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As the parts and service business within dealerships picks up we are faced with the usual problems of just trying to keep up. And that takes me back to old habits. We have returned to the methods and processes and procedures that we have been using all along. Time consuming and ineffective at times and we aren't doing anything about it. That is why we need to maintain a firm resolve and keep focus.
Someone once defined insanity as continuing to do what you have always done yet expecting different results. Let's not be insane. Another way of saying this is that if we continue to do what we have always done we will continue to get what we have always got. This is no longer an acceptable stance to take.
Our businesses have clearly changed. The equipment portion of our business has seen clear changes in margins and more recently for the first time in a long number of years we are now faced with equipment shortages. If we don't get more professional and proficient at what we do in parts and service we will regret it. Jack Welsh, while leading General Electric, was known to say "if the world around you is changing at a rate faster than you are...the end is near."
Is the end near? It might be if we don't get serious about improving ourselves.
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We need to be much more responsive to our customers needs.
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We must provide "peerless" parts supply and customer service.
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We must be the highest value provider of products and services in the market.
If we don't satisfy the above our competition is standing by waiting anxiously. And they aren't sitting idly by; they are actively pursuing our business with our customers.
So here we go again. I have a short list of things, upon which we must focus, for you to consider.
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Market Coverage
Make sure that at least 90% of the parts and service business customers are covered with an assigned person; either a product support sales person or a telephone sales person.
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Flat Rates and Standard Times
Move to having at least 90% of the work that is done in your shops performed using standard times and with a firm quoted price and completion date to your customer.
- Parts Availability
Work hard to have the right level of inventory to satisfy customer needs. And don't forget the rule - "We will find every part for every customer every day before we go home at night."
- Customer Satisfaction
Three to five days after you invoice the customer for repairs and maintenance call them and ask how you did. Don't forget customer service in America is not very good and customers don't call to complain much anymore. We need to dig out the complaints. And then fix the problems.
- Customer Retention
Work hard to ensure that every customer you have today you have for the rest of their work life in your market. It pays. Measure retention and make sure you act on things that customers tell you that they want you to do or that they don't like that you do.
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Employee Satisfaction and Loyalty
Nothing is possible without talented and committed people working hard to meet customer needs and expectations. In parts and service we have the majority of the customer contact and employees. Without your "heroes" in parts and service where would you be? Make them happy and keep them happy.
We have many opportunities in front of us. And you will have a lot of fun dealing with them. Each of the above items is critical to your success and the success of your customers. Don't let them down. And don't let yourself down. Focus your efforts and affect the changes that are necessary. It is much too easy to slip back into the old habits. Don't go there.
In their great book Built to Last, Collins and Porras talked about having "Big Hairy Audacious Goals". "BHAGS." Each one of the above items is a "BHAG." They are meaningful and worthwhile goals. They make a difference. In his follow up book "Good to Great" Jim Collins points to a calm insistence on meeting goals. Nothing dramatic, just "good people on the bus" doing good work to meet customer needs.
Yes, it is at times difficult to effect change with all of the extra effort. But just think of the satisfaction involved after you have succeeded in one of these tasks. There will be a smile on your face. And that's not the only place there will be a smile. Your customers, your coworkers, your suppliers, everyone affected will have a smile on their face. That's what makes a difference to me and keeps me pushing all of you. I love seeing it when you succeed. Thanks for your efforts and good luck.
To learn more, check out the offerings from Quest, Learning Centers.
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