Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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Beasley Ford Lincoln of York, Pa. designates two employees who utilize Service Turn, a web-based application that mines and organizes data, with customers waiting in the service lounge. General Manager Terry Longmore says the staffers are converting about 3 to 5 percent of the leads into sales — by educating customers about their interest rates, warranty expiration and other information about their vehicles. store, Massachusetts-based Kelly Automotive Group. Longmore says his conversion rate increased so much in his frst month with Service Turn that Kelly's other eight dealerships were inspired to sign on. He adds the system is contagious because it simplifes how salespeople approach data mining. "[Previously], the computer systems weren't sophisticated enough to pull up the information that was there already," Longmore explains. "You had the interest rate, this salesperson, this term, your approximate payof and approximate value of the car. Now you can pull all that information up together, right there, for the customer." lating into sales for the store. Don Reed, CEO service and sales can focus on customer satisof DealerPro Training Solutions and confaction and the sharing of information rather tributor to Auto Dealer Monthly, describes the than a hard sell, Hamlin says. Te representaprocess as "creative" and adds that it "makes tive can either execute the entire transaction good sense." or pass of the lead to a salesperson who is "A closing ratio of 3 to 5 percent is better more familiar with the product. than zero," Reed says. "Plus, [the demo] gives "First and foremost, they should ask, the customer something to do while they are 'Are you satisfed?' And then, second of all, waiting. Getting a customer's feed'If you've got a few minutes, do you back on new vehicles is a good tool know what your vehicle is worth?' for the sales team in that it will help 'Do you know if your warranty is exthem to better qualify a customer's pired?'" Hamlin says. "Most people buying motives, wants and needs, don't even know it's expired. which will also help the OEM." "Most people don't even know Even for the service customers what their interest rate is. Most of who don't drive a new car of the lot, them are paying 10 or 12 percent; A SOFT SELL getting the service customers more they don't recognize that they can Beasley Ford Lincoln's service drive hosts re-fnance and get 2 or 3 percent in- TERRY LONGMORE involved could be a step toward deabout 40 to 50 people per day, and Longmore's livering better overall customer satterest, sometimes zero percent," he quality assurance representatives are seizing isfaction. Better CSI directly correlates with continues. "In many cases, this leads the custhose opportunities to present each of those loyalty, according to J.D. Power and Associtomer to think: 'You know what? I should be customers with that information. Tey are ates' 2013 U.S. Customer Service Index Study. looking at a new car. I didn't realize I could classifed as salaried employees because the According to the fndings, loyalty transsave $38 a month in gas because of the better position wasn't designed for "the typical car lates highest among vehicle owners with a gas mileage.' It's a sof sell, which is, historisalesperson," Longmore explains. satisfaction score of 901 or higher for their cally, not what our industry has done." Salespeople at Beasley Ford Lincoln are exservice experience, leading 96 percent of them PUTTING IT TOGETHER pected to close about 20 to 25 percent to say they "defnitely will" return to their Another strategy Longmore employs of deals —a number the service liaidealer's service department while their vehicle with waiting service customers is to son will never get close to reaching, is under warranty; 89 percent said they would persuade them to take a new car out Longmore says. "If you take a salesreturn afer their warranty expired. Tat refor a spin. Tey're asked to complete person of of the foor, they're going peat business could equate to about $118 per an evaluation for the manufacturer to get depressed very easily. Te skill customer, the average amount spent by a serand, in return, they are awarded a sets are diferent for this job." vice customer by J.D. Power's calculations. $10 discount on their next oil change Bill Hamlin is the founder and Meanwhile, premium-vehicle owners average or repair order. CEO of TEGA Technologies, which BILL HAMLIN $198 per visit. So, customers at Beasley — is based in Irving, Texas. He notes Achieving these numbers, Longmore says, armed with the fresh information that versions of Longmore's method doesn't require much extra efort from the about sharply lessened interest rates or better are proving successful among his company's dealer's perspective. "It's people who are here gas mileage on newer car models — are transother dealer clients as well. A liaison between anyway," he says. AUGUST 2013 • AUTODE ALE R MONTHLY.COM 29