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Tag Archive: Service Advisors

Adam Robinson

How to Hire the Most Important Sales Role in Your Dealership: Service Advisors

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There is no question that a successful dealership has both skilled technicians and knowledgeable salespeople to maintain profit margins. But an oft-overlooked—and equally (or arguably even more) important—component is the service advisor.

When people take their cars to a dealership, the service advisor is the first face they see. The service advisor quarterbacks the entire service experience and serves as the critical link between the customer and the work. This dynamic means service advisors have a heavy influence on customer experience, which can either keep them coming back or drive them away.

While a basic understanding of how cars work is essential to helping the customer navigate their needs, communication skills are even more crucial in ensuring the customer has a positive experience and feels confident about the work and service your dealership provides. Critical conversations had between the advisor and customer include such topics as explaining invoices, deciphering warranty coverage, explaining necessary or suggested additional repairs and providing the customer with updates on the progress of the work. All these conversations require someone with good people skills as well as excellent car skills.

Here are the key elements I recommend to identify quality service advisor candidates and how to hire them.

Recognize the Traits of a Solid Service Advisor

As mentioned above, a service advisor is the first face your customer sees and the person with whom they communicate the most, if not exclusively, throughout their service experience. A good service advisor should possess the following traits:

Mechanical Knowledge and Ability to Articulate – Because the service advisor is the one to communicate with the customer from start to finish, it is important they understand the industry enough to be able to answer questions, suggest options and explain the process to a customer who may otherwise be unfamiliar with the work needed or performed. Additionally, the service advisor should be able to relay the information without overusing technical jargon, making it simple for every customer to follow and understand.
People Skills – The service advisor should have the ability to read and adapt to different customers’ communication preferences: some like a plethora of details while others prefer to be in and out. The service advisor must also possess good listening skills to clearly understand what the customer needs or wants and be able to relay that information correctly to the technicians doing the work.
Integrity – In addition to communicating information between customers and technicians, service advisors have a responsibility to provide the client with accurate information that is in their best interest, instead of using every interaction as an opportunity to upsell extra work. A service advisor with honesty and integrity will quickly earn the confidence of your customers, ensuring they look to your dealership as a trusted place of business, returning for additional needs and sending friends and family your way. Also, a good service advisor will provide updates or call customers back in a timely fashion, keeping them looped in every step of the way

Things to Consider When Hiring a Solid Service Advisor

Now that you know what to look for in a service advisor, there some factors to keep in mind when considering hiring one. For starters, consider how your dealership and employment brand will appeal to women candidates. Half of your customers are women, so having at least one female service advisor on staff will help you better connect with that demographic. Consider advertising the job with a title other than “service advisor,” so as to appeal to a larger number of applicants. Alternate titles can include customer service representative, service secretary or customer service associate. While technical knowledge is beneficial, you might consider advertising the position with “no experience required” to welcome applicants who have all the other necessary skills without potential bad habits that will require much more aggressive retraining to break. Lastly, consider the number of service advisors your dealership needs to meet demand to give your customers the full attention and service required.

Benefits of a Solid Service Advisor

Hiring the right individual for a service advisor position will yield lasting benefits, including an increase in repair order count, CSI and owner retention. It will also increase your technicians’ productivity, resulting in a boost of customer loyalty.

A service advisor typically touches a customer five times more than a sales person, making proper candidates for this position a crucial component for your dealership’s success. As new car sales are expected to plateau or decline next year, a stable of high-quality service advisors will keep your customers coming in for repairs and services. Preparing for 2017 means staffing up with skilled service advisors who can create a lasting, positive impact.

Thanks to NCM Associates’ content partner, Hireology, for sharing the guidance on employee referral programs. Learn more about Hireology. And join NCM’s experts for more actionable advice for hiring the best people for your team in our Hiring Top Talent and Success-Driven Pay Plans classes.

Permanent link to this article: http://blog.ncm20.com/2016/11/how-to-hire-the-most-important-sales-role-in-your-dealership-service-advisors/

Rick Wegley

Announcing Something New at NCM: Service Advisor Training

Mechanic wrench tool

I’ve been chomping at the bit to make this announcement, and we just got the go-ahead!

After years of your asking for service advisor training, I’m happy to announce that the NCM Institute has added one to our roster. And I’m delighted to be teaching the first class in October.

Good management starts with a solid team

This is a significant change for NCM, which has focused on executive and management training since it began six years ago. But, as we’ve fielded call after call for training designed specifically for the professional service advisor, we knew this was an issue we had to address.

