PDF - Fixed Ops Magazine
Transcription
PDF - Fixed Ops Magazine
TABLE OF C ON TEN TS J u ly / A u g u s t p. 10 p. Calming Them Down Or Revving Them Up 24 Four Steps to Stop Handing Customers to Your Competiti o n 30 Helping Your Customers U nderstand the Alternatives 36 Your W ebsite Doesn’ t Know That… 44 How T ec h Giants A re Reshaping Customer Expec tations of Yo ur Parts D epartment p. p. And How You Can Solve That Problem With Y our Service B D C T wo A pproac hes To Getting M ore Vehicle Recall Customers I nto Your Servic e D rive p. p. 50 p. 60 p. 66 p. 70 p. 76 How to Win at Mobile Service Marketing Wiper Blade Considerations For Today’s Driver Do You Service Cars? The Netflix Effect Change the Dynamics, Compile Analysis in Seconds, Not Weeks Chang e the Dynamics, Compile Analysis in Seconds, N ot Wee k s Clearing the Path to a More Effective Service Department p. 6 p. 96 What ’ s a Servi c e A dviso r Wo rth ? 98 G M A dvanc es R eal-T ime Parts P ric ing p. Four Keys to R educin g Wasted Time in Service p. p. How Sustaina bil ity D rives M ore Profita ble D ealership Business p. 100 Schedule That Service Appointment! Follow Your Dentist ’s Example p. 102 Everything in Its Place p. p. 84 Take an Ac tive R oll in M akin g an “Impact” on L ocal Collision Sc hool Programs This F all 94 parts department bo dy shop C o ll isi o n R epairers Get Uniq ue Benefits F r o m B o dy Sh o p -Spec ifi c P erfo rmanc e Gro ups administration D eve l o pin g A n A dvertisin g Strate g y pri c in g survey 104 T ires and A l i g nment 8 I N DUS T R Y N EW S & EVEN T S 105 Advertisers Direc tory Breaking the Mold Cookie Cutter Manufacturer’ s M arketing is Killin g Your Servic e Department 92 servi c e department Storag e T hat Helps Automotive D ealerships D rive E fficiency 80 88 l etter fr om the pu bl isher Green Decisions That Pay Off p. p. | | F i x e d Ops M a g a z i n e Why Service “Waiters” are Killing your Revenue, Profits and CSI… 18 p. 2015 Educating the Next Generation p. The Safety Recall MESS Be P repared p. The Quick Oil Change A L oss Leader Designed For Owner Retenti on Growing Your Own T he Benefits of Developing Your Own Technicians p. 105 N ew P r o duc ts 109 M ar ketpl a c e p. letter from the publisher J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Mark your calendars and save the dates! The 2015 Fixed Ops Magazine Conference and Expo is set for November 1st through 3rd at the newly-renovated Tropicana Hotel in Las Vegas. Now is the time to save the dates for a one-of-a-kind event that will focus exclusively on your world of Fixed Operations The line-up of speakers is quickly taking shape and will be announced shortly. With representatives from the leading companies in your Fixed Operations world, you can be assured of a unique event that will be both valuable and interesting – three days that will help you to focus your efforts on making your Fixed Operations team the best and the most productive that it can be. More information will follow soon. Most important: be sure that your e-mail address and the e-mail addresses for your key associates are sent to us right away. Then you’ll be assured of receiving complete sign-up and hotel reservation details. Visit www.FixedOpsMag.com to get more information. Or send an e-mail to Info@FixedOpsMag.com with the words “Conference and Expo” in the subject line. That will keep you dialed into all of the event updates. Packed into these three days will be: 1 7 8 5 3 S a ntia go Blvd., St e. 107-467 Vil l a Pa r k, CA 92861 P h o ne 7 1 4 -8 0 3 -5 4 7 6 Fax 714-276-0255 Info @ F ixedOpsMag.com w w w. F ixed OpsMag.com N i c k W est Pho n e : 7 1 4 - 8 03- 5476 F a x : 7 1 4 - 2 76- 0255 N i c k@ F i x e dOpsM ag.com PHONE: 7 1 4 - 3 07- 6020 - Seminars and education sessions on a wide range of Fixed Ops-related topics. - Trade show hours featuring some of the industry’s leading companies, products, services, technologies and solutions. - Multiple networking opportunities INF O @ F IXEDO PSM AG .COM All of this with insights from some of the top thought leaders in the Fixed Ops world. To help your dealership boost profitability, improve efficiency and increase customer retention. M a ri a @ F i x e dOpsM ag.coM Plus, you can combine your attendance at the Fixed Ops Conference and Expo with both the SEMA and AAPEX trade shows, which kick-off in Las Vegas on November 3rd – the same day the Fixed Ops event wraps up. One visit to Las Vegas, three big, business-stimulating gatherings! You should be there? Who else should attend? - Fixed Operations Directors and Managers - Service / Parts / Body Shop Directors and Managers - General Managers and Dealer Principals - Anyone else in your company who’s a Fixed Operations decision-maker or decision-influencer You can register for the Conference today! Visit www.FixedOpsMag.com Watch for more information on the 2015 Fixed Ops Magazine Conference and Expo in the pages of this publication, in our Fixed Ops Weekly Fix e-newsletter and in our e-mail announcements. All of the information will be coming your way very soon. So hold those dates. And we’ll see you November 1-3, 2015 at the Tropicana Hotel in Las Vegas! M a ri a Pusparan i 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 Digita l Edit ion of F ixed Ops Ma ga z in e, visit: www.FixedOpsMag.com IN DUS T R Y N E W S & EVENT S J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Xtime Powers Service Scheduling For Hyundai Auto Canada Xtime, a leading customer retention solution for auto manufacturers and dealerships, has become the exclusive online Service scheduling provider for Hyundai Auto Canada. By integrating Xtime’s solution, Hyundai dealerships will be able to deliver a modern Service retail experience that exceeds consumer expectations, ultimately helping dealers attract and retain Service customers. “Hyundai has a long history of adopting the latest technology and bringing it to consumers and this is an extension of that commitment,” said Annie Deslauriers, Director of Customer Services at Hyundai Auto Canada. “By offering our customers the ability to schedule their vehicle Service online, Hyundai dealers are standing out from the competition with this premium approach.” With Xtime’s Scheduling 7 powering the Hyundai Car Care Scheduling platform, consumers get a seamless Service scheduling experience. Owners will now have the ability to schedule appointments from any desktop or mobile phone, giving them instant insight into Service availability. They can also select appointments based on preferred Service Advisor, sync appointments to their personal calendars and receive text and e-mail reminders. Cars.com Launches Revolutionary Service & Repair Feature Cars.com, the premier online resource for buying, selling and now servicing cars, has launched a new Service & Repair feature to help car owners confidently navigate the Service and Repair process as effectively as it does during the car shopping process. With this game-changing online feature, Cars.com aims to remove the stress and fear of the unknown associated with maintaining and repairing a vehicle. Through innovative, confidencebuilding features that help save consumers time and demystify the entire Service process, car owners can approach any Service or Repair situation with less apprehension. With the new Service & Repair feature, Cars.com can also help car owners understand how much to pay by providing a fair price estimate for their service, including the breakdown between the cost of Parts and Labor. Consumers can find Service centers in their area and read reviews written by other Service customers. “Most people can relate to the anxiety that occurs when the ‘check engine’ light comes on. Thoughts of expensive repairs and worst-case scenarios fill your mind,” said Cars.com Executive Editor, Joe Wiesenfelder. “That apprehension is warranted because drivers spend nearly $1,000 per year maintaining their car. With the launch of our revolutionary Service & Repair feature, we aim to help relieve some of the stress that affects drivers when they see that little red light illuminate.” Carfax Announces Instant Availability of Crash Reports Online Carfax has taken a huge step forward in eliminating the waiting time to receive automobile accident reports from police departments. Through one online source (Crashdocs.org), crash reports from virtually any police department in the U.S. are easily accessible and now are available instantly from a rapidly growing number of agencies. Insurers, lawyers and other interested parties can quickly order the reports they need and view some of them immediately, all with no added convenience fees. Industry professionals no longer have to contact individual police departments or pay high convenience fees to obtain crash reports. Crashdocs is the single source for information about a specific crash from law enforcement agencies nationwide. There is zero investment – no start-up costs, maintenance fees, or hardware/software to buy – for police departments to be part of Crashdocs’ e-commerce platform. p. 8 DMEa Launches Service Connect Mobile App With TCi DMEautomotive has announced that TCi, Tire Centers LLC, one of America’s premier tire distributors, has selected Service Connect, DMEa’s groundbreaking aftermarket-branded mobile app, to help its retailers increase sales, loyalty and retention among today’s “always-on” consumers. TCi has thousands of customers across the U.S. TCi will offer Service Connect to its independent tire dealer customers nationwide as part of its T3 Prime program, which offers internet marketing and other services. The technology behind Service Connect is proven to increase sales and retention, as well as drive customer loyalty, especially among the mobile-hungry millennial generation. “We are pleased to be one of the first to make the power of mobile marketing completely turnkey for the aftermarket industry,” said Mike Walther, Chief Executive Officer for DMEautomotive. “TCi has a passion for service excellence and creating customer loyalty, which makes Service Connect a perfect fit. Service Connect takes that passion and puts it in the hands of the millions of consumers who are increasingly turning to their smartphones and apps for their vehicle needs.” “We chose DMEautomotive for their marketing excellence and industry leading programs,” said Vickie Johnson, TCi’s Director of Retail Marketing. “Service Connect will help our dealers engage with customers on their terms, more quickly, and with greater efficiency than ever before.” Continued on Page 110 E VEN TS N ovember 1-3 / The Fixed Ops Magazine Conference and Expo Tropicana Hotel Casino and Resort, Las Vegas, NV 714-803-5476 / Info@FixedOpsMag.com 3-5 / AAPEX Sands Expo Center, Las Vegas, NV 708-226-1300 / www.AAPEXShow.com 3-6 / SEMA Show Las Vegas Convention Center 909-396-0289 / www.SEMAShow.com M ARCH / APRIL 2016 31 - 3 / The NADA Convention and Expo Las Vegas Convention Center 703-821-7000 / www.NADA.org Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Why Service “Waiters” are Killing your Revenue, Profits and CSI… A n d H o w Y o u C a n S o l v e T hat P r o b l e m W i th Y o u r S e r v i c e BD C By Kolbe Meier In this article, I’ll identify one of the top “defects” in Service scheduling and Service drive flow that’s causing “defects” in the overall Service experience in dealerships across the county. I’m going to share with you empirical data that identifies what’s causing this “defect” (even at some of the most successful dealerships in America) and what steps you can take to solve this problem and work towards turning your Service drive into an orchestrated symphony rather than a chaotic scramble. I’ll share with you the exact steps to identify, address and resolve this “defect” while taking control of your Service drive in order to maximize revenue, profits, CSI and retention. You’ll also have a clear understanding of how your scheduling strategies (or lack thereof) are impacting your business. Turning information into knowledge and action For the past twelve months I’ve been traveling the country meeting with General Managers, Fixed Ops Directors and Service Managers to discuss the results of a Service Department audit that we created in order to take a deep dive -- with a scientific approach -- to examining the key elements of Service scheduling. p. 10 The purpose of these meetings has been to discuss three aspects of their Service Department operation: A key finding: more than 75% of Service Managers report a high number of “waiters” having negative impact on business. • How they acquire, schedule and retain customers via inbound and outbound phone calls. • In-dealership and online scheduling process. • Service CRM scheduling set up, including capacities and skills For each of the Service Departments audited, we were granted access to review their Service CRM scheduling tool (Xtime, Time Highway, AutoBook, etc.) and their recorded inbound Service calls. This provided us critical insight into how inbound Service appointment calls were being handled. WHEEL ARM™ Worldwide Patent Pending j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Model: 92100 100 Lbs CAPACITY Lost billing hours? Technician down time? Workman’s comp claims? Higher insurance premiums? Reduce those injuries and technician down times and take back your profits with “THE OMEGA WHEEL ARM” WWW.SFACOMPANIES.COM SFA Companies • 10939 N Pomona Ave • Kansas City, MO 64155 • 888-332-6419 • 816-891-6390 All copy rights reserved. p. 11 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e We listened to thousands of calls and broke them into two separate categories: customers calling to schedule an appointment and customers shopping for prices. For those customers calling to schedule an appointment, we created a scorecard that examined 11 key “impact questions” that are essential to executing a flawless appointment call. From those 11 questions scored, the results for one particular question jumped out at us: “Did the Appointment Coordinator or Advisor inquire about or offer alternative transportation to the guest when scheduling the Service appointment?” After looking at the results, I instantly knew that we had spotted a problem. But before I reveal those results, let’s discuss why this question is so important and how it’s impacting your business every single day. To get there, I want you to first consider these two questions: Question number one: What percentage of your repair order count is coming from a scheduled Service appointment? Measuring this statistic is an essential step that every Service Manager needs to take if you’re looking to bring order and harmony to your Service drive. Remember: if you can’t measure it, you can’t manage it. And p. 12 if you can’t manage it, you certainly cannot impact it. “A key finding: more than 75% of Service Managers report a high number of “waiters” having negative impact on business.” The higher the percent of business that comes from scheduled appointments, the better you control the Service drive flow. Proper Service drive scheduling leads to increased CSI, increased dollars per repair order, less pressure on your ASMs and overall increased Service retention -which is the ultimate goal. The appointment vs. walk-in trend Most of our new clients start off with an appointment-to-walk-in ratio of 25-35%. After helping them to implement a Service BDC (and creating processes for “first appointment” and “next appointment” and aggressively marketing “the benefits of scheduling an appointment”) we’ve witnessed shifts to upwards of 75-80% appointments vs. walk-ins. Keep in mind: this shift does not happen overnight. Some dealerships have taken up to 2-3 years to make this transition. However, the pay off has been significant and this is why you want to focus on driving this number: 1. Increase in dollars per repair order. Why? When your ASMs have more quality time to spend with each guest they are less likely to skip steps in the Service drive process. Whenever you skip steps in that process (aka “the sales process”) you automatically receive lower returns. And if only 25% of your business is coming from an appointment, you greatly diminish your chances of creating a steady Service drive flow. KENDALL PROTECTS DAD’S TAXI FLEET. Your customer’s cars work hard. Give them oil that protects against wear, miles and temperature extremes. Kendall ® GT-1® with exclusive Liquid Titanium ® protection additive helps extend engine life and improve gas mileage. Punishing 100,000-mile tests in New York City taxis provide proof. Kendall outperformed a leading brand of conventional oil in wear protection by 63%. Are you pouring Kendall? Your customer’s personal taxi fleet deserves it. To get Kendall, call 832-765-2149. Visit kendallmotoroil.com for more information. © 2015 Phillips 66 Company. Phillips 66, Kendall, GT-1, SealMax, the Two Finger logo, Liquid Titanium, Long Live the Engine and their respective logos are registered trademarks of Phillips 66 Company in the U.S.A. and other countries. T3-KEN-19380 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e 2. Increase in CSI scores and retention. Based on meeting the three key “customer desires” that Horst Schulze, former COO of the Ritz-Carlton, made famous – Timeliness, No Defects and Caring – having your guests wait in any kind of line is not going motivate them to continue to do business with you. Customers do not like to wait and your CSI surveys scores will support that statement. Getting this number established is critical because in a recent survey that we conducted with Service Managers, more than 75% stated that too many “waiters” where causing major problems in their Service lane. In another survey that we sent out to more than 800 ASMs, “too many waiters” came in second only to “vehicle not ready at promise time” as the top defect effecting CSI and retention. Question number two: What is the ideal number of “waiters” your shop can handle per hour? How to reduce / manage your “waiters” and create a better guest experience. Keep in mind that this number will vary based on the time of the day. At 9:00AM this number most likely will have to be lower, due to the “walk-in” factor. At 3:00PM, this number can be higher. Almost half of the stores who recently participated in our audit did not have the “waiter” capacity established in their Service CRM. Another 25% of those who had the “waiters” feature turned on admitted they had not adjusted that capacity since the Service CRM product had been installed. In the case for some stores, that was more than five years ago! p. 14 In most Service Departments “waiters” take precedence over all other vehicles in the shop and are moved to the front of the line. Let’s face it, there’s a big difference between the guest who drops off their vehicle at 8:00AM and tells the ASM they’ll be back to pick it up at 6:00PM and the guest that says “You have an hour to get my vehicle back to me and clock starts ticking now!” So what strategy can we implement today in order combat this “defect”? Let’s start by managing expectations up-front and by discussing transportation expectations on the inbound Service appointment phone call. “Did the Appointment Coordinator or Advisor inquire about or offer alternative transportation to the guest when scheduling the Service appointment?” Get your customers to say “YES” to needed fluid services. The Science of Good Business Proof It’s Time to Change. “I implemented this process at my Toyota dealership and we immediately saw a 300% increase in fluid exchange services.” Don Fritz - Rogers Toyota Scion “This has given our Service Advisors much more confidence in obtaining customer approval for the needed service.” Darrell Wageman - DanCavaToyota Vital Fluids Analysis Reveals the True Condition of: Motor Oil Gear Lube Power Steering Fluid Transmission Fluid Brake Fluid 855.533.5843 • www.FluidRxDiagnostics.com J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Back to that all-important question from earlier in this article: “Did the Associate or ASM inquire about or offer the guest alternative transportation when scheduling the Service appointment?” The survey results: The question was asked only 16% of the time. Ouch! That means that on 84% of the calls in which a guest was calling to schedule a Service appointment, we did NOT discuss alternative transportation with the caller. So what happens when that guest arrives in the Service lane? The ASM is forced to deal with this question, placing increased pressure on your ASMs and your Techs when a high percentage of those customers turn into “waiters.” Here are two ways you can attack this challenge and provide your guests with a better overall Service experience. 1. Review the “waiters” setting in your scheduling product. If the “waiter” capacity is not turned on, estimate how many you can handle per hour and manage and adjust it from there. If it’s on, review your current capacity and history to see if it’s accurate and it’s best serving your guests, Advisors and Technicians. You’ll need to monitor this number and fine-tune it over the weeks after the adjustment. It’s a giv- p. 16 en that you’ll have a higher percentage of “waiters” for your express Service vs. your main shop. 2. Discuss inbound call guide strategy. Meet with your Service Coordinators and ASMs to discuss their current inbound call guide strategy. Make sure that they are discussing this with 100% of inbound appointments. Here’s what the word track should sound like on all inbound appointment calls: “Mr. Jones, are you planning on taking advantage of our shuttle service, (or a lowcost daily rental) or have you arranged your own transportation while we perform the work on your vehicle?” Now, notice how the word “waiting” is never mentioned? Why? It’s your least desired option. If you want to reduce the number of “waiters”, then not offering that option upfront is the best strategy. Let the customer make the conscious effort to go that route. By doing this you can better manage their expectations and strategically spread out those “waiters” through out the day. You’ll have to remind your team that this strategy is worthless unless they choose the “waiter” button in your Service CRM when they are entering the appointment. This word track will also help you better accommodate those who plan on taking advantage of your shuttle service, or the low-cost daily rental if your store offers that option. Remember, your guests are most likely unaware of your shuttle service polices, such as “runs every half hour” or “makes 3-4 stops” prior to arriving at the guest’s destination. It’s for these reasons that it’s our duty to ask the guest, up-front, what alternative transportation needs they require in order to be best prepared to meet their expectations. Track your monthly waiters in order to manage that number. Drive your appointment vs. walk-in percentage and watch what a difference it makes in your Service drive. When you do this, you’ll make life easier on your Advisors and Technicians -- and improved CSI, revenue and profits will follow. Kolbe Meier, Founder and CEO of Irvine, CA-based Blueprint, Inc., BDC Architects, has studied team performance and behavioral patterns of dealerships and clients for the past 20 years. Kolbe has built, measured and improved client-centric, revenue-driven contact centers for the nation’s most successful dealerships, groups and OEMs. Today, Blueprint’s research, software and comprehensive BDC solutions are used in hundreds of dealerships nationwide. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e The EPC of Choice for Leading Parts Managers Note “ With Microcat LIVE’sn can Feature, one perso add a note regarding a specific part, and everyone can see it. Now all of us benefit from a single user’s experience. It saves so much time. ” DAN PAGE NY Parts Manager, Miller Hyundai – Vestal, The Most Robust EPC Available LIVE provides the best VIN filtering and most up-to-date OEM data … and that’s just the start! >>WeMicrocat back that up with an easy-to-use interface, a cloud-based platform, unrivaled service and support, and features — like Notes — that other EPCs simply don’t have. With Microcat LIVE you never sign any contracts, so you can test-drive it with confidence! Give your dealership the EPC Dan Page and leading parts managers nationwide rely on … Get Microcat LIVE today! Call 888-929-5599 Today for Your Free 30-Day Trial! or visit microcatlive.com for more information Watch the Video FROM LEADERS IN PARTS AND SERVICE SELLING SYSTEMS p. 17 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Calming Them Down Or Revving Them Up T w o A pp r o ach e s T o G e tt i n g M o r e V e h i c l e R e ca l l C u st o m e r s I n t o Y o u r S e r v i c e D r i v e Consumer response to the current tidal wave of automotive recalls runs the gamut from hysterical to totally tuned-out. Can you blame them? An estimated “46 million cars with unfixed flaws” were on the road at the end of 2014, according to a recent article in Automotive News. And there may be even more vehicle recalls in 2015, Mark Rosekind, Administrator of the National Highway Traffic Safety Administration (NHTSA), told Consumer Reports. Some recall news headlines alarm consumers: - “FCA trial over child’s fiery death expected to renew recall push” – March 15, Automotive News - “GM ignition-switch death claims rise by 3 to 87” – April 20, Automotive News Other headlines may not draw much concern: - “Ford recalls 213,000 police vehicles to fix door springs” – March 25, Click on Detroit Either way, one thing is certain: the recall epidemic represents a huge opportunity for your Service drive to boost revenue p. 18 By Chris Miller and profits and increase customer loyalty and retention, while performing a public service. Is your dealership ready with formalized best practices for handling all vehicle recall prospects? The epidemic also represents an opportunity for your dealership to boost sales of new and pre-owned cars, based on the mileage of the recalled vehicles and the remedy of the recall issues. First, your dealership must keep up to date on recall news. How you handle vehicle recall prospects is critical to your success -- whether one individual contacts you in a panic, or you systematically reach out via phone, e-mail, or direct mail to let thousands know they have a problem that your Service Department can solve. 1. Designate a staff member to keep upto-date on recalls for the makes and models you sell and typically take in trade. Most recalls are publicized via press releases from NHTSA and the OEMs weeks, or months, before the OEMs mail the individual owners notices. So, have your staff person go to Google Alerts and register to receive daily vehicle recall alerts. Enter the keywords, “US automotive recall, US vehicle recall.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 19 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Staying on top of recall news means: A. You won’t be uninformed and unprepared when a panicked consumer calls about a recall. The unprepared dealership may lose the opportunity to service that consumer. B. You won’t miss opportunities to reach out to consumers who are unaware that their vehicles are under recall. 2. Have your designated staff member organize recall news, so that notices about dangerous defects are prioritized over problems that could wait until a car owner’s next scheduled Service. 3. Have this same staff member make recall information available in a common folder online for quick access by your Business Development Center (BDC) representatives and Service Advisors. The more knowledgeable your representatives, the more confidence they inspire in your recall prospects. Now, let’s look at best practices for handling incoming calls from panicked consumers: 1. Develop a script that your BDC representatives and Service Advisors can use to conduct a conversation with callers that is sympathetic, informative and reassuring. It should be positive in tone and take your BDC representatives and Service Advisors through the following steps: A. Sincerely apologize to customers for the defect on behalf of the manufacturer. B. Listen sympathetically to customers as they vent fear, frustration and anger. Often this is as important to your callers as fixing the problem. C. Assure customers they have called the right dealership to get the specific help they need to solve their problem. D. Invite them to come into the dealership and assure them their safety is your number one priority. E. Explain that the repair work will be done at no charge to them. p. 20 F. Let customers know your dealership values their time. Schedule the appointments for repairs at the customers’ convenience. Don’t state things in a negative way, such as, “We can’t fit you in until next week.” Instead, be positive: “We can get you in as early as next week.” “A word of caution: Don’t waste your money marketing to more consumers each month than you can handle.” G. Offer to provide a rental car in the meantime, if the vehicle defect is life threatening. Or, offer free shuttle service, if that’s what your customers need. H. If the vehicle defect can be fixed in a few hours, let prospective customers know that your Service waiting area is an attractive place, with amenities such as WiFi, TV, food service, etc. 2. Train your BDC representatives and Service Advisors to use the script, so it doesn’t sound like one and to properly handle all questions not specifically covered in the script. This training would impart information on: • Dealership and OEM recall policy. • Where to quickly look up data on specific recalls and VINs. • How to close the call with a Service appointment. (Failure to engage vehicle owners when they call may result in their contacting a competing dealer.) • How to upsell callers on additional services. • When to earmark leads for possible new or pre-owned car sales. Now let’s focus on reaching the large market of totally tuned-out consumers: the fatigued and the oblivious. Fatigued consumers don’t want to hear about yet another recall. They’ve had enough. Even if the recall defect may be life-threatening, many of these consumers cope by denying the problem. They think: ‘It will never happen to me. I’ve had the car this long and nothing has happened.’ j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 21 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Oblivious consumers don’t keep up with the news or read their mail. They don’t know about the recalls. You need to reach out to all these consumers with a message that will break through their ennui, but not threaten them, and will make it as painless as possible to get their vehicle repaired. But, first, how do you find these fatigued and oblivious consumers whose vehicles are under recall? OEMs will send you the list of original owners, but it’s often difficult to track down secondary owners in your area -- particularly ones with whom you have not previously done business. One place to look for consumers -- in your area, with open recalls -- is your state’s Department or Registry of Motor Vehicles. You can also request this type of information from insurance companies. When you have your list, prioritize it as follows: 1. By the defects most dangerous to consumers. 2. By the repairs most profitable to the dealership. 3. By the availability of Parts -- in stock, or quickly ordered / delivered. Stage ordering based on the monthly volume of vehicle owners you expect to contact. Make sure you have the Parts prior to sending the first mailers to vehicle owners. p. 22 4. By how trained your Service Techs are in the repair processes needed. 5. By geographical proximity of the prospects to the dealership. Mail to the closest ones first. Now, plan your marketing communications strategy. A word of caution: Don’t waste your money marketing to more consumers each month than you can handle. Dealers should budget a minimum 3-5% response rate (30-50 customers per month per 1,000 mailers), factoring in your Service Department’s capacity to fulfill Service requests based on the number of Service bays, Service Technician resources and repair orders they are able to process each month. Once your Service drive is prepared – Parts Department well-stocked and Technicians well-trained in the specific recall repairs -- initiate a multi-pronged marketing approach using e-mail and first class mailings designed to brand your dealership and the OEM you represent. To get the attention of message-weary and oblivious consumers, your first class mailing should be just that: First Class -clever, fresh and arresting. It must not look like junk mail, or a black and white notice from the government. It should include the OEM’s logo and your dealership’s logo. Your message must be brief and educational. Consumers need to know your repair service is both NHTSA and U.S. Department of Transportation compliant. Besides the recall information, this mailing should include your dealership’s street address and website address, a toll free number and your hours of operation. Your e-mails should follow suit. Ten days after sending the first class mailing, and / or e-mail equivalent, have your BDC follow up with a well-scripted phone call – factual, not alarmist. Be sure you comply with National Do Not Call (DNC) Registry rules. And, do take advantage of the recall campaign to upsell services -- without any incremental cost of advertising. Simply create a Service incentive offer to accompany the recall notice. The offer could include recommended factory Service interval maintenance based on mileage, oil changes, etc. OEM recalls represent a fabulous, ongoing opportunity to drive more and more vehicle recall prospects into your dealership to boost Service drive revenues and profits. Chris Miller is President of Danville, CAbased Recall Masters, a leading provider of recall marketing programs and automotive services marketing. Chris has over 17 years experience building software to automate marketing communications. He has worked with marquee brands including HSBC/Household Automotive, Washington Mutual, Residential Pacific Mortgage, ServiceMagic, Monumental Life Insurance, Mercedes Benz USA, BMW/Mini North America, Volvo North America, JP Morgan Chase, Wells Fargo, Moxy Solutions, and Costco Automotive Group. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 23 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e How to Win at Mobile Service Marketing F o u r S t e ps t o S t o p H a n d i n g C u st o m e r s t o Y o u r C o m p e t i t i o n By Brad Highland The vehicle Service industry is a $215 billion industry, but dealerships lose up to 90 percent of that Service revenue. As vehicles go out of warranty, dealerships too often lose both current customers and potential customers to independent automotive Service centers, even though dealerships can offer superior service and more knowledgeable Technicians at equally competitive prices. If more than 40 percent of consumers don’t have a preference in where they get their vehicle serviced, what can Service Departments do to recapture the attention and business of consumers? They can meet customers where they gather, and add mobile marketing for the Service Department. Consumers’ increasing reliance on mobile devices is a fact, not a fluke. Recent reports from Google and eMarketer confirm that more people are choosing smartphones over desktop computers and tablets to search online. Those choices have real implications for how Service Departments market to and connect with consumers. Until dealerships put a mobile strategy in place for their Service marketing, they may p. 24 be giving potential customers to the competition. Here are four fundamental steps to a mobile marketing strategy for dealership Service Departments. 1. Mobile-friendly website design Remember early website design, with its flashing fonts and animated background images? At first, those design features seemed fun to include on websites. However, their novelty soon wore off as they began turning off visitors. So website owners stopped using them. The same thing has happened with using mobile devices to access the internet. In the beginning, consumers were simply content to have access to websites on their smartphones. Yet, as people grow more comfortable with mobile devices, they want the experience of accessing and viewing information to be more intuitive and pleasing. Google picked up on this trend and wrote about it in “The Mobile Playbook.” Here, Google said that 40 percent of consumers defect to a competing site after having a bad mobile experience on a brand’s website. To help foster better mobile experiences, Google is changing its ranking system, which puts pressure on brands to improve the mobile experience for consumers. J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e In late April 2015, Google updated its search algorithm to help mobile users find more relevant content and have more positive mobile experiences on websites. That algorithm update now penalizes websites that lack a mobile-friendly design and bumps them down in search results. right information to consumers on different types of devices. Also, make sure the new design loads each webpage quickly to help improve the mobile experience for consumers. Dealerships need more than a mobilefriendly website to show up for Service queries in mobile search results. They also need to devote more website content to Service. A lot of marketers, designers, analysts and industry players started calling the algorithm change “Mobilegeddon.” It may sound melodramatic, but there’s real money to be gained – or lost – in Google’s change. 2. Relevant content for mobile intent Having a mobile-friendly website can help dealers maintain their spot in Google search results by catering to consumers using mobile devices. Yet, website design can only take a website so far. Websites also need content that’s relevant to a consumer’s search query. The average dealership website dedicates about 95 percent of website content to vehicle sales and variable operations. In contrast, independent automotive Service centers can focus solely on auto repair and Service content on their websites. That’s a huge advantage for them. C+R Research has found that four out of five consumers search online for vehicle Service and the majority of those consumers searching online likely use their mobile devices. Imagine that someone’s car breaks down near your dealership. If that person searches for “auto repair” on Google using a mobile device, will your Service Department appear in the search results? To capture that consumer interest, make sure your dealership’s website has a mobile-friendly design. Choose a design that offers a fully customizable layout, so you can tailor the website to display the More often than not, it won’t. Before Mobilegeddon, it was reported that the average dealership’s Service Department shows up less than 5 percent of the time in Google search results for auto repair service. p. 26 When consumers search online, they tend to find the dealerships’ Service competition, not dealerships, because dealerships aren’t providing enough information to beat out their competitors. To have a fighting chance in mobile search results, Service Departments must push for more mobile-optimized content on the dealership website. That includes Service hours, click-to-call buttons to schedule an appointment and Service specials. We’ve seen a $30 gross per RO increase. Experience Service Part of Reynolds Retail Management System… transforming the way consumers experience your dealership. reyrey.com/ignite | 888.853.2617 © 2015 The Reynolds and Reynolds Company. All rights reserved. 1006517-8 6/15 Greg May Partner and Dealer Principal Greg May Honda Waco, TX J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Including relevant Service content on the dealership’s website can help increase the website’s relevance to Service-related searches made on mobile devices. Ultimately, these changes can help drive mobile consumers to the dealership. Given consumers’ preference for mobile devices, there are several mobile-optimized search advertising options that your Service Department can use to win back mobile consumers. If your dealership already uses text ads, add a phone number to your Service Department that consumers can call by tapping on their touch screens. Also, you may want to add call-only campaigns. These can help drive phone calls from a Google search ad directly to your Service Department. Proper training of Service Advisors can turn those calls into Service appointments. Various review sites may have specific rules for handling negative reviews, but a good general rule of thumb is to treat all reviewers with respect. It can be tempting to defend your dealership if and when negative experiences are made public. However, avoiding a combative approach and working to reconcile issues with customers can help your dealership develop a positive reputation with current and future customers. 4. Mobile access to reviews 3. Mobile-optimized search advertising Although Google’s algorithm update was significant, it only affected organic search results. Paid search results work as they always have always worked, regardless of device. However, dealerships can take advantage of newer options for paid search advertising that are optimized for mobile devices. If a mobile search marketing strategy combines paid and organic, dealerships can better drive mobile leads directly to their Service Departments. A Naked Lime study has shown that combining paid and organic search strategies helps drive potential customers to be 16 percent more likely to make a purchase. That’s because shoppers have greater confidence in a brand when they see that brand appear multiple times in a single search results page. More retailers, including dealerships, are using mobile-optimized search advertising to strengthen their presence in mobile search results. Recently, eMarketer predicted that retailers will spend more than $28 billion this year on mobile ads, including search advertising. Over time, eMarketer’s research shows spending on these mobile-friendly ads will increase exponentially. p. 28 Consumers also use their mobile devices to visit social media apps and review sites to read, discuss, and share their experiences. That includes reading reviews on Service Departments and independent automotive Service centers. A study by BrightLocal found that almost 80 percent of consumers trust online reviews just as much as they trust recommendations made by people they know personally. And Cars.com found that seven out of ten car shoppers think reading dealership reviews is a “very” or “extremely” important part of the research process. Reviews matter to potential customers, and they can read and write those reviews at any time – including at your Service Department – thanks to mobile devices. Stay on top of your dealership’s Service reputation by monitoring social media accounts and by reviewing those sites in real time. If and when issues come up, deal with them appropriately as they happen, instead of waiting for them to die down or go away. Most social media platforms and review sites offer mobile-optimized content in a mobile-friendly design. If your dealership doesn’t manage its digital reputation, those negative comments may rank higher than your website in Google search results, making all of your previous efforts for mobile pointless – and painful to your business. Conclusion For many consumers, mobile devices are their best digital friends. They take their devices everywhere and use them for everything from social media to banking. Since consumers are comfortable with mobile devices, they’re also using them more and more to find vehicle Service, Maintenance and Repair services. They won’t accept negative mobile experiences when they’re doing their research – and now, neither will Google. Dealerships that want to beat the competition can win more Service business by implementing a four-step mobile marketing strategy. If dealerships focus on mobile design, content, advertising and reputation management, they can stay ahead of the curve and capture more consumer attention – and more business. Brad Highland is the Director of Web Services for Kettering, Ohio-based Naked Lime Marketing. He has more than 13 years of automotive experience and an extensive background in operational leadership. In his current role, Highland leads the service and support of Naked Lime’s paid advertising, SEO, social media and reputation management products for automobile retailers. Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Wiper Blade Considerations For Today’s Driver H e l p i n g Y o u r C u st o m e r s U n d e r sta n d th e A l t e r n at i v e s By James Croston Even for die-hard automotive enthusiasts, windshield wipers are not likely the most exciting part of owning or driving a vehicle. However, that doesn’t mean that they’re any less important to the safe operation of a vehicle. In fact, the American Optometric Association reports that 90 percent of all driving decisions are based solely on visual cues. Without quality wipers, drivers can experience poor visibility, which directly affects safety on the road. Over time, general wear and tear, road debris and harsh climate conditions can all negatively impact windshield wiper performance. There are a lot of questions for your dealership’s customers to ask before choosing the right replacement wipers, and the process of buying a new pair can be overwhelming. This article outlines important information on wiper lifecycles, recommended maintenance and replacement options to help achieve maximum wiper performance and improve driving visibility for your store’s customers. Signs for Wiper Blade Replacement Wiper replacement isn’t exactly top-ofmind…until it is. At one point or another, everyone has been guilty of driving with tattered windshield wipers -- and it’s not until drivers are already on the road (typically during a storm) that they think about replacing them. p. 30 That one second of impaired visibility can mean the difference between a relaxing ride and a potentially harmful car accident. To avoid this, consider adding windshield wipers to regular auto maintenance schedules at your dealership at the beginning and end of Daylight Saving Time. This provides a natural cue for drivers to think about wiper maintenance as seasons typically transition between icy and rainy climate conditions. Look for the following replacement signs on the vehicles that pass through your Service drive on a regular basis to help them avoid poor (and potentially dangerous) driving visibility: • Streaking – Caused by dry rubber that has hardened and cracked. Streaking can also be caused by tree sap, road tar and other foreign substances on the blade rubber. • Chattering – The dragging, squeaky sound the blade makes as it passes across the windshield is caused by the “permanent set” or “curve” in the rubber that some wiper blades develop while they are not being used. • Worn Rubber – General rounding of the wiping edge caused by age is a sign it’s time to replace your customers’ windshield wiper blades. • Split Rubber – A condition that divides the rubber piece caused by the effects of the ultraviolet sunrays. dealer TM THE INDUSTRY LEADING DMS-INTEGRATED AFTERMARKET PARTS SOLUTION + More Efficient Service Parts ordering efficiencies = Sell More Service all makes and models Grow Profits Increase your CSI rating LEARN MORE AT AUTOZONEPRO.COM/AZCONNECT ©2015 AutoZone, Inc. All rights reserved. AutoZone, AutoZone & Design, Duralast, and Duralast…Proven Tough are registered marks and Going The Extra Mile is a mark of AutoZone Parts, LP LLC or one of its affiliates. All other marks are the property of their respective owners. Used under license from Penske Racing South, Inc. p. 31 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e • Bent Refill or Wiper Frame – Ice scrapers, automatic car washes or vandalism can bend the wiper refill or wiper frame. Do not refill wiper blades that are distorted, bent or badly worn. Replace them with new wiper blades to avoid the possibility of windshield damage. Wiper Replacement Options Once it’s clear that wipers should be replaced, drivers have to decide between the countless wiper options available to them. Wiper needs can differ across a wide range of factors including, wiper type, budget, vehicle make, model year, climate, manufacturer and blade length, to name a few. So it’s important to consider each one for your customers’ specific situations. Refills vs. Replacements Some drivers use wiper refills instead of replacement blades to help reduce costs. The strip of rubber that makes contact with the windshield can be replaced if the reusable wiper blade frame is in good condition. However, trends indicate that specific refill sizes can sometimes be difficult to find, so most drivers choose to replace the entire wiper blade. p. 32 Replacement wiper blades may be easier, as all of the necessary components are in a single package, but there are endless options and not all of them are the best choice for individual driving needs. The key to making a great choice is to learn more about the wiper blade options available. approximately 45 percent of all new models sold in the U.S. and Canada. Conventional vs. Beam While the sheer number can be overwhelming, the two most common wiper styles are conventional and beam blades. For many years, the only available style was a conventional design, which includes a metal frame with a limited number of pressure points that press a rubber element across the windshield. As the more economical option, some drivers still use conventional blades today. of questions Introduced in the U.S. during the early 2000s, beam blades are the latest in wiper blade technology as they are made from a single-piece steel beam for more uniform pressure across the blade. Over the last 15 years, domestic vehicle designs have increasingly incorporated beam wiper blades and today, they come equipped on Engineered for superior performance in all weather conditions, beam blades offer a number of benefits, including: “There are a lot for your dealership’s customers to ask before choosing the right replacement wipers, and the process of buying a new pair can be overwhelming.” E S A E R C UE N I % 35SERVICE N E V RE uler ched S e e ervic interfac ne S i l e led s n -to-u s schedu ed O y c s n a a e t Enh an men k e t ’s s t o m e r s a p p o i n t c o S er cu of Deal es your ber m u n d i p ro v e a s e t h e b s i t e . e cr to in h your w g u t h ro IN Learn about our Fixed Operations breakout sessions at User Summit. San Diego Bayfront Hilton 8/18 - 8/20 UserSummit.DealerSocket.com DEALERSOCKET.COM/FO 866.441-9664 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e • Sleek, modern style for improved aesthetics. • Lower profile improves driving visibility and protects the blade structure from road debris. • More aerodynamic blade design reduces wind lift. • No exposed parts to further protect it from snow and ice. • Infinite number of pressure points provide even pressure and windshield contact across the entire length of the blade. • Highly-curved design for windshields found on new vehicle models. Connector Confusion Beyond blade styles, drivers must also consider connector types, which attach a blade to the wiper arm. There are more than a dozen arm styles and each has its own unique connection system. This can cause confusion as vehicle type, model year and wiper brands can impact options. For model years prior to 2000, drivers can expect to encounter one of the three common connector types for conventional wiper blades, including: • Side lock – a small pin on the wiper arm snaps into a hole on the wiper adaptor • Bayonet – a flat metal piece slides into the wiper adaptor • Hook – a curved metal piece slips over and around the wiper adaptor For model years after 2010, drivers can expect to find one of the three common connector types for beam wiper blades, including: • Pinch Tab – the attachment is squeezed on both sides, so the blade can fall into place. • Side Pin – a blade is inserted into an arm pin and rotated 90 degrees to lock it in place. • Push Button– a button on the wiper blade locks onto a hole in the wiper arm. It’s important to note that connectors differ greatly, even from what’s listed above. However, beam wiper blades are engi- p. 34 neered to fit 96 percent of all arm and connector types. “Wiper needs can differ across a wide range of factors.” Extending Wiper Lifecycles To protect a new set of wiper blades, consider the following maintenance practices. Not only do these help drivers keep visibility top of mind, but they can also extend wiper replacement intervals. • Regularly clean the wiper’s rubber element and remove loose dirt and road grime from the windshield. • To thoroughly clean the wiper, use a small amount of non-abrasive glass cleaner on a wet sponge. • Always use an ice scraper to remove snow and ice from the windshield. Using wipers to de-ice your windshield can damage the blade’s rubber element and wiper motor. Windshield and headlight conditions also play a role in driving visibility. Even a small chip can cause the entire windshield to break, which can be expensive to fix and extremely dangerous if driving when it shatters. Damaged glass can also cut the rubber wiping element on the blades, causing streaking and poor visibility. Make sure all lights, including headlights, brake lights and signals, are working properly. Inspecting headlights weekly ensures the best driving visibility at night and helps drivers avoid traffic tickets. Moving Forward The evolution of wiper blades is far from over as OEMs continue to evaluate new materials, technologies and designs. The replacement options may change, but establishing regular wiper maintenance habits remains the best strategy for maximizing your customers’ visibility in all driving conditions. James Croston is the Director of Marketing for Rochester Hills, MI-based Trico Products. He has been with Trico Products for 25 years. They come for service. You get a new sale. An additional source of quality sales leads delivering better gross profit and a higher closing ratio. Digital Advertising Reputation Management Market Strategy SEO and Social Targeted Marketing Web Protect your customers. Get more of theirs. | 888.841.8130 | nakedlime.com/xtreamservice © 2015 Naked Lime Marketing. All rights reserved. 7/15 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Do You Service Cars? Y o u r W e b s i t e D o e s n ’ t K n o w T hat … Today’s shoppers are increasingly looking to the Internet, gathering information to help in their purchase decision, whether it be a television, a new book or the latest model vehicle. As an auto dealership, one of most effective ways to get your message to consumers is through your website. A typical dealership website will have its entire inventory, with 40 plus pictures for each vehicle, new and used vehicle specials, financing forms and multiple other tools and information to help consumers in their car buying purchase. Sadly, however, when it comes to Service information on a dealership’s website, consumers are usually out of luck. Short of a “schedule an appointment” feature (and perhaps some Service specials), the Service Department tends to be the most under-promoted with the least website presence, despite being a dealership’s largest profit center. On the majority of dealer websites, every widget, gadget and conversion form leads a consumer down the road to a sale. But what about those consumers coming to your website for Service information? They typically leave disappointed and have to search for it elsewhere. The Service Department is almost an afterthought on most dealership’s websites. But adding it as a clear and important part of the website could, in fact, offer an excellent opportunity to attract and retain Service business. p. 36 By Rich Holland J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e A study conducted by Google in 2013 found that, each month, 70 million searches on Google are for aftermarket services. Drivers are also looking online for help on changing oil filters and brake fluid, as well as fixing fuel pumps. It’s critical to connect with these drivers whenever and wherever they are searching for their next service. Think about it. A customer may initially come to your website to buy a car – and perhaps they will. What happens when they have Service questions like, when their next Service is due or what exactly is a 30,000-mile Service? They may look to your website first but be forced onto the manufacturer’s website -- or even an independent’s -- to find the answer. All of a sudden, they see a Service special for a 30,000 mile Service on that independent’s website and head over to get their car serviced. The more information you provide on your website about every profit center in your dealership, the more you’ll be able to become a resource for your customers and keep them from wandering. Google “car p. 38 repair (your city)”. I’m willing to bet that your organic search results are dominated by independent chains and local repair stores – and that’s not even including the pay-per-click ads. Why is that? It’s because dealerships aren’t establishing enough of a presence on the Internet for Google to index them properly and establish relevancy to a consumer search. So what can you do to fix this? Here are a few tips: 1. Make Service exposure just as important as Sales – Just as it’s important for a dealership to promote sales through in-depth vehicle display pages, financing information, lease and purchase specials, manufacturer promotions and value propositions, make sure that your Service Department is not neglected. Make it easy for your customers to schedule Service online through your website. Keep any specials up-to-date. Consider including a menu of basic services and what they include. You don’t necessarily have to price the services on your website -- just provide the answers to the basic questions people ask “The Service Department is almost an afterthought on most dealership’s websites. But adding it as a clear and important part of the website could, in fact, offer an excellent opportunity to attract and retain Service business.” J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e you all of the time – like what major services include. Include value statements for some upsell services, such as transmission flushes that inform the customer what that is and how it benefits them. Include some simple videos to help customers better understand the process and why do it at your dealership. 2. Highlight your staff – Consider creating a “Meet Our Service Team” tab under your Service department menu. On this page, highlight employees with their names and pictures. (And even videos.) Include some relevant information -- certifications, years of experience, etc. There are unlimited third-party sites that will give consumers information about your vehicles – which is what a Sales customer cares about the most – but none that will provide information about your Service Department and staff except for yours (other than reviews of course –but more on that in the next point). Employees can be the strongest selling point for any Service Department. Don’t assume that just because a customer bought their vehicle from your dealership that they will use your Service Department. Just as in Sales, people like to do p. 40 business with people they like. Customers can never like you if they don’t know who you are. 3. Make online Service reviews just as important as Sales reviews – There are typically far more website Sales reviews than Service reviews, despite the fact that most dealerships service more cars in a day than they sell. And many dealerships don’t have any Service reviews at all. The simple fact is that most dealers aren’t asking their Service customers to leave them reviews as aggressively as they are in Sales. When a consumer is researching which dealership to do business with – whether that’s to buy or to service a vehicle – nowadays you can almost guarantee that they will check out reviews. It can make a huge difference in swaying the consumer towards doing business with your dealership if you have as many positive reviews as possible for every department in your dealership. Find some choice reviews and republish them on your website under the Service Department menu as value statements. Be sure to link back to the actual reviews so customers know that they are valid and real. “Make it easy for your customers to schedule Service online through your website. Keep any specials up-todate. Consider including a menu of basic services and what they include.” J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e 4. Make it easy for your customers to connect with you – Today’s technology provides consumers with a multitude of communication options: chat, text, phone and e-mail. Pay attention to your customer’s communication preference. Make it easy for them to communicate with you in the manner in which they want to -- not the way you want them to. Many dealerships are already using these technologies in their Sales Departments. Consider adding them to your Service Department, as well. For instance, texting Service recommendations to customers can lead to a huge increase in approvals. And no more phone tag. By establishing a comprehensive online presence for the Service Department, dealerships can increase the probability that consumers seeking Service information will find the dealership and choose to service their vehicle there. Once they know that they can find the information on your website, chances are that the next time they need information, they’ll look to you first. Become a resource, build trust and start to lift the veil p. 42 “Many dealerships don’t have any Service reviews at all. The simple fact is that most dealers aren’t asking their Service of transparency just enough to bring them to your Service Department. The last thing you want is to force a consumer to gather information from your Service competitors -- whether that’s another dealership or an independent. Don’t give your competitor the first shot at the business. You wouldn’t even think about using that strategy in your Sales Department. Why are we, as an industry, doing that in our Service Departments? Your website is your virtual dealership. It introduces your store and informs consumers what you do, who you are and what you sell. Make sure that your dealership maximizes the potential of your website to the fullest extent! customers to leave them reviews as aggressively as they are in Sales.” Rich Holland is Managing Director of AutoPoint, a leading platform that drives improvement in auto dealer Fixed Operations. As a frequent speaker on the future of automotive dealership Service, Rich believes in the “adapt or die” theory of innovation. He is a recognized expert in information technologies and how to create customer loyalty through digital excellence. He brings over thirty years of diverse experience to AutoPoint. Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e The Netflix Effect H o w T e ch G i a n ts A r e R e shap i n g C u st o m e r E x p e ctat i o n s o f Y o u r P a r ts D e pa r t m e n t Remember the days of browsing through rows of videotapes at Blockbuster? You had to hope the newest release was still on the shelf when you got there and no matter how hard you tried, you always got hit with late return fees. How things have changed! Now with the touch of a button you can access movies anywhere at anytime thanks to disruptors like Hulu, Netflix and Amazon. These tech giants seem unrelated to the automotive industry at first glance, but they are having a significant impact. Because of them, today’s consumers don’t just buy movies online -- they buy everything online. Like it or not, other companies are changing your customers’ shopping habits -- permanently. The automotive industry has been slower than others to embrace e-commerce, but this is rapidly changing as more and more dealers are realizing and capitalizing on the enormous online opportunity. The Big Ecommerce Shift It’s undeniable that consumers have a growing interest in shopping for auto Parts online. In fact, Google reported that searches for Parts and Service have increased by 38% from 2013 to 2014. The purpose of these searches is shifting from the intention to research to the intention to buy. The latest Nielsen Global E-Commerce Report revealed that online purchase intention rates for auto Parts have actually doubled between 2011 and 2014. p. 44 b y A m a n d a Opp e n h e i m j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Winging it is probably a bad idea. Whether you’re just getting off the ground or at the peak of success, winging it is never the best option. Our NCM® Institute courses provide you with the skills you need to streamline operations, improve performance, develop key competencies and enhance the productivity of your department. Don’t wing it; let our instructors help you stay on solid ground. Used Vehicle Management I Service Management I Express Service Mgmt I Ask about our bundling options to save! Limited seats available. July 6-8, Newport Beach July 20-22, Kansas City August 10-12, Philadelphia August 24-26, Kansas City June 23-24, Kansas City July 8-10, Newport Beach July 13-15, Kansas City August 12-14, Philadelphia August 17-19, Kansas City Register by calling 866.756.2620 or visit ncminstitute.com. p. 45 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e With customer demand driving this auto industry transformation, parts e-commerce is positioned to skyrocket in the future. This market is projected to double by 2020 according to Frost & Sullivan. Fortunately, this growing market is not yet saturated, leaving room for many dealers to grow their business significantly by selling Parts online. Ecommerce vs. Brick-and-mortar The e-commerce world may seem totally foreign, but selling Parts online isn’t all that different from the wholesale business. Both require lower prices and fast delivery, but selling online gives you the opportunity to sell to customers all over the country without requiring your staff to deliver. Selling online also expands your existing reach of a 20 to 30 mile radius to a virtually unlimited range. People who live too far from your store -- who otherwise might have bought from a dealership close to them -- can now purchase from your dealership and have parts delivered straight to their doors. Having an online Parts store gives you a wider reach but does require some investment in marketing so shoppers know you exist. p. 46 j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e From Inspection to CSI... and Back. Service Pro has you covered with a comprehensive Fixed Ops solution. : The industry’s best electronic inspection tool and shop optimization software gives you a complete fixed ops solution that will transform your department into a profit-making machine. It’s proven technology that’s easy-to-use, mobile, and effective at optimizing each step of the service experience – from multipoint inspection to professional vehicle assessments and customer follow up. Visit us at dealertrack.com/servicepro or call 888.720.6197 to learn more. //Innovation through Integration – only from Dealertrack. p. 47 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Another big difference with having a Parts website is that it extends your Parts Department hours and enables customers to shop 24/7. A Parts store that never closes gives customers the opportunity to shop at the convenience of their own busy schedules, whether it’s during their lunch breaks or after a long day at the office. checkout cart instead of a Parts request form on your site. Parts catalogs are continuously improving and evolving with innovations in ecommerce technology that add intelligence to the catalog to update the weights and dimensions, remove discontinued items and reflect price changes quickly. Providing customers with convenience and a better shopping experience creates a new revenue channel and the opportunity to grow the volume of Parts sales (which OEMs love and incentivize with rewards in many cases). Likewise, with more intelligent catalogs, it’s easier for consumers to choose the right part and shop with confidence. Online fitment is much easier with VIN filtering, part diagrams and photos so consumers know that the part they order will fit their car. It’s Getting Easier To Jump Into The Ecommerce Game It’s easier now than ever to get a piece of the online auto Parts market. It may seem daunting, but opening an online Parts store is not as difficult as it seems. There are turnkey e-commerce solutions with Parts and Accessories catalogs and shopping carts that will plug into dealerships’ existing sites. There are also custom solutions for stand-alone websites that are designed and branded separately from your dealership so you can sell nationally at lower prices without sacrificing your local margins. Shipping is also becoming simpler. Auto Part e-commerce platforms integrate with shipping providers and shipping managers to give you a streamlined and fast way to fulfill and ship orders. Additionally, shipping cost estimates are getting more accurate over time as technology improves to make calculations based on the best ways to package an order. One of the easiest ways to convert customers is by having a Parts catalog and Tips on Getting Started 1. Review your goals and determine whether you want to aggressively grow sales nationally or just provide convenience to local customers. 2. Watch product demonstrations of Parts e-commerce platforms and be evaluating: the catalog accuracy, user-friendly website design, online security, fraud screening tools, shipping tools, price setting tools to protect margins and the quality of customer support. 3. Once you pick a platform and are up and running, you need to understand that online customers expect quick fulfillment. If you wait 5 days to fulfill an order, then you will end up with upset customers and poor reviews. If your online business grows significantly, you will have to staff appropriately to handle the increased order volumes. Online shopping is undoubtedly here to stay and will shape the future of dealerships. You are now standing at a fork in the road. Which direction will you choose -- the path of Blockbuster or the path of Netflix? Amanda Oppenheim is Marketing Manager for Tempe, Arizona-based RevolutionParts. RevolutionParts is an auto Parts e-commerce provider that makes it easy for dealers to sell online and deliver a great shopping experience for their customers. The RevolutionParts platform has powered over $100 million in online Parts sales for hundreds of dealerships across the U.S. and Canada. p. 48 20 j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e INCREASE YOUR PROFITABILITY % YOU CAN WITH NADA 20 GROUP On average, dealerships Upcoming Fixed Ops Manager Meetings that join 20 Group Chrysler November 16-17 Phoenix, AZ Ford October 20-21 Boston, MA General Motors September 10-11 Baltimore, MD You can too. Send your Honda September 14-15 San Antonio, TX Fixed Ops Manager to an Mercedes-Benz November 4-5 Las Vegas, NV Nissan October 15-16 Las Vegas, NV Import September 23-25 Las Vegas, NV increase their profitability 20% within the first year! upcoming meeting and discover your dealership’s profit potential. www.nada.org/20group | 800.557.6232 ext. 4 p. 49 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Change the Dynamics, Compile Analysis in Seconds, Not Weeks C ha n g e th e Dy n a m i cs , C o m p i l e A n a lys i s i n S e c o n d s , N o t W e e k s by Kevin Smith The Business Challenge: Historically, submitting for a Warranty Labor Rate increase has been akin to getting a root canal that lasts weeks on-end. Compiling the data can be mind-numbing and traditionally yields only a few dollars per hour increase. The ineffectiveness and inefficiencies of this process lead to the additional challenge of procrastination. It’s simple human nature to put things off when we feel the pain of performing the task is outweighed by the perceived gain. For this reason over 70% of dealerships file late. As they say, “procrastination is like credit card spending; its lots of fun until the bill comes due.” However, unlike credit card spending, the cost for tardiness (loss of productive time and scanty financial increases) never visibly hit your financial statement, but have a significant hidden net profit impact nonetheless. The Solution: A robust business intelligence (BI) tool can compile a warranty labor rate increase analysis in seconds. Additionally, maximizing the data set against OEM guidelines via advanced analytics greatly improves financial results. p. 50 “A robust business intelligence (BI) tool can compile a warranty labor rate increase analysis in seconds. Additionally, maximizing the data set against OEM guidelines via advanced analytics greatly improves financial results.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 51 Financial Impact BI vs. Conventional Analysis • Average results utilizing business intelligence tool – Increase of $8 per hour annually. • Average results utilizing conventional process – Less than $3 per hour annually. • The bottom line – Difference of over $5 per hour, or $60,000+ per year in annual net profit. • Impact of eliminating late filing -- Additional $5,000+ net profit per month. (This reflects traditional sized stores with average historical results.) Best Practices: • WARNING: DO NOT MAKE THIS A ONCEA-YEAR EVENT! Most managers think of the warranty labor rate increase as an annual event much like a tax return. However, any good CPA will tell you that taxes are not a once-a-year event and that tax planning should occur throughout the year to maximize your benefit when it’s time to file, and so too with CP ELR and WLR. • Proper planning also helps ensure that you file on a timely basis. We see a very large segment of dealerships that not only file late, but woefully late. Keep in mind that filing even six months late can equate to $30,000+ in net profit that’s lost forever. p. 52 • Robust business intelligence tools make planning easy. They automatically provide you the WLRI analysis monthly and highlight areas of opportunity. Keep in mind, the analysis used for WLRI is based on your CP information. Therefore, addressing your areas of opportunity in the warranty arena could have even a greater impact on the CP segment of your business. Overview OEM Processes and Guidelines: • Many manufacturers give dealerships an option to either subscribe to an annual automated increase, or to submit a detailed analysis. In most cases, the analysis must be supported by a market survey. A few manufacturers require only a market survey. • The analysis rules vary by manufacturer but typically work as follows: - Gather a specified number of consecutive CP ROs from a recent specified time period. (For example, GM uses the past 90 days and requires a 30 consecutive RO sample.) - Exclude allowed maintenance services to calculate the CP ELR for the RO sample. •If the sample analysis rate is higher than your current rate, advise the manufacturer that you would like to file for an increase. Your OEM will provide instructions and the forms to be completed. If your dealership is on an OEM automated increase program, you may think you have no control. But don’t give up so soon. You still have an opportunity for significant improvements in the future with proper planning. By reviewing the results from an automated analysis performed monthly, you will easily be able to determine if the analysis is significantly greater than the automated increase. If so, you may contemplate reviewing your OEM agreement. Typically, you have the option to renew the automated process, but can opt out at specific time intervals. Analytically, we have found that dealerships migrating from OEM automated increases often realize the largest gains. How Business Intelligence Drives Results and Eliminates the Headache of Manual Compilation: • BI tools have an extensive database of all manufacturer rules and apply them monthly across their dealer base. • They exclude op codes, where possible, based on the manufacturer’s rules. • By reviewing historical data to identify when your last increase was, and how much you received, a BI tool automatically knows when you are due for another increase. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 53 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e • Every month a robust BI tool will analyze all ROs and every possible consecutive combination while excluding op codes when allowed, to determine the best consecutive ROs to use for your increase request. • A BI tool does NOT gather a random sample of ROs like human would traditionally do. Rather, it identifies the best consecutive ROs. If a manufacturer requires 30 consecutive ROs within the past 90 days, a BI tool would analyze 2,971 possible combinations to provide you with the one consecutive combination with the highest ELR. Sounds excessive, but it’s the only way to ensure you properly comply with the OEM guidelines in an efficient and effective manner. • A BI tool should automatically perform this analysis monthly and e-mail the results. The e-mail also shows when you are due for your next increase and will highlight opportunities to improve your warranty rate. When you receive your e-mail you will: - See how your current rate analysis compares to your current approved rate and the estimated annual profit impact. - Submit your request to the manufacturer, if it is due, and if the increase is significant. p. 54 • Prepare the manufacturers package using the BI Analysis report. • Submit the completed package to the manufacturer and wait to see your approved increase amount and effective date to update your DMS. “A BI tool does NOT gather a random sample of RO’s like human would traditionally do. Rather, it identifies the best consecutive RO’s.” -If you are not due for an increase you should review the top five opportunities. Remember: this is like tax planning. The top five services were specifically identified as having a significant negative impact on your warranty analysis. These obviously also pull your overall CP ELR down. The top five opportunities are ranked based on the frequency of usage and the amount the ELR is below the calculated rate. How a BI Tool assists in Attacking the CP and Warranty Opportunities Identified Within the Monthly Analysis: • The monthly report generated from a BI tool would generally contain three main sections: - Labor Rate Analysis: This report is used to submit your rate increase and details the best consecutive RO’s per the OEM guidelines. - Included Op Codes: This report shows all op codes that were included in the analysis, and sorts these by the services with the highest opportunity for improvement based on frequency of use and ELR. - Excluded Op Codes: This report details the op codes that may be excluded from the analysis per OEM guidelines. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 55 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e • In order to continually improve your CP, and therefore your warranty labor rate, follow these or similar steps monthly: - Open your report and locate the Included Op Codes. (The top opportunities will traditionally be highlighted, as well as identified at the top of the report.) These were identified as the opportunities because these services were frequently sold at effective labor rates lower than your monthly warranty analysis rate. - Review both the labor price you are charging and the flagged hours you are paying Techs for each key opportunity. If you do this monthly and address correctable opportunities you will see new potentials for improvement each month. Likewise, if you don’t make the adjustments, you may see the same challenges month after month. In some cases corrective actions may jump out at you. If not, you may consider the following: • Maintenance Services - Most BI tools have a module that allows you to compares your labor price and flagged hours against other similar dealerships for each maintenance category. By reviewing these services against a performance group, you should be able to better define opportunities. p. 56 “Recover hidden profit by eliminating the ineffectiveness and inefficiency of addressing your warranty labor increase via a manual process.” • Repair Opportunities - BI tools have an ELR Manager Advisor Performance Report to see if repair pricing is below your door or grid repair rates. If you see an opportunity you can review an ELR Manager Audit Detail Exception report to see the specific repairs that are in your top five and therefore causing a lower than desired ELR. • Market Survey - Prior to considering a labor price increase we suggest doing a market survey to ensure you will still remain competitive. • Flagged Hours - If your flagged hours are higher than the performance group averages you review, contemplate how the op code is used and be sure you are not combining multiple services into one op code and potentially over-paying Techs. • Review and Communicate - The most important step is to make the changes in your DMS and review the changes with Service Advisors and Technicians as necessary. Summary Recover hidden profit by eliminating the ineffectiveness and inefficiency of addressing your warranty labor increase via a manual process. Enlist a robust Business Intelligence Tool in order to strategically maximize your overall ELR and, in turn, your warranty labor rate. Turn information into action and increased profitability and maximize the return on your time. Kevin Smith is the President of Dallas, Texas-based Dynatron Software. Dynatron has been the market leader in Fixed Ops Business Intelligence since 1997 and offers a suite of cost-effective webbased solutions. p. 57 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e © 2015 Cars.com, LLC™. All rights reserved. p. 58 CARS.COM SAW NEARLY TWO MILLION SERVICE-RELATED VISITS IN 2014.1 If you’re not where shoppers are looking, where are you? Boost your dealership’s bottom line with a badge of approval. At Cars.com, our new service offerings—including RepairPal Certified—will put you in front of new and off-warranty shoppers whenever and wherever they’re searching for service. Ensure car owners trust and choose your service department over the competition, before it’s too late. 1 Cars.com Internal Data, January 2015 p. 59 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Clearing the Path to a More Effective Service Department F o u r K e ys t o R e d u c i n g Wast e d T i m e i n S e r v i c e By Jason Sideris When one of my team members has a particularly tough problem to work through, he likes to take a walk around the building to “wander and ponder.” He knows how moving around and changing his scenery will help him think through the issue and discover the right solution. But that method doesn’t work when walking around is the problem. Think about your Service Department. How much time does your staff spend “walking around” and how much does that cut down on productively? How many more customers could you serve? And how much more revenue could you generate? Following the Map Walking might lead you to intellectual breakthroughs in some environments, but excessive walking in the Service Department can lead to a loss of productivity, customer throughput and revenue. Have you watched your staff in action lately? If you watch your Service Advisors and Technicians complete an RO, you’ll likely see a lot of movement -- and not all of it is productive. Let’s take a more in depth look at your Service Department. To do that, we need to document the path of the typical RO, p. 60 so it’s time to make an actual map. Grab a sheet of paper and sketch out your Service Department, labeling the Service drive, Advisor desks, Service bays and Parts desk. Think about the normal flow of an RO from the Service Advisor to the Dispatcher to the Technician to the Parts counter and all of the trips in between. Then, draw a line for each path walked to complete a typical RO. Are any of the lines overlapping? Does the Service Advisor or Technician visit any areas more than once? Those lines represent wasted time. Now think about how long it takes to walk each line. Write down the estimated time for each line you drew. Don’t forget that when people are interrupted in the middle of a task, it might take a few minutes to get back into the mindset of what they were doing. On your drawing, there likely are a couple of instances where you can spot that in your Service Department. One example might be in the J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Technician’s repeated trips to the Parts counter. Factor in that time, too, when considering the amount of non-productive time in your Service Department. It’s time to do some math. Add up all that time you calculated and you will have the average amount of time spent walking for an RO in your Service Department. Multiply that number by the number of ROs your dealership completes in a day and then for the month. You have just figured out how much time your staff spends walking each day and every month. All of your staff’s time spent waiting for parts and other interruptions from “work mode” decreases productivity. Let’s go one step further. It’s time to calculate how much money all that walking cost your Service Department. Take the walking hours and multiply them by your dealership’s effective labor rate. That number is the opportunity cost of all that walking. p. 62 Now that you’ve found how much your employees are walking, cut the amount of steps they take. reducing the time Service Advisors spend explaining options to customers and increasing customer satisfaction. Cutting the Steps Here are four keys to help reduce the amount of walking and waiting in your Service Department: On your map, did you also draw lines that indicate that your Service Advisors are frequently stepping away from their desks to check the Service drive for new customers? The automatic notifications from RFID systems also can help reduce the number of trips Service Advisors take from their desk to check for new customers and keep them focused on more productive tasks. Repair Order Write-Ups: One process where you can reduce wasted time is RO write-up. When starting an RO, the Service Advisor must gather and verify the consumer’s information and complaint quickly and accurately. Technologies such as RFID enable the write-up process to start as soon as the customer pulls into the Service drive. With RFID, the customer can receive a personalized greeting on-screen and the Service Advisor can be notified of the customer’s arrival and begin the RO faster. If these tools are built as part of the dealership management system, you also can display recommended maintenance and Service specials on-screen to customers, “Technologies such as RFID enable the write-up process to start as soon as the customer pulls into the Service drive.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 63 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e “Dealerships that invest in an electronic estimating tool are able to provide quick, accurate and consistent pricing for Service repairs. These tools enable Service Advisors to quickly look up Service operations and obtain prices for labor, parts, materials, and taxes.” Price Quotes: Because of the complexity of each vehicle and every repair, quoting repair prices to customers can be challenging, even for seasoned Service Advisors. Some Service Advisors may try to quote from memory, rather than looking up the necessary information or making the call to Parts. Others might do all the research for Parts and Labor but forget to include taxes or shop fees. Dealerships that invest in an electronic estimating tool are able to provide quick, accurate and consistent pricing for Service repairs. These tools enable Service Advisors to quickly look up Service operations and obtain prices for labor, parts, materials, and taxes. Having all the information at the Advisors’ fingertips decreases the amount of time they spend researching the cost of repairs, including calling the Parts Department for information. It also helps them provide more accurate quotes to customers in the Service drive or over the phone. All of this can reduce the time your Service staff spends on quoting repair information and improve customer satisfaction because customers have received thorough, accurate information about the service or repair. Automated Electronic Communication: How many times has there been some type of confusion or disagreement among your technicians because they thought jobs were assigned incorrectly? How many times have your Technicians p. 64 waited at an Advisor’s desk or in front of the Dispatcher for the next available RO? It can be difficult to quickly prioritize jobs and ensure that each job is assigned to a Technician with the correct skill level. With an automated electronic communication system, every job can be assigned to the appropriate Technician based on qualifications set up in the system. This type of system can help eliminate the perception of favoritism, enable the Technician to work on jobs faster, and allow for more time to be spent on actual repairs. Less walking. Less waiting. More time for working. More revenue. Parts Delivery: Remember how on your map your Technicians are spending their time wandering to the Parts counter and waiting for parts to complete a repair? A simple solution is to assign someone from the Parts Department to deliver parts directly to Technicians in the Service bay. Technicians are able to spend more time performing the necessary repairs, rather than walking and waiting. Plus, instead of having multiple Technicians at the Parts counter waiting for parts, the Parts employee could grab all the nec- essary items for new jobs and make one trip. That keeps all the Technicians focused and in working mode. It also helps the Parts employee cut time by making fewer trips to and from inventory. Clearing the Path The map you drew here shows opportunities that walking or waiting in your Service Department is likely costing you. It also shows you where you can make improvements in processes or technology to help your team work smarter and more productively. By optimizing how time is spent in the Service drive, your dealership can increase productivity of your staff, customer throughput and customer satisfaction – all of which can lead to more revenue for your dealership. Jason Sideris is the Director of Product Planning for Fixed Operations at Reynolds and Reynolds. Through nearly 20 years of experience working in the automotive industry, Sideris has gained a deep understanding of how innovative technology and solid processes come together to enable operational excellence for dealers and improve the customer experience with the dealership. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 65 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Green Decisions That Pay Off H o w S u sta i n a b i l i ty D r i v e s M o r e P r o f i ta b l e D e a l e r sh i p B u s i n e ss By Leigh Harrington Pa r t t w o o f t w o - pa r t s e r i e s Part One of our series was about the role that sustainability plays in today’s automotive marketplace and how it’s not only good for people and the planet, but can also improve your dealership’s performance. We outlined three keys to capitalize on the growing opportunity that sustainability provides: Internal Adoption, Collaboration and Communication. For Part Two of this series we’ll cover some executable steps to help jump-start your sustainability. These are immediate steps that can bring big impact, typically with short time frames and little investment. 