Revolutionizing Customer Service: Lessons from Auto Shops

by Patrick Murphy | Oct 4, 2024 | Auto Service, Best Practice, Process

Revolutionizing Customer Service: Lessons from Auto Shops

Revolutionizing Customer Service: A Lesson form Auto Shops

by Retail Tire Solutions

In the world of business, few experiences are as universally dreaded as a trip to the auto shop. It’s often associated with unexpected expenses, confusing jargon, and a general sense of uncertainty. But what if it didn’t have to be that way? What if auto shops could transform this necessary evil into a model of customer service excellence? And more importantly, what if businesses across all industries could learn from these strategies to revolutionize their own customer experiences?

In this deep dive, we’ll explore how some forward-thinking auto shops are setting a new standard for customer service, and how their innovative approaches can be applied to virtually any business. Buckle up as we take a journey through the world of exceptional customer service, where every interaction is an opportunity to build trust, loyalty, and lasting relationships.

The ACTS Framework: Setting the Stage for Success

At the heart of this customer service revolution is the ACTS framework. No, we’re not talking about a theatrical performance (although there is an element of carefully choreographed interactions). ACTS stands for Attitude, Consistency, Teamwork, and Service. Let’s break it down:

Attitude: It all starts with the right mindset. These auto shops view each customer not as a walking dollar sign, but as a person who might be stressed, intimidated, or anxious about their car problems. Empathy is the name of the game here.
Consistency: A great experience once in a while isn’t enough. These shops ensure that every single interaction, every single time, meets their high standards.
Teamwork: From the person answering the phones to the mechanics under the hood, everyone understands their role in creating a positive customer experience. It’s like a well-oiled machine (pun intended).
Service: At the end of the day, it’s all about taking care of people and their cars, and doing it with pride.

The Quarter Time Rule: Efficiency Meets Transparency

Imagine being told your car service will take four hours, only to sit in a waiting room with no updates, wondering what’s happening. Enter the Quarter Time Rule. This clever strategy ensures that within the first quarter of the estimated service time, the customer receives a comprehensive update. For a four-hour service, that means within the first hour, you’ll get an inspection, an estimate, and a clear explanation of what’s going on with your vehicle.

This approach does more than just pass the time – it builds confidence and trust. When customers see things moving quickly and feel kept in the loop, their entire perception of the service changes.

PCQ: The Secret Code of Customer Interaction

PCQ, or Personal Contact Qualities, is all about those moment-by-moment interactions that can make or break a customer’s experience. It starts with the 15-second rule: every customer is greeted within 15 seconds of entering the shop. But it goes far beyond a simple hello.

PCQ encompasses everything from making genuine eye contact to practicing active listening. It’s about repeating back what the customer has said to ensure understanding, being supportive of their opinions (even if they differ from the technician’s recommendations), and setting clear expectations about time and cost.

When it comes to delivering potentially bad news (like additional repairs needed), PCQ stresses the importance of privacy, starting with positives, and respecting the customer’s ultimate decision. It’s a holistic approach to interaction that leaves customers feeling valued, heard, and respected.

Focused Services: Proactive Care for Cars and Customers

These innovative auto shops aren’t just waiting for problems to arise – they’re actively educating customers about preventative maintenance. This approach not only helps keep vehicles in top shape but also builds trust and generates additional revenue. Some key focused services include:

Add-on Balance Strategy: Checking tire balance during rotations or alignments.
Fuel System Service: Explaining the importance of cleaning out built-up deposits for better engine performance.
Brake Flush: Educating customers on how brake fluid degrades over time and affects safety.
Tiered Oil Changes: Offering good-better-best options to suit different needs and budgets.

By focusing on these services, shops can provide value-added care while increasing their bottom line – a true win-win.

The Customer Service Delivery System: A 12-Step Program for Excellence

Behind the scenes, these auto shops operate on a finely-tuned 12-step process called the Customer Service Delivery System (CSDS). While we can’t delve into all 12 steps here, one standout is the Comprehensive Vehicle Inspection (CVI).

