Tag Archives: lifetime powertrain

So, What Makes You Different?

What Makes You Different

Every automotive dealer believes that they run the best operation and do everything a little better than their competition.  Is this true?  I have the pleasure of going to all regions of the country every week and walking into automotive stores that are new to me.  I can assure you, that for most these stores, the look, feel and customer experience is the same.  Fortunately for the consumer, most Dealers have done upgrades on their facilities.  These range from cosmetic and operational changes to complete remodeling of their facilities.  The automotive buying experience has gotten much better.  But, the fact remains that all Franchise stores look the same.  The only difference is the employees that work there and this is where the Dealer that wants to set the standard for customer satisfaction should look.

It is your employees that are the key to improving your profitability.  Most come to you with prior experience within the Industry and established skill sets that you hope will mesh with your operation and sometimes they do and sometimes they don’t.  It is up to you Mr. Dealer to give them an edge over their competition in both selling and servicing vehicles.  You need a volume driver that will put more customers in front of your sales and service staff.  All of you have tried direct mail and that is like a quick shot of adrenaline that fades quickly.  You probably have done invitational sales and special promotions that are, at best, giving you one opportunity to sell something. Notwithstanding the fact that these programs are expensive!

So, how can you be different?  What is something new that will put your operation ahead of the competition and give your employees the best opportunity to sell?  Putting together a well thought-out and comprehensive retention program is the driver you need and must have.  You must be willing to create a new culture within your organization and drive it from the top down. Your managers must buy-into your program or else you will never get it off the ground, therefore they should be involved in building the program. Since this is something new I recommend you find a professional company, with years of experience and proven results to partner with you in this endeavor.

Where do you start?  List all the things you currently do to enhance the customer experience.  Things that are often taken for granted but are an operational expense non-the-less.  A few that are obvious are shuttle service, pick-up and delivery, complimentary beverages/snacks, multi point inspections and alignment checks, a vehicle wash at each service visit, quick lanes, etc.  Then you build on these benefits by coming up with services your customers cannot resist, such as, complimentary oil changes and tire rotations, ding/dent repair, windshield repairs, etc.  These can be for specific periods of time and capped to control the expense. All of these will cause your customer to choose your store for their vehicle purchase.  Include a rewards component that will continue to drive your customer back for all the service and maintenance that are required on their vehicle.  Keeping them in your service lane practically guarantees they will purchase their next vehicle from you. The final piece that must be in place is a robust communications component, via email, that keeps your customer informed about their vehicle, the services required and rewards earned and any specials that you periodically offer.

All this sounds complicated but let me assure you it is not.  What is needed to make all this work seamlessly is data integration and software tools that are employee friendly.  This is provided by your partner. Of course, you must do your part by establishing a new culture and getting your management staff on-board from the planning stages to implementation and ongoing training.

– Roy Olive

Freebie Love

Freebie Love

I read an article recently in USA TODAY under the heading “ Expect some freebie love when buying a new car “ The article mentioned the things Dealers use to reward customers with, such as a free tank of gas, a second set of keys, floor mats, etc. The article pointed out special perks,  such as service vouchers, window tinting, manicures, fresh coffee and cookies.  It even listed some extravagant incentives,  such as big screen TV’s and AK 47’s!

This got me thinking about a couple of things: first, how far we have come as an industry in trying to create happy customers after we have sold someone a car.  I have seen it go from  service-drive waiting rooms,  nice furniture in the service lounge,  donuts to bagels and lunch counters,  big screen TV’s,  to wireless internet, all in an effort to build a pleasing environment for a previous sales customer; Secondly,  just how many of these rewards/perks are so poorly thought out.  What is the purpose? Are we just spending money to make someone happy or is there a strategy behind these efforts/expenses?

Most of the rewards/perks mentioned in the USA TODAY article are like throwing darts, you don’t know what the target is.  A reward is something someone earns for doing something YOU want them to do. A bribe is something we give to someone in advance, and then hope that the desired behavior follows.  A good example of this is when we are raising children. If you say, here is an ice cream so be quiet,  that is a bribe. On the other hand if you said, be quiet until we get home and I’ll give you an ice cream, that is a reward. The items mentioned in the USA TODAY article were all bribes.  Everything mentioned is nice but purposeless. If we are rewarding them just for buying a car, great but if our objective is to create a customer for life, it’s going to take a much better plan than a free tank of gas.

Airlines and hotels do rewards best. “Fly on our plane, spend money with us and we’ll give you points for future travel”. The same works with hotel rewards. They say, do the behaviors we want, book a room, spend money, and we will reward you with points you can use later. Rewards work much better than perks to create a long-term relationship with a customer who has purchased a car.

When setting up a rewards program the first thing you should decide is, what’s important? If it is the old theory of “just sell the car, there are 10,000 people moving into this state every month”, then just stick with perks. On the other hand, if you want to grow your business with a deep customer base that will support you in good times or bad, you may want to look at a program of rewards that will thank the customer every time they perform services with you.

Free floor mats are nice but for the same expense we could give them a rewards card that can keep them coming back to the dealership for years. We give customers plenty of reasons to buy here, price, payments, terms, but very few reasons to service here. Why not design a program to keep the customer in your service drive for the life of their purchase. JD Powers says that if you keep a customer in your service drive twice a year for the entire time they own their vehicle, they will repurchase 86% of the time at your store. Take a minute and let that sink in. What a great way to incrementally grow your business.

There are many ways to design a program to give a customer a reason to service their vehicle at our store. Some of the best proven practices include, lifetime engine, lifetime powertrain, oil change programs, rewards cards and customized prepaid maintenance packages. Many of which can be reinsured.  These options are not perks, bribes or hit/miss. All of these have proven to keep the customer coming back year, after year. They are trackable, effective, and profitable.

So before you spend 400.00 in marketing every month to get someone to walk in the door, think about designing a program with a long-range purpose behind it. Freebie love should last longer than a one night stand.  Design your vows and have a long-term marriage with all of your customers.

– Jack Garrity

Why you should visit NADA Booth #6115

NADA100 Booth #6115

Dealership for Life has been helping hundreds of dealerships across the country retain more customers every month with our customized marketing and retention programs that BRAND each dealership specifically!

What are you doing to retain your customers? Is your Service Department busy?

Stop by NADA Booth #6115 and see how your dealership can benefit from our full range of dealer branded retention and marketing products. Since introduced in 2004 DFL has become the leader in administering lifetime powertrain, lifetime engine, and rewards programs for dealers all over the US and Canada. Our process is designed around many of the best practices used in the loyalty business today. Some of which include, individual customer web sites, retention generated custom email campaigns, interactive customer mobile app, full DMS integration and monthly in-store sales/service training that is unmatched in the industry.

Dealership for Life is the most comprehensive marketing and loyalty program in the country. With territory exclusivity, DFL will provide the competitive edge over other dealers.

Enrolling over 30,000 new members for DFL Dealers each month and retaining an average of 80%. Over 2 Million since 2004!

“Our business has grown 320% in the last ten years due in large part to the loyalty and marketing programs designed by Dealership for Life. Their efforts and results have had a significant impact on every department in the dealership.”  Chip Doetsch – President of Apple Ford Lincoln

“Now that we have been on the program for ten years, it works as advertised. Eight out of ten customers come back to our service department compared to three or four for the average dealer.” Ken Shreve – President of Hamilton Hyundai

“Loyalty always starts with a great experience. Give them a reason to buy and a reason to stay. When your staff is offering great customer service and following the processes in place, customers would have no reason to defer their business to anyone else!” Jack Garrity – DFL Partner

“With over 30 years of experience in the automotive customer service and repair industry, Hamilton Auto Group achieved sales to service customer retention at over 90%, making it ranked #11 in the nation” Rick Manring – DFL VP of Fixed Operations

Stop by NADA100 Booth #6115 and talk to Chip, Ken, Jack, Rick, and the rest of the industry leaders.

NADA100 Convention in New Orleans

Join Dealership for Life at NADA100 (Booth #6115) in New Orleans January 26 – 29, 2017 and see how your dealership can benefit from our full range of dealer branded retention and marketing products. Since introduced in 2004 we have become the leader in administering lifetime powertrain, lifetime engine, and rewards programs for dealers all over the US and Canada. Our process is designed around many of the best practices used in the loyalty business today. Some of which include, individual customer web sites, retention generated custom email campaigns, interactive customer mobile app, full DMS integration and monthly in-store sales/service training that is unmatched in the industry.

What are you doing to retain your customers? Are you rewarding your customers? Stop by booth #6115 and talk to the industry leaders.

“Our business has grown 320% in the last ten years due in large part to the loyalty and marketing programs designed by Dealership for Life. Their efforts and results have had a significant impact on every department in the dealership.”  Chip Doetsch – President of Apple Ford Lincoln

“Now that we have been on the program for ten years, it works as advertised. Eight out of ten customers come back to our service department compared to three or four for the average dealer.” Ken Shreve – President of Hamilton Hyundai

“With over 30 years of experience in the automotive customer service and repair industry, Rick’s dealerships achieved sales to service customer retention at over 90%, making it ranked #11 in the nation” Rick Manring – VP of Fixed Operations

Stop by booth #6115 and talk to Chip, Ken, Rick and the rest of the industry leaders.

Have you noticed how Customer Retention is the new Buzzword?

blog

WOW!  Have you noticed how Customer Retention is the new buzzword?  For many years it was CSI and Manufacturer’s pushed it via incentives.  Dealers quickly complied and after a while realized that improved CSI scores were good for the Manufacturer (why they are willing to pay incentives), great for the customer due to improved processes, cleaner facilities and more amenities, but not a game changer for the Dealer.  The truth is CSI really has not done much to grow the dealer’s business.  Since all Manufacturers have a CSI program, the bar of expectation has been raised and all Dealers have arrived at the same plateau of Customer Service.

 

Lets talk Customer Retention.  A program to retain the customer after the sale makes so much more sense on many levels. However, many Dealers are in denial about this important aspect of their business as most think they are doing a good job of keeping their customers coming back.  They believe all you have to do provide a good experience and they will return. They are led to this belief by past experience of retaining approximately 35% of their sales customers. Now the Manufacturer is getting in the game of retention and has set goals of approximately 50%.  The truth is if you are not retaining a minimum of 75% of your customers your retention program is not working efficiently.

 

I am always amazed by how many Dealers believe a good CRM is all they need.  They believe giving the customer a free oil change will work.  I often hear “We treat them right and they always come back”. The truth is I have not found a single Dealer that does not have a goal of providing great service. This is what I call a 1970’s mentality.  Customer Retention is not doing some things right, it is doing everything right in every department. Start by asking yourself what you are doing for the Customer in each department and is it working.  Do you have a process? You must establish a culture of Customer Retention that encompasses your entire business.

 

Once you have a program do you measure it?  All dealers can tell you daily where they are in Sales, Service, Parts, and Finance.  These results are measured monthly and compared against previous months and years. But do you measure your retention? Most will answer yes to this question and base it on what the Manufacturer tells them it is.  The problem with using this method is you are only measuring approximately 50% of your business.  Isn’t your Pre-Owned Buyer even more important than New?  Gross profit is typically higher and the need for service and maintenance is certainly much greater.  What else should you measure?  How about email and mobile phone capture rates?  These are absolutely essential to be successful in todays’ business environment.  Without the proper tools in place to track these metrics you are flying blind.

 

Most Customers have already shopped you online before entering your business.  Communication with this medium in today’s digital world is a must for your success. Smart phones are now the acceptable norm so you should plan on a mobile application to represent your business and communicate information to your customer. There are many tools you must employ to have a successful Retention Program.  A Benefits and Rewards Program, customer specific Web Sites, Membership cards, standard email communications program, Social Media are but just a few of the components you need.  Whatever program you design should take into consideration all of your customers whether they are paying cash, financing, leasing, servicing or purchasing parts.

 

Hand-in-hand with your retention program should be Dealer Branding.  This should be your program to enhance your business, not the manufacturer. As with any program, training is essential and must me an ongoing endeavor.  Also, reviewing reports that tell you how well your program is working and sharing these results with every manager.

 

As you can readily see, putting a Customer Retention Program together is not just “treating the customer right and providing good service”.  You must have a comprehensive plan that when implemented changes your mindset towards how you conduct your business on a daily basis. I do not mean to imply that it is easy.  It is not!  But, it is worth the effort and will pay off in the long term by returning your customer back to your business for all their automotive needs.

Expectations!

expectations blog

An expectation is something we think about but maybe we unconsciously take for granted in establishing our dealership’s culture, or the way we conduct business on a daily basis. Do we really take the time to fully understand exactly what this word means? We should, because it is an important key to our success as an automotive retail dealer!

Consider that at birth even a baby has expectations…they expect to be fed, have their diapers changed and to be held and spoken to.  Once starting school the same individual has the expectation of a decent education, a roof over their head and food on the table.  As we become adults we learn to have expectations about life and everyday tasks.  When you go to an airport you expect to get on a plane, leave on time and arrive safely at your destination.  Eating out you expect your waiter to be knowledgeable, considerate and provide you with exceptional service. You expect all businesses to treat you with respect and appreciate your business. If at any time your expectations (real or imagined) are not met.  You find alternatives.  Most often this means you go to another business that meets your expectations.

In the Automobile Retail business it is the same.  Our customers have expectations. Ones we are all familiar with are that they can find the vehicle that suits their needs, get a competitive price, a fair appraisal on their trade, be treated with respect and appreciated.  We know that when any of these expectations are not met you most often miss the opportunity of doing business with this customer. If you are a dealer you know all this and you strive everyday to meet these expectations.  In other words, you are very similar to all other dealers in your market.  Your very existence depends on your employees stepping up every day and doing what is expected to perform in your business culture.

The question is how do you set yourself apart from all the other dealers?  We think about this daily and are always searching for the “next best thing”. The only way to be really different is to exceed expectations!  Accomplishing this task is an ongoing quest for most dealers.  If the dealer down the street puts in a car wash, you have to have one.  If they install a playground for kids, you have to also install one.  This is a constant tit-for-tat that has existed since Henry Ford started building vehicles. The only way to be really different is to exceed their expectations. The solution is very simple and it’s right under your nose.  You have the means to truly stand out among the competition if you look around at the opportunities you have to earn your customer’s business and create more opportunities to increase your existing profit centers.

A simple solution to truly exceed your customer’s expectations and wow them with how different you are is to supply them with a package of benefits that you will provide as a part of obtaining their business that makes their ownership experience a safe, economical, and rewarding one.  These benefits can be as basic as complimentary car washes, oil changes, tire rotations and inspections.  Coupled with an ongoing rewards program that gives your customers a reason to return to you for all their automotive needs is a winning formula and will exceed their expectations.  When you do these things you have moved the customer experience at your business to another level.  A level that truly makes you different and gives your sales customers more reasons to return to your dealership and allow you to provide everything they need during their period of ownership.

Roy Olive – Corporate Training Director