[Editor’s note: This is Part 2 of the two-part blog exploring more strategies to improve your service department from Bernie DeGraw, MRAA Senior Education Developer]
In part one of this special blog series on boosting service revenue, I shared three things to do now, or as soon as possible, to help your dealership. In this second blog, I’ll share more tips to help improve your service department in the coming year.
Step 1
Again, let’s start with a topic for service backed up by the numbers. This one goes into improving for the year to give you the time to address it in small, less time-consuming pieces. The Service Management Special Report gave us solid information on some items that helped service and dramatically increased gross profit margin. The standout tactic was having a service process map, in place, in use, up to date and shared with the team.
The numbers show that those having a process map developed and working for them in service had an 18% higher gross profit margin than those that did not have a process map. What would an almost 20% higher gross profit margin mean to the bottom line of your service department and your dealership as a whole? Additionally, those dealerships had a peak season efficiency 8% higher than those without the map in place.
So, what do you do about a process map? If you have one, is it working? Does it need to be reviewed? Much like a machine that needs regular maintenance, your process maps need to be re-evaluated to ensure things are working exactly as you expect. Wear and tear leads to a breakdown in the process, which, in turn, will get your attention. That’s typically in an unpleasant and unprofitable way.
If you don’t have one, we have a link to one developed by Aimie, our Artificial Intelligence for Marine Industry Education, at the end of the blog.
Also, the Service Management Certification Program has an entire course on the process map, its development and refinement. Taking that class as a service manager will get your project for the coming year off to a fantastic start.
Step 2
As a former general manager and current dealership co-owner, I know that there were times when I felt like I was the hub of the dealership for our customers. At times, that was a good feeling and sometimes it was unpleasant. Honestly, looking back with more wisdom has shown me that feeling wasn’t accurate. The truth is that your service advisor spends the most time with customers over the long haul.
A service advisor ends up being the salesperson who sells the second and third boat and beyond. They deliver bad news AND good news. They learn all about your customers. They hear the stories of the wind, the waves, the storm, the sun, the sunburns, the tubing fun and so much more. On an hourly, weekly, monthly and seasonal basis, they make boating better for your customers. They also enhance the working experience for the dealership team as a whole, including salespeople, technicians, yard personnel and you leaders.
So, does your service advisor get enough support for their role? What have you done for your service advisor lately? When is that last time you heard the bad news they had to share? How about the last time they got to share great news with a customer?
Starting now and over the next year, you need to give your service advisor some tools to make their work life easier and better for the entire dealership?
- Do you have a texting platform that the service department and especially the service advisor can use? If not, get one.
- According to localproject.net, 81% of Americans text regularly.
- According to simpletexting.com, 78% of consumers say that checking, sending and answering text messages is the activity they do most on their smartphone.
- According to Lead Inferno, across all age groups, text messaging is the preferred way to communicate with business.
- You say, “We can text on our phones and get those same results and statistics mentioned above.” That may be correct but, consider this:
- If your employees text business customers on their phones, who owns the message? If something goes wrong or that employee leaves the business and they texted from their personal phone, you won’t have the record. Many texting platforms allow the employee to text from their own phone as well as the business computer. The text will always appear to come from the business and will on most platforms be maintained as a communication record for you to retrieve if needed.
- Most texting platforms will go beyond the simple text message and allow the advisor to send photos, video and even bill via secured text.
- Help your advisor access and use other tools of their own to help them upsell parts and service. For example:
- Have your technicians find a worn bellows and a cracked one. When a customer comes in the advisor can show them why they should be inspected and explain with the cracked one how quickly water can come in and fill their boat.
- Work with your advisor to have the service technicians get photos or video of difficult service projects. This lets the advisor show the customer what happened and will happen in servicing their boat.
- Give your service advisor a chance to learn more about the boats and the engines you are selling. They need to know what the boats are like, what is new, what is different and even what is missing on the new and used boats sold by your sales department.
- How do you truly expect your advisor to advise your boat-buying customers if they don’t have a chance to truly understand the boat that was purchased. Yes, all boats are the same — wait, what?! No, the advisor needs to know what is different to sell what makes the customers boating experience better, rather than making a generalized rough guess.
- Give them a chance to explore the showroom. Let them sit on, walk through and dig into the boats you stock.
- Give them a chance to get out on a shakedown cruise, a delivery ride or a demo or rental unit.
The MRAA is coming out with a Service Advisor Certification Program in the Fall. This program will give your advisor a truly in-depth experience to look at their practices and behaviors. This is not a sales pitch, but truly an opportunity to give your advisor, the person(s) who is likely the most important piece of customer satisfaction and selling the next boat to your customers an opportunity to focus and improve. Where else can you give your advisor such a perfect opportunity to help the entire dealership?
The program gives them focused and deliberate opportunities to implement what they learn. It is not just a course to take and check off a list. Instead, each step of the way they are given tools and actions to take to put to work in their role and in the dealership. Look for the Service Advisor Certification Program coming soon.
Step 3
This last recommendation takes four to five great days and will set the stage for you and your service department and your entire dealership for the whole year to come. You need to start now and really go in depth in December. Then put it all into action over the following months.
Here’s a short true story. I had never been to Dealer Week, MRAA annual conference and expo. As a leader and a manager, I had always believed I was giving my team opportunities for growth. I even had some time where I went out and got training. But, I learned that nothing compares to Dealer Week in terms of education for the entire dealership team.
This past December was the biggest and best and most highly rated educational conference yet. It is literally rated as a world-class event. If you want the best education, for service and parts, for sales, for marketing, for F&I and for you as a leader, you need to attend Dealer Week Dec. 8-11, in Orlando, Fla.
Moreover, from 9 a.m. to 3:30 p.m. on December 8, the MRAA and Valerie Ziebron will be presenting a Service Management Special Event. We will take the numbers from the Service Management Special Report and combine that with additional skills and information connected with the Service Management Certification and the Service Advisor Certification to build an incredible and powerful day of focused service-department opportunities and learning.
The Service 3-Step for Future Success
Elevating your service processes is key to boosting revenue and strengthening your business as we head into the new year. It starts with mapping out your service operations to pinpoint where you can improve and ultimately enhance your gross profit margin. Next, give your service advisors the tools they need to succeed — whether it’s a modern texting platform, visual aids, or achieving Service Advisor Certification. These resources empower your team to communicate better and deliver top-notch service, which customers will notice.
And don’t forget, one of the best investments you can make in your dealership’s future is education. Make plans to attend Dealer Week on December 8-10, 2024, where your entire team can soak up world-class insights and skills. By focusing on these areas, you’ll not only improve your service processes but also set your business up for long-term success. So, let’s make this the year you take your service game to the next level!
Next Steps:
- Miss part 1? You can read it here.
- MRAA Members can download this handy PDF sharing Key Elements of a Service Department Process Map.
