Two solitudes exist between the front of your store, and the back
I’ve had a number of conversations over the past month that ended in a similar manner; talking about the (generally) poor job being done at many dealerships when it comes to involving the service department in the vehicle sales and delivery process.
I rarely hear of customers being formally introduced to the service department before or at the time of delivery. It is still the exception rather than the rule for customers to leave the store in their new vehicle with their first service appointment already booked, with a confirmation email sent so they can immediately add it to their smartphone or computer-based calendar software.
This is not just about booking the first service appointment. It is much more profound and important than that. New vehicle dealerships continue to lose far more service market share to the aftermarket than any of us like. And yet, it seems to me (and others, based on the conversations I’ve been having) that opportunities to address this are being missed.
I realize armchair quarterbacking delivers oversimplified solutions, here’s some food for thought:
What if we redesigned the sales role to have full responsibility for the customer relationship, from the initial sale through every service visit? This would go beyond paying a sales person a spiff when one of their customers books a first service appointment on their vehicle. What if sales staff were paid a commission on service and parts revenue, and charged with the responsibility of staying in touch with their customers regarding service intervals, seasonal check-ups and the like?
In most other industries, salespeople try to create as many valid customer touches as they can, to maintain and build relationships between purchase cycles. Why should this industry be any different? There are far more customer touches available in service than in sales, and a salesperson who is fully familiar with the age and service record of their customers’ cars is better positioned to know when that customer is likely entering their next purchase cycle. They are also better positioned to understand which vehicles are hot used car prospects and encourage customers to get an appraisal.
This could also support a total rethinking of sales staff compensation plans. Creating a compensation plan that is supported by both sales and service revenue could make the job more future-proof in the face of dropping gross on vehicle sales, and assist with attracting and retaining sales staff.
Would this mean an increase in costs? I doubt it. Not if it’s done with care, and with the right technology tools to support the role.
There is much about the current structure that doesn’t work. Let’s break the mold.