And, honestly, it made sense. Managers and other leadership team members need accountability management skills in all areas of the dealership to effectively growth dealership performance and profit.

We looked into it.  The challenge was selecting a provider that aligned exactly with our fixed operations management training philosophies—and there are many qualified vendors in the market today—but that mission, we discovered, was impossible. In response, we created our own.

Piloting the program

In 2015, the NCM Institute began offering our own service advisor training course on-site at dealerships across the country with tremendous success!

We started with the goals, objectives and philosophies of the NCMi service and parts management training curriculum, and then built our advisor training on these principles. The response has been remarkable, and I genuinely believe it’s because our approach gives your service advisors the same messaging as your managers who have attended our management training courses at the Institute. It streamlines management and gets everyone moving in the same direction.

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Protect your front line

As a service guy myself, I’m particularly excited to be part of this new opportunity at NCM. Service advisors are our front line personnel, and they are the ones who, individually, represent both our dealership and our manufacturer to our client base on a daily basis. And yet the opportunities to develop the soft skills and leadership potential of this group are few and far between.

Frankly, our service department deserves better.  As managers, we need to re-evaluate our strategy for improvement in our operations, and understand that our dealerships are judged on financial and customer satisfaction responses that are a direct result of the performance of our front line personnel.

Developing peoples’ full potential should be a goal of every department manager or dealer operator. And where better to start than with the front line employees who drive the future prosperity of our customer retention and repurchase efforts?

Seats are limited and filling fast for this inaugural event in Kansas City on October 27, 2016. Please reach out to NCM Client Engagement Specialist Jeff Hardin at NCMi@ncmassociates.com for more information and to reserve your dealerships’ seats.

Permanent link to this article: http://blog.ncm20.com/2016/09/announcing-something-new-at-ncm-service-advisor-training/

NCM Institute

Developing the right pay plan for service advisors

Mechanic wrench tool

Last week, George Gowen wrote about the importance of service advisors to retaining your customer base (Miss it? Check it out.) This naturally leads to the question: How much should I be paying them?

Taking Stock of Service Advisor Pay

Before you make any decisions about your dealership’s pay plan, you need to carefully evaluate the current market, as well as your budget constraints. In general, NCM recommends that you consider the following questions:

1.     What’s your philosophy towards advisor compensation?

2.     What’s the right amount to budget for advisor compensation?

3.     Should advisor productivity affect advisor compensation levels?

4.     In addition to monetary compensation, what other elements do you want to include in a well-balanced advisor pay plan?

What’s your philosophy towards advisor compensation?

Most dealerships have begun to view their service department as a “selling” organization, not just a “fix it and smile” division. When you take that philosophy, your compensation plans must focus on sales activities and results. To achieve this, your advisors will need to improve their customer R.O. transactional quality while decreasing their customer R.O. transactional quantity. This could result in the need to add more advisors.

What’s the right amount to budget for advisor compensation?

When it comes to service advisor compensation budget, NCM recommends using 12.0% of department gross (before any parts gross transfer) as the metric for budgeting service advisor compensation. This budget guideline may vary sometimes—a little higher for domestic franchises and a little lower for luxury franchises—but relating compensation to performance is an important step. And, remember: budgeting refers to how much you should pay, while structuring refers to how you could pay.

Should advisor productivity affect advisor compensation levels?

Advisor productivity is a critical component of compensation. You must clearly define this connection, and let your service advisors know that their income will be dependent on it. Set expectations and get their commitment to this approach. After all, it’s advantageous to them: an advisor with high transactional quality and CSI, could earn as much as 14% of the gross he/she generates; meanwhile, an advisor with below average transactional quality and CSI, might earn as little as 10%. When your service directors understand this, they will do what’s necessary to improve their pay.

What other elements do you want to include in a well-balanced advisor pay plan?

This is harder to answer. Here’s the thing: there is no “one size fits all” solution to automotive pay plans. What works brilliantly for one dealerships may be an absolute disaster in your shop. Each dealership has a different business culture that impacts pay plans. And your franchise requirements, personal priorities and state and local laws will all significantly influence the decisions you make on pay plans.

Structuring Service Advisor Pay Plans

While you must keep in mind that every dealership is different, here are the general recommendations that NCM has for any service advisor pay plan:

 

1.     Service advisor pay plan structure should be 100% incentive based, with a reasonable underlying guaranteed draw against commission.