The CVI isn’t just about finding problems to fix – it’s an opportunity to connect with the customer, understand their needs, and build trust by showing genuine care for their vehicle. It’s a delicate balance between thorough inspection and respecting the customer’s time and budget.

Data-Driven Decision Making: Measuring Success

These auto shops don’t just rely on gut feelings – they’re obsessed with data. They track a wide range of metrics to ensure they’re meeting their goals and continuously improving. Some key data points include:

Payroll as a percentage of sales (broken down by department)
PAT (Potential Alignment Ticket) percentage
Brake flush frequency
Road hazard warranty attachment rate

By keeping a close eye on these metrics, shops can identify areas for improvement and make data-driven decisions to enhance their service.

The Human Touch: Hiring and Training for Success

All these systems and processes would be meaningless without the right people to implement them. That’s why these shops put so much emphasis on detailed job descriptions, ongoing training, and employee empowerment.

Their job descriptions go far beyond listing duties – they outline specific performance expectations, desired characteristics, and even scripts for customer interactions. Employees are trained not just in technical skills, but in problem-solving and customer satisfaction techniques. They’re empowered to resolve issues on the spot, turning potential negative experiences into positive ones.

Lessons for Every Business

While these strategies come from the world of auto repair, their applications are universal. Any business that values customer relationships can benefit from:

Implementing a framework like ACTS to guide all customer interactions
Using strategies like the Quarter Time Rule to manage expectations and build trust
Training employees in personal contact qualities to enhance every interaction
Focusing on proactive, value-added services
Developing a systematic approach to service delivery
Using data to drive decisions and improvements
Investing in detailed job descriptions and ongoing training

The Bottom Line

In the end, exceptional customer service isn’t just about being nice – it’s a strategic approach that pays dividends in customer loyalty, positive word-of-mouth, and increased revenue. By adopting these strategies, businesses in any industry can transform their customer experience from a potential pain point into a powerful competitive advantage.

Remember, every interaction is an opportunity to build trust and create a lasting relationship. So the next time you’re tempted to just phone it in, remember the ACTS of customer service: Attitude, Consistency, Teamwork, and Service. It’s a recipe for success that can drive any business forward.

The Gift of the Oil Change: Unlocking Long-Term Value in Your Auto Service Shop

by Patrick Murphy | Jul 21, 2023 | Auto Service, Best Practice, Process

Introduction

As an auto service shop owner, you understand the importance of building long-term customer relationships. In a previous post, we discussed a comprehensive oil change process to boost productivity and increase sales. Today, we’re taking a deeper dive, exploring how viewing each oil change customer as a “gift” can elevate your average invoice collection and customer count.

The Oil Change: A Gift That Keeps on Giving

While the oil change service is often viewed as an essential service that doesn’t bring in significant immediate profit, this perspective overlooks the true value it brings. An oil change customer is more than a single transaction – they’re a gift, bringing a wealth of opportunities for future business and long-term customer relationships.

Think of the oil change as your hook – it might be an essential service, but it’s one that every driver needs regularly. A discounted or efficient oil change service attracts customers to your shop, paving the way for more lucrative services. It’s not just about the price you charge for the service but about the lifetime value that each customer brings to your business.

Unwrapping the Gift: Understanding Your Customers

To fully unwrap the gift of the oil change customer, it’s essential to understand their needs. Statistics show that the average driver gets their oil changed four times per year, making the oil change the most requested service at auto shops. Each visit is a touchpoint – an opportunity to build a stronger relationship with the customer, upsell additional services, and increase their lifetime value.

Honoring the Gift: A New Approach to Oil Changes

To fully leverage each oil change customer’s gift, it’s essential to provide a service that respects their time and meets their expectations for quick, efficient service. This involves more than just delivering the oil change service quickly. It requires streamlining the entire customer experience from walking in until leaving.

For instance, you could:

Welcome each customer with a friendly and sincere greeting.
Write up their ticket quickly, gathering the necessary information and selling the oil change.
Perform a courtesy check before starting the oil change.
Provide an estimate for any additional services identified during the courtesy check.
Complete the oil change efficiently, following a detailed process to ensure quality.
Cash-out the customer quickly, reviewing the services done, recommending future services, and asking for feedback.

