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Grip : GRIP September 2011
AFTERSALES GRIP AUgUST IMpROVES Joanne Scanlon Customer Experience Manager Congratulations! August was a great month for customer experiences. Our total number of detractors fell across the network to 5.8 per cent. The national figures were Overall 64.8 per cent Sales 71.4 per cent Service 58.2 per cent (our highest ever score for a month – great work!) Also, please note we had our lowest number of appeals for the year, reinforcing that appeals don’t help the end number! Thank you to everyone in the network for giving our customers great experiences, and let’s keep it up! Mark Robinson, Customer Retention and Aftersales Marketing Manager The 2011 Australian Automobile Dealers Association (AADA) National Dealer Convention was held in Melbourne during August and I was lucky enough to attend as Subaru Australia’s representative. The speakers and workshops focused on common issues that are af fecting all dealerships from sales, service and parts sales. The common theme that ran through most sessions was customer retention. The keynote speaker for the convention was Jeff Sacks from the US. He has a 30+ year career in the auto industry and is considered one of the premier experts in dealership operations. His customers in the US include OEMs and many large dealership groups. He is also a NADA University partner and has presented at the world renowned NADA Convention & Expo in recent years. Although he was presenting on his observations of the US auto industry, there were many similarities to our industry and what we have focused on since the launch of A4TDTM. He spoke about the importance of building value around genuine service, getting sales to talk about service and how customer retention needs total dealership focus, and not just from the service department. And the key driver behind the successful dealerships was their total commitment on customer retention - from the dealer principal down. In this edition I will focus on his observation of departments working in isolation, or silos as he called it, that are prevalent in dealership operations and which impacts on its profitability and long term sustainability. Working in Silos The lack of teamwork at dealership level is a major productivity and transactional roadblock. There is conflict between departments and the customer is the one who ultimately suffers. Depar tments not working together for maximum dealership profitability. No advocacy between departments. Removing Silos Continuously working on eliminating inter- depar tment “point of friction”. Create inter- depar tment teamwork and synergy by creating “Drive Teams”. These teams would have a representative from all depar tments and could focus on issues affecting the dealership such as NPS and SCR. Consider recalibrating pay plans/commission AADA DEALER CONVENTION structures that encourage teamwork and overcome roadblocks. Overcoming the disconnect: The Vision The process of customer retention should be a dealership wide obligation and commitment. The belief that customer retention is vital to sustained profitability and operation excellence. He believes that there is a significant dealership opportunity cost due to low retention. Impact of service customer retention Below left is a chart that shows the impact of service customer retention on vehicle sales on a dealer group in the US. As you can see by the chart, the customer’s repurchase rate is significantly higher if they service their vehicle at a dealership. Eighty-six per cent of the dealership’s repeat buyers have had their vehicle regularly serviced, in comparison to only nine per cent if they have never serviced at the dealership. In GRIP’s nex t edition I will share with you more of Jeff Sacks’ observations on dealership operations and customer retention. Service visits Repeat sales Check out the new Subaru website subaru.com.au INSIDE GRIP HOME PAGE AFTERSALES NEW PRODUCT - XV NEW PRODUCT - BRZ PARTS & ACCESSORIES AMBASSADOR SALES DEALERSHIP BRAND COMPARISON DEALER RANKINGS SPORT
GRIP August 2011
GRIP October 2011