Many years ago, I attended an Automotive Shop Management seminar where I learned that there is one thing you know about every new prospective customer who calls your shop and asks, "How much for a .... ?"
For years, I have listened, read and even opined about the various methods to deal with prospective customers who call and request an estimate for repair or service over the phone.
It's no secret that most shop owners and Service Advisors really do not like to give estimates over the phone without having had an opportunity to inspect and diagnose the vehicle in question. However, if you change your thinking just a bit, you might come to see that this represents a genuine opportunity with reference to a new age and new methods of marketing.
If I should call you and ask for an estimate for how much it will cost to turn off my Check Engine light, what do you think it might cost to fix it, or how much will it cost for front brakes on my 2006 Honda Pilot, you have an opportunity to engage me as a prospective customer and begin to form a relationship with me.
Instead of telling me that you're sorry but you don't give estimates over the phone, another way (there are several) that you could handle the situation would be to say, "Sure Mr. Prospect, let me get your e-mail address and I will e-mail you an estimate for that work and then call you to answer any questions or provide clairfication". Then you proceed to ask me pertinent questions to enable you to calculate an estimate as accurately as possible and e-mail me a PDF attachment for the work in question.
Now you may or may not get my business this time. I may well go to Snake's Repair Shop down the boulevard to have those brakes done. However, what you will have is my e-mail address which you can then use to send me well-crafted e-mails (with an opt-out option) about the services you offer, pertinent information for my vehicle, special offers such as headlight polishing, winterization, LOF, etc.
The one thing you know about every new prospective customer who calls your shop and asks, How much... ? They don't have anyone with whom they can trust their vehicle or they wouldn't be calling you.
Sunday, March 21, 2010
How good of a Marketer are you? - Part 1
Here's why I pose the question: For 15+ years I have listened to many, many shop owners gripe and moan that car count is down. Yet, when I ask a few probing questions regarding their marketing efforts to existing customers, it becomes painfully obvious that these otherwise energetic entrepreneurs are clearly out of their comfort zone when it comes to utilizing their shop management software system for any type of database marketing.
Many auto repair shop management systems do a good job of providing the "tools" that enable a shop owner to keep in constant touch with customers but in my observation, precious few systems are fully utilized to their full potential.
Training is an issue no doubt. Quite possibly there was little training offered for the shop owner and he or she simply never became familiar enough with the system to even print out oil change reminder letters to send to their customers. On the other hand, I have observed shop owners who simply did not avail themselves of training offered for their benefit.
Nevertheless, since most shop owners will take on the challenge of an elusive driveability problem with the grit and determination of an Olympic athlete, I am always puzzled how so many of these types shy away from teaching themselves how to master the relatively simple challenges of database marketing. Perhaps fear of the unknown, another learning curve or hat to wear, or just a general lack of comfort with these types of systems are among the explanations.
Someone reading this right now is thinking, "We use a service (MechanicNet, Customer Link, OnStation) for marketing." To that my response would be, "Good for you. If that's working, keep doing it." However, while I think these services have some terrific capabilities, I still am concerned that a shop owner is not fully appreciating and learning the power and art of highly effective marketing for himself. Not his job, you say? Truthfully I could argue either side of that point but I believe and preach that a shop owner needs to be working ON the business, not IN it and working on the business means becoming a great marketer and positioning your shop as The Best. Ultimately, in a small business, whether a bakery or and auto repair shop, no one can do it as good as the owner can.
I recognize this can be a touchy subject but I am interested in others opinions on this question.
Many auto repair shop management systems do a good job of providing the "tools" that enable a shop owner to keep in constant touch with customers but in my observation, precious few systems are fully utilized to their full potential.
Training is an issue no doubt. Quite possibly there was little training offered for the shop owner and he or she simply never became familiar enough with the system to even print out oil change reminder letters to send to their customers. On the other hand, I have observed shop owners who simply did not avail themselves of training offered for their benefit.
Nevertheless, since most shop owners will take on the challenge of an elusive driveability problem with the grit and determination of an Olympic athlete, I am always puzzled how so many of these types shy away from teaching themselves how to master the relatively simple challenges of database marketing. Perhaps fear of the unknown, another learning curve or hat to wear, or just a general lack of comfort with these types of systems are among the explanations.
Someone reading this right now is thinking, "We use a service (MechanicNet, Customer Link, OnStation) for marketing." To that my response would be, "Good for you. If that's working, keep doing it." However, while I think these services have some terrific capabilities, I still am concerned that a shop owner is not fully appreciating and learning the power and art of highly effective marketing for himself. Not his job, you say? Truthfully I could argue either side of that point but I believe and preach that a shop owner needs to be working ON the business, not IN it and working on the business means becoming a great marketer and positioning your shop as The Best. Ultimately, in a small business, whether a bakery or and auto repair shop, no one can do it as good as the owner can.