Cultivating the Gift: Building Long-Term Profitability

Remember, the main goal here is to attract new customers and nurture long-lasting relationships with them. An efficient oil change is just the starting point. Once the customer is in your shop, your team’s expertise and the quality of your service can work to upsell additional, more profitable services.

Moreover, it’s essential to view each customer, whether they bring immediate profit or not, as a gift—an opportunity for future business. By providing quick and efficient service that respects the customer’s time, you can cultivate customer loyalty and ensure that your cash register stays filled today and tomorrow.

It’s time to shift our perspective and leverage our service into profits. Are you ready to unlock the gift of the oil change customer, focusing on improving your customer count and average invoice collection through quick and efficient oil change services? It’s time to accept and nurture the gift that every customer brings to your business.

As always, good selling!

Pat

The Real Value of the Oil Change: Leveraging Service into Profits

by Patrick Murphy | Jul 19, 2023 | Auto Service, Best Practice, Process, Technicians

Introduction

As an auto service shop owner, you already understand the importance of providing consistent and efficient services to your customers. In our last blog post, we delved into a comprehensive five-step oil change process that can not only enhance productivity but also significantly increase sales. But let’s move past the actual process of changing the oil. Today, let’s focus on how to leverage your oil change services to elevate your shop’s average invoice collection, which often gets overlooked amid the hustle and bustle of daily operations.

Unraveling the True Worth of an Oil Change

The truth is, the value of an oil change service goes beyond the mere price you charge your customers. It’s about cultivating repeat business, upselling, and, most importantly, building long-term relationships with your clientele. A discounted oil change can act as the hook that brings the fish to the bait, paving the way for more lucrative services.

A Real-World Example

I vividly remember a personal encounter I had with a store owner during my tenure as the Regional Director of Stores for Big O. I was visiting a store in Grants Pass, Oregon, and the owner was seeking advice on how to boost his business. His store was in a prime location, with a huge sign out front and cars streaming past every hour. To me, the potential seemed vast and untapped. I asked him why he didn’t advertise a low-cost oil change option to attract more customers. His response took me by surprise. “Why would I do that?” he asked. “I work hard enough as it is.”

This shop owner was so engrossed in his day-to-day duties that he lost sight of the bigger picture. He was charging $60 for an oil change, but he had no idea what his average invoice looked like when customers came in for that service. After reviewing his work order history, we discovered that customers coming in for an oil change ended up spending an average of $514 per visit. This revelation was an eye-opener. The owner immediately added a $29.99 oil change special to the sign in front of his store.

Shifting Perspectives

This story serves as a stark reminder that we need to shift our perspective from the price we charge for an oil change to the total invoice value per customer visit. It’s about seeing the oil change service as a loss leader—a strategic move to get customers through the door. Once they’re in, the quality of your service and your team’s expertise can work to upsell additional, more profitable services.

Conclusion

Remember, the main objective here is to attract new customers and build long-lasting relationships with them. The discounted oil change is merely the incentive that pulls them into your store. Once they’re in, the five-step oil change process we discussed previously will help ensure an efficient service and customer satisfaction, paving the way for future sales and repeat business.

So, are you ready to rev up your business by focusing on the average oil change invoice collection rather than just the oil change price? It’s time to leverage your service into profits!

As Always, Good Selling!

Pat

Revving Up Your Business: The 5-Step Oil Change Process

by Patrick Murphy | Jul 18, 2023 | Auto Service, Best Practice, Process

As tire and service shop owners, we are always seeking ways to boost customer count, increase sales, and ramp up profits. One proven method to achieve these results is the implementation of a consistent, efficient, and customer-centric oil change process. Here, we’ll break down an effective five-step process that can be easily implemented in your shop.

Why this 5-Step Oil Change Process?

The primary objective of this process is to increase sales and productivity in your shop. This strategy not only ensures the speedy and accurate presentation of estimates to customers but also standardizes inspection procedures. The process enables accurate scheduling and promotes a more professional and efficient working environment.

