As service advisors, it’s really important to keep your finger on the pulse of what’s going on out there on the service drives. One of the best ways to do that is to be part of a network of people who keep each other in the loop about different elements of the business–what the problems are, new products on the market, sales trends…the whole nine yards.
One of the people in my network is Coach Super Mario, Service Advisor Coach extraordinaire. I had him on the Service Drive Revolution podcast to talk about what he’s seeing in service drives, which is that people are making mistakes when it comes to balancing volume versus quality.
Mario used to be an advisor at Longo Toyota here in Los Angeles. Longo is part of the Penske Automotive Group, better known as PAG, a business that’s known for its damn good employee retention and customer service, among other things. They’re known for it and as a former employee, Mario agrees with the public’s perception. When he was at Longo, they took care of the team by bringing in lunch, special dinners…that kind of thing. They knew that if their employees were happy, they would do their best work. Mario told us that PAG president Greg Penske’s big thing is remembering names–to the point that if he saw you and couldn’t remember yours, he’d literally give them $20 on the spot or take them to the in-house Starbucks to make up for it…and he’d never forget that person’s name again. And that kind of attention to detail when it comes to people trickled down into the whole company.
And guess what? Longo Toyota literally sells more cars than anywhere else in the world. When Mario was there over a decade ago, Longo always broke records in May, and their goal for the month was to sell 2,500 new cars plus easily 700-800 used. I like to call it the Disneyland of car dealerships because their operation is so epic. They might even have a jail in there…you’ll have to give the episode a listen to find out whether or not that’s true.
Anyway, let’s get back to the topic at hand. When it comes to drives, service advisors are making mistakes left and right when it comes to balancing volume versus quality. What do we mean by that and how do we know? According to Mario, the first thing he looks at any time he goes into a dealership is how the drive’s operating. He looks at how service advisors are going about their business–how they’re connecting with customers, how receptive customers seem to be to the information they’re being told, and what the outcomes are. And more often than not, he’s seeing a bottleneck effect. Here’s what it looks like: The doors open up, each service advisor is 5 or 10 cars deep right out the gate, and they’re all running around trying to get people in and out the door as quickly as possible.
The way that these service advisors are looking at it is that if they don’t handle the transaction quickly and keep customers waiting, they’ll lose them. In reality, handling customers this way feeds into their preconceived notions about dealerships: That all service advisors and their employers care about is getting their money as quickly as possible and getting them out the door so they can take another car in. So even though service advisors think that they’re making customers happy by moving so quickly, what they’re really doing is just feeding into the negative perceptions so many customers have about the auto service industry and dealerships in particular.
If you look at Longo Toyota as an example, you see that there’s another way of doing things that’s much more effective in the long run. At Longo and other successful dealerships, service advisors are trained to really pet the dog as I like to call it, meaning that they’re trained to actually talk to customers as they come in. They build rapport by asking questions about how the customer is using their car, what the issue has looked like for them, and just generally checking in on how they’re doing. Longo’s numbers we mentioned before speak for themselves. They’re selling more cars than anyone else in the world and that’s definitely at least in part because of their customer service training.
The reason why this works so well in terms of customer retention is because of the psychological impact of showing the customer that you give a damn about their experience. The car is a commodity, sure, but the customer isn’t and they’re looking for respect from the people they interact with. Plus, the strategy of moving things along as quickly as possible doesn’t really work anyway. It doesn’t actually eliminate the bottleneck effect, it just pushes the bottleneck from the front to the back. A thriving business will always have customers waiting, so the way that you handle each customer and show them that you value their business, the better.
However you and your team decide to go about changing your sales strategy, the most important part is consistency. You have to have a plan, make sure everyone is on board, and then stick to the strategy. To show you what I mean, let me give you an example of why consistency matters so much. When I was at Crevier BMW back in the day, I wanted to implement a system where the sales manager went out and greeted the customer and completely took car prices off the table. I’d let the customer know that I’m the money guy, which is the easy part, and that this sales manager’s job is to make the customer fall in love with their dream car. Once a customer agreed, it made the sales manager’s job a lot easier because their only goal was to really show off the cars based on what the customer was looking for rather than having to convince them that it was worth a certain price. Sounds like a good plan, right?
In reality, the system worked like a charm on the rare slow days, but on a busy day it was a different story. The first Saturday we tried to implement it, the system totally fell apart. I had about 3 desk managers, 40 salespeople, and 25 customers lined up. The managers were saying that there’s no way they can just go out there, introduce themselves in the desk deals and say goodbye. There were bottlenecks everywhere. I realized that we had to create a system that would be consistent every single day, not just on the odd slow days.
The question is…is the problem really about volume versus qualiity? In my opinion, there will always be service advisors, salespeople, desk managers, any employee really, who will take shortcuts to move things along faster or do less work. So I asked Mario to think about busy times when there’s a line of customers out the door and tell me what two things he would never skip in order to move the process along faster. His initial answer was preparation, meaning taking time to review his appointments before heading in for his shift so he knew who his customers would be, how they drive their cars, and what kind of preventative maintenance they'd done in the past. When I threw a wrench in that by asking him what he’d do if most of his customers that busy day were drive-through oil changes, his answer changed: he’d pet the dog and slow things down so he could make sure each customer was taken care of and each job was handled well.
That’s my answer too because it applies to every situation. No matter how busy you are, never skip petting the dog. In many cases, it doesn’t matter if you’re taking shortcuts to get the work done, as long as you are engaging with the customer as you do it. If it’s a Monday or Tuesday, you can ask about the previous weekend. If it’s Thursday or Friday, just switch it up and ask about upcoming plans.
When you pet the dog, it’s not just that one interaction that goes more smoothly, it’s that you’re setting yourself up for future business with that customer. Nine times out of ten, when a customer opts not to get a new part or a repair done at your dealership even though they bought the care there, it’s because they don’t trust you. By actually engaging with customers and showing that you value their time and business, you build trust that creates long-term relationships. People are looking for service advisors they can really trust to tell them what they need and help them out so they feel safe and keep coming back. As Mario says to his service advisors:
“It’s not the customer's responsibility to remember you, but it is your responsibility to make sure they never forget you.”
If you’re ready to step up your game, we dropped even more wisdom on the podcast–listen to this episode here and then tell us what you think in the comments below.