I recognize this can be a touchy subject but I am interested in others opinions on this question.
Better Shop Management: How to Talk to a Customer
My wife and I were talking at dinner the other evening and I was telling her a story about a shop owner who had a customer in another town out of state with a vehicle that had a driveability problem. She's a lot smarter than I am in most ways but she asked, "What's driveability?" and I explained that it refers to the way the vehicle runs... does it stall, hesitate, surge, die, etc.
Under the topic of good shop management procedures, it got me to thinking about how do we talk with our customers. I heard years ago that the term 'effective communication' meant communicating in a way that others can understand. Have you ever used the term 'driveability' with your customers and just assumed that they knew what you meant? I know that I sure did exactly that in my previous life as a shop owner and I've stood next to and listened to plenty of today's shop owners do the same thing while on the phone or at the counter with a customer.
What other industry specific terms are tossed around casually every day at your shop and the customer just keeps listening intently to what you're saying, nodding their head and hoping you'll say something in good ol' plain English that they can wrap their brain around and glean some idea of what it is you are trying to tell them?
This very situation happened to me recently when I took my Black Lab to the Vet. My impression of him was that he was very knowledgeable as I was nodding my head, really focusing on what he was saying and hoping he'd say something that I could understand. But alas, I had to ask him to explain it a couple of different ways so I could finally grasp just a little of what he was trying to communicate to me about my dogs health.
Most people will not stop you to tell you that they really don't understand what you're saying for fear of looking stupid or feeling uninformed. Doesn't this go to the heart of TRUST, which is what the client/shop relationship is all about? Would I not feel more confident in you and your shop and the recommendations (read: upsells) you are making if I understood you better? Wouldn't I be more likely to give you the benefit of any lingering doubt if you communicated so effectively to me that I felt I could trust you?
So take a hard, thoughtful look at how you and your staff members communicate with your clients. Think about it from the clients perspective, not just your own. Are there terms that are so familiar to you that they just roll off your tongue without a moment's thought to whether or not you are communicating effectively?
Driveability... scanner... stored code... makes perfect sense to you but it may be blah, blah, blah to others. Moreover, could this be one reason why one day out of the blue, you realize that the Wilsons have not brought in either of their vehicles in over a year?
There are many ways to improve customer retention and effective communication is certainly one of them.
Here's the challenge: You and your staff critique each other in how effectively you communicate with customers and by improving that communication, you will likely be increasing customer retention.
Under the topic of good shop management procedures, it got me to thinking about how do we talk with our customers. I heard years ago that the term 'effective communication' meant communicating in a way that others can understand. Have you ever used the term 'driveability' with your customers and just assumed that they knew what you meant? I know that I sure did exactly that in my previous life as a shop owner and I've stood next to and listened to plenty of today's shop owners do the same thing while on the phone or at the counter with a customer.
What other industry specific terms are tossed around casually every day at your shop and the customer just keeps listening intently to what you're saying, nodding their head and hoping you'll say something in good ol' plain English that they can wrap their brain around and glean some idea of what it is you are trying to tell them?
This very situation happened to me recently when I took my Black Lab to the Vet. My impression of him was that he was very knowledgeable as I was nodding my head, really focusing on what he was saying and hoping he'd say something that I could understand. But alas, I had to ask him to explain it a couple of different ways so I could finally grasp just a little of what he was trying to communicate to me about my dogs health.
Most people will not stop you to tell you that they really don't understand what you're saying for fear of looking stupid or feeling uninformed. Doesn't this go to the heart of TRUST, which is what the client/shop relationship is all about? Would I not feel more confident in you and your shop and the recommendations (read: upsells) you are making if I understood you better? Wouldn't I be more likely to give you the benefit of any lingering doubt if you communicated so effectively to me that I felt I could trust you?
So take a hard, thoughtful look at how you and your staff members communicate with your clients. Think about it from the clients perspective, not just your own. Are there terms that are so familiar to you that they just roll off your tongue without a moment's thought to whether or not you are communicating effectively?
Driveability... scanner... stored code... makes perfect sense to you but it may be blah, blah, blah to others. Moreover, could this be one reason why one day out of the blue, you realize that the Wilsons have not brought in either of their vehicles in over a year?
There are many ways to improve customer retention and effective communication is certainly one of them.
Here's the challenge: You and your staff critique each other in how effectively you communicate with customers and by improving that communication, you will likely be increasing customer retention.
Measuring Productivity and Efficiency
As an automotive shop owner, do you measure billable or sold hours? In other words, if you added up all your labor sales for the month and divided by your standard labor rate, you would have a reasonably accurate figure reflecting how many hours you sold that month. Then, divide it by the number of hours that your Techs worked and you would have what is commonly referred to as Average Productivity percentage.