Step 1: Before Lifting the Vehicle

The process begins with the vehicle being pulled into the first available bay. The technician records mileage and inspects all bulbs, blinkers, and wipers, along with a washer fluid test. The underhood inspection then begins, focusing on the key seven: air filter, cabin filter, battery, brake fluid test strip, coolant test strip, belts, and hoses. Hoses should be recommended if they have original clamps and are over six years or have 60K miles on the vehicle. If air filters and cabin filters are dirty, these should be set aside so the service advisor can visually present them to the customer later.

Step 2: Inspecting Tires, Front End, and Brakes

The vehicle is then racked and brought to level for the technician to properly inspect the front end, tires, and brakes. The tech also checks all four tires for damages and any irregular alignment wear. The suspension and front end are examined for worn parts, and the brakes are inspected.

Step 3: Finishing Under Car Inspection

Next, the vehicle is raised to final height, and the under-car inspection begins. The technician should document the exhaust and any fluid leaks at this time. After the inspection, the service advisor presents the findings to the customer while the technician drains the oil and changes the filter.

Step 4: Lowering the Vehicle and Completing Add-on Services

After lowering the vehicle, the service advisor pulls the parts sold and returns to the shop for review with the tech. The technician completes all required services on the vehicle. Upon completion of all work, the service advisor should sign off on the final inspection.

Step 5: Securing the Next Visit

The last step involves securing the next visit. The technician installs a window sticker with the date for the next service and moves the vehicle to a parking spot. The service advisor then reviews all declined recommendations with the customer and works to schedule them within the next 30 days. Finally, the customer is cashed out with a sincere thank you.

The 5-Step Recap

The goal of this process is to enhance productivity and sales in your shop. The estimate should be presented to the customer within 15 minutes of entering the building. By standardizing what to inspect and when, as well as knowing what to present and how to present it, we can schedule more accurately and improve customer satisfaction. This process lays the foundation for consistent customer and sales growth, fostering a healthy cycle of repeat business.

So rev up your service shop’s efficiency and profitability with this five-step oil change process. It’s time to drive your business forward!

As Always, Good Selling!

Pat

Auto Repair Customer Service: The Role of Phone Skills

by Patrick Murphy | Jul 17, 2023 | Auto Service, Best Practice, Process

Providing a seamless and satisfying customer experience is the key to business success in the automotive repair and tire shop industry. Often, the first point of contact between a customer and a business is a phone call, making it a critical component of the overall customer experience strategy.

Crafting the Customer Experience Strategy

Customers are the lifeblood of any business, and their satisfaction should always be the priority. The success of your store hinges on the growth and satisfaction of your loyal customer base. To ensure a positive customer experience, your strategy should revolve around the following key elements:

We empower teammates who feel capable and see a growth path with the company.
Ensuring that teammates treat customers with respect, help them make informed buying decisions on tires and car maintenance, and keep them informed about the progress of their vehicle.
Building customer trust by fixing their car right the first time and delivering on promises.
Ensuring the company receives a return on its investment while customer loyalty and market share grow.

This customer-centric approach starts when a customer hears about your business and continues through every interaction with your team.

The Role of Phone Skills in the Customer Experience Strategy

Superior phone skills are crucial to attracting customers and providing them with a positive first impression of your business. To ensure consistency and quality in every customer interaction, we provide a free “talk track” that you can implement today. A talk track is a script or guideline on handling phone interactions effectively, from the initial greeting to confirming appointment details.

Here’s a detailed version of the talk track: Service Writer Phone Talk Track

Step One: Create a Positive First Impression

Answer the phone in three rings or less and provide a friendly introduction. Example: “Thank you for calling [Store Name]; this is [Your Name]. Can I ask who I’m speaking to? Hi [Caller’s Name], how may I assist you today?” This step sets the tone for the conversation and makes the customer feel welcome.

