Ways to increase Customer satisfaction by lowering the time a customer spends in a dealership

For Nick Oliver &

John Rossingold

Why the need for reform?The average American spends anywhere from

4-6 hours in a single dealership to buy a car.Our average customer service survey results

are 75% satisfied, the main reason for negative results is time.

An average minor service repair takes more than an hour and a half.

A major service repair averages 21 days in our service department.

Service customer surveys results are 82% satisfied, the main reason time.

My Goals To find a way to grow AutoNation by

speeding up the car buying processShorten the amount of time a customer

spends in a dealership for up to two hoursIncrease customer surveys by at least 10% in

both sales and servicesIncrease the amount of referrals created by

satisfied customers bragging to there friends.

How will we work together to accomplish those goals?

Create a better pre-approval system online Lower all prices to eliminate negotiationsSchedule more appointments by doing more work

online, eliminating any potential time wasted on waiting for a salesman

Train all salesmen on the products and offers in finance

Add three more service bays for just oil changesAdd two senior service tech’s as supervisors Increase the amount of storage for parts to have a

larger inventory of parts available

How will we work together to accomplish those goals?

Create a better pre-approval system online:Set up a secure system online for customersMake it easy to use and understandWill give customers a price range before they

come in and have us tell themEliminate the need for a finance director to

get approval from the bank

Create a better pre-approval system online:Benefit: Risk:

Eliminate time spent waiting for an answer from the banks on approval

Eliminate potential public embarrassment on a credit denial

Give customers a budget to work with before coming in

Discourage customer from trying

potential Identity hazard with all information online all the time

How will we work together to accomplish those goals?

Lower all prices to eliminate negotiations:AutoNation already has market pricingMark down to a fixed amount above cost on

each vehicleSalesman is prepared to show numbers

confidently with proof of cost

Lower all prices to eliminate negotiations:Benefit: Risk:

Eliminate back and forth negotiations

Save large amounts of time of back and forth between management, salesman, and customer

Avoid angry talks over numbers

Cut company profits per car

lose customers to special “sales” and incentive deals from other dealerships.

Struggle to have customer trust in true “cost of car”

How will we work together to accomplish those goals?

Schedule more appointments by doing more work online, eliminating any potential time wasted on waiting for a salesmanEnsure customers have salesman to work

withHave salesman that are more prepared and

already had discussions with what the customer wants

Use the internet to its full advantage

Schedule more appointments by doing more work online, eliminating any potential time

wasted on waiting for a salesmanBenefit: Risk:

Eliminate waiting for salesman

Have all salesman prepared for customers before they come in

Designated times to ensure the dealership is busy throughout the day instead of in spirts

Over relying on the customer to come in when they say they will.

Anger the customer by not being able to work around there schedule.

How will we work together to accomplish those goals?

Train all salesmen on the products and offers in finance:Teach every salesman how to do the legal

paperwork to buying a carTeach every salesmen the extra knowledge to

sell extra products Work with all managers to ensure the proper

paperwork will be done be by each salesman

Train all salesmen on the products and offers in finance:

Benefit: Risk:Maintain relationship

between salesman and customer

Eliminate time waiting for the finance directors

Keep customer with the same employee the entire time

More hands touching money

More responsibility on the salesmen

More training cost for corporation

How will we work together to accomplish those goals?

Add three more service bays for just oil changes:

Take advantage of the extra space in the back of the dealership service area

Distinguish service tech’s from quick lane specialist (oil change department)

Will separate standard repairs from basic routine maintance

Add three more service bays for just oil changes:

Benefit: Risk:Increase available area

for service techs to preform repairs, and more room for oil changes

Speed up the quick lane service process

Open up the service techs to more detailed repairs for their special skills

Potential oil changes are not performed properly

Loss of spare space in the back of the dealership

Cost of paying quick lane associates

How will we work together to accomplish those goals?

Add two senior service tech’s as supervisors:Take the two top service techs and have them

inspect all work as it is doneInstruct them to lead with their knowledge

working with them as peers not as people in charge, leaving the service managers still in charge

Allow the techs to ask questions to the veteran techs in charge to ensure work is done properly

Add two senior service tech’s as supervisors:

Benefit: Risk:Ensure all work is done

rightSpeed up long term

repairs by having floating help

Have a veteran mind to answer questions any other techs may have

Two extra salaries to payConflicting opinions on a

repair

How will we work together to accomplish those goals?

Increase the amount of storage for parts to have a larger inventory of parts available:Make use of all available space on the lotCreate a more organized parts storage centerAllow for the dealership to use all space and

have more parts for the both short and long term repairs

Increase the amount of storage for parts to have a larger inventory of parts available:

Benefit: Risk:Speed up part searching

processGreater supply of parts

on hand, eliminates time waiting for parts

Speed up repairs by having set parts on sight

Cost of storage siteCost of salary to keep

track of storage inventory

Increased potential wasted inventory if parts are on sight that are never used

Final Recommendations:Implement a strong secure website in order

for all of our customers to submit all credit applications online

Have the salesmen trained up on all the finance products and numbers

Add two senior service advisors to oversee the long term repair process

Increase our supply of parts on the ground at the dealership

References:Austrailian Governement initiative. (2010). Your Identity. Stay Smart Online.AutoNation. (2014). Service department. AutoNation/service.com.Autotrader. (2012). How Long Will It Take to Buy a Car? AutoTrader.com.Cox, J. (2013). Buying