1. Build your plan. Sustainability is not a collection of disparate activities that somehow blend together and lead to incremental improvement. It’s a strategy that entails documenting your plan to ensure that your efforts are laser-focused, properly targeted and objectively evaluated. Focus your efforts on those aspects of sustainability that provide the best return on your efforts. For example, auto manufacturers focused initially on gas mileage and lower emission engines. As customers’ demand for sustainability increased, they started spending more R&D monies on such things as sustainable materials for interior parts and more sustainable manufacturing processes. Dealerships can ini- p. 66 tially focus on a number of products and services within the Service Department, including eco-friendly motor oils and using environmentally-friendly waste processes for such things as used oil and oil filters. These are areas that take little to no investment and can reap immediate results. For the sustainable steps you outline in your dealership plan, set goals and setup evaluation processes that allow you to objectively measure and tout your efforts to the marketplace. For example, if your used oil is collected and re-refined instead of being burned and ending its effective use, you’re part of a closed-loop recycling system that directly reduces Greenhouse Gas (GHG) emissions. Work with an environmental services partner whose best practices include close-loop processes, third-party verifiable GHG reduction numbers and communications support for building sustainability messaging for your dealership to use with customers. Develop similar evaluation methods for all of your program activities, from light bulbs and oil filter recycling, to dollars invested in community programs. 2) Enlist the support of your current partners. For example, the major motorsport groups have brought together huge sponsors to make the best sustainability team, including the largest environmental program in sports, NASCAR Green. Automotive dealerships can follow this same model. Safety-Kleen provides the same service to local dealers as they do to racing partners. The same closed-loop collection and rerefining process is used for oil collected at motorsports events as the oil collected at dealership Service Departments. The motor oil can be re-refined into “new” oil for oil changes that reduce your carbon footprint even further. Similar scenarios with other partners can lead to additional environmental benefits. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 67 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Use the current sustainability efforts of partners and team with them to identify new ways to become more sustainable. Assign accountability to a single person in each portion of your operation to develop a comprehensive list of partner opportunities. Where possible, leverage your partner to help develop and deliver the sustainability message to your customers. the best products, dealerships can confidently position themselves as a sustainable business. 5) Walk the walk. Just offering ecofriendly products and services to your customers isn’t enough. Customers want to do business with companies that show a deep commitment to “doing the right thing.”1This means showing sustainability in all areas of your operation. 3) Brand your sustainability commitment. By educating people about your dealership’s efforts, you can improve the performance of your business by attracting and keeping eco-responsible customers. Develop a central repository of information. Collect descriptions and background information on all of your sustainable initiatives and their performance metrics and utilize the information to develop compelling and engaging messages to your customers. Build your messaging into your customer experience, whether it be in person at the dealership, over the phone, or online. Leveraging your current advertising and marketing resources will help control costs and will ensure that messaging is in line with your overall brand and value proposition. Initially focus on communicating your company’s actions, then shift to sharing results as they become available. Point-of-purchase materials and website information are two good starting points. Make sure you can back up any claims and continue to expand and change your communication channels and methods to reach more customers and the community at large. 4) Institute the most environmentalfriendly products and services that match your business needs. Consumers want environmentally responsible products and they view companies that offer them more favorably. But there’s a catch. Consumers demand as high (or even higher) standards for “green” products. So like NASCAR®, your business must use only the best suppliers. For help recycling bottles, NASCAR® partnered with one of the world’s largest soda makers, while race tires are recycled by their tire sponsor. By following motorsports’ lead in offering only p. 68 that see many millions of miles rely on motor oil re-refined from used oil. Some of the largest fleets in North America use rerefined, green motor oil, including the U.S. Armed Forces and its vehicles on critical missions all over the world. With the sophisticated and proven rerefined oils that exist today, there’s every reason to add them to your menu of oil change offerings. Offering oil products from a closed loop system is simply the right thing to do for the environment -- and a great way to differentiate your dealership in a crowded marketplace to generate and keep more customers. According to a national online study by Maslansky, Luntz and Partners, eight out of ten consumers who buy green products state that they would choose an oil change that’s been recycled and re-refined, if given the option. Consumers are not just curious about the service; they’re willing to pay up to approximately $12 more per oil change, if they’re properly educated about the product. Our company has returned more than 140 million gallons of re-refined oil to the marketplace last year. And the process of refining used oil consumes up to 85 percent less energy than producing motor oil from virgin crude, helping to conserve our country’s limited natural resources and reducing our dependency on foreign oil. There’s no question that motor oil refined from used oil is good for the environment, but you may be surprised to learn how good it is for vehicles. Consumers who opt for a green oil change make no sacrifices when it comes to engine protection and performance. Large fleets with vehicles Develop and post a sustainability policy for your dealership. Along with including re-refined oil as a product option, find a partner that collects your used oil to be re-refined and collects parts washer solvent and antifreeze and recycles it using a similar closed-loop process. Your partner should also collect used oil filters using a process that breaks them down to recycle their raw materials, including extracting as much used oil as possible from each filter. In your fleet, consider fitting low-rolling resistance tires to corporate vehicles. And throughout your business, enact policies that require employees to recycle at work and showcase any effort to go “paperless”. All of these practices lend credibility to becoming a more sustainable business and build a great story for the marketplace to help capture and retain more customers. In conclusion, sustainability can play a major role in building your business. Though individual dealerships may not have the marketing budget or clout of automotive manufacturers, a few initial steps can make your sustainability program a reality. If you’ll follow a few simple rules for success and begin with small initiatives, it will pay off in numerous ways, including attracting and keeping customers. Leigh Harrington is Director of Marketing Strategy and Communications for Clean Harbors, Inc. and its wholly owned subsidiary, Richardson, Texas-based Safety-Kleen Systems. Clean Harbors is North America’s leading provider of environmental, energy and industrial services. Safety-Kleen is a leading North American used oil recycling and re-refining, parts cleaning and environmental solutions company that provides a broad set of environmentally responsible products and services that keep North American businesses in balance with the environment. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 69 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Schedule That Service Appointment! F o l l o w Y o u r D e n t i st ’ s E x a m p l e By Justin Sprague Over the years, dealers have frequently asked me how to make more money in their Service Department. And in a CDK survey nearly 30% of our over 2,800 dealer respondents said that increasing Parts and Service Department revenue was their number one goal and priority. No surprise. So what do I tell them? And how can you reach these seemingly obvious goals? There’s a lot going on in the background. Customers – especially your younger customers – perceive that a dealership’s Service Department is more expensive than the independent Service alternatives in their area. They’re far less loyal to a dealership and more likely to defect to independents. And, as we know, cars on the road are older. You know that customers have been keeping their vehicles longer and that warranty work is decreasing. So dealers ask me, how do we get more customer-pay business? And I always tell them, it comes down to improving your customer’s experience. It really is all about the process, the people and the technologies. First, we as an industry need to realize (and own up to the fact) that the current systems in the typical dealership Service Department can be cumbersome, clunky and ultimately don’t lead to a seamless customer experience that helps drive p. 70 customer retention. Then we need to adopt the technologies that can make this whole workflow a lot more streamlined. When I walk through a dealership’s Service processes, time and time again, I see that many stores are thinking about these things in the wrong way. Right now, many of you see the Service process as a series of transactions rather than one seamless event. And it’s not just about customer pay, by the way. Develop strong relationships with these customers now and you’ll have them throughout the vehicle ownership lifecycle. Dealerships are finally making money on vehicles, but the NADA tells us it’s typically very little per car. Dealers have told me that vehicle Sales is basically a loss leader that gives the Fixed Operations Departments an opportunity to sell products and services that make money. But you have to attract them early. Are you setting up that first appointment before your new or used vehicle buyer leaves your store? Do you have an easy way to do that? If you don’t, this is a huge missed opportunity. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e p. 71 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e One J.D. Power study said that if you offer to schedule the first maintenance at the time of the vehicle purchase, it greatly improves Service loyalty. If you get them to come into your dealership for that first service visit -- and give them a good experience while they’re there -- you get nearly all (about 90%) of their Service visits after that. If you don’t, you only get 25% of their visits. So it’s very much worth your while to schedule that first appointment. Think of how your dentist does it – you can’t leave that place without setting up your next appointment. They even do it before you pay your bill. Those people follow a tight process to get you to come back in. They’re not thinking about it like a transaction. They’re thinking in the long-term customer lifecycle way. And my dentist is vigilant on e-mail and text reminders. Why? To reduce no-shows. The same rule applies at your dealership. p. 72 And what’s the appointment-setting experience for your customer after that first appointment? Most dealerships (and other businesses) have online appointment scheduling. But it stops there. Think of Amazon.com’s model; when you log in, you see your past order history and suggestions for what you might like. And it’s just a few clicks to order. They’ve perfected this workflow. The same principles apply to vehicle Service. Why stop at appointments? Give your customers that same transparency and relationship-building information. Remind them about their past denied work. Suggest the maintenance for which their vehicle may be due. With just a couple of clicks they can order these things. It’s not that difficult, but I see dealerships that don’t do this. A lot of dealers use one vendor for their appointment plug-in, another for the walk-around and other one for inspections. Are these providers talking to each other? Does the customer see the same data when they make an appointment as the Service Advisor does when that customer drives in? Probably not. By the way, you also want to appeal to younger buyers, who tend to be less loyal. They don’t like going to the mailbox. They want everything done online, at their fingertips. They grew up using Amazon.com. This is what they’re looking for. “Are you setting up that first appointment before your new or used vehicle buyer leaves your store? Do you have an easy way to do that? If you don’t, this is a huge missed opportunity.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Get Fixed. How do you sell your product, service, technology or program to the new vehicle dealership fixed operations audience? With Fixed Ops Magazine. - Fixed Ops Magazine is the only publication that is focused 100% on the needs of fixed operations managers. - Fixed Ops Magazine is the only medium of any kind that reaches virtually 100% of this hard-to-reach audience. - Fixed Ops Magazine has the largest fixed operations circulation and readership of any automotive industry publication. - Fixed Ops Magazine is read by the managers who have the authority to recommend and purchase products and services. Bottom line? Fixed Ops Magazine is the only way to efficiently reach and sell to virtually 100% of America’s dealership fixed operations managers. Call or e-mail today to start your sales-building ad campaign in Fixed Ops Magazine. The Auto Dealer’s Original Fixed Operations Resource Telephone: 877-349-3367 E-mail: Nick@FixedOpsMag.com p. 73 J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e It needs to be fast, it needs to be easy, it needs to be complete. And they see value in you or someone else keeping track of all this stuff for them and just letting them look when they need it. Ask anybody under the age of 35 and they’ll tell you the same thing. Want to keep these millennials and have them come back for another vehicle eventually? Do business the way they want to do business. Let’s move onto writing the ticket. We’ve all seen how busy a Service Department can be at 8:00 in the morning. The line of vehicles waiting. Impatient customers. I’ve seen them churn and burn them – get them in and get them out. No greeting at the vehicle. No walkarounds. Nothing. Lost opportunities to check on the customer’s past denied work and suggested maintenance. But there is so much that can be done there. It should be thought of like the Apple Store experience. When you walk in, you see the Apple folks standing there, with an iPad, waiting to greet you if you have an appointment. Have you been to an Apple Store on a busy Saturday afternoon? It’s really the same concept. p. 74 Dealership groups are starting to get it. You may have seen that they have been getting traction by using tablets in the Service drive. It’s working and leading to more dollars per RO. automated inspection process, that again, sees everything from the past customer interactions and gives you the opportunity to upsell. Otherwise, you’re leaving money on the table and not building trust. When you look at your department in the eyes of the customer, often what they see is something that is a hassle -- inconvenient and generally a time drain in their day. Just take booking an appointment for example. If a customer calls in to schedule Service on their vehicle, there has to be a solid line of communication between members of the Service department. If there’s some level of human error or miscommunication, it’s the customer who suffers and feels that the dealership they’ve chosen to work with was not worth their time. One more thing: a single solution integrated into the DMS makes things faster. Less rekeying. Better workflow. No surprises for the customer, which leads to more trust. And you could use that time to sell even more. All of this communication centers around the Service Advisor. Not keeping this key person informed of scheduling issues, maintenance progress or team cohesion can lead to a Service Department that, for lack of better term, is falling apart in the eyes of a customer. So communication tools -- IP Telephony, texting, e-mail -- are key to this hub. You need seamless communication to the Technician too, with an So take your cues from your dentist: customer pay, a seamless ongoing process and workflow and a better customer experience over the ownership lifecycle. All of it will make the process -- and quite fitting for this example -- less painful. Justin Sprague is the Vice President of Product Marketing at Hoffman Estates, Illinois-based CDK Global. In his role, he is responsible for the product strategy / direction and project management. His career history includes contributing as Director of Sales Support and Business Development, Director of Sales Enablement and Director of Product Marketing. Get Fixed. Digitally. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e 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 Nick@FixedOpsMag.com 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. 75 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Everything in Its Place S t o r a g e T hat H e l ps A u t o m o t i v e D e a l e r sh i ps D r i v e E f f i c i e n cy The phrase “the customer is always right” exists for a reason: In today’s customercentric landscape, the focus is nearly always on the customer. Customers have high expectations -- and it’s up to dealerships to find a way to meet their demands. With the increase in automotive sales that we’re seeing right now (spurred on by continued economic improvement, low interest rates and lower fuel prices) auto shops and dealerships across the country will need to drive organizational efficiency to keep pace with the increase in demand. “While the automotive industry has seen a resurgence in recent years, a new industry identity is emerging -- one that’s more open, inclusive and without borders,” says Alexander Scheidt, Global Automotive Industry Leader, IBM Global Business Services. “By 2025, the industry will not only recreate our highly personalized and digitized lives inside our cars, but also give consumers a bigger role in defining that experience.” For automotive dealerships, enhancing the automotive experience starts with streamlining operations to be able to service customers in a timely manner. More efficient p. 76 By Tim Vaughan dealerships mean smoother workflow, better profitability, higher levels of customer satisfaction and increased customer retention. and small items in one location. Parts of all sizes can be stored together for maximum density so there’s not one cubic inch of wasted space. There are a number of storage solutions that can immediately increase productivity in the workplace and lead to an improved customer experience. There are three major factors to consider when reviewing a potential storage solution: functionality, ergonomic design and organization. Here’s a look at a few that stand up to the test: “For automotive Service Bays Maximize your space: One of the biggest advantages of a Service bay is that it can be customized to meet your specific Service Department space and pace and make use of available height for more space-efficient storage. Look for a storage bay with lockable cabinets to improve your Service Department’s security, reduce shrinkage and give Technicians a place for secure personal storage with cabinets that lock. Quick access to parts and tools: Another key benefit of a Service bay is that it offers Technicians quick access to large dealerships, enhancing the automotive experience starts with streamlining operations to be able to service customers in a timely manner. More efficient dealerships mean smoother workflow, better profitability and increased customer retention.” “All the technicians have all their tools and supplies right there directly in front of their bay,” says AlphaCars of New England Owner and General Manager Dmitry Bykhovsky. “And if customers are in view, they don’t see all the tools and supplies. Everything is neatly organized with a professional aesthetic.” Infinite configuration: Because a dealership’s Service facility needs may change over time, a Service bay allows for multiple configurations. For maximum efficiency now and in the future, dealerships can combine drawers, shelves and roll-out trays for evolving storage and retrieval needs -- and reconfigure them as needed. Technician Carts Technician carts, or mobile cabinets, are mini workstations and high-density storage cabinets on wheels providing the perfect combination of versatile mobility and secure storage. The optimal tool storage j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e and transport for Service Technicians, Technician carts allow safe, secure storage for mechanic tools without the need to empty the cart at night. The dealership also maintains a clean, professional look when carts are not in use. Lightweight and durable: Heavy-duty, lightweight mobile Technician carts are flexible and maneuverable, making transport of tools and parts fast and easy. Some options have deep pan shelves at the top and bottom, which are covered with a ribbed rubber mat. Safe, secure, and aesthetically pleasing: Cart garages offer a storage area integrated into a complete Technician workbay. The garage allows carts to be stored securely and neatly when not in use, enabling the Technician to keep the cart set up without concerns for shrinkage or a disorganized appearance. Many are available as a fully enclosed free-standing garage or as a security door with face frame only. “There are three major factors to consider when reviewing a potential storage solution: functionality, ergonomic design and organization.” p. 77 Another key element to organization is not so much a product as it is a concept. Implementing 5S compliant storage as part of lean manufacturing programs is a small step you can take to eliminating waste (in both time and effort) through inventory management, space reduction and organizational improvement. “A place for everything and everything in its place”: This is, in fact, the 5S mantra. 5S, which includes 5 “pillars” of workplace organization (sort, set in order, shine, standardize and sustain), involves, in part, eliminating time wasted searching for, determining how to use and returning items. Under this philosophy, parts or tools should be arranged in a way that makes them both easy to use and easily accessible. By using storage cabinets with barcoded handles and compartments for small assembly pieces, dealerships can minimize wasted time due to unorganized or misplaced inventory. Mobile storage cabinets p. 78 “One of the biggest advantages of a Service bay is that it can be customized to meet your specific Service Department space and pace and make use of available height for more space-efficient storage.” and toolboxes can also allow for streamlined efficiency by essentially relocating the workspace to wherever an employee needs to be in the Service facility. The relationship between fluidity and efficiency: At its core, the 5S methodology involves systematically improving productivity by establishing and maintaining an orderly workplace. However, this doesn’t just mean identifying and sorting items so that they’re easy to find, but also involves achieving a sense of “flow.” This is done by developing and sustaining a productive work environment including adding flexibility to production lines in order to facilitate faster turnaround times. Storage solutions that can be adjusted based on individual facility requirements result in the most efficient operations. For example, flexible workbench lines should integrate with existing conveyor systems to improve employee efficiency and keep the process moving. Bigger storage density and a smaller footprint: As stated by the EPA, “a typical 5S implementation [results] in significant reductions in the square footage of space needed for existing operations.” Why is this necessary? The reason is simple: Removing unnecessary items from the production facility frees up space that can be used more effectively (and ensure a more consistent “flow” of operations). Modular storage cabinets, which can accommodate everything from small parts to large equipment, allow for the maximum use of cubic space and the highest-density storage within a facility. Cabinets systematically protect and control inventory by providing distinct and easily identifiable locations for specific products. By maximizing organization, restocking happens quicker and overstocking declines drastically. Likewise, retrieval time is also greatly reduced. With conventional shelving, over half of retrieval time is spent simply getting to -- and finding -- stored items. However, customizing the height, width, color, j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e “5S, which includes 5 “pillars” of workplace organization (sort, set in order, shine, standardize and sustain), involves, in part, eliminating time wasted searching for, determining how to use and returning items.” number and layout of drawers trumps standard shelving as a more organized method of storing and retrieving parts. The unity of speed and efficiency in the storage and retrieval processes eliminates wasted time, excessive inventories and the hassles of searching for parts. With consolidation and space utilization becoming key trends in the automotive industry, dealerships are increasingly relying on more efficient storage with incorporation of lean methodologies such as 5S to create highly flexible production environments. While the future of the industry remains to be seen, companies that continually work to improve process and enable more timely operations best position themselves for success in the long-term. Tim Vaughan is the Vertical Market Manager for Vehicle Service Solutions at Stanley Black & Decker. He has over 17 years of experience in the automotive tools and equipment industry, working as consultant / designer on multiple dealership initiatives. Tim has been involved in the design and implementation of over 800 dealership projects, for both new and remodeled facilities. p. 79 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Breaking the Mold C o o k i e C u tt e r Ma n u f act u r e r ’ s Ma r k e t i n g i s K i l l i n g Y o u r S e r v i c e D e pa r t m e n t This headline might be a little strong but it’s the truth. Cookie cutter marketing (many times forced on you by the manufacturer) is really bad at getting customers into your Service Department. Unfortunately, it’s great at another thing: making your dealership blend in with every dealership in your area. (Which, as you know, is the kiss of death when it comes to effective marketing.) So Why is This Type of Marketing so Bad? • It’s untrackable. Not being able to track how a marketing effort is performing is almost as bad as not marketing at all. For all you know, you could just be blindly throwing money out the window and getting no real results. It’s shocking to me that, in an industry so driven by a “what-have-youdone-for-me-lately?” mentality, it’s possible for this type of marketing to fly. Even when there are OP codes involved, they are only as good as the Service Advisor typing them in. Many have common codes memorized and type them in on everything. This can give the appearance that a failing campaign is doing well or that a great campaign is failing. p. 80 B y J o n at h a n ( J B ) B e n j a m i n As if not knowing how your marketing is performing wasn’t bad enough, it gets worse. Not tracking your marketing prevents you from being able to test and measure new strategies. How can you improve if you have no idea of what’s working and what isn’t? This mistake could be costing your Service Department six figures a year -- or even more. • It doesn’t differentiate your dealership. A huge problem with manufacturer’s marketing is that it’s cookie cutter, one-sizefits-all, boilerplate -- however you want to put it. The point is, with that type of marketing, your dealership is going to look exactly like every single other dealership that services your brand. Well, how is a customer supposed to notice you when you’re offering the exact same thing (in the exact same way) that every other dealership is offering? Getting their business becomes a crapshoot at that point. That’s no way to run your marketing. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e facturer, their whole business model revolves around marketing successfully. To be frank, manufacturers bank on you taking the easy route and opting into their marketing programs simply because it’s profitable for them. Think about it: they’re force-feeding their entire distribution network the same canned material over and over. It has to make them a mint, all while leaving you twisting in the wind. “A huge problem with manufacturer’s marketing is that it’s cookie cutter, one-size-fits-all, boilerplate.” • It looks like junk mail. Quality marketing is key. Unfortunately, most, if not all, manufacturer’s marketing looks and feels like junk mail. This point dovetails with the last one: if it looks and feels like junk mail, it’s going to blend in with the junk mail and most likely not even be noticed. By producing unique quality marketing, not only will it stick out to your customers, but it’s going to stick around. What’s the Alternative to Manufacturer’s Marketing? Sticking with the status quo, cookie cutter or manufacturer-type marketing is harming your Service Department’s performance; there’s no question about that. It’s for this reason that many dealerships are seeking alternative methods for handling their marketing. Where are they finding these alternative methods and how do they know they will work? Independent auto marketing companies can only survive if they effectively make their client’s dealership stand out from the rest of the market. Unlike the manu- p. 81 What is the True Cost of Not Creating a Customer’s Buying Preference with Unique High-Quality Marketing? The answer to this question can vary greatly from dealership to dealership. The answer that holds true for every dealership is that the cost of missing the mark with marketing and losing out on potential Service customers (as well as retention) in today’s market far outweighs the investment costs of unique marketing from an independent auto marketing company. Is there risk stepping outside of your comfort zone and ditching the cookie cutter marketing? You bet there is, but there’s always risk involved with change. Ask yourself this: What’s riskier? Taking a chance on setting yourself apart from your competition in an effort to dominate your market? Or continuing to do the same stuff your competition is doing and praying that fate will smile upon your dealership and deliver greater profitability? The answer to that question should be clear. p. 82 “With geo-location whenever they’re near your dealership, customers can receive a push notification reminding them they have offers to use with your Service Department.” How Unique Marketing Leads to Market Domination • 100% Trackable - It’s important that you’re able to track the success of any marketing campaign so you can measure your results and make adjustments accordingly. I would suggest tracking that’s “pure”, like barcodes that are scanned at the point of sale. The more unique and targeted it is, the easier it will be to track your ROI and really hone your marketing to perfection. • High Quality Checkbooks or Coupons - When a customer receives a higher quality checkbook or coupon, it feels substantial; it feels like something worth keeping. It’s a lot more than a throwaway postcard. Not only that, but they’re more durable for good reason: you want your customers using these all year long. They need to be durable for that to happen. • Digital & Physical Checks - People forget things all the time, even substantial high-quality checkbooks for car service. It’s for this reason that pairing your marketing with technology is worth the cost and effort. It allows your customers to have all their checks in digital format on their smartphone. As people rarely forget their phone, this eliminates most situations in which your customer might skip an intended Service because they left a discount offer at home. “What is the true cost of not creating a customer’s buying preference with unique high-quality marketing?” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e • Automatic Push Notifications – In today’s world, this is hands-down the coolest feature you can add to your marketing arsenal. Not only can your customers have coupons loaded on their smartphone, but with geo-location whenever they’re near your dealership, they can receive a push notification reminding them they have offers to use with your Service Department. You really can’t market any more directly than that. Successful Dealerships are Proactive, not Reactive In this industry, your run-of-the-mill dealership is going to be very reactive -- reactive to sales trends and what their competition is doing. But that’s exactly what makes them run-of-the-mill and not a market leader. Where true success and market domination occurs is when dealerships decide to lead and not follow. Whether it’s with sales tactics, strategies or, most importantly, marketing. If you plan on just doing whatever it takes to keep up with your competition, that’s all you’ll ever be able to do -- follow. However, if you have the desire to not use your competition as a frame of reference for your success, you’ll find that by thinking outside the box. By implementing unique and personalized marketing, you’ll be leading the pack. The second you have your competition reacting to what you’re doing, that’s the moment you know you’ve become a leader in your market. And isn’t that the goal of every dealership? Jonathan (JB) Benjamin has worked in automotive marketing and customer retention for the past 11 years and is currently the CEO & Co-Founder of Brandon, Floridabased Pulse, a national automotive marketing company. Their unique marketing programs that help dealers gain market share, build revenue, increase Service retention and stand out, has earned them a 90+% retention rate with their dealer clients. p. 83 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Educating the Next Generation T a k e a n A ct i v e R o l l i n Ma k i n g a n “ I m pact ” o n L o ca l C o l l i s i o n S ch o o l P r o g r a m s T h i s Fa l l In a few short weeks, high school and college collision school instructors will begin their fall semester and work towards providing the best technical education possible for their students -- the future repair industry professionals. While some are very fortunate to have supportive administration, many lack proper / current tools, equipment and supplies due to limited program budgets. We’ve heard from the industry that an entry-level collision repair Technician produces roughly $50,000 per month in additional revenue for a dealership. If this is true, how much are you losing each month or each year due to the number of unfulfilled entrylevel collision staffing opportunities now -and how many will be unfulfilled in the near future with your current staff approaching retirement? Instead of waiting until a time of crisis with not enough entry-level staff to keep up with the work, now more than ever is a great time to get connected with local schools and their collision instructors and students. p. 84 By Brandon Eckenrode The Collision Repair Education Foundation is looking to help dealerships across the country that are interested in taking an active role in helping local high school and college collision school programs. “Help” that dealerships can consider includes: Scrap Parts Donation j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e “The Collision Repair Education Foundation is looking to help dealerships across the country that are interested in taking an active role.” The fenders, hoods, door skins and bumper covers that your dealership is currently scrapping are perfect donations to local schools and provide the students currentmodel vehicle parts on which to practice. Many collision instructors currently resort to ‘dumpster diving’ and rummage through dealership’s garbage. However, we have the opportunity to work together in bringing some professionalism around this process of introducing an instructor to your dealership and arranging for a time to have them pick the items up from you. Collision Student Safety Kit Sponsorship Through a $50 per student sponsorship amount, dealerships can provide local collision students with safety kits that include: work shirt, work pants, a pair of safety glasses, earplugs and a disposable dust mask. If a dealership sponsors at least 100 collision student safety kits, we would add the dealerships logo to the shirts and these students would not only look professional in their school but each would also be a walking billboard for the dealership. Hosting Collision School Program For many high school and college collision students, their outside industry exposure is only through stories they hear from their instructor as they don’t get the opportunity to see a live working shop area within a dealership. By taking the time to welcome a local school to your dealership and introducing them to your staff members that can describe their day-to-day duties, this can help to showcase the real working world. p. 85 MAKE “BACK TO SCHOOL” SAFER & MORE PROFESSIONAL THIS FALL! For only $50 you can sponsor a Safety Kit for a local student Safety Glasses Ear Plugs Dust Mask Shirt Pants Contact us about sponsoring collision safety kits for students in your state. Info@ed-foundation.org “The fenders, hoods, door skins and bumper covers that your dealership is currently scrapping are perfect donations to local schools and provide the students current-model vehicle parts on which to practice.” Used Equipment Donation If your dealership is replacing any type of collision repair related tools, equipment and / or supplies, please consider donating the old items to local collision school programs as many would be able to utilize these within their programs. Limited collision budgets allow for instructors to purchase only the essentials for a collision program and your donation of used equipment could help make a collision instructor’s year! p. 86 “By taking the time to welcome a local school to your dealership and introducing them to your staff members that can describe their day-to-day duties, this can help to showcase the real working world.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e About the CREF As the Collision Repair Education Foundation is a national 501c3 charitable organization, any support and / or donation to a local collision school program is tax-deductible through our organization. We have gone from providing $300,000 in support to high school and college collision school programs in 2009 to over $35 million since then and that has been done only through our generous donors. If your dealership is interested in working together with the Collision Repair Education Foundation, being connected with a local collision school program and starting to get involved with their students, please contact us at: info@ ed-foundation.org or call 847-463-5244. You can also visit us online at CollisionEducationFoundation.org Brandon Eckenrode is the Director of Development for the Collision Repair Education Foundation, the 501c3 charitable organization that provides support to high school and post-secondary collision school programs, instructors and students nationwide. Brandon has worked within the collision industry for nearly 15 years, formerly with I-CAR, the international non-profit repair training organization. You can reach him at Brandon. Eckenrode@ed-foundation.org or 847463-5244 p. 87 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e The Safety Recall Mess B e P r e pa r e d B y R o ss M a c d o n a l d Last year’s record 63.9 million vehicles affected by NHTSA-issued safety recalls have made it abundantly clear that auto manufacturing defects will remain a significant issue, resulting in continued safety risk for vehicle drivers, and increased risk and cost for dealers. 2014’s safety recall numbers average out to 175,000 vehicles affected every day and represent more than 25% of all U.S. registered vehicles. In a recent Bloomberg.com story, NHTSA’s Chief Administrator, Mark Rosekind, indicated that he expects 2015 safety recall numbers will remain at, or above last year’s numbers. “We’ll probably see an increase in recalls again in 2015,” said Rosekind. He went on to say, “This was the year of the recall, right? Put your seat belt on, folks.” p. 88 Legislation Is Heating Up While franchised dealers cannot legally sell new vehicles with open safety recalls, they aren’t prohibited from selling pre-owned units with open safety recalls. They’re also not required to repair open recalls affecting their on- and off-brand used inventory, or to even notify customers of recalls affecting them. Yet prime-time national safety recall stories, watched by millions, usually target dealers with hidden cameras and undercover tactics to try and expose them selling new or used vehicles with open recalls. Dealers are also being named more frequently as defendants and paying compensation to plaintiffs in personal injury lawsuits stemming from accidents related to recalls. Consumer safety groups are promoting stiff penalties and even jail time for any dealer knowingly selling vehicles with open recalls. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e “Dealers are also being named more frequently as defendants and paying compensation to plaintiffs in personal injury lawsuits stemming from accidents related to recalls.” Legislative initiatives around the safety recall issue are heating up due to the high visibility that recalls have been receiving. 2014 yielded the following proposed federal legislation: 1) The Hide No Harm Act of 2014 (Sen. Richard Blumenthal, CT) -- Would make it a crime, punishable by fines and up to five years in prison, for a corporate officer to knowingly conceal the fact that a corporate action or product poses a danger of death or serious physical injury. 2) Motor Vehicle and Highway Safety Enhancement Act (Sen. Claire McCaskill, MO) -- Would double funding for NHTSA’s vehicle safety operations over 6 years, raises or eliminates caps on fines, gives prosecutors more freedom to pursue criminal charges against safety law violators. 3) Whistle-Blower Bill (Sen. John Thune, SD) – Would provide cash incentives to encourage industry employees to alert officials about faulty products. State and even municipal governments are trying to enact laws to limit the sale of used vehicles with open safety recalls. New York City’s Consumer Affairs Dept. subpoenaed 200 New York auto dealers last year in an attempt to force auto retailers to repair open recalls before selling, and in California, the state dealer association, (CNCDA) has recently proposed their own legislation in an attempt to stay ahead of the state’s efforts to bring legislation that they feel would be biased and detrimental to their dealers. p. 89 “Commit to making safety recall management part of your dealership’s culture to know the safety recall status of every vehicle in your inventory — every day!” The Takata airbag recall has also led to lawsuits brought against dealers as well as the OEMs, and a dealer in California was sued (and eventually sold his Lexus dealership) after the tragic death of a family caused by a jammed accelerator pedal that led to Toyota recalling millions of vehicles. And to top it off, personal injury attorneys across the country are now using Takata airbag incidents to solicit new clients in their marketing. Are you feeling discouraged yet? Wait -- It gets worse. lic, powers their consumer-facing recall lookup and their year / make mobile alert initiatives at www.SaferCar.gov. Unfortunately, NHTSA’s year / make / model / style safety recall data contains significant errors (up to 30%) in attributing safety recall ID numbers to the correct vehicles. Safety Recall Data Errors No single-source, all-OEM, VIN-specific, real-time safety recall database exists. Safety recall data is held by two groups: the collective vehicle manufacturers and by the government agency charged with vehicle safety and the issuing and management of vehicle safety recalls – The Department of Transportation’s National Highway Traffic Safety Administration (NHTSA). NHTSA recall data errors result in consumers receiving false-positive recall results, or worse, not being notified about real safety recalls affecting their vehicles. NHTSA’s SaferCar.gov mobile alert functionality is limited to year and make matches that result in a steady barrage of positive recall alerts for models consumers don’t even own. Alternately, consumers and dealers can manually check every vehicle, every day, for safety recalls that can be issued by NHTSA at any time. NHTSA’s year / make / model / style safety recall database, mandated by Congress last year to be made available to the pub- These safety recall data errors beg the question: Given the potential danger to consumers and risk for dealers, is 70-80% p. 90 These errors include safety recalls tied to erroneous years, wrong models, wrong manufacturers and multiple models affected but not called out and -- in some cases -- missing altogether. accurate safety recall data good enough for consumer safety and dealer liability risk? Safety Recall Timing Issues The OEMs are the true keepers of the actual recall repair status. In addition to NHTSA’s recall data errors, there are numerous timing issues with reporting, publishing and communicating safety recall data between NHTSA and the OEMs, NHTSA and consumers, OEMs to consumers and finally, between the OEMs and their franchised dealer body. Consider: 1) NHTSA can publish safety recall ID numbers to their consumer-facing website before the OEMs, creating a lag in posting the recall-repaired, or recall-open status to their own VIN check websites, or when making information available to their franchised dealer body through their internal communications systems. 2) NHTSA can also lag behind the OEMs in posting the NHTSA-generated recall ID number and description details. 3) NHTSA can completely fail to publish their safety recalls to their own recall database. 4) OEMs can publish a safety recall before NHTSA has even assigned an ID number to the recall. 5) OEMs can know the NHTSA safety recall ID number and publish it on their consumer and dealer-facing websites before NHTSA has actually entered it into their consumer recall website (SaferCar.gov). 6) OEMs can miss-identify safety recall ID numbers in their VIN-specific safety recall data, causing confusion for consumers. 7) It’s even possible for the OEM and SaferCar.gov to not recognize a real VIN as a valid VIN. The graphic on page 90 illustrates just how complex the safety recall data flow and accuracy issues really are, and gives insight as to why it’s so difficult for dealers to implement effective recall management. Franchised dealers are caught in the middle between their manufacturers and the public – yet the media and opportunistic attorneys target them as responsible for the recall problem when they don’t make defective products and the entire process (other than reporting to their OEM when a recall has been repaired) is completely out of their control! Dealers that attempt to navigate through this safety recall morass have an extremely difficult time. They’re faced with a recall landscape that changes daily, if not hourly. They’re forced to accept NHTSA and OEM data that can have numerous and significant attribution, communication and timing errors. And they must spend significant resources to manually check every VIN, every day, with safety recall data that’s less than completely accurate. j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e going to be errors and timing issues that will affect the accuracy. Even your internal OEM communication system can’t be relied upon for 100% accurate recall status. Repair all on-brand pre-owned units and develop reciprocal relationships with other franchised dealers in your market area to get your off-brand vehicles repaired. for the OEMs to reduce their vehicle defect rates. But until that becomes a reality, safety recall issues will remain high for consumers and for auto retailers for the foreseeable future. Finally, do it every day. The huge number of recalls issued these days makes it imperative to check every vehicle, every day. It’s not enough to check for recalls when you onboard and it might kill a sale if you wait until a customer is sitting in the finance office to know that there is an open safety recall on the vehicle they just fell in love with. Today’s safety recall risk makes this a dealership-sized problem and doing nothing and hoping nothing bad happens is not a strategy. Clearly, the best alternative is Ross Macdonald has more than 20 years of automotive software, data and configuration technology experience developing innovative and value-driven solutions for the franchised dealer market. In his current role as CMO for Beaverton, Oregon-based AutoAp, Inc., he leads marketing efforts for this automation-focused software development company providing innovative, patents-pending solutions for dealerships and consumers, including their recently launched Dynamic Recall Management SM service that checks 100% of a dealer’s new and used on- and off-brand inventory everyday against their best-in-class safety recall data, reducing dealers’ safety recall risk and giving them a cost effective, easyto-use solution to help them avoid selling vehicles with open safety recalls. INCREASE YOUR FIXED OPS SALES & PROFITS What Can You Do To Get On Top Of Safety Recall Management At Your Dealership? First, commit to making it part of your dealership’s culture to know the safety recall status of every vehicle in your inventory -- every day! Next, get recall data from both the OEMs and from NHTSA. Accept that there are still Protex is Bardahl’s professional line of fluid maintenance products that provide fast, efficient and technician-friendly services. Our program includes POS marketing materials, service adviser training and a consumer protection plan. Let us show you how we can increase your Fixed Ops sales and enhance your profits. www.protexbybardahl.com Distributor Territories Available Everything Around the World Runs Better with Bardahl™ p. 91 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e The Quick Oil Change A L o ss L e a d e r D e s i g n e d F o r O w n e r R e t e n t i o n In a for-profit business you strive to be profitable in every job you do. Some jobs are profitable on their own while others are designed to make profit and keep the customer for the long run and therefore gain the larger, more profitable jobs. In fishing we call that “chumming the water” -throwing out bait (a loss leader) to attract the fish (a profit when the fish are caught). As you will be able to see from the following calculations, a basic lube, oil change and filter change is normally a loss leader. Even though this is a loss, it keeps the customers coming back for the longer-term maintenance and repair work. It also keeps them coming back to repeat the new or used vehicle buying cycle. (Purchase a vehicle / maintain and repair the vehicle during the ownership cycle / purchase the next vehicle from your dealership.) We must keep the customer in this maintenance and repair cycle if we expect to get the long-term additional and more profitable maintenance and repair work. This expanded work comes in the 15k, 30k, 45k, 60k, etc. mileage vehicles. Your oil change process should be evaluated for lost steps, wasted manpower and time-consuming trips to get to the vehicle and to the Parts Department for supplies. p. 92 By Eugene (Gene) White You must also evaluate your Service Advisors’ repair order (RO) documentation and presentation of needed services -- the job we pay them to do. The following is a current example of the profit resultant using the flat rate time method and the elapsed time method of labor calculations. These times were determined after a short time study and years of experience. Note that the dealership in this example did not have a pit and utilized an above-ground lift and two men per RO. Using a pit with two Techs on the floor and one in the pit serving both stalls, as most quick lube businesses do, significantly changes this argument. Thus the 1.5 Tech calculation. An Example of Labor Costs and Respective Labor Profits No. Techs assigned to the RO 1.0 1.5 2.0 Flat Rate Hours flagged 0.30 0.30 0.30 Elapsed time (time study) 0.50 0.33 0.25 Labor Cost based on flat rate hours $3.00 $3.00 $3.00 Labor cost based on elapsed time $5.00 $7.50 $10.00 Labor dollars sold on the RO $10.00 $10.00 $10.00 Profit based on flat rate hours $7.00 $7.00 $7.00 Profit based on elapsed time $5.00$2.50 $0.00 These calculations do not include the average Service Department cost to write, manage and process each repair order. For this example, the actual cost at the Dealership was in excess of $50.00 for each RO written. You will make some profit in the Parts Department but this also carries additional overhead costs to process. Overhead Cost Per R.O. Written and Stall Cost Per Day Overhead cost per repair order and stall cost per day are critical calculations. This is basic management information needed for profit evaluations. This information, plus your effective labor rate and real cost of labor, are necessary if you are to understand the “how to” and the “why to” of improving the overall Service Department profit structure, especially quick oil changes. Games played here will keep you in the dark on what needs to change to become more profitable in the future. What’s your average overhead cost per repair order? Divide your total Service Department overhead costs (personnel, semi-fixed and fixed) by the total number of repair orders written. This calculation gives you the overhead burden just to write and process one repair order. I normally find this number to be in the $50.00-plus range. What’s your average overhead cost per stall, per day? Divide your total Service Department overhead costs as outlined above by the number of stalls in your Service Department. It’s not unusual for this cost to be between $150.00 and $200.00 per day. Your Fixed Operations profit structure must be continuously monitored and compared to current benchmarks. It’s been noted and stated many times that the majority of profit at dealerships today is generated in Fixed Operations. I’m always appalled that dealerships accept 100% market penetration for new vehicles sold and only 30% to 35% market penetration in the Service and Body Shop Departments. (The Parts Department volume and respective profit is a result of this market share that you attain.) The franchised dealer body created this market in the first place. They had the customer as a captive audience. We already get 100% of the warranty work and 100% of the problem vehicles. So what type work are we missing? Why give up that work without a whimper? Accounting for Flat Rate Hours and Effective Labor Rates Lube Technicians must be fully accounted for using ”flag time.” They should be expensed in “cost of labor” -- NOT in “other salaries and wages”. Lube Technicians must be flagged at least 0.3 flat rate hours or 0.15 each if two work on the same repair order. Another technique is to flag one 0.3 one time and the second 0.3 on the next job. Maintaining equality with this last option is somewhat of a chore. If this accountability process is not done, your effective labor rate and flat rate hours per j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e repair order are in error. I’m aware that two technicians cannot work on warranty jobs. Without a pit, it normally takes from 18 to 28 minutes of labor to get the vehicle, get the parts, accomplish the oil change and return the vehicle to the parking area. Keep in mind that when two people are assigned to the job, the man minutes used are double the elapsed time. “We must keep the customer in this maintenance and repair cycle if we expect to get the long-term additional and more profitable maintenance and repair work.” I often hear that there’s nothing to sell on today’s vehicles. This is an interesting comment when you consider a used vehicle turned over to the Service Department to prepare for resale will normally come back to the Used Vehicle Manager with a high dollar estimate for repairs -- same vehicles, same dealership, same labor rates and same parts pricing. Low hanging fruit? The following are maintenance services that, when needed, should always be recommended to your customers and their response documented on the RO, either “sale” or “no sale”: - Replacing engine air filter Replacing gas cap (emissions) Replacing cabin air filter Testing and replacing radiator cap Replacing fuel filters Replacing belts WW blades Headlight restoration Light bulbs Testing and replacing battery Radiator flushing Brake fluid change AC services Power steering fluid change Tire rotation Replacing brake pads Struts and shocks Detailing Spark plugs Timing belt Do not oversell. No one wants to be nickeled and dimed! This will drive away business. Again, document on the R.O. when needed services are offered and denied, especially safety items. Always recommend necessary maintenance and especially understand the reason for and source of each service needed and suggested. Educate your Service Advisors on the technical reason for each maintenance service. Educate your customers on preserving their investment in their vehicle and its reliability. Finally, strive for increased market share! E. Eugene (Gene) White, BSIT/SAE/IIE, is President of Gene White Management, Inc. in Hoover, AL. He is a recognized Fixed Operations expert and has performed in-dealership evaluations and training (automotive, heavy-duty trucks, recreational vehicles and marine) for the past 35 years. He has had 69 “expert” level articles published and has conducted convention workshops for NADA, ATD, FADA, NACE, WD & S, accounting CPAs and multiple State Associations and 20 Groups. He has been certified as a world class Technician by ASE, certified Automotive, Body and Paint, and HD truck Technician. p. 93 Featu r e J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Growing Your Own T h e B e n e f i ts o f D e v e l o p i n g Y o u r O w n T e ch n i c i a n s Although it’s my great hope that you have few days like the one that I’m going to recount, I doubt that many of you can say that you haven’t had more days like this than you’d like. I call this brief story “A Day in the Life of a Service Manager”: As I was walking through the shop Monday morning, my eyes caught one of my top, young Technicians who seemed more anxious than usual to seek me out. I walked up to him and asked, ‘How’s it going?’ His reply was an unexpected one. “Boss, we need to talk. You know, I’ve been really happy here for a long time and I appreciate all that you’ve done for me … but I’ve decided it’s time to move on. My mind is made up. I’ve already found a new job and made a promise to go. Please accept this as my two week notice.” Dumbstruck by this surprising news, I returned to my office. Surely, I intend to try to talk him out of leaving. I can’t afford to lose a good tech like him. But what if he really is set on leaving? What am I going to do? I need his production. I’d better get scrambling to get the word out to find a replacement. After talking to him one-on-one and confirming that he was set on his decision it was time to leap into action. I ran ads on the web, in the local papers, put the word out to my other Techs that I would pay a finder’s fee if they could refer a past coworker or friend. I scoured the bushes for candidates. We needed somebody good … and we needed someone NOW! After two weeks of trying, the pool of applicants was pretty thin in spite of our efforts. There were some applications that looked p. 94 By Andrew Rezin Reducing the Skills Gap: The KNOWLEDGE GAP: Students are prepared to enter the workforce and be productive High School College The KNOWLEDGE GAP High School Senior Experience Gap Employment Eliminated College Employment Employment like a ‘who’s who’ of local auto shops … with a listing of 6 to 10 past shops … and every job change was due to ‘a misunderstanding with the boss’. There were some applicants with some experience … but no factory training or ASE certifications. It would take a lot of time and money to get one of them up to speed! Then, there it was! The applicant that seemed too good to be true. Ten years of experience, ASE master and L1 certified, factory master training. Wow! But then when I spoke to him I realized ‘the rest of the story’. He was shopping the market (again) to see if we’d outbid his current employer and everyone else in town. He wanted $4 more per flat rate hour than our top tech -- and wanted a 40-hour guarantee to boot! All too often the result that we encounter when we have an unexpected need for a new Tech and have to hit the open market is a bad one. Whether it’s inheriting someone else’s headache, getting a high skilled but under-motivated tech, or simply paying too much, the results of the ‘emergency search’ are rarely pleasant. Have you ever experienced anything like this? Did you think to yourself that ‘there has got to be a better way? If you could ‘have it your way’ what would you wish for? • Some local talent ready and waiting to fill the void? • Someone that you know and who knows your organization? • Someone young, energetic and willing and able to grow? • Someone that’s affordable? Although it seems like a pipedream, it is not an unreasonable request. That’s exactly what you could and should expect. Take your lead from the practice that’s followed by all of the professional sports teams in the U.S. and around the globe. No matter what sport or what location you look at, you will find that their solution to meeting unexpected and immediate staffing needs is not to go to the open market and pay too much to receive too little. They turn to their farm system to identify the young talent that’s chomping at the bit to have the opportunity to get into the big leagues! By having a farm system, sports teams have built the means to grow their own, nurture them, observe them and teach them to play the game the way that they want it played. Isn’t that exactly what you wish that you could do when put in a similar situation? You can! Ready to get started? The ‘farm system’ that you are looking to build is very likely right in your back yard. It’s the public high school or career center automotive program in your community. It’s also the public community or technical college program in your area. The combination of the two can provide you with access to the candidates that you long for … but there is a price. The students from the local career center or community college have a solid foundation in automotive theory. They have had a good introduction to the knowledge and skills needed to succeed in a career in auto repair. They are eager, enthusiastic, willing to learn and affordable. They are not, however, a finished product. They are a golden opportunity to make a small investment in time in money that can yield large longterm rewards. Who is better qualified to help polish these ‘diamonds in the rough’ than you? Getting involved can be done at many levels. How involved you get and how big a return you receive depends upon you. You can choose the level of involvement that fits your organization best. Here are some of the best ways to invest a little bit of your time and effort that will have the greatest rewards in building a relationship with these local schools: j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e You can choose the level of involvement that fits your organization best A.A. Rezin © 2015 Registered Apprenticeships Structured Cooperative Education Internships & Practicums Traditional Co-op Career Exploration Traditional Education NO INDUSTRY INVOLVEMENT The more you are involved, the more you can affect who they recruit, what they teach and how well their graduates are prepared to become successful Technicians in your organization. You can even have direct impact in assuring that the program is being efficiently run and properly funded so that they have the resources needed to teach 21st century technologies that your future Technicians will need. Your time investment need not be a major one. You can choose the level of involvement that fits your organization best. But there’s strong evidence that shows that the greater future employers are involved in the education and development of future Techs, the more likely those students are to succeed in the auto repair industry and stay in the industry as your employees. The direct benefits of intentionally building and investing in your future workforce are great. It’s the most cost-effective way for you to build for the future. By offering shadowing, internship and paid cooperative work placement opportunities, you can ‘test drive’ your prospective new HIGH INDUSTRY INVOLVEMENT employees. You can have your best Technicians take them under their wing and help them to polish their skills and learn to do it ‘the right way’. By the time they graduate and are eligible to become full-time employees, you will have built a strong relationship that will go a long way towards assuring employee loyalty. Will things be the same in your shop the next time that you unexpectedly lose a Tech? I certainly hope not. You can become part of the solution to the Technician shortage in your shop by building a pipeline to your future. Even more exciting, by building a farm system and getting involved with your local educational partners YOU can be 1st in line to reap the benefits! It is a win – win – win! Andy Rezin is an educator, author, consultant, and industry-experienced advocate for automotive technical education. His 20-year career in the private sector combined management positions at Chrysler Corporation and several large Midwest dealer groups and served as the inspiration for his textbook, “Automotive Service Management: Principles into Practice”, published by Pearson. He currently chairs a statewide committee for the Ohio Board of Regents on apprenticeship partnerships and serves on the Board of Directors of Clean Fuels Ohio and the advisory committees for several local and state career and technical education agencies. p. 95 SERV I C E D E PT. J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e What’s a Service Advisor Worth? Many years ago I got my start in the auto industry as a Service Advisor. At the time, I had just been discharged from the Army after returning from Viet Nam, had no experience, no technical skills and absolutely no training. Fortunately for me, I had a Master Technician who took me under his wing and taught me how to write a proper repair order and how to ask the customer investigative questions that would enable me to effectively communicate the customers’ concerns to him and the other Technicians. It really was a lot of fun and I learned many processes that I’m still using and training others to use throughout the auto industry. As a result of that experience, I have come to have a high regard for the position of Service Advisor and I firmly believe it remains as one of the single most important positions in the dealership today for those dealers who want to thrive in the long-term with high CSI and ever increasing owner retention goals. I fully understand that the salesperson must sell the customer their first vehicle but can we agree that the Service Advisor is the one responsible for bringing them back again and again for all of their future vehicle needs? So that brings me to my question: “What is a Service Advisor Worth?” The following information is based on NADA guides: p. 96 By Don Reed • Assume an Advisor is writing 12 RO’s per day (8 CP and 4 Warranty) • Average HPRO = 1.5 • Average Gross Profit produced per day = $1,637.00 (Parts and Labor) • Average Gross Profit produced per month = $36,016.00 • Average Gross Profit produced per year = $432,194.00 NADA also shows that the average dealer last year grossed an average of $1,190.00 per new vehicle retailed on a selling price of $32,335.00 with a margin of 3.68%. The analogy here is that the average Service Advisor produced the same amount of gross profit for the dealer as a Salesperson who sold 363 new units ($432,194.00/$1,190.00 = 363) for the year or 30 per month! How would your Owners and General Managers respond to a salesperson selling 30 units per month EVERY MONTH? Chances are that person would get all the support they needed to continue to be so successful. Think about this: “How many employees in your dealership are producing $432,194.00 a year in gross profit? Now, let’s continue on with this logic and answer these questions: 1. Who handles the most incoming calls per day — Salesperson or Advisor? 2. Who meets and greets the most Sales Opportunities per day — Salesperson or Advisor? 3. Who has the greatest impact on Owner Retention — Salesperson or Advisor? 4. Who has the greatest impact on Brand Loyalty — Salesperson or Advisor? 5. Who needs telephone training to increase appointments — Salesperson or Advisor? 6. Who needs Sales Training — Salesperson or Advisor? The answer to questions 1, 2, 3, and 4 is the Service Advisor, in my opinion, and the answer to questions 5 and 6 is BOTH the Salesperson and the Advisor. “If you find that one Advisor is outperforming another by .3 HPRO or more then have a one-on-one with your underachieving Advisor.” j u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e tion becomes: “What is the cost of an untrained Advisor?” Simply reverse the math above and instantly you can see that an Advisor performing at 1.2 versus 1.5 is costing you about $64,000.00 per year per Advisor in lost gross profit which, of course, becomes a net profit opportunity loss! Again, with four Advisors you’re losing about $256,000.00 a year for their below-average performance in advising their customers how to properly maintain their vehicles. That equates to losing about 215 new unit sales per year. How does this make any sense to anyone who wants to increase net profits and get a reasonable return on investment for the dealer? Look at your last months’ financial statement (assuming you have access to one) or at the very least your DMS report and make the above calculation for your Service Advisors, individually. If you find that one Advisor is outperforming another by .3 HPRO or more then have a one-on-one with your underachieving Advisor and ask this one word question: “Why?” Let them explain to you why they are an underachiever. Next ask them: “What are you going to do differently starting today?” You’ve probably heard the old saying “there are only two reasons why people fail — they don’t know how or they don’t want to do what it takes to become a top performer! Next, let’s determine if it’s worth the money to train your Advisors how to improve their performance. My experience shows that, time and time again, when an Advisor who’s averaging 1.5 HPRO is properly trained on how to put their customers FIRST throughout their daily activities, they will, in fact, increase their productivity by no less than .3 HPRO. Based on the same assumptions I used previously you now have produced additional gross profit of $5,331.00 per month on sales of $8,644.00 with a margin of 62%. If you’re currently managing a profitable Service and Parts operation this additional .3 HPRO sends about $64,000.00 straight to your bottom line, less whatever compensation you paid the Advisor for their efforts. If you have four Advisors, that equates to about an additional $256,000.00 in net profit and is the equivalent of selling about another 215 new units! HELLO? On the flip side is a much more commonplace scenario that I see across our industry where the Service Advisor is not performing at 1.5 HPRO and is dwelling in the land of 1.2 or less. Now the ques- If your Advisors don’t know how to change to do what it takes to improve, then that’s your fault BUT if they don’t want to, then do yourself a big favor and hit the eject button and replace them NOW with someone who wants to be a top performing Advisor. As Mac Anderson says in his book, You Can’t Send a Duck to Eagle School! Stop trying to manage ducks and go recruit some eagles! After 26 years in the automobile business as a Dealer, GM, Sales Manager, Service Manager, Service Advisor and Salesperson, Don Reed decided to start to a new career as a Consultant and Trainer, “turning around” dealerships that were in need of building their profits. As CEO of DealerPro Training, he has worked with hundreds of dealerships and major dealer groups across the U.S., Canada and the United Kingdom to increase profits in Fixed Operations. He has been published in multiple industry magazines and has conducted workshops for NADA 20 Groups, state dealer associations, OEM’s and the RVDA Convention and has been rated a Top 10 Speaker at the NADA Convention for four consecutive years. p. 97 PA R TS D E PT. J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e GM Advances Real-Time Parts Pricing By Ted Fellowes GM Customer Care and Aftersales World Headquarters in Grand Blanc, Michigan MyPriceLink (MPL), GM’s new Parts listprice initiative, is the first exclusively realtime provisioning of Service Parts list prices by a vehicle manufacturer to its dealers and Parts buyers. GM expects -- and aftermarket Parts proponents fear -- that MPL will strengthen dealers’ Parts businesses. GM turned to its JV affiliate OEConnection to implement and manage MPL. MPL is an example of using systems to compete for Service Parts market share. Once GM successfully implements MPL, most automakers will follow suit (as they did with “conquest pricing”). The systems infrastructure inherent to online-only list price access enables a wide range of pricing and incentive programs. MPL may herald the most consequential innovations in automotive Service-Parts data/systems in years. New Pricing Approach. Real-time pricing (“dynamic pricing” to some in the industry) is a strategy in which businesses abandon published price lists in order to flexibly set prices based on current market factors. Beyond the automotive industry, the use of real-time pricing is growing. p. 98 OEM List Price Data. For a century, automakers published their Service Parts “list” prices on paper. In recent decades, OEMs licensed Parts price files to data aggregators and other intermediaries as well as directly to dealer and shop systems providers. Despite restrictions, OEMs’ proprietary Parts pricing information leaks into the pricing systems of alternate Parts suppliers. These competitors of automakers’ OE Parts generate prices for their alternative Parts by flexing off automakers’ list prices to: 1) win greater market share relative to genuine parts; and 2) avoid pricing “too” far below the OEM parts price. Motivations. Real-time list price access frees automakers from the costs of publishing list prices and licensing price files. Real-time access also eliminates the errors and costs of buyers using outdated prices. With MPL, GM will provide list prices reflecting the specifics of each transaction. (And online list price infrastructure enables automated incentives for direct buyers, indirect payers and channel partners). Forcing alternative Parts suppliers to price without access to OEM price data may undo advantages (in share and average margin) that alternative suppliers seek from using OEM list prices. List Price Access. ◊ MPL replaces publication of list prices for GM’s “collision” Parts (prices for other items will continue to be published) ◊ MPL will enter pilot testing with two Application Programming Interfaces(APIs): - CES API – for collision estimating systems (initially CCC, Mitchell International, Audatex) - DMS API – “Parts Invoice Generation” (leading DMS providers) ◊ PPS API “Order Fulfillment” – for parts procurement solutions (such as OPSTrax or CCI’s TRUE Parts Network) will be the third API GM’s Kris Mayer emphasizes two principles for MPL implementation: “First, ensure that GM owners have access to the right Parts information (both technical and pricing for their vehicle) at the critical point of the estimate being written without any workflow disruption, thus reducing supplements and improving cycle time for all involved. Impacts. Implementing live-list pricing will boost OE Parts market share while preserving revenue and margins. Systems providers will need to identify potential workflow disruptions (for example, Service pricing applications must adapt to an occasional missing price) and then – when appropriate – work with OEC to validate and then implement an API. GM Customer Care and Aftersales facility in Fort Worth, Texas Second, that those needing GM list prices be provided real-time access through MPL”. MPL requires users to identify a specific vehicle with each request, enabling GM to identify vehicle characteristics and (according to GM) provide real-time pricing aimed at making sure that each vehicle is repaired right the first time with the right parts, potentially avoiding a total loss or leakage to aftermarket parts. Dealer Workflows. As GM collision Parts list prices will no longer reside in dealer systems, dealers will obtain list prices from MPL either by directly accessing the MPL tab in OEC’s dealer portal (which will be provided at no charge) or indirectly by having their DMS send real-time inquiries to MPL. (DMS Access depends on API implementation by the DMS provider and dealer enrollment in OEC’s CollisionLink Plus). The dealer MPL application retrieves list price and previous “quote.” As MPL list price quotes will vary with market conditions, each quote is saved and later retrieved as appropriate. Shop Workflows. Shop estimating solutions will use an MPL API. As a shop user builds estimates, their collision estimating system sends requests to MPL – less all PPI (personal private information). OEC’s price engine then generates list prices for MPL. Because list prices are specific to each estimate, MPL saves each list price “quote.” Later, the shop’s estimating solution will retrieve previously-created quotes (as appropriate). Insurers will access GM list prices via either an estimating application or CollisionLinkInsurance, a website designed for this purpose. What MPL is Not. ◊ MPL does not change GM’s margins for dealer acquisition and sale of Service Parts ◊ MPL does not replace or eliminate GM’s conquest pricing program ◊ MPL does not set transaction prices (which remains between dealers and buyers) Timing. GM first announced MPL in November 2014 (at SEMA). The market reacted swiftly, asking GM to identify less disruptive, integrated implementation approaches. GM paused MPL and engaged with shop and dealer systems providers. During the hiatus, APIs were defined, shared with industry stakeholders and implemented. GM dealers will see a new MPL tab in their OEC portal in September 2015 and market tests of MyPriceLink commence in select cities this summer prior to MPLs official launch (likely in late 2015). Brad Desaulniers, a leading voice in the Parts procurement field, said, “Many aftermarket and recycled Parts suppliers must define and implement completely new pricing systems immediately. If aggressively implemented by GM, MPL could significantly reduce … late model alternative Parts sales and profitability.” DMS providers are implementing MPL’s DMS API though several have complained that “GM should provide list price data via the DMS in a seamless manner at no charge (or product purchase obligation) to the dealers.” Conclusion. ◊ Adoption of real-time pricing for spare Parts will spread to other automakers ◊ Aftermarket Parts suppliers will pursue real-time pricing ◊ GM will leverage capabilities inherent in MPL’s digital infrastructure to further boost OE Parts sales ◊ Real-time pricing will drive insurers, automakers and others into direct discussions ◊ Connected-vehicle and telematics, when added to the mix, will lead to further improvements of collision repair processes MPL is a single salvo in the back-andforth, healthy competition between Parttype supplier communities … and the push-and-pull between insurers, shops and Parts suppliers. 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. p. 99 BOD Y S H OP J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Collision Repairers Get Unique Benefits From Body Shop-Specific Performance Groups By Greg Eisenhardt The collision repair industry is evolving rapidly. Repairers are facing new challenges every single day: getting cars to the door, cycle time reduction demands, hiring and retaining qualified Technicians. These are all just a few elements that play a significant role in the health of a collision center. However, these issues didn’t just pop up within the last year. Vision Groups, also known as “Performance Groups” or “20-Groups,” were formed to provide solutions to the challenges that owners and managers of dealership and independent shops face every day. Most groups meet on a quarterly basis to share and discuss ideas, opportunities, business trends and strategic directions of their businesses. Some of the meeting topics include improving cycle times, hiring and retaining qualified employees, implementing ‘Lean’ processes, maximizing profitability, improving overall financial performance and determining when and how to add locations. The group’s members represent various levels of experience from some of the top collision centers in North America. They are selected based on performance measures and each member contributes during the meetings to strengthen the performance of the entire group. p. 100 Performance Groups focus on facilitating business success through teamwork, adaptability and innovation. For example, since the Sherwin-Williams program began in 2000, its members have grown their businesses significantly while overcoming a variety of challenges including new shop acquisitions, changes in vehicle technology and the evolving demands of today’s digital consumer. Designed to meet everyday productivity and profitability challenges of today’s dealer collision centers, Performance Groups have been well documented and are even somewhat prevalent in the independent Body Shop world, but what’s more unique are the few, special 20 Groups dedicated exclusively to the dealership Body Shop. According to Greg McVicker, Body Shop Manager at the Budd Bear Collision Center in Washington, Pa., “Our Dealer Collison Repair Performance Group has given me access to bright minds fighting the same fight I do every day. Jeff Diaz, Body Shop Manager, Gwatney Collision in Jacksonville, Ark., adds, “Our business is a reflection of everyone in our Dealer Performance Group with ideas and processes that enabled us to be at an advantage over our competitors. When you join our group you are joining a family that will not let you down. The resilience and persistent entrepreneurial spirit of participants, partnered with industry consulting expertise, produces an ideal environment for success and continuous improvement.” Having the chance to hear their solutions and feedback gives you a chance to solve challenges in your dealer facility with ideas that would be difficult to sometimes think up on your own.” our numbers together and ask questions on how someone is doing well in an area that we may be struggling with, and we also challenge each other to make changes and get better.” There’s definitely a difference in a dealer shop setting and that of an independent. Meeting with your peers can prove to be invigorating. For example, many standard Fixed Operations 20 groups, while certainly informative and beneficial to the dealerships’ overall bottom line, often focus on Parts and Service first. In the Dealer Collision Repairer Performance Groups, the focus is on how to make the Body Shop a sustainable profit center through process teachings and best practices. Also, unlike independent collision repair facilities, dealership shops have some disadvantages – obtaining management buy-in, sharing expenses, occasional ‘turf-wars’ between Sales / Service / Parts and the Body Shop, as well as the overall limited visibility to the true financials within the dealership. The result is that, with Dealership Collision Repairer Performance Groups, its members all share these exact same ‘challenges’ and their members work with each other to turn them into positives. It’s a fact that leading independent shops Performance Group members’ sales growth continually outpaces the growth of the industry, as well as maintaining solid net profit performance. Dealer Collision Center Performance Groups are equally successful. Plus, they have access to some of the industry’s leading business consultants to help contribute to their continual growth and profitability. Billy Coleman, Body Shop Manager of Gullo Ford in Conroe, Texas, says, “Our Dealer Performance Group gives managers a chance to network with people that understand what we go through to stay competitive and profitable. We can analyze Jay Barr, Fixed Ops Manager, Cross Creek Subaru Body Shop in Fayetteville, N.C., says, “I decided to join a Dealer Performance Group because it holds me accountable for positive results. Secondly, the group provides great interaction with top performers within the industry that are willing to help you utilize the data provided to make smart business decisions. The impact a group makes on an individual’s business can be unbelievable if one is willing to apply the information.” Dealer Performance Groups also share knowledge about the unique advantages they all have versus the independent shop – the strength of their dealership brand, the existing dealership customer base, and tapping into the shared resources (Accounting / Marketing / Finance) that the dealership already has in place. Within a collision repair dealer setting it’s often very difficult to continually come up with every idea necessary to take the collision repair business to the next level, especially year after year. Dealership Fixed Ops and Body Shop Managers need to continually look at things in a different way, so that they can adapt to the ever-changing business needs, driven by the everchanging customer that walks through their door every day. A performance group is made up of an exclusive group of dealer collision repair specialists who reflect the industry’s highest standards. They are part of a leading value-added program that combines comprehensive business solutions to help them improve customer service, employee growth, insurance relationships, process refinement, productivity and profitability. The opportunity to share with their peers – all overachievers who speak the same dealer collision repair center language – collectively combine to review financial performance, discuss process implementation, build marketing plans and better define their business goals and objectives. The result is a competitive edge when it comes to satisfying the needs of each and every customer arriving at a dealership. This lends to a very sustainable future as the consumer expectations continue to rapidly evolve. Greg Eisenhardt is the A-Plus Marketing Manager at Sherwin-Williams Automotive Finishes. Based at the company’s Warrensville Heights headquarters, he is responsible for helping North American independent and dealership collision centers achieve success through the teamwork, adaptability and innovation within the Vision Groups provided by Sherwin-Williams. p. 101 A D MI N I S TR ATI ON J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Developing An Advertising Strategy As the economy continues to improve, consumer spending and disposable income have grown, as well. This is great news for business all across the country and the auto industry is no exception. According to recent data from Motor Intelligence, the industry is showing a current year-to-date growth of 5.4 percent in vehicle sales over last year. Data from the Small Business Development Center has also forecasted a 1.2 percent growth for the auto repair industry through 2017 and anticipates that industry revenue will reach $54.7 billion by then, as well. stronger need for one over the other. Acquisition advertising media such as direct mail, TV and radio excel in building awareness for your brand and generating interest among consumers for your products and services. Search advertising, on the other hand, helps to ensure that consumers are able find your business when they are in need of a product or service, but have not decided on which business to visit. Most search advertising methods tend to consist of internet ads and online listings, but can also include traditional media such as newspapers, magazines and Yellow Pages. While industry growth is always great news, we know this usually means competition can be expected to grow too. On top of that, the post-recession buying habits of consumers have shown us that they are savvier than ever and prefer to shop around for the best deals they can find before making a purchase. With that in mind, now is the perfect time to evaluate your business and build a marketing campaign aimed at seizing the new growth opportunities around you. To help decide which type of advertising best meets your needs, it’s important to take an honest look at your business and the current situation in your market. Who are your biggest competitors? What are your strengths and weaknesses? What services does your business offer that your competitors don’t? These are all key questions that will help you outline an effective advertising strategy. You should also take note of the “convenience features” available at your business. If you offer shuttles or have a waiting room with free Wi-Fi and refreshments for your customers, remember that convenience can also be an important factor in their decision-making process. As an initial step, you should consider whether it makes sense to pursue Acquisition and Search advertising strategies at the same time, or if your business has a p. 102 By Mike Tinz “Without accountability for behavior change in the form of feedback or management support, training participants will rarely implement new skills or knowledge on the job.” The next crucial step is