2.     As billable hours is the force driving service and parts profitability, the main determinant for pay should be Hours Billed per Individual Advisor per Month, with $x.xx paid for each hour billed, in all labor categories. We’ve seen this as a stand-alone compensation metric, as well as combined with either customer effective labor rate or hours per customer R.O., sometimes both. This category might represent 55% – 70% of the plan structure.

3.     CSI Performance is usually the next element. The advisor should be rewarded for achieving world-class service. The payment can be quantified as “an additional $x.xx paid for each hour billed” (see #2, above). Depending on how much manufacturer money is tied to CSI, this category might represent 10% – 20% of the plan structure.

4.     Next up are the Spiffs and Incentives, which cover such things as: (a) Parts Sales per Customer R.O.; (b) Customer Effective Labor Rate; (c) Menu Closing Percentage; (d) Tire Sales; (e) Service Contract Sales; (f) MPI (ASR) Closing Percentage. The payment might be quantified as an additional $x.xx paid for each hour billed (see #2, above), as a flat amount or as a per item amount. This would represent approximately 15% of the plan structure.

5.     The final category is a Team Incentive based on Percent of Total Monthly Shop Hours Objective Achieved. The intent here is to have all service and parts personnel focus on one number—total shop production capacity— throughout the month. Their goal is to achieve or exceed full capacity operations. You may quantify the payment as an additional $x.xx paid for each hour billed (see #2, above) or as a flat amount. This should be about 7% – 10% of the plan structure.

Pay plans are tricky. What successes have you had in creating and implementing pay plan changes? Tell us below.

 

Permanent link to this article: http://blog.ncm20.com/2016/01/developing-the-right-pay-plan-for-service-advisors/

Jeff Cowan

The Myths of Writing Service Part 2

Writing Service Part 2As you remember from my article last month, myths can be very dangerous things. They can and will impede your ability to grow, expand, and succeed. I discussed some of the biggest myths surrounding the writing of service and will list a few more here today that have come up and continue to come up in the many meetings I am asked to speak at throughout the year.

Myth: Service writers do not need the same amount of training as the car sales staff.

Fact: A Service Advisor who works with just fifteen customers a day will generate more gross profit for a dealership in a month than a sales person does who delivers thirty vehicles in that same month. In addition, due to the volume of customers they will talk to in a month, they will have more impact on your survey scores and customer retention than any other employee in the dealership, including the dealer. So why would they not need the same amount of training or more?

Myth: Women service writers who are mothers are risky due to parental responsibilities.

Fact: Tell that to Abigail Adams, wife to President John Adams. While John was overseas for many years, she stayed behind and ran the farm, ran John’s businesses, and raised 6 kids, one of which grew up to be our nation’s sixth president. One of my daughters is at the child bearing age. She and ten of her close friends have all had children in the past twenty-four months. While one of them quit her career and became a stay/work at home mom, the other nine not only continued their careers, but eight of them actually increased their hours or took on more responsibility. Why? Because they quickly realized that if their kids were to have a life equal to or greater than their own, they had to work harder and smarter. If all things are equal and I have the opportunity to hire a male service writer versus a female service writer with kids, especially young ones, I will take the female with kids every time. Think grizzly bear with cubs.

Myth: Service writers who work in economically challenged areas cannot sell as much as service writers who work in affluent areas.

Fact: Many times, they can sell more for one simple reason; the more financially challenged a person is, the more important their vehicle becomes to them. Financially challenged customers know that if their vehicle does not run and they cannot get to work, then their financial situation will only get worse. I have worked in countless service drives with countless service advisors where their customers were financially challenged and the sales made were either equal to or greater than those in service departments where the reverse was true. The difference is that the financially challenged customer requires a service advisor who has a slightly different skill set and outstanding follow-up and over the telephone selling skills.

Myth: Women service writers have a tougher time in service because men prefer to talk with men.

Fact: This is not a gender specific problem. A service advisor who is strong at taking control of the customer and exudes confidence, can and will be able to handle your customers. While this myth used to have some validity twenty years ago, it has none today. If I were to list the top ten service advisors that I have worked with over the past twenty-nine years, seven of the top ten would be women.

Myth: It does not take as much skill to be a quick service writer as it does to be a full shop service writer.