Step Two: Understand the Customer’s Needs

Ask the customer for their tire size and the vehicle’s year, make, and model. This information helps you understand their needs better and provide accurate assistance. Ensure you verify the tire size to avoid any confusion or miscommunication.

Step Three: Offer Value

Ask the customer if they have purchased tires from you before. This question can help you gauge their familiarity with your services. To demonstrate your value, mention your free services, such as a Free Alignment Check, Free Tire Inspections, Free Tire Rotations, and Free Air Checks. Also, mention your low price guarantee to reassure them of your competitive pricing.

Step Four: Encourage a Store Visit

Quote the lowest single tire price and invite the customer to visit the store. If a customer asks for more options, quote the next lowest tire option. Remember, the goal is not to sell the tires over the phone but to encourage the customer to enter the store. Phrase your invitation positively: “We have tires in stock for that size as low as [lowest tire price per tire]; we can install them for you today. Does that sound okay to you?”

Step Five: Set Up an Appointment

Set a convenient time for the customer’s visit and get the caller’s information. If the caller doesn’t want an appointment, inform them about your 30-day Price Match guarantee to overcome objections. This assurance can build trust and make customers feel more comfortable about their decision.

Step Six: Provide Information and Answer Questions

Ask the caller if they have any other questions regarding your tires and services. Always provide and confirm the store location. This information ensures the customer knows where to find you and feels prepared for their visit.

Step Seven: Confirm Details

Confirm the details, including the tire selection and price, if an appointment was made. If no appointment was made, provide the store hours and days of operation. This information helps set the customer’s expectations and reduces the chance of misunderstandings or confusion.

Step Eight: Show Appreciation

Thank the caller for their time and express appreciation for their interest in your store. Example: “Thank you! Thanks again for calling [Store Name].”

This detailed talk track is a practical tool that embodies your customer experience strategy and emphasizes phone skills. It provides a consistent approach to every phone interaction, increasing customer satisfaction and stronger customer loyalty.

Conclusion

By integrating superior phone skills into your customer experience strategy, you can ensure a positive customer journey from the first phone call to the completion of their vehicle service. This cohesive approach, reinforced by the practical use of a talk track, leads to increased customer satisfaction, stronger customer loyalty, and, ultimately, the success of your business.

To download a FREE version of that talk track I use in my training or check out other Tire and Auto Repair Owners’ resources, including Inspection Forms, Job Descriptions, and example recruiting ads, head over to our Retail Tire & Service Resource Center.

Good Selling!

Pat

Why You Should Offer an Inspection to Every Customer

by Patrick Murphy | Mar 19, 2020 | Auto Service, Best Practice, Process

I live in Arizona, where there is no requirement to have an annual safety inspection performed on passenger and light truck vehicles. According to Wikipedia, only 17 States now require regular inspections of automobiles “to rid the highways of dangerous vehicles with bald tires, wobbly suspensions, smoke-filled exhausts, and defective brakes and lights.” You can find that list of States here.

If I owned a Tire and Service business in a state that doesn’t require regular safety inspections, I’m not sure that I would need another reason to recommend a full mechanical inspection on every one of my customer’s vehicles at least once a year. I would charge for that inspection as well.

If you do need another reason to offer (sell) inspections to every customer, here is another one! It has to do with identifying customers that are interested in having a safety inspection performed on their vehicle.

Believe it or not, there are lots of customers that are interested in having a safety inspection performed of their vehicle! Statistically, 20% of your customers would fall into this category. These customers will wait the additional time it takes for you to provide them with a full vehicle analysis and accompanying recommendations.

For the customers that are not interested in a complete vehicle inspection, inform these customers that part of the service that they are receiving today comes with a less comprehensive courtesy check. That way, the customer still expects that you will be inspecting their vehicle, just not to the extent of the full vehicle inspection. These customers will also be more receptive to listening to your recommendations based on the courtesy check.

The purpose of informing the customer of the option to purchase a full vehicle inspection has more to do with qualifying your customer and focusing your efforts then it does with generating revenue from the sold inspection.

It’s a proven fact that customers that will pay for an inspection are much more likely to buy your recommendations.

Good Selling!