to gain a clear understanding of who your ideal customer is. Once you have a clear idea of who you want to target, you can start comparing the demographic and behavioral profiles of the consumers your local advertisers can reach. This will also help you decide which neighborhoods and communities are the best matches for your business. Once you’ve decided where to advertise and to whom you will be advertising, the next step is determining the offers and design for your ads. According to the DMA, 60 percent of a campaign’s success is dependent on the offer and creative. Essentially, this means that once a consumer sees your ad, the visual appeal and value of the offers are what will determine whether or not they choose to visit your business. On that note, let’s talk about some design tips: • Diversify your offers while avoiding clutter – It’s always a great idea to add in low-cost Service offers to get customers through the door, while including offers for higher ticket services, as well. Depending on the size of your ad, three to six offers can typically fit well without overcrowding an ad. • Use images that your customers can relate to – Some common, successful design elements usually include local landmarks and photos of friendly, approachable Technicians. It’s not uncommon for consumers to be wary of an unfamiliar business so be sure your ad welcomes them as if it were an invitation. • Feature strong offers – Low price oil changes and discounts for seasonal tune ups are great ways to bring in first-time customers and encourage regular repeat business. When offering discounts on higher ticket items, a percentage-off their total invoice or a specific dollar amount off with a minimum purchase may be more appealing than a flat, low-percentage offer. • Provide additional relevant information – If your dealership is new to the area or has new services available, your ad is your opportunity to tell people who you are and what you do. If you can service all makes and models, or offer complimentary services like shuttle services, car washes or overnight drop-offs, be sure to mention them! Now that your audience, offer and creative have all been decided, there’s another often-overlooked element to consider: How often will you be reaching out to your targeted consumers? Repetition is a key component of advertising and many people tend to underestimate its importance. Continuity makes a difference. Once consumers have started to receive your offers, maintaining a consistent frequency will keep your business at the forefront of their minds and will help to build additional response over time. Remember -- when consumers receive your ads, they may not have the immediate need for your service but when an offer catches their attention, they make a point to save it until they need it. Consistent frequency also ensures that the save-it-for-later consumers always have a fresh offer with a valid expiration available. Last but certainly not least, as your new customers redeem your offers, make a point to track which offers are the most successful and use that information to adjust discounts on the services to which you want to draw more attention. Be sure to keep in mind that when a customer makes the decision to visit your business, making the sale will be an obvious goal, but it’s also important to take the opportunity to exceed their expectations. At this point, your advertising has achieved your goal of attracting new customers, and now you have the opportunity to gain their loyalty and earn their repeat business as well. Mike Tinz is Vice President of Sales & Training at Money Mailer and has over 20 years experience within the direct marketing industry. Prior to joining Money Mailer in 2012, Tinz held positions as ValPak’s VP of Sales and has also managed sales teams in territories across the country. Money Mailer, a leader in the U.S. direct marketing industry, has been certified as a WorldClass Franchise by the Franchise Research Institute and is Entrepreneur Magazine’s #1 Business Services/Advertising Services franchise for 2015. Money Mailer delivers hyperlocal savings to consumers through shared mail, mobile, online and social media and helps businesses affordably and accurately reach these consumers. p. 103 P R I C I N G S U R VEY J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e THIS ISSUE: Tires and Alignment Orange CA 2011 Taurus SE, Sedan, 3.5L, V6 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 Tire Rotation Tire Rotation & Balance Front Wheel Alignment Four Wheel Alignment Tire Patch/Repair Tire Rotation Tire Rotation & Balance Front Wheel Alignment Four Wheel Alignment Tire Patch/Repair Tire Rotation Tire Rotation & Balance Front Wheel Alignment Four Wheel Alignment Tire Patch/Repair Tire Rotation Tire Rotation & Balance Front Wheel Alignment Four Wheel Alignment Tire Patch/Repair $10.00 $75.00 $20.00 $68.00 $19.99 $24.99 $9.95 $59.95 $21.95 $61.95 Kansas City KS 2013 Camry LE, Sedan, 2.5L in-line 4 $22.00 $22.00 $20.00 $29.95 $29.99 Hunterdon NJ 2009 Chevy Equinox, 3.4L, V6 $40.00 $53.00 $59.96 $59.95 $49.99 $16.00 $55.96 $20.00 $67.80 $20.00 $60.00 $19.99 $79.95 $21.00 $59.95 Knoxville TN 2012 Honda CRV EX, SUV, 2.4 i-VTEC in-line 4 **They do not offer Front Wheel Alignments. $10.00 $15.99 $15.00 $15.95 $24.99 $47.96 $51.96 $62.00 $30.00 $59.95 $85.00 NA** $89.99 $89.95 $129.95 $84.99 $84.99 $84.99 $99.95 $224.95 $89.99 $74.99 NA** NA** NA** NA** NA** $84.99 NA** NA** $85.00 $89.00 $89.99 $89.95 $129.95 $84.99 $84.99 $84.99 $99.95 $224.95 $89.95 $74.95 $84.99 $89.95 $89.95 $84.99 $79.99 $84.99 $89.95 $89.95 $28.99 $25.00 $24.99 $25.00 $31.95 $28.00 $19.99 $24.99 $25.00 $20.00 $16.00 $32.00 $20.00 $19.95 $39.95 $19.99 $22.99 $19.00 $25.00 $29.95 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 Tires and Alignment. 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 For more information on InteliChek, visit www.intelichek.com. p. 104 N ew p r od u c t s J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Falken ZIEX ZE950 A/S All-Season High-Performance Tire The ZIEX ZE950 A/S incorporates the latest in technology and design from Falken to create an excellent choice for drivers of today’s sedans, sports cars and crossover vehicles where mileage, all-season and high performance handling are a priority. Using the Falken exclusive Dynamic Range Technology in the all new silica tread compound and asymmetric tread design, the ZIEX ZE950 provides optimum levels of dry, wet, ice and snow grip as well as delivering the longest mileage of any Falken High Performance tires. With 100 sizes from 15-inch to 20-inch and speed ratings of H, V, and W, the ZIEX ZE950 covers a wide range of fitments, from family sedans to crossover vehicles. Advertisers Directory AAPEXPage 23 Automotive Lift Institute (ALI) AutoZonePage 31 BalcrankPage 83 Bardahl / Protex Page 91 BG Products Inside Back Cover Blueprint, Inc.Page 3 Cars.com Havoline High-Mileage Motor Oil This is a motor oil specially formulated for cars with 75,000+ miles that provides extra cleaning power and wear protection compared to our conventional motor oils. Customer Benefits: • Superb engine seal agents helps to prevent oil consumption and leaks. • Formulated to prevent oil consumption. • Higher detergency helps minimize sludge accumulation. • Extra piston deposit control protection helps maintain a clean, smooth running engine. New Rotary Lift Two-Post and Drive-On Brochures Make Finding the Right Lift Easier Page 7 AutoPointPage 55 Pages 58 and 59 CastrolInside Front Cover CDK Global / Cash Discovery Pages 63 and 109 CPS Products / TerraClean / Uview Page 57 DealerPro Training Page 87 DealerSocketPage 33 DealertrackPage 47 Dynatron Software Page 21 EcoPower / Safety-Kleen Page 109 eLead1One / Service1One Page 43 EuroVent / JohnDow Industries Page 77 Fixed Ops Magazine Conference and Expo Pages 67, 69 and 71 Fluid Rx Diagnostics Page 15 Fuel Chief / JohnDow Industries Page 79 Granitize Products Page 9 Hunter Engineering Page 89 I-CARPage 53 Rotary Lift has updated its two-post and drive-on lift brochures to provide a more comprehensive overview of each product line. The new brochures cover the full range of light-duty and heavy-duty lifts for each configuration, and also include guides to help customers find the right lifts and lifting accessories for their needs. Infomedia / Microcat Live Page 17 Infomedia / Superservice Back Cover ITW ProAP / RainX Page 39 Mark VII Car Wash Equipment Page 29 Lifts detailed in the updated two-post brochure range from the new spacesaving ATO7 7,000 lb. capacity lift to the heavy-duty SPO18 18,000 lb. capacity lift, and include the best-selling SPOA10 10,000 lb. capacity lift. The driveon brochure covers lifts with capacities ranging from 12,000 lbs. to 60,000 lbs., including new Shockwave-equipped SM and AR Series light-duty fourpost lifts, the patented Y-Lift and new heavy-duty HDC Series runway lifts. Full specifications, photos and applicable diagrams are included for each lift. Mighty Auto Parts Page 37 NADA 20 Group Page 49 Naked Lime Marketing Page 35 NAPA PRO Link / NAPA Auto Parts Page 109 The back of each brochure features a convenient new lift application guide. The guide shows which Rotary Lift models are suited for various vehicles based on weight, length and wheelbase. Customers can use the chart to identify the types of lifts that are appropriate for the vehicles they typically service. Coats’ RC Series Rim Clamp The new Coats® RC Series Rim Clamp® tire changers are built upon the same time honored traditions Coats has brought its customers over the years. The RC Series machines represent an industry standard for speed, durability, and ease of use. Capable of servicing tire diameters up to 21 inches, the RC Series has conveniently placed foot pedals for precise control over the changing process, built-in bead sealing jets to quickly seal loose beads and the RC Robo-Arm® to assist with the mount/demount process. Efficient operation means faster floor to floor times and a shop that runs smoothly, day after day. NCM AssociatesPage 45 NitroFillPage 65 PDQ Vehicle Wash Systems Pages 41 and 109 Pennzoil / Shell Oil Products Page 109 Phillips 66 / Kendall Page 13 PowerPusher / NuStar Page 109 Reynolds and Reynolds Page 27 Rome Technologies Page 61 Rousseau MetalPage 109 SFA Companies / Omega Wheel Arm Page 11 Sherwin-Williams Automotive Finishes Page 85 Simoniz USAPage 5 Traver ConnectPage 19 TSD Rental Management Software Page 51 Wildeck Pages 81 and 109 XPELPage 25 p. 105 n ew p r od u c t s J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e New Hofmann geodyna 7850p Video Wheel Balancing System If your shop can’t keep up with the demand for tire balances, the new Hofmann geodyna 7850p Video Wheel Balancing System may be the answer. Designed for high-volume shops, the Hofmann geodyna 7850p is easy to use and increases productivity by dramatically reducing balancing time, using the automatic non-contact rim profiling system, resulting in quicker customer turnaround and adding to the shop’s bottom line. Offering automatic data entry and selection of balancing mode via the scanner and Smart Sonar, the Hofmann geodyna 7850p Video Wheel Balancing System also has other productivity-enhancing features like the wheel lift, which is integrated into the 7850p. In addition, it provides users automatic spoke detection, one-spin balance and a patented VPM measurement technique for uncompromised accuracy. The Hofmann geodyna 7850p Video Wheel Balancing System is highly intuitive and has a fast-touch screen monitor with large digits and colored weight position indicators. Its ergonomic design, including the patented telescopic wheel guard, reduces the overall space that the 7850p will require in a shop. Other unique features include the patented electro-mechanical power clamp which allows for quick clamping and unclamping of wheel assemblies and the easyWEIGHT laser pointer which provides fast, accurate and easy positioning of adhesive weights on the wheel. New Chief Rivet Gun Efficiently Bonds Aluminum and Steel Chief Automotive Technologies has introduced a self-piercing rivet gun for all common autobody riveting applications, including efficiently bonding aluminum and steel vehicle body panels. The rivet gun is part of Chief’s product line expansion to include “fusion” products that shops need to properly repair collision-damaged vehicles. The gun features a pneumatic-hydraulic design that offers improved consistency over battery-operated riveting systems. While today’s battery-operated rivet guns may get the job done, their power drains throughout the course of the repair. By utilizing air and hydraulics, the Chief PNP90 gun is able to drive the last rivet of the day as hard and as fast as the first. This consistent performance helps Technicians properly complete repairs in record time. The PNP90 gun’s riveting power comes from a pneumatically driven hydraulic pressure intensifier. Quick-connect couplings provide a fast and easy connection to the rivet gun actuator or optional blind rivet actuator. As new applications are developed, users will be able to upgrade the PNP90 gun with additional actuators. This modular design allows the PNP90 gun to evolve with the industry. Reelcraft Dual Pedestal Stainless Steel Hose Reel Reelcraft’s stainless steel hose reels are ideal for food processing, pre-rinse, wash down, chemical transfer and industrial-solvent handling. Swivel include Viton O-rings. Note: Standard latch parts are made from aluminum. Series 80000 and D80000 stainless reels have an aluminum fluid path. - Reinforced Steel - The steel guide arm and dual pedestal base are stamped with ribs and gussets and robotically welded to insure maximum strength and lightest possible weight. - Full Flow Stress Free Swivel design - The full flow swivel combines the highest grade seal design and materials with bearing areas to insure maximum service life. - Quality Finish and Corrosions Resistant - Individually powder coated components offer the maximum protection from premature corrosion. p. 106 Ladder Industries Super Duty Rolastair™ Rolling Ladder Designed for extra heavy-duty use - Rugged 1-1/4” dia. steel tube construction - Standard 14” deep top platform - 5” dia. rigid casters under platform - Stepjack Floor Locking device with 3-1/2” dia. swivel casters - All welded handrails - Knock-down construction for shipping - Heavy-duty 2-1/2” “Big Foot” replaceable shoes - 10 step and larger 36” wide units have the Rolalift Floor Locking device - OSHA Safety green enamel finish - 500 lb. Capacity JohnDow Industries EuroVent Systems EuroVent is an exhaust ventilation system that incorporates an extruded aluminum exhaust rail and a sliding ventilation crab. The rail is installed overhead and along the Service bays, and is connected to a high-efficiency exhaust fan. The sliding crab, equipped with an exhaust hose and tailpipe adapter, rolls along the rail and can be positioned at any bay where ventilation is needed. EuroVent is an extremely flexible and efficient system. Flexible because the system can be easily sized to fit any shop and easily changes at a future time to increase or decrease shop coverage. Ventilation crabs can be added as needed to handle additional volume. Efficient because of the trolley system design. Fewer outlets are required to cover all of the Service bays. When not in use, the sliding crabs can be pushed out of the way. And with fewer drops, a smaller exhaust fan can be used, saving cost and energy consumption. Wildeck Expands Its Safety Products With the New EdgeAlertOpen Gate Alarm System An open gate on an elevated mezzanine level is a serious safety concern that could result in an employee falling and sustaining severe injury, including broken bones or even death. For every elevated application where an open gate situation could occur, an early warning device such as Wildeck EdgeAlertOpen Gate Alarm system could make all the difference. When properly installed, the EdgeAlert alarm will signal an open gate condition with a highly visible flashing light and a loud audible alarm. The EdgeAlert alarm is easy to operate and can be installed on new or existing swing gates, slide gates, tilt gates or scissor gates. It includes a 120 VAC plug-in power supply and can also be powered by four long life alkaline D cell batteries. A single-pole, single-throw 30V, 2A, 60W relay output is provided for connection to other alarms or safety controls. A dual-channel processor system is self-monitoring and will display a fault signal if a sensor or wiring problem is detected. For maximum visibility at elevated and ground levels, amber-colored LED lights are located on the front and back of the alarm enclosure. When a gate is being used for daily activities, workers may choose to silence the EdgeAlert alarm for 120 seconds by pressing the snooze/acknowledge button. Once an open gate has been closed and secured, users can reset the EdgeAlert alarm by pressing the snooze/acknowledge button, or simply opt for the automatic reset mode. N ew p r od u c t s J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e AMSOIL Launches Expanded Antifreeze & Engine Coolant Product Line AMSOIL has announced new Ethylene Glycol Antifreeze & Engine Coolant, now available in two formulations for passenger car/light truck and for heavy-duty applications. They join reformulated AMSOIL Propylene Glycol Antifreeze & Coolant, delivering unsurpassed cooling system protection for virtually any application. AMSOIL Ethylene Glycol Antifreeze & Engine Coolants provide excellent protection against metallic corrosion and erosion pitting, even in extreme temperatures and operating conditions. Both products offer superior corrosion protection for aluminum, steel, cast iron, copper, brass and solder alloys. Designed with a poly-organic acid formulation, AMSOIL Ethylene Glycol Antifreeze & Coolants virtually eliminate scaling problems. Convenient 50/50 pre-mix is compatible with all other coolants and all cooling system materials including hoses, gaskets and plastics. New Generation TCX57 & TCX56 Advanced Tabletop Tire Changers From Hunter Engineering New generation TCX57 tabletop tire changers include several enhanced features for tremendous power and control. Building on the TCX575 family, the TCX57 and TCX56 add the most powerful side shovel bead breaker and feature a large tabletop with one-touch diameter adjustments. The TCX57 also has an enhanced second press arm that’s faster and easier to use. The TCX56 is a conventional head version of the leverless TCX57. The best-in-class patented bead press system speeds and eases clamping, lubricating, demounting and mounting the toughest wheel and tire combinations. The exclusive system centers the wheel and tire to ensure maximum service strength and rigidity. The enhanced adjustable tabletop features a 6-30-inch clamping range. All four clamping jaws move simultaneously to reduce misclamping and measurement marks further ease clamping. The TCX57 is strong and capable, to handle a wide range of work, from 19.5 and skid steers to performance and runflat. The powerful swing arm column reduces footprint by 30% compared to tilt columns systems. Protex by Bardahl Transmission Conditioner Protex transmission products remove harmful sludge and varnish from the system. This improves shifting and helps control shudder while reducing the chance of costly repairs and extending the life of the transmission. Multi-functional flush and cleaner is for use in engines, transmissions and steering systems: • Chemically “tunes-up” the engine by loosening sticky valves, lifters and rings. • Proprietary chemical formula dissolves harmful gum and varnish, and removes sludge. • Improves transmission shifting and helps control “shudder”. • Prepares engine, transmission and steering system for fluid change. • Dispersants and detergents keep removed deposits in suspension until the fluid is drained. • Safe for all engines, transmissions and steering systems. • Compatible with all fluids including synthetics. Mark VII SoftWash System For Dealers SoftWash DF is optimized for car dealers and fleet operators who need to wash a high volume of vehicles but don’t need all the bells and whistles required by a retail carwash operator. SoftWash DF is designed to wash vehicles before or after service is performed so the customer’s car is returned clean, which will favorably impact vehicle pickup scores when the customer is surveyed for the Customer Service Index. In addition, demonstrator vehicles can be kept looking like new for the next test ride and new cars can receive a quick touch-up before delivery to buyers. FS Curtis ML Series Reciprocating Air Compressors Masterline is the most robust, heavy-duty reciprocating air compressor lineup available. The perfect combination of quality components and efficient design make the ML Series rugged, affordable and smart. Because every model is built tough to last a lifetime in demanding working conditions, the ML Series is an outstanding alternative to splash-lubricated reciprocating compressors and small rotary compressors. Choose higher quality. Choose superior durability. Choose Curtis ML Series pressure lubricated air compressors. FX Series Refrigerant Management Centers from CPS CPS Automotive presents the latest in quality and performance with its FX Series offering of Refrigerant Management Centers that quickly and efficiently recover, recycle and recharge automotive AC systems. The all new FX series features state-of-the-art technology including a 7” LCD with graphic user interface, a patent-pending oilless compressor and patented motor-controlled ball valves. All of these features, along with the sleek new ergonomic housing, have been meticulously designed to provide the Technician with the fastest, most reliable and user-friendly equipment on the market today. Available in three different models to accommodate all refrigerants, the FX series is the new standard for AC Service management equipment. Yellow Jacket Refrigerant Management System Yellow Jacket has announced a new SAE J2788 and J2788H Compliant Series. Features include full-color graphic display, advanced user interface and onboard diagnostics, automatic scale calibration, remote troubleshooting and vacuum hold. The RMS 37880 Automatic provides full cycle recovery/recycle/evacuate/recharge to easily and quickly bring the vehicle back to factory specifications. The unit is designed with a unique flush feature and is OEM approved for use with high voltage compressor A/C systems. RMS 37880 capabilities: - Built-in oil injection - High or low side charging - Fully automatic air purging - Fast tank refills with no hose changes - Built-in self-diagnostics p. 107 n ew p r od u c t s J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Modulube Zip Pit The Zip Pit™ is a pre-molded, one piece unit designed for secondary containment. The design of the above-grade lube pit enables Technicians to work both top and bottom of the vehicle concurrently. It’s also more ergonomically efficient. The Zip Pit features a Technician glider which is custom fabricated to ensure durability and comfort. The glider is installed onto a track system to eliminate lateral movement and provide stability. BG Products BG 44K Fuel System Cleaner BG 44K® is the ultimate tank-treatment fuel system cleaner. It’s 11 ounces of high quality detergents and additives that you pour right into the gas tank to restore performance and gas mileage. It vanquishes deposits in combustion chambers, intake manifolds, ports and on valves and restores flow in fuel injectors. Basically, it cleans the entire fuel system. Because it provides efficient removal of upper-engine deposits, BG 44K® reduces problems caused by deposit buildup such as engine surge, stalling, stumble, hesitation and power loss. BG 44K® technology has been proven to increase combustion quality and power output. BG 44K® will provide quick cleanup of coked fuel injectors and corrosive deposits on the Fuel Sending Unit. It’s compatible with all fuel system materials, alcohol-blended fuels and common fuel additives. Michelin Pilot Super Sport Tire Born from endurance racing, Michelin Pilot Super Sport gives your customers the exhilaration of driving the best performing street tire in the world. - Up to 12% better handling than leading competitors. Inspired by the same engineering that has powered 13 consecutive victories at the 24 Hours of Le Mans. - Up to 2-times longer lasting than leading competitors. Optimized through technology of Variable Contact Patch 2.0 and Twaron belt package for long even wear. - Better braking than leading competitors. Bi-compound delivers excellent dry braking using LeMans-inspired compound on the outer shoulder and the latest generation of wet-oriented elastomers on the inner portion of the tread. Shure SHURETECH® Bench Systems The SHURETECH® Bench System is a concept in workbench design and innovation that can meet the workbench and tool storage requirements for any shop environment. SHURETECH® integrates tool and parts storage with a large work surface and 400lb. drawer capacity. Shure has various pre-configured workstations available or customize your own SHURETECH® workstation by selecting individual components such as tool storage cabinets, storage cabinets, service reel cabinets and in-ground lift power units. Features: • Bench tops are stainless steel • Tool cabinets feature full-extension 400lb. capacity drawers • Storage cabinets include swing-out doors and locks • Stainless steel utility chase panels Kafko Oil Eater® Fleet Wash Oil Eater® Fleet Wash is made from an ultra-concentrated, low VOC emissions formula that’s strong enough to remove the toughest dirt and grime. Fleet Wash contains no harmful acids and when used as directed, is safe on glass, rubber, vinyl, aluminum and paint. It safely cleans dirt, diesel, grease, grime, bird droppings and much more. Oil Eater® Fleet Wash leaves a spotfree finish. Oil Eater® Fleet Wash works great with hard and soft water and rinses sparkling clean leaving a spot-free finish. Oil Eater® Fleet Wash is designed to lubricate brushes and won’t clog spray nozzles making it perfect for friction or touchless wash systems. Safe in proportioners. 