For example, if your total labor sales last month were $39,323.00 and your primary labor rate was $93.65, you would have billed out about 420 hours for the month.
Here's the equation:
$39,323.00 / $93.65 = 419.89 hours billed.
Now suppose you did that with 3 Techs who altogether worked a total of 515 hours during that month. Therefore, it took your Techs 515 hours to produce 420 hours, or 81.5% Average Productivity. How come? Can't they usually beat flat rate time on most jobs most of the time?
What I would do to improve your billable hours is to start by measuring both the Shop Average Productivity -and- the Techs Average Efficiency. An example of Efficiency is the amount of time it actually takes a Tech to do a timing belt on a Honda or front brakes on a Suburban as compared to the amount of time that you charge the customer.
For example, suppose the Tech replaces the Honda timing belt, from start to finish with road test included in 2.2 hours and you bill the customer the suggested book time of 3.5 hours x your labor rate of $93.65, or $327.77.
The equation is: 3.5 / 2.2 = 159% Efficiency.
Now if you're measuring Productivity and Efficiency, you might see something like an average of 120% Month Average Tech Efficiency against your 81.5% Productivity.
Here's the nugget: The farther apart these two numbers are, the more you have a systemic problem; That is a problem with your system. Perhaps you are understaffed; perhaps you are slow at calculating estimates and getting work authorizations. Whatever the cause, your system is slowing down your Techs, impeding them from producing more hours that are billable.
On the other hand, low Tech efficiency is most likely a Tech problem. Perhaps a training or inexperience issue or possibly he or she doesn't have the right tools. Or maybe he or she is talking on their cell phone or drinking coffee and using the restroom.
Whatever the causes are, remember the old saying, "That which gets measured, gets improved"
For example, if your total labor sales last month were $39,323.00 and your primary labor rate was $93.65, you would have billed out about 420 hours for the month.
Here's the equation:
$39,323.00 / $93.65 = 419.89 hours billed.
Now suppose you did that with 3 Techs who altogether worked a total of 515 hours during that month. Therefore, it took your Techs 515 hours to produce 420 hours, or 81.5% Average Productivity. How come? Can't they usually beat flat rate time on most jobs most of the time?
What I would do to improve your billable hours is to start by measuring both the Shop Average Productivity -and- the Techs Average Efficiency. An example of Efficiency is the amount of time it actually takes a Tech to do a timing belt on a Honda or front brakes on a Suburban as compared to the amount of time that you charge the customer.
For example, suppose the Tech replaces the Honda timing belt, from start to finish with road test included in 2.2 hours and you bill the customer the suggested book time of 3.5 hours x your labor rate of $93.65, or $327.77.
The equation is: 3.5 / 2.2 = 159% Efficiency.
Now if you're measuring Productivity and Efficiency, you might see something like an average of 120% Month Average Tech Efficiency against your 81.5% Productivity.
Here's the nugget: The farther apart these two numbers are, the more you have a systemic problem; That is a problem with your system. Perhaps you are understaffed; perhaps you are slow at calculating estimates and getting work authorizations. Whatever the cause, your system is slowing down your Techs, impeding them from producing more hours that are billable.
On the other hand, low Tech efficiency is most likely a Tech problem. Perhaps a training or inexperience issue or possibly he or she doesn't have the right tools. Or maybe he or she is talking on their cell phone or drinking coffee and using the restroom.
Whatever the causes are, remember the old saying, "That which gets measured, gets improved"
Wednesday, May 30, 2007
12/05/2006: R.O.Writer version 1.19 is now available!
The website has also been updated with important information regarding this release as well as new feature documentation. Click here to familiarize yourself with the different aspects of the 1.19 release.
In an effort to improve our communication with our user community we have been distributing e-mails on a regular basis as well as posting status updates to our website. We ask that you verify we have your correct e-mail address on file to ensure you are being provided with all pertinent information. Please click on the Profile link to review and update your contact information.
If you have any questions or comments, please contact the R.O.Writer support desk at 1-800-881-5859. We have made every effort to streamline and simplify the documentation. Please read the material closely and completely prior to placing a Help Desk call or E-Mail Support .
In an effort to improve our communication with our user community we have been distributing e-mails on a regular basis as well as posting status updates to our website. We ask that you verify we have your correct e-mail address on file to ensure you are being provided with all pertinent information. Please click on the Profile link to review and update your contact information.
If you have any questions or comments, please contact the R.O.Writer support desk at 1-800-881-5859. We have made every effort to streamline and simplify the documentation. Please read the material closely and completely prior to placing a Help Desk call or E-Mail Support .
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