Fact: Arguably, it takes more. Think about it. A quick service writer is many times the first person a new customer will work with in service after purchasing a new vehicle. Their ability to handle your customer and convince them that your shop is the only place to go for service, has to be near perfect, if not perfect, to get the job done. Although the path to full shop writer begins many times in express, the express writer should be trained to expertly handle any scenario that a full shop writer would. Again, they are likely to be the first point of face to face contact in the dealership after purchasing a new vehicle. Express should be trained to impress every time on every level.

Myth: It is impossible to train veteran service writers to adapt to changes in their customers’ demands and in new technology.

Fact: Not if you have established a culture of constant change in your department. The service writer or employee who cannot adapt to change and evolution in retail sales will become a dinosaur within five years. When you consider how rapidly your customers and their buying habits have changed in just the past few years, and how rapidly technology changes, any employee who can not keep up is costing you money. In the future there will be two types of sales people; those who sell technology and those who use it. The rest will become obsolete.

Myth: Service writers can handle setting their own check-in times, checking in your customers’ vehicles, following up on those customers throughout the day, closing those customers over the telephone, closing out their own repair orders, contact customers who have been waiting for parts, cashier their own customers, actively deliver vehicles back to each customer as the vehicle repairs are completed, send a thank you note to each customer, contact customers who missed their check in times, contact customers who previously declined repairs, contact customers they have not seen in over six months, while at the same time getting and maintaining high survey scores and customer retention.

Fact: Only if they write ten to fifteen repair orders a day. Just like on the vehicle sales side, you want to free your service writers (sales people) up as much as you can, to talk to your customers.  Sales people make you money when they are talking to your customers.  The more time they have to talk to your customers, the more money they will make you. From the beginning of car sells through the early 1960’s, vehicle sales people answered the dealership’s incoming sales calls, did their own financing and helped people when they came in for service. When dealers realized that those activities kept their sales staff in the building and not out on the lot where the buyers where, it ushered in the era of the telephone receptionist, the F & I department and service staff, and significantly more vehicles were sold. The more you can do to support your advisors by freeing them up to talk to your customers, the higher your retention, survey scores and sales will be.

Myth: Service writers will not sell or are not good at selling additional products like special wheels, extended warranties, details, etc.

Fact: Not true. To sell anything on a service drive requires three things; a great product, great training in how to present and sell it, and a great pay plan.

If you are consistently not hitting your sales, retention and survey goals, it is a sign of great weakness not to try something new. Trying something new can be as simple as taking a look at what you or your staff say can’t be done, and testing to see if the reason is based on fact or myth.

You should make this a common practice and part of your monthly routine to dispel myths that may exist in your work place. I get blamed from time to time for being too willing to test and eliminate these myths and reasons that hold my business back. I am told I need more patience. The fact is, I do have patience for the time it sometimes takes for myths to be tested.  What I do not have patience for is the lost customers and revenues that myths produce.

Permanent link to this article: http://blog.ncm20.com/2015/03/the-myths-of-writing-service-part-2/

Garry House

The Importance of the MPI-ASR Process

wrenchesBack in May of this year, I published a blog article focused on the difference between good and great automobile dealers and I promised to follow that up by discussing what we, at the NCM Institute Center for Automotive Retail Excellence, have learned about the differences between some of the good and great processes employed by these dealers. This is the second of those follow-up articles.

What is the MPI-ASR process? “MPI” is an acronym for Multi-Point Inspection. “ASR” is an acronym for Additional Service Recommendation or Additional Service Request. The two together make up The Process. By definition, an ASR is necessary work discovered by the technician, in his stall or on his lift, during the performance of a Multi-Point Inspection, which has nothing whatsoever to do with the customer’s primary concerns. It is therefore often referred to in the dealership as the technician up-sell process.

Most every experienced fixed ops director and service manager that we work with at NCMi recognizes and admits that a well-designed, habitually-performed, and flawlessly-executed MPI-ASR process will provide more fixed gross than any other available service department opportunity. One of the exercises in NCMi’s Principles of Service Management I class continually demonstrates that a well-managed MPI-ASR process in a 15-technician shop will produce an incremental net profit of at least $250,000 per year.

Both the good and great dealership fixed operations professionals understand the need for a sound MPI-ASR process, however, very few (only the “great” ones) know that their MPI-ASR activities must be continually trained, monitored, reinforced, and enhanced in order to avoid process evaporation.” Following are the 10 components of what the NCMi faculty believes to be a great MPI-ASR process.

