Motor Industry KPI and best practice provided by Jeff Smith

A database of useful best practice ideas for improving dealer profitability in cars, trucks and bikes, KPI measurment and Customer Satisfaction

Keep customers coming back for more by Dave Cartwright

Tyred Out

Submitted by Dave Cartwright

Reduced Service Content! Extended Service Intervals!
How can I keep my customers visiting my dealership?

Do you sell tyres or provide a service? Many dealers/garages just provide a service for their customers and do not have an effective process for selling tyres (or indeed any additional sales) to their customers.

How many of your customers know you sell tyres at competitive prices?

Very few customers actually know you sell tyres until you happen by chance to notice them during a service. Chances are they may only find out the next time they are parked in Tesco’s with their wheels on lock and someone remarks “Do you know your tyres haven’t any tread on them?” Scary stuff!

Having an effective tyre selling and monitoring process not only ensures that you always are the customers first choice but by having controls in place you keep the customer coming back to your dealership/garage and this links with other opportunities that creates for additional business.

So enough of the rhetoric what do I have to do?

Stake in the Ground

Firstly ensure you have accurate records of your current performance in respect of volumes of tyre sold and the profit retained then monitor your performance throughout the process.

Competitor analysis/awareness

For example if you are a franchise dealer, carry out competitive analysis on a popular tyre for each of your product range. E.g. Fiesta, Escort, Mondeo, Transit. Pick at least 3 local competitors and then review your tyre price and publish the findings. Non franchise operations can pick their most popular models.  Generally you are able to compete on price but this process also ensures your price is not too cheap. This work should be carried out by your service advisors as it not only ensures they improve their knowledge of the “oppositions” handling techniques but also it helps overcome any negative response to tyre sales i.e. “Try Kwik-Fit their cheaper than us!” (Ouch!). On a recent TV motoring programme the presenter said the best place to buy your tyres was from a Franchise Dealer!

Publish you findings in an A4 binder in reception and ensure you have a further supply of B5 size to give to all your customers irrespective of the fact whether or not they need tyres on this service. It ensures that when they need to replace them you are their first call. After all you are a tyre specialist.

This process should be carried out weekly and your tyre price matrix reviewed accordingly. I can assure you will be surprised at the variances. And like the supermarkets do, by carrying out this regular review you know you are being competitive and retaining the maximum amount of profit

Upsell and take control

When cars visit your workshop for any reason you should carry out a Free Vehicle Safety check. This ensures you are maximising any legitimate profit opportunity. Remember it takes years to build a relation with a customer and seconds to lose it!

All upsell must be fully justified. Having a direct incentive scheme for all your staff will also improve upsell and reward top performers. Don’t be frightened to pay for top performance remember you are earning too!

Tyre condition must be reported to customer and displayed on their invoice. Any replacements necessary can be quoted and sold. Remember you carry out regular competitor analysis so you sell tyres at the right price and profit margin. Don’t be frightened to “sell that fact”  back to the customer!

Remember even if you do not sell tyres on this occasion insert a “Price Check” leaflet in with his invoice and he will remember you when the time comes.

Just a minute “When the time comes?” we are supposed to be in control! Next step!

Keeping control and seizing the opportunity

So we are confident we are competitive and remember don’t be frightened to go back to your supplier if their price is not competitive and try and negotiate a reduction. Remember they want you to sell tyres as well!

Therefore not only do you report back to your customer the current condition of his tyres but if they do not have enough tread remaining till the next scheduled visit then you future book an appointment for the customer to return and have them checked/replaced in between time. Confirm this date in the appointments section on the back of your business card (like the dentist’s do!) and you agree to contact them 48 hours beforehand to ensure they return for the tyres, another Vehicle Safety Report and another visit to your workshop. Again yet another opportunity.

If you are really switched on you could link this process effectively with:

  • Winter/Summer (Specific) Safety checks
  • Seasonal incentive campaigns for accessories
  • Test drive opportunities
  • Cost to change. Now we are talking real inter-departmental co-operation.
  • New model launch invites

This is just a brief summary of one section of developing a Customer Retention and Contact Process that will keep your customers coming back time after time. Interlinking all the sections will make an effective process.

 

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