HOW INVESTING IN YOUR STAFF AND TAKING A BIG PICTURE VIEW OF CUSTOMER SERVICE IS AN EFFECTIVE APPROACH TO ENSURE REPEATABLE, LONG TERM SUCCESS
In my line of work, I have the luxury of meeting and working with a number of auto dealers right across Canada. The ones that impress me the most are those that have a laser focus when it comes to vision and the skills to assist their team with precision execution.
They are leaders. They are coaches. Quite frankly, these are the folks that think differently than most of of us. They are wired differently and produce results.
Having your eye on the goal line is critical.
Their approach to getting there however, is rather complex. It goes well beyond how many new and used vehicles were sold today.
I have learnt that the goal line shifts depending on circumstances and as a result, flexibility is paramount. Working for these folks is often not easy. They stretch your outer limits. It’s like a perpetual cross–training workout for your business skills. It can be draining just keeping up, but keep up you must. Let’s look at an example.
John just started working as a general manager in one of Rudolf’s stores. His interview was easy-peasy, so he thought. Much talk about the industry, individual management style, customer importance, the numbers etc. — it was comfortable, very thorough actually, when he sat back and thought about it. Although it seemed like the interview lasted less than 45 minutes, it actually took more than two hours.
Different priorities
Rudolf talked about customers, not departments. He talked about KPI’s not dealer financial statements. He talked about how important his people are to him, not how lucky they were to work for him. He talked about how everyone must continually play at the top of their game. He talked about how he learns something every time he talks to an employee. John was impressed with Rudolf’s desire to have impeccable brand relations. He viewed the brand as his partner. Without that partnership he would not have a business and John would not have a job. He talked a lot about give and take, necessary evils and empowerment.
Now that John was on the inside, he was exposed to Rudolf’s vision first hand. He continued to be impressed in his first few days. He would go home at night and wonder whether he could live up to Rudolf’s expectations.
John attended his first Monday morning management meeting. Rudolf and the group COO joined in via video conference. John called the meeting to order. Everyone was on time. Rudolf introduced John and indicated that John would be running these meetings from here on in but just for today he would take charge. John was accustomed to management meetings where 95 per cent of the time was spent on how to sell more cars. There was usually a fair bit of shouting and pressure to meet targets.
This meeting was very different. Rudolf asked the service manager to give him an example of how he had improved the business in the new vehicle department during the past week. He then asked the same question but in reverse, to the general sales manager. The same sort of questions were also given to the used vehicle, parts and body shop managers.
Shared responsibility
It was very clear that all these folks were working together for the benefit of the customer and that they were not exclusively focused on their own departments.
The big success story for the day revolved around the greeter. The greeter took it upon herself to deal with a potentially difficult situation and did what was right for the customer. This created a service customer, turned into an opportunity for the new car department and cost the dealership $25 in customer goodwill. When John followed up on the work order, he found that the dealership had made $620 gross on a customer that was about to walk out of the door and take his vehicle elsewhere. John then got involved with the BDC phone follow-up and learned that the customer was very satisfied, would return and would recommend this dealership to others.
John was curious, so he took it upon himself to call the customer. The customer was delighted and told John that he normally serviced his vehicle at another dealership about 30 minutes away. He was not at all satisfied with the treatment he received and claims that they did not look after his car well. He also claimed to have called the brand call centre and again, only to get the run around. He admits to going to John’s store with a chip on his shoulder and very low expectations.
It was about 2:30 in the afternoon, the gentleman indicated, when he and his wife entered the showroom entrance on the way to the service department. It was actually her car. The greeter approached them within 10 seconds and tried to engage in conversation about the purpose of their visit. She offered them a coffee and seemed genuinely interested in them. With coffees in hand, she walked them to a service advisor.
She explained the situation to the service advisor. The customer indicated that it was like she was advocating on their behalf. The advisor said that he could not get the vehicle in that afternoon but had a slot open at 7:30 a.m. the following morning and would be glad to schedule them in. The wife indicated that she had to work and could not get the vehicle in then but was quite worried about the sounds it was making and was uncomfortable driving it. The greeter offered a rental car — on the house — and the service advisor agreed to call the new customer at work once he knew what was causing her concern. All went according to plan.
More business
The customer was so delighted with the treatment and John’s personal follow-up, he indicated that they would be bringing her vehicle and his as well to this store for their service in the future. They could not say enough about the greeter, the service advisor and the treatment.
John felt that he had to share this story with Rudolf. Rudolf’s reply was to ask John why he was so surprised. Rudolf went on to explain that in his dealerships it does not matter where someone’s salary is allocated, they work for the dealership.
He expects them to do what is right for the customer. He explained to John that most dealers would balk at the $25. In his mind he is $595 ahead and with the opportunity to make a boatload more off this husband and wife in the future. That’s before referrals! In Rudolf’s mind it was a no brainer.
He meant what he said in the interview that he has a unique philosophy and he hoped that John was beginning to witness it firsthand. Rudolf explained that in most stores the customer facing people, those that make first customer contact are not empowered to do anything and are normally some of the lowest wage earners in the dealership. They are viewed as overhead. Not in his stores. The groups hires very carefully. Rudolf personally trains all greeters, receptionists, Internet staff, shuttle bus drivers and BDC people. They become empowered to do the right thing.
Their part in the system is invaluable. He invests in training the right people, to do the right thing when it’s called for. “It’s all about making money in the long run” explained Rudolf.
This is a simple story but highlights the point that many of us think too much along departmental silos with traditional roles and values. With the retail world changing at such a rapid pace, we need to react quickly to take advantage of competitive situations. Those first few minutes of contact are critical and the more customer-focused your interaction is, the better you differentiate your dealership from all others.
Empowerment might scare the heck out of some of you, but there’s no denying it as a competitive advantage in our changing retail world.
