These days, it’s more important than ever that businesses meet customers where they’re at. This means creating platforms that allow customers to engage when and where they need to rather than sticking with old school systems that don’t work anymore. That’s definitely true in the auto service industry and many service advisors–maybe even you–are looking for ways to deliver their services more effectively.
I had Quik Auto CEO Jack Gardner join me on Service Drive Revolution to talk about how he created a platform to automate and digitize some of the work that auto customer service advisors and auto repair consultants have traditionally done. It’s started to take the automotive consulting world by storm and there’s a lot we can all learn about how it came to be and why it’s so successful in the world of automotive consulting services.
Jack started his career as a Toyota tech and then tried sales. Turns out he was pretty good at the sales game. The problem is…he didn’t like it at first. He decided and even attempted to quit, but his manager pushed him to stay on. When he did, his mentality changed. There was less pressure and more drive to just see what he could learn and do. He describes it as “confidence that was derived from product knowledge”, and it led to a $16k paycheck in his second week alone. He also got into a fair amount of trouble and has some funny stories to tell, but I’ll let you listen to his episode to find out more about that…
Jack’s sales strategies were simple but effective. When the concept of leasing cars started to come up, he was hesitant at first because he didn’t get it. But when he saw another salesperson making bank off of fewer sales, he realized it was time to learn the game. He saw the money in it and learned everything there was to know about leasing.
Once he had the expert knowledge about leasing, he figured out how to get that information to skeptical clients. He had a line he’d use to get them interested in learning more about it:
“Would you agree that a better decision will always be made based on all of the facts, as opposed to some of the facts?”
Once they said yes, they were on the hook to hear his pitch about leasing…and it worked. Then his strategy was to deliver a pitch that focuses on the basic terminology and information clients would need to make a decision, instead of getting into percentages and residual rates. His goal was to help them understand this new concept and why it would be a solid option for them to consider. And people considered it…at the staggering rate of about 60%.
From there, it was all finding the “sweet spot”. He learned early on that allowing clients’ leases to mature was a bad move. After their leases matured, clients would come in to return their cars but often put more mileage on the cars than they had agreed upon. Once the contract was up, that meant that Jack had to tell the client that they owe more money, which never went down well and took up a lot of time and energy. So he started to touch base with clients to talk about trade-in before their leases were up. The trick about the sweet spot was that there was no specific timeline around it, it just came up whenever the manufacturer needed to move a supply of cars off of the lot. So Jack would wait for those moments to come up, then call clients who were leasing and offer them a new lease on a new car for a “comparable” payment, with “comparable” being the magic word.
Another key point Jack made was that people remember the little things. If you deliver consistently on the little things, like making sure each leased car has a full tank of gas when it leaves the lot, you’re golden. That’s what people remember. So clients would spread the word to others about leasing and the smooth process and the next thing you know, he’s got an incredibly lucrative leasing business that leads directly into a solid used car business.
From there, Jack went into finance for a few years, then started as a general manager, and moves on to start training people how to lease cars. And then…he met a guy at a bar, as he puts it. They started talking shop and eventually decided to launch Quik Video, a business that sent information on multi-point inspections to customers in a manner in which they understood it. From there, it grew well beyond videos and into texting, electronic multi-point inspection, internal chat and more and they changed the name from Quik to encompass the new services. Quik. is a digital service advisor that lets customers see what their options are, learn about them, and make decisions without an in-person advisor. Basically, they offer a solution that makes relationships between dealers and customers more honest, open and transparent.
But more than the technology itself, the key to Quik.’s success has been consistency. Jack’s strategy was built on a few pretty simple but really important rules. The first one is Toyota’s Quarter Time, meaning that the results of a multi-point inspection should be in the customer's hands in the first 15 minutes, which leads to an 80% chance of selling the work. If it takes 39 minutes, so those first 15 plus 24 minutes of delay, that percentage falls down to 10%. So Quik. offers dealerships a way to put that video out to a customer in 15 minutes, which led to impressive sales results. It’s a tried and true rule that many automotive industry consultants know, and it was confirmed yet again through the Quik. platform.
Quik’s software saves dealerships tons of money and can generate even more revenue from customers. Why? According to Jack, customers have a hard time believing service advisors because they view them as salespeople looking to make the most money possible. When a digital program is telling them what they need, they tend to trust it–it’s just a machine that doesn’t know how to lie or upsell. In addition, customers can learn more and do it on their own time when they’re using software to do it. So, basically, they upsell themselves to the tune of about 30%. When they’re making decisions online, they opt in for more maintenance than they would with an old school in-person advisor.
Plus, once customers decide they want to do in terms of maintenance, a technician can then look at that as well as what they decided not to do. If the technician thinks that the service is necessary, they can explain to the customer why they should do it in an online video that goes directly from the tech to the customer. This way, as Jack describes it, the customer gets that advice directly from the “doctor”–the technician–rather than the “receptionist”–the advisor. Psychologically, this gives the customer the sense that this work is important and gives them the opportunity to understand why, so they are much more likely to go for it.
Over time, Jack has learned that automating everything is crucial to Quik.’s success. Integrating with DMS (we won’t tell you which is the worst out there), making sure all of the different systems that are part of the inspection and maintenance process are talking to one another…those automation make sure everything goes smoothly.
Jack’s main goals have been to help dealerships increase their revenue without additional work and to build a platform that gives customers what they want and need, instead of forcing them to use an antiquated system that makes it stressful and difficult for them. In elevating the customer experience, the three things that both the dealer and the OEM are truly concerned with will fall right into place:
- They will sell more work, which means the manufacturer is selling more parts–more selling all around.
- Customer Service Index will go up, because you’ve exceeded the consumer's expectations.
- Retention will go up because of the other two fell into place, so why would the customer go anywhere else?
So, service advisors…what’s your takeaway here? It’s not that your role is going to be eliminated because technology can never fully replace talented service advisors. The takeaway is to develop strategies that allow you to be CONSISTENT in what you provide and how you provide it. As Jack says, technology won’t replace people, but it will replace the weak. If you aren’t weak, technology like Quik. will only help you out. If you are, it may take you out.
If you’re interested in learning more about Quik., give Jack Gardner’s episode on the Service Drive Revolution podcast a listen here and check out their websites: Quik. and Service Concierge.