Mr. Customer Service Saves the Day (& Wrecks Your Profit Ability)

Have you ever wondered how companies like the Ritz Carlton, Neeman Marcus & Nordstrom are able to provide superior service to their customers, day-in and day-out?  The leaders of these companies understand the importance of ‘Inspect What They Expect’ both internally and externally.  Let me explain.  An internal inspection includes Traffic Log, DMS & Accounting Data, which a lot of dealers already do.  But, another side is measuring your performance from an external source that’s not caught in your ‘swirl.’  As the old saying goes, “you don’t know what you don’t know,” and along those same lines you can’t see what you can’t see.  An external, fresh prospective of the experience that you’re providing to your prospects gives you the ability to uncover what you’re unaware of that will take your performance to the next level.

This is where Pied Piper’s Prospect Satisfaction Index (PSI) Evaluations come in.  I’ve used the data from these evaluations as the basis for many of my articles over the last year.  These evaluations begin with questions and notes about your Facility, being welcomed to the dealership, and how your inventory is displayed.  Then, information about the salesperson is analyzed.  For instance, did the salesperson introduce their self?  Did they ask for your name and use it throughout the visit?  And did the salesperson attempt to develop rapport & find common ground?  Questions are then asked about the salesperson’s Fact Finding & Interviewing abilities, like asking who and how the unit will be used, their Product Knowledge on the vehicle and ability to address features & benefits. Then, final Selling Skills are addressed.  For instance, did the salesperson attempt to forward or close the sale in any way?

Many of the PSI Evaluations that we receive identify a type of salesperson that I like to call… MR. CUSTOMER SERVICE!  Able to answer any and all questions about the unit and go out of his way to make sure each and every customer is completely satisfied and taken care of.

The only problem with MR. CUSTOMER SERVICE is he doesn’t ask for the sale, attempt to set a future appointment, or get follow-up information.  On the surface (or from the Sales manager’s office) MR. CUSTOMER SERVICE is great… he’s knows the products, he can help out in Parts or Service when they’re really busy, and customers love him.  However, the data from the evaluations when the salesperson doesn’t ask for the sale usually end with comments from Joe Consumer saying, “It would have been ideal if he would have asked for the sale.”  This is costing dealerships a ton of sales… as the great Wayne Gretzky says, “You miss 100% of the shots you don’t take.”  These dealerships are usually very surprised when they learn that they have salespeople that aren’t asking for sale, but they would have never known about it without externally ‘Inspecting What They Expect.’

So, the question is, do you have a professional Sales Team that is doing the most with every sales opportunity you have, or do you have MR. CUSTOMER SERVICE on your team who is letting your sales opportunities walk out the door and not asking for the sale?

Or maybe you’re just planning to increase your advertising to try and get more prospects to come through the door?  This is a really common mistake.  In fact, according to the 2008 Market Data Book, of the dealers who increased sales in 2007, 68% of them spent more on advertising.

To set the record straight, I’m all for advertising when it’s done appropriately and within your budget.  But to increase variable expenses to get more prospects just to have MR. CUSTOMER SERVICE let them walk is not the best way to go.  Sure, you’re sales will increase a little because of the lay down customers, but this additional gross profit is what I like to call Bad Gross because of all the money it cost you to generate the gross profit.  There is a better way.

Good Gross is gross profit that’s made without spending a ton more money on advertising.  For instance, if MR. CUSTOMER SERVICE is trained, or even replaced with someone that’s not an order taker, you will increase your dealership’s Closing Ratio.  When this happens, it allows you to do more with the prospects you already have.  This is Good Gross.

It’s the beginning of the year; now is the time to set your goals and make the adjustment you need to make to ensure you have a profitable year.  Include in your plan the ability to ‘Inspect What You Expect,’ and focus on making the Good Gross.

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