100% guaranteed or your money back. p. 108 Get Speed and Accuracy with New John Bean V2200 Imaging Wheel Alignment System The new John Bean® V2200 Imaging Wheel Alignment System is easy to use and provides high resolution imaging technology that delivers fast, precise readings that improve a shop’s productivity and performance. The John Bean V2200 has all the essential features that alignment professionals need to do the job quickly and efficiently. User friendly, the V2200 has an extensive vehicle specification database and patented imaging technology that provides accurate, real-time measurements, delivering customer satisfaction for many years to come. The high-resolution cameras on the system produce accurate, live alignment readings and diagnostic data, while passive front and rear XD targets ensure durability as there are no wheel electronics to damage. Other productivityenhancing features include: vehicle track width and wheel base, individual wheel off set and set-back, and the patented EZ-TOE feature that eliminates the need for a steering wheel holder. The V2200 features the innovative John Bean AC200 Universal Wheel Clamps. Constructed from rugged cast aluminum, these clamps have a self-centered design for accurate measurement and vehicle dimensions. Kaeser’s Launches New VSD Compressor: The SFC 22 Kaeser Compressors is proud to announce the SFC 22. This variable speed drive rotary screw compressor delivers best-in-class performance with an efficiency advantage of up to 26% over the competition. With a flow range of 36-152 cfm at 125 psig, the SFC 22 features the “builtfor-a-lifetime” reliability, simple maintenance and sustainable energy savings you expect from the Kaeser name, as well as the latest in Siemens drive technology. Kaeser has improved the SFC’s specific power through a combination of true direct drive design, premium efficiency motors, lower internal pressure differential and optimized airends. Additional built-in heat recovery options provide even more energy savings potential. New features include an enhanced cooling design, eco-friendly filter element, integral moisture separator with drain and an Electronic Thermal Management system. Units also come standard with Sigma Control 2™—an intelligent controller that offers unsurpassed compressor control and monitoring with enhanced communications capabilities for seamless integration into plant control / monitoring systems. The SFC 22 is also available with an integrated dryer for premium compressed air quality. MA RK E TP L A CE J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e 866.772.1850 PartsVoice.com p. 109 I N D US TR Y N E WS J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Continued from page 8 DealerSocket Partners With MyDealerLot DealerSocket has announced a new integration with MyDealerLot (MDL). MDL is the retail auto industry’s leader in the application of Radio Frequency Identification (RFID) technologies for Automated Guest Recognition and Vehicle Tracking. This integration enhances the customer experience within the Sales and Service Departments by strategically alerting the Sales and Service staff that a customer has arrived and allowing them the opportunity to greet the customer to see if there is an opportunity for a trade-in. Dealers utilizing MDL’s RFID technology will receive MDL notifications directly on their DealerSocket dashboard. This provides a quick and easy access point for Sales and Service Departments to be notified of a visiting customer. “We are excited and pleased to partner with MyDealerLot as we continue to enhance the value and performance our customers expect with DealerSocket,” said Matt Redden, CSO of DealerSocket. “This integration provides dealers the essential technology upgrade necessary to discover new leads while delivering exceptional customer experience the moment a customer arrives at their lot.” “Dealerships today are more reliant than ever on having an automated and efficient way to connect the Service guest to their Sales Advisor for lifetime relationships which translate to increase retention, revenue and profits,” said George Cresto, Founder and CEO of MDL. “DealerSocket’s integration with MDL’s RFID technology helps dealers further leverage their CRM technology investment for a truly connected customer experience.” Dealer-FX Recognized as TU-Automotive Industry Award Finalist Dealer-FX has moved one step further to cementing itself as an industry leader by receiving recognition as a TU-Automotive Award finalist for Best Industry Newcomer. This recognition illustrates the firm’s attention to providing connected mobile solutions which empower Service Departments in meeting changing customer expectations. Dealer-FX exhibited at the TU Automotive Show on June 3rd and 4th in Detroit. The awards highlight emerging talent and established players in this space. Being named a finalist highlights Dealer-FX, recently recognized as a Technology Fast 500 company, as a progressive leader in connected Service lane technology and one that’s poised to better connect dealer business operations with the connected vehicle. Dealer-FX recently announced 1 Solution 3.0, a suite of products that is changing the way Service Departments engage with customers and handle the connected vehicle. With it, Dealer-FX is enabling Service Departments and future-proofing their ability to meet the changing expectations of customers who are becoming better informed of Service issues. By arming Service Advisors with advanced information and responsive mobile technology tools, Dealer-FX can assure dealerships of a serious commitment to increasing their bottom line revenue, growth in maintenance penetration and enhanced customer satisfaction. At the event, Gary Kalk, President and CEO of Dealer-FX, spoke about how telematics is driving new customer expectations and what that means for dealership Service Departments. “The relationship between customer and Service Department is being flipped on its head. Customers are now being informed by their connected vehicles and Service Departments need effective tools to respond. Staying competitive and capitalizing on Service opportunities at the dealership requires progressive mobile solutions that provide consumers with information and keep them engaged on the drive.” p. 110 Xtime’s Marketing 7 Enables Dealerships to Recapture “Lost Souls” and Increase Service Revenue Xtime has announced that dealers using the Marketing 7 component of the Xtime Retention System have experienced a significant number of customer recaptures and notable Service revenue from those re-engaged customers. As a leading customer retention solution, Xtime enables dealers to deliver more value, convenience and trust in the Service drive. In particular, Marketing 7 helps dealers combat the high defection rate often seen in Service Departments by enabling dealers to re-engage and recover lost souls — those customers who at one time patronized the dealer Service Department but have not visited in 15 months or more. “These remarkable results are fueled by Marketing 7’s unique approach to customer recapture,” said Xtime President, Neal East. “Dealerships lose an average of 29% of their Service customers within only one year, which is a huge amount of lost future revenue. With Marketing 7, dealers have a closed loop marketing system with three unique features that bring customers back to the dealership.” “Unlike other marketing products available, Marketing 7 is part of a greater system that incorporates all customer service touch points into one modern Service retail experience,” continued East. “In effect, any Service details, from discounts to recommendations to pricing, are consistent. By combining this form of integration with the ability to visualize capacity and utilize time-based discounting, Marketing 7 is key to creating and maintaining loyal Service customers.” Infomedia’s Superservice Platform to Power Hyundai’s Workshop Automation Strategy Infomedia, a global leader in automotive Parts and Service solutions, has entered into a three-year agreement with Hyundai Motor America (HMA) to supply and install components of the Superservice Fixed Operations platform supporting Hyundai’s Workshop Automation strategy in the United States. Following the successful pilot phase of Superservice at key Hyundai U.S. dealerships, Infomedia will be the authorized supplier of Superservice’s quick quotation and multi-point inspection (MPI) solutions to HMA’s dealership network. Headline results from pilot dealerships using Superservice indicated an increase of 24% in customer pay hours per repair order and increased workshop productivity. Workshop Automation powered by Superservice will help Hyundai dealerships drive efficiency and Service sales performance by engaging vehicle owners throughout the Service and Repair process, promoting quoting transparency and customer satisfaction. Superservice offers a wide range of unique innovations for Hyundai dealerships, including VIN-precise Service price guides with repair operations by variant, a mobile friendly MPI compatible with any device, instantaneous pricing of all identified work, photo and video recommendations, self-authorization and a rich reporting suite. Hyundai dealerships in the U.S. already have access to Infomedia’s Microcat LIVE Electronic Parts Catalog. CEO of IFM Americas, Karen Blunden, said: “We are proud to be working side-by-side with a respected and progressive automaker such as Hyundai. Their endorsement is testament to Superservice’s ability to proactively support OE dealerships in their objectives to increase customer retention, improve workshop efficiency and sustain profitability.” Google Selects Search Optics as a Google AdWords Premier SMB Partner I-CAR Report Shows Collision Repair Shops with Gold Class Designation Save Money Search Optics, a leading digital marketing provider with a specialty in automotive, has been selected into the Google AdWords Premiere SMB Partner Program. Search Optics specializes in providing automotive marketing campaigns to dealer associations and dealerships that are data-driven and backed by real, human analysis from more than 150 Google-certified employees – the most in its industry. More than 1,000 dealers use Search Optics to create incremental showroom traffic. Collision repair shops that have earned Gold Class recognition from I-CAR are producing significant cost savings for consumers and insurance companies, according to a new I-CAR white paper detailing the Enterprise Rent-ACar Length of Rental (LOR) report for the first quarter of 2015. Enterprise’s data shows that Gold Class shops with well-trained Technicians can repair vehicles faster and, as a result, shorten car rental days — both important factors to reducing total cost to repair. “The Google AdWords Premier SMB Partner Program was created to help small and medium sized businesses who don’t have time or resources to manage their advertising campaigns,” said Ben Wood, head of Google’s Americas Channel Sales Partnerships. “Our PSP partners like Search Optics offer expertise, experience and end-to-end customer service so business owners can focus on running their business.” The analysis examined data for the first quarter of 2015 from collision repair shops in the U.S. with which Enterprise conducts business. Enterprise serves the $35 billion collision-repair industry, comprising over 34,000 facilities. Enterprise compared the market-average LOR for repairable vehicles across all shops in their database versus those shops that have earned Gold Class recognition from I-CAR. Gold Class shops have Technicians who earned Platinum recognition by completing industry specified levels of training which contributes to complete, safe and quality repairs that ultimately benefit the consumer. “This recognition from Google as part of the Google AdWords Premier SMB Partner Program reinforces our philosophy that quality, hands-on marketing has a more positive impact than automated digital marketing,” said Christian Fuller, Chief Relationship Officer at Search Optics. “Over the past few years, Search Optics has been rapidly gaining a reputation for thoughtful marketing campaigns that are carefully constructed to fit each of our clients’ needs, thanks in part to our recently launched Blueprint platform.” CallSource Uncovers Six Key Behaviors to Successful Service Appointment Setting CallSource, the U.S. leader in call management, tracking and training, has conducted research into best practices for successful Service appointment setting, winning the company one of four finalist slots at DrivingSales Presidents Club’s Most Valuable Insight competition. The research, presented recently, analyzed data across 2,464 phone calls and identified six key behaviors that, when successfully performed, were crucial in increasing Service call-to-appointment ratios. The study also examined the frequency with which call handlers performed these six key behaviors. Six of the surprisingly simple steps to increase appointments for Fixed Ops include: 1. Asking the caller, ”How may I help you?” This was only asked 64% of the time on the analyzed calls. 2. Establishing if the caller is a prior customer. This only occurred 62% of the time. 3. Identifying the vehicle that needs Service. Call handlers did this only 69% of the time. 4. Obtaining the caller’s full name. This only happened on 66% of calls studied. 5. Asking about additional questions/concerns. Only 6% of the calls studied included this critical step. 6. Determine the caller’s timeframe for Service needs. Only 65% of call handlers did this on calls analyzed. “We were surprised that in nearly 30% of the calls, these key, obvious actions were not implemented by Service Department call handlers,” said Andrew Price, President of CallSource Automotive. “This study is a wakeup call for dealers into the state of automotive Service Department call handling and we hope this insight will be used by dealers to immediately improve their call-to-appointment ratios.” “This new data further supports the significant advantages of Gold Class shops,” said John Van Alstyne, CEO and President of I-CAR. “Not only are shops better qualified to perform proper repairs and do so more cost effectively, consumers and insurance companies also are saving money. And consumers also gain peace of mind, knowing that Technicians with updated industry-standard training are repairing their vehicles, which contributes to complete, safe and quality repairs. This data complements other related I-CAR data that shows the positive impact training has on shop KPI performance and the further performance benefits that accrue to shops that possess a culture of learning or as I-CAR refers to it, a “Learning Culture.” New Report: Boost Sales By Tuning Up Your Service Center Dealers wanting to increase their vehicle sales should focus on the back of their store, as sales are directly affected by customer experiences in the Service Department, according to the March 2015 PowerRater Consumer Pulse, a monthly analysis developed jointly by J.D. Power and DealerRater. An alliance between J.D. Power and DealerRater integrates each company’s capabilities to gather comprehensive vehicle shopper feedback based on J.D. Power’s customer satisfaction research and DealerRater’s consumer ratings and reviews of car dealerships. “Clearly, there is a strong incentive for dealers to maximize customer satisfaction as it leads to a greater likelihood that customers will post a positive review, helping to support the reputation of the dealer’s Service Department,” said Chris Sutton, Vice President, U.S. Automotive Retail Practice at J.D. Power. As shown in data collected by DealerRater, improving its Service reputation via positive reviews not only increases a dealership’s likelihood of new Service business, but it also positively impacts its ability to sell vehicles. “Considering how competitive the market is, and the tight profit margins that dealers are fighting, strengthening online reputation to maximize sales opportunities is becoming a critical business objective for new-vehicle dealers,” said Gary Tucker, Chief Executive Officer of DealerRater. p. 111 I N D US TR Y N E WS J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e Solera Holdings, Inc. Has Acquired DMEautomotive, LLC Solera Holdings, Inc. (“Solera”), a leading provider of risk and asset management software and services to the automotive and property marketplace, has announced that it has signed an agreement to acquire DMEautomotive, LLC (“DMEa”), a leader in data-driven customer retention and marketing solutions for the retail automotive industry. DMEa’s content-driven software and individualized communication tools enable automotive Sales, Service and Repair providers to partner with their customers in vehicle management. Combining DMEa’s proprietary technologies with Solera’s existing portfolio will enable Solera’s customers to increase customer retention and drive loyalty through tailored and frequent digital contact across the entire automotive ownership lifecycle. “The acquisition of DMEa is very exciting for us as it will further enrich our understanding of our customers’ customers on a personalized and household level,” said Tony Aquila, Solera’s Founder, Chairman and Chief Executive Officer. “When combined with Solera’s vertical software solutions across the entire automotive lifecycle, this data will create powerful digital content to enhance the ownership experience and strengthen the relationship and transparency between our customers and their customers, resulting in a smoother ride through the ownership lifecycle via technology accessed on any device.” RevolutionParts Helps Dealerships Sell $100 Million in Auto Parts Online RevolutionParts, the automotive eCommerce platform that makes it easy for dealerships to sell Parts online, reached a significant milestone. Since inception, the company has processed $100 million in online Parts sales for automotive dealerships. This achievement validates the consumer demand for an easier way to shop online for genuine auto parts that are guaranteed to fit their cars. The Tempe, Arizona-based company has doubled its revenue year over year and will be fueling local job growth as it doubles the size of its team in 2015. This will enable it to accommodate the high demand from both dealerships and consumers for online parts eCommerce solutions. Currently, more than 200 dealerships use RevolutionParts to sell Parts online. One part is sold every 30 seconds on the RevolutionParts platform. “It’s incredibly rewarding to see the levels of success and growth that dealerships have had on our platform,” said Ibrahim Mesbah, CEO, RevolutionParts. “We view our customers as partners and their hard work and dedication have made this major achievement possible.” “Traditional brick-and-mortar dealerships have been going through a huge paradigm shift as technology changes the way people buy vehicles and auto parts,” said Andreas Ronneseth, CTO, RevolutionParts. “We are excited to help dealers in the midst of this large industry change and make it easier for Parts Managers to adopt advanced technology solutions.” p. 112 ALI Announces Stolen Annual Inspection Labels The Automotive Lift Institute, Inc. (ALI), an ANSI accredited product certification body, has made a public announcement that 200 of its Annual Inspection Labels were stolen when the vehicle of an ALI Certified Lift Inspector was broken into and vandalized near Buffalo, New York on the night of April 20, 2015. The labels are individually serialized and are applied to automotive lifts that pass annual lift inspection safety requirements as an indication of compliance with recognized American National Standards. If you have had your vehicle lift inspected since April 20, 2015, and it bears an annual inspection label exhibiting a serial numbers in the stolen series, the services may not have been performed by an ALI Certified Lift Inspector. The label should be removed and reported to ALI. If a questionable inspection label has been applied to your lift or should you wish to determine validity of an annual inspection label, please furnish ALI with the name of the inspection provider, the manufacturer’s model and serial number of the lift and the serial number shown on the inspection label. E-mail this information to: Info@AutoLift.org, along with your company name and contact information. Consumers’ ‘Why Should I Buy from You?’ Answered by MyCustomerData’s Custom VIP Loyalty & Rewards Solution Auto retailers who differentiate their brands are more profitable, yet dealers can struggle to make those distinctions. In response, MyCustomerData announced its new membership-based VIP Loyalty and Rewards customer engagement solution that promises to lift showroom and Service drive traffic by 35% and repair order revenues by $111 per ticket. “Without consumer loyalty, a dealer competes on price alone,” said MyCustomerData CEO Kevin Bone. “But when a dealer can capture customers’ continuous, repeating business, customer lifetime value becomes reality.” Bone said a well-designed loyalty program for auto dealers must attract customers to repeat three activities: - Buy from the dealership, even if they can find the same vehicle elsewhere for less. - Service again, for all their Service and Maintenance needs, even if available for less elsewhere - Buy again from the dealership, even if they can find the same vehicle elsewhere for less. “As customer acquisition costs increase and profit margins tighten, it’s crucial to keep customers coming back for Service Department visits and future vehicle purchases,” Bone said. “Our process drives Service revenue, identifies qualified leads, lowers marketing costs and maintains healthy margins on new vehicle sales. When a dealer can show customers how much they’ve used their membership and the dollar value of that use, their loyalty to the dealership is strengthened. As a closing tool, MyCustomerData’s ability to track and monetize a customer’s membership can save deals.” Learn more at www.tlsummits.com. Mitchell 1 ProDemand Consolidates Vintage Repair and Estimating Information Mitchell 1 has updated its ProDemand repair, diagnostic and maintenance software by consolidating vintage repair and estimating information into the application to deliver full year, make and model coverage from 1974 to the present year. This latest enhancement gives Technicians easy access to additional years of Service information inside the ProDemand platform and improves the product user’s experience. “By integrating our vintage information into ProDemand, we have improved the navigation for our users and saved them time by delivering the data on a single platform,” said Mike Alberry, Product Manager for ProDemand, Mitchell 1. “It’s another step in our ongoing efforts to provide the most complete repair information for our customers, while also streamlining the search process so they can work more efficiently.” ProDemand provides full OEM repair, estimating, maintenance information and real-world industry insights to help Technicians work faster and more accurately. Technicians enter a diagnostic trouble code, component or symptom and ProDemand returns information from Mitchell 1’s extensive library of OEM content as well as detailed Parts replacement records, tips and real fixes from SureTrack’s expert-based information database. ProDemand is also integrated with Manager SE, Mitchell 1’s industry-leading shop management system, further streamlining workflow to increase shop efficiency. Cars.com Reaches One Million Dealer Reviews, Offers Enhanced Site Experience to Auto Consumers Cars.com has announced that it has received more than one million consumer-generated online reviews since the site feature first launched just four years ago. Once viewed as a foreign concept within the automotive category, online reviews are now an integral component of the modern car shopping and vehicle maintenance processes, as is evident by the 91% of consumers who reference them to help select a dealership. And 40% of all new dealer reviews on Cars.com are based on a Service experience. “We’re proud to reach one million reviews for our dealer customers. It shows just how engaged Cars.com shoppers are during the dealership visit and the value they put on reviews in choosing who to do business with,” said Barbara Mousigian, Vice President of Product at Cars.com. “Since we launched the feature in 2011, we’ve maintained our transparent and honest model for generating consumer feedback, which better serves our shoppers and customers.” In conjunction with the dealer reviews milestone, Cars.com has rolled out a new, responsively designed homepage intended to provide a more tailored consumer experience across all devices. Among the many consumer benefits, auto researchers will find greater integration of Cars.com editorial content and Service tools. The update also allows consumers to submit dealer reviews on Cars.com via a mobile device. Cars.com OEM customers will benefit from enhanced digital ad offerings. Recall Masters Launches Rambo — New Platform Revolutionizes Recall Marketing Industry for Auto Dealers Recall Masters, Inc., has announced the launch of Rambo, a revolutionary new platform that offers the most complete recall marketing program available for auto dealers. Rambo attracts new customers every month and enables auto dealers to effectively drive more Sales and Service revenue from vehicle owners motivated by factory recalls. According to Carfax’ annual research, more than 46 million cars nationwide have at least one safety recall that has never been fixed. Rambo is a cost-effective platform that markets to these consumers and brings in new customers for far less than what most auto dealers are currently paying. “With Rambo we create opportunities to attract new customers, generate more revenue from recall repairs, upsell Service based on vehicle maintenance and convert higher mileage and older vehicles into new car sales for our auto dealer clients. Dealers can begin welcoming new customers in just two weeks,” said Chris Miller, President of Recall Masters. “The problem is that the OEM recall process is highly inefficient. With Rambo we truly are the dealership’s partner in success. In fact, we do practically everything except greet the customer,” said Miller. Recall Masters offers exclusive marketing areas. Auto dealers can choose a preferred marketing area by Zip code and gain exclusive marketing privileges to VINs in the selected area. Only one dealer at a time is authorized to contact a vehicle owner. Each dealer receives only unperformed, nonexpired recalls on vehicles eligible for Service. When a customer calls in to inquire about a recall, Rambo ensures a fast and efficient process, making it easy for the dealership to look up the recall by vehicle VIN. It ensures all the information is immediately to hand to quickly answer any questions and service the customer. Wildeck Achieves Certification as an Approved Fabricator for Clark County, Nevada One of the most stringent litmus tests for a manufacturer of structural steel equipment such as mezzanine platforms, vertical lifts and safety guard rail products is certification by independent quality testing authorities. As a leading manufacturer of storing, lifting and guarding products for nearly 40 years, Wildeck, Inc., based in Waukesha, WI, has been certified to fabricate structural steel products for use in Clark County, Nevada and other jurisdictions accepting the comprehensive TG-1 quality systems requirements, one of the most stringent certifications for fabricators in the country. According to Hubert Schlegel, Director of Marketing for Wildeck, Inc., achieving Clark County approval is a major accomplishment for Wildeck and recognizes the skills and expertise of all Wildeck employee owners to deliver the highest quality products to their customers. “To be recognized and approved as a fabricator by the Clark County, Nevada, Department of Building (CCDB) requires a detailed analysis of a manufacturer’s steel fabrication processes from engineering and drafting to materials procurement, manufacturing, testing, quality control and quality assurance, operator training, record keeping and other processes.” p. 113 I N D US TR Y N E WS J u ly / A u g u s t 2 0 1 5 | | F i x e d O p s M a g a z i n e SHIFTMobility Enhances ShopLite Software With Carfax SHIFTMobility has teamed with Carfax to improve its ShopLite mobile solution by becoming part of myCarfax. The ShopLite mobile app now includes Carfax QuickVIN so repair centers can check-in customers and retrieve vehicle information by keying in the license plate number and state. ShopLite Premium users get the added benefit of simply snapping a photo of the license plate to initiate the check-in process. “We are pleased to partner with Carfax to incorporate real-time integration for license plate information lookup,” said Arvind Jain, SHIFTMobility President. “Using the industry’s first license plate scan and decode feature through ShopLite Premium, shop owners will have sophisticated vehicle knowledge, quicker estimates and faster diagnoses of vehicle issues.” ShopLite is a fully mobile shop management solution that helps shop Owners and Technicians handle everything from customer and supplier relationships to getting Parts inventory and price lists. The addition of Carfax QuickVIN quickly displays the vehicle identification number (VIN), vehicle engine information and year/make/model details within ShopLite. Vehicle processing time is reduced, helping users increase car count, avoid Partsordering errors and make the best Service and Repair recommendations to their customers. Mighty says, “An Educated Consumer Is Our Best Customer!” To better inform consumers and enable them to make the right maintenance decisions for their vehicles, Mighty Auto Parts has begun to produce a series of educational animated videos. Each video runs approximately two minutes and features concise, clear explanations of key vehicle services and how the consumer benefits from having them performed. The first eight Mighty educational animated videos have been produced and can be found on the Mighty Auto Parts YouTube Channel at youtube.com/user/mightyautoparts. Whether it’s the ever-increasing average price of a new vehicle, or some newfound sense of frugality, people are keeping their vehicles longer. Therefore, consistent preventive maintenance is increasingly important for consumers, who continue to rely on their vehicles for dependable transportation. “Car owners today can research virtually everything they need to know about their vehicles online,” said Gary Vann, Mighty Auto Parts Senior Vice President Sales & Marketing. “Because we believe ‘an educated consumer is our best customer’, we’re endeavoring to make them more aware of the servicing needs of all their vehicle’s major systems.” AAPEX Unveils New Logo AAPEX has unveiled a new, progressive logo as the first step in transforming the brand to reflect it as the premier, global automotive aftermarket event that keeps attendees ahead of the curve when servicing today’s high tech and highly sophisticated vehicles. With an established and experienced 25plus year history, AAPEX is the venue for more than 2,400 automotive aftermarket manufacturers and suppliers to showcase new products, services and technologies to buyers from 140 countries. Buyers also turn to AAPEX and the AAPEXedu for the most up-to-date information on telematics and the connected car, as well as new technologies that enhance vehicle safety, security and fuel economy. p. 114 The new logo captures the current and future direction of AAPEX. With its streamlined look and contemporary feel, it is in sync with the many technological advances taking place in the automotive industry today. - AAPEX 2015 will be at the Sands Expo Center in Las Vegas, Nevada: - Education: Monday, November 2 through Thursday, November 5 - Exhibits: Tuesday, November 3 through Thursday, November 5 AAPEX 2015 is expected to feature more than 2,400 exhibitors, 5,000 booths and 39,000-targeted buyers. Approximately 130,000 automotive aftermarket professionals are projected to be in Las Vegas during AAPEX. Pulse Unveils New Geo-Location Smart Phone Technology to Market Directly to Inactive Customers Pulse, a premier automotive direct marketing company specializing in Sales and Service campaigns, has announced a very high-tech companion for their VIP Checkbook program. This new technology automatically sends a push notification to the end user’s smartphone whenever they are within proximity of a dealership, keeping the dealership’s offers on a customers mind. Not only will alerts be sent directly to the smartphone, but personalized barcodes allow for super-detailed trackability, when the user takes advantage of the special Service offer. Pulse CEO, Jonathan Benjamin, was recently asked about the success of this program. “Our VIP Checkbook Program had already been delivering industry leading redemption rates and ROI as far reactivating inactive customers, but we’re already seeing that this new technology is delivering even better results. End-users have even been requesting the digital versions of the offers, foreshadowing a shift in the way customers will want to utilize offers and interact with businesses in the future. Simply put, you can’t get any closer to a customer than their smartphone. Not only that, but since we can deliver the coupons directly to the customer’s phone, they don’t have to worry about leaving their coupons at home or generally not having them close when they need them.” OEMs Continue to Endorse PEAK Performance’s SmartScheduler PEAK Performance, a trusted authority in automotive customer engagement, has received another national OEM endorsement for its state-of-theart, online scheduling solution — SmartScheduler. SmartScheduler is now approved to sell to over 6,000 dealerships in North America, expanding its fast-growing reach. Dealers using SmartScheduler maximize their capacity to drive additional revenue by monitoring Service capacity and future bookings. SmartScheduler works with a dealer’s DMS in real time and links with ADP, Reynolds and Arkona. SmartScheduler has proven to be the fastest in the industry, with 29 seconds being the average time it takes to book an appointment. Additionally, dealers who offer SmartScheduler see significant gains in customer behavior – 95% of customers complete the appointment booking process and 75% return to the dealership for their next Service. Dealers also capture an average of 4 to 7 appointments daily that are booked after-hours. According to Steven Gray, Chief Revenue Officer at PEAK, “SmartScheduler has proven to be the preferred tool of choice for automotive dealerships and we are excited to receive yet another endorsement from a prestigious OEM partner.”