  1. Ensuring that a sound MPI-ASR process is anchored within the culture of the service department. Strict adherence to the requirements of this process must become conditions of employment for service advisors, service technicians, service support personnel, and service management.
  2. Performing Multi-Point Inspections on 100% of the vehicles accessing the dealership service operations (including express service), beginning with the first service visit following vehicle delivery.
  3. Continually educating the customer as to the value of the Multi-Point Inspection process and consistently obtaining the customer’s permission to perform the MPI.
  4. Ensuring 100% documented feedback to the customer of the results of the Multi-Point Inspection, even if no out-of-line conditions were discovered.
  5. Conducting regular technician training sessions (a) on how to perform a “quality” MPI, (b) on understanding the standards relating to “within-line,” “marginal,” and “out-of-line” MPI line items, and (c) on clearly and effectively communicating the results of the MPI. Conducting regular service advisor training sessions on how to advise the customer of ASRs and on how to overcome objections in closing the sale of these ASRs.
  6. Based on valid industry data for vehicle age and mileage, defining and communicating expectations to technicians for:
    • Ratio of ASRs to MPIs
    • Number of Line Items per ASR
    • Number of Flat Rate Hours per ASR
  7. Based on valid industry data for sales effectiveness, defining and communicating expectations to service advisors for sales closing rate on ASR hours requested by technicians.
  8. Ensuring that there is a disciplined “second effort++” program to sell declined ASR work is employed, both with the customer when he/she is still in the dealership and/or after the customer has exited the dealership.
  9. Developing and implementing a system to measure and report the results of the MPI-ASR process on an accurate and timely basis. Without the availability of current procedural technology, this step is, without question, the most difficult and painful in the overall process.
  10. Installing and instilling a highly-visible score-boarding discipline to internally display, on a month-to-date basis, the most current MPI-ASR recommendation frequency and quantity by technician and sales results by service advisor.

And, yes, you guessed it! Within the NCMi Service Management training curriculum, we do teach the details of each of the above 10 MPI-ASR Process components.

Training Solutions for Service Managers sept oct

Permanent link to this article: http://blog.ncm20.com/2013/08/the-importance-of-the-mpi-asr-process/

Steve Hall

Does Your DMS Match Your Actual Parts Counts?

Fotolia_36189691_XSHave you ever had this happen?  … A service advisor contacts your parts department to see if you have a specific part in stock. You check the computer system and it shows that you have it. A price is given, “Yes, we have it in stock” is told to the advisor.

The advisor proceeds to sell the job to the customer; the information is relayed to the technician who then comes to the parts counter to get the part. Your counter person goes to pick the part from the shelf, only to find the spot on the shelf is empty!

What happens now? You either have to pick the part up from another dealership, possibly hold the vehicle over while the part is ordered, or have the customer return at a later date. None of which are good end-results.

What caused this to happen and what can be done about it? If you believe that you “can’t sell what you can’t find” then you need to have systems in place to make sure that you can “find it.” Let’s look at a few basic rules for a parts department:

  1. Every part must have a “home.” A bin location must be assigned to every part that you have in stock. Even if you are cramped for space, you must designate a space for every part in your system that has an on hand quantity. This includes special ordered parts.
  2. Each bin or location should have a designated number for identification. Does the numbering system make sense? Can a new counterperson or stocker locate the appropriate bin quickly and efficiently?
  3. Each bin should be arranged in alpha numeric order. Shelves should have parts tags for each part that is stocked in it. This makes for easier, faster and more accurate stock replenishment.
  4. If space allows, leave the top and bottom shelves empty. This will allow space for growth within specific bins. You will need this as you add additional part numbers into your stock.
  5. Perform I-bin counts. Individual bin or “I-bin” counts should be a daily discipline within your department.

Items one through four are pretty basic, but I would like to expand more on item five. Parts managers should be aware of this term, whether they apply it or not. General managers or owners may not have been exposed to it, so let me explain how and why to perform these counts.

I-bin counts are used to check the accuracy of your DMS parts system vs. the actual on-hand quantity.  Ideally, they should be set up the following way:

First, make a spreadsheet listing each of your parts bins number. Have additional columns for the date the bin was counted and a column for who counted it. You should have one more column noting that there were, or were not, discrepancies found and adjustments to on-hand quantities.

Each day, the parts manager should print off and have on hand quantity or inventory sheet for the bins that need to be counted. Ideally, you should count enough bins so that you “look” at your complete inventory every 30-45 days. In most parts departments, this only a few bins a day.

Once the sheets are printed, the count should happen quickly. The reason for this is, if any parts are pulled after the sheets are printed you will show a discrepancy and have to research it before any potential adjustments are made. Normally it only takes a few minutes to count a bin, with the obvious exclusions of high-density drawers. In those cases, you may want to count a couple of drawers a day to break it into bite-size chunks.

After the count is completed, if you find any discrepancies, research them appropriately and if the count truly is wrong, make the adjustment in your system. At times you will have positive adjustments as well as negative adjustments. After you are finished with the bin, including the necessary research and adjustments, you should retain the count sheets for future reference.

On a side note, it is a good idea to have different people do counts periodically. Though we don’t like to think that any theft would happen within our store, it can happen. Having a variety of people doing bin counts will make it harder to cover up. As a general manager, be willing to go back and perform some counts yourself; it can be an eye-opening experience.

By doing the perpetual count and check, you will get to see how accurate your DMS and actual on-hand inventory really are. You might just find that the “missing” part in our example above was just stocked in the wrong location!

If you are interested in continued training for your parts manager, be sure and check out the upcoming NCM Institute Principles of Parts Management I and II courses that are launching this fall.

Parts_Acc_Sept

Permanent link to this article: http://blog.ncm20.com/2013/06/does-your-dms-match-your-actual-parts-counts/

Garry House

Why Not Add a New Profit Component to Your Service Department?

Extended Service Agreements can increase Service profitabilityVery few dealers are both aggressive and effective in selling Extended Service Agreements (ESAs) after the new or used vehicle has been delivered. If you are so fortunate to be among this minority, you don’t need to read any further. Since most F&I departments don’t seem to have the inclination or motivation to work these post-delivery opportunities, let’s explore an alternate strategy…structuring a process to have our service advisors aggressively and effectively sell ESAs in the lane.

How many of our service department customers are opportunities for ESA sales? Consider that only the best F&I departments achieve a 50% ESA sales penetration at the time of sale; that means the service department has an opportunity for a “second swing” at at least half of our owners. Consider that a large percentage (industry experts claim 40%) of our Service customers didn’t purchase their vehicles from us; how good a job did their selling dealer do with ESA penetration at the time of sale? Our best chance for ESA sales will be to customers whose manufacturer’s warranty will soon expire. However, any customer without an ESA should certainly be considered an opportunity!

Why don’t service advisors currently take maximum advantage of this opportunity?

1. There is no sound process or structure in place for post-delivery ESA sales.

2. If and when the customer acknowledges an interest in an ESA, there is often no one available in the F&I department to handle the turn over.

3. Service advisors are not effectively trained or incentivized to concentrate on ESA sales.

4. Service managers are not effectively trained or incentivized to promote and manage ESA sales.

There is no accountability for service department sales of ESAs.

How do we quantify this service department opportunity? If you want to perform a similar analysis for your store, here’s an example of how the math works:

A service department with 3 service advisors will “face off with” an average of 195 customers per week (3 advisors x 13 customers per day x 5 days per week = 195). Keeping the math simple, that means approximately 10,000 customer interfaces per year (195 x 52 = 10,140). With a minimal ESA sales penetration of 2.0% we would sell an additional 200 service contracts. At $700 gross per contract and 70% incremental net profit retention, this performance level produces $98,000 in annual net profit improvement (200 x $700 x 70% = $98,000) for the service department. And that’s with each of our service advisors selling ONLY 5.5 ESAs per month. That’s just slightly more than 1 per week. This same example, with a 5.0% ESA sales penetration, would bring an additional quarter million dollars to the bottom line!

What needs to happen to make this net profit improvement opportunity a reality at your dealership?

1. Develop, implement and execute your plan.

2. Implement a systemic structure.

a. Accounting and reporting (Service gets 100% of the revenue)

b. Advisor training (ESA provider becomes a training partner)

c. Contract preparation (performed by Service personnel)

3. Establish compensation parameters.

a. Service manager (3% – 5% of Net Income)

b. Service advisors (15% – 20% of Net Income)

c. Other service department personnel (1% – 3% of net income)

4. Define and communicate your expectations.

5. Measure what you need to manage and inspect what you expect. (Score-keeping and score-boarding)

Sounds a lot like Accountability Management, doesn’t it?

Service Drive ESA Sales is one of the processes taught in Principles of Service Management at the NCM Institute Center for Automotive Retail Excellence. To learn more, click here.

Permanent link to this article: http://blog.ncm20.com/2011/12/why-not-add-a-new-profit-component-to-your-service-department/