Issue link: https://read.dmtmag.com/i/458425
FOCUS PSB Service Department 14 • January 26, 2015 • Powersports Business www.PowersportsBusiness.com Extracting value from your service dept. Creating a controlled shop environment boosts customer relationships BY JOE ARCUCH CONTRIBUTING WRITER "Imagine two companies: One retains 95 per- cent of its customers each year, while the other retains only 90 percent. If all other factors are equal, the 95 percent company will double its customer base every 14 years, while the 90 per- cent company will experience no real growth." — Frederick Reichheld, Harvard education business loyalty expert and best-selling author Sadly, these are actually very rare num- bers in powersports, where common reality is closer to 50-60 percent. So why is that? It is often stated that sales sells the first bike, and service sells the second and third. Or in other words, by default, long-term control of the customer relationship is handed over to often stressed-out service writers and too-busy service managers. And not only do they manage the customer, service is also responsible for maximizing tech- nician time. So why are the trusted handlers of these extremely important assets being asked to do their job using processes and perspec- tives as ancient as the industry itself? Customer relationship management pro- grams are highly effective at driving customers in, and dealer management software is great at handling the vehicle, parts, customer data, sales and business administration. But service employees and managers must successfully manage the dynamics that exist between vehicles, cus- tomers and technicians by using only a desk calendar or a basic scheduler that's function is solely to "block technician time." That's sort of like asking a technician to rebuild a transmission using the bike's supplied toolkit — chances of smooth shifting afterwards won't be great. What is needed to aid smooth sailing between the complex service dynamics is a predictive scheduling and customer manage- ment/communication program, to create a con- trolled shop environment that is both efficient and effective. Enter SchedulePower. SchedulePower, incorporated in 2005, was developed by myself to make service departments in the powersports, trucking and automotive segments more efficient and profitable. EVALUATING THE GROWTH The chart above displays the results of a survey returned by dealership service department users, evaluating the results of such a pre- dictive scheduling system. This system was specifically designed to help service writers and managers maximize department time and communicate better with customers. The other graphs show actual year-to-year results from one early adopter. (Notes: The busy months of May-Sep- tember are used for comparison. Sold time above sellable time indicates time billed for a second lift, and the pleasure of very efficient technicians. Second lift was not recorded in 2013.) 2010 Staff: Two technicians, service manager, two service advisors and one war- ranty administrator/service writer. Previ- ously all business was first in first out, before implementing a predictive scheduling sys- tem and training their customers to make appointments. 2011 Staff: Two technicians, service manager, two service advisors and one war- ranty administrator/service writer. Produc- tion continued to rise as processes continued to be refined. 2012 Staff: Four technicians, service manager, two service advisors and one war- ranty administrator/service writer. Economic- and reputation-built business growth requires more technicians; the expanding business is competently handled by a tight team using a tight system. 2013 staff: Fifth technician added in June, service manager, two service advisors and one warranty administrator/service writer. 2014 staff: No changes made to this win- ning team. The benefits of using predictive scheduling: Customer time is respected Customer service is improved, better cus- tomer retention Improved utilization of technician and staff time Emergency schedule changes are manageable Customers are easily brought in for their first service — the most crucial time to establish a relationship with service The ability to hire more technicians with- out having to add more support staff Staff turnover does not compromise intel- lectual property or unreasonably disrupt workflow. PSB Joe Arcuch is the founder of SchedulePower. 0 20 40 60 80 100 Improving overall efficiency Increased customer satisfaction Increased customer retention Increased service revenue Reduction in stress and conflict 100% 80% 64% 66% 67% THE ADDITION OF SCHEDULING SOFTWARE THE PERCENTAGE OF DEALERSHIP SERVICE DEPARTMENTS THAT RESPONDED "GOOD" OR "EXCELLENT" TO POST-IMPEMENATION QUESTIONS REGARDING SCHEDULING SOFTWARE FOR THE SERVICE DEPARTMENT Source: SchedulePower 0 200 400 600 800 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Sellable Sold Monthly Hours 0 100 200 300 400 May 2010 Jun 2010 Jul 2010 Aug 2010 Sep 2010 Sellable Sold Monthly Hours 0 200 400 600 800 1000 1200 1400 1600 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Sellable Sold Monthly Hours 0 500 1000 1500 2000 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Monthly Hours Sellable Sold 0 200 400 600 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Sellable Sold Monthly Hours 2010 2011 2012 2014 2013