaching there drop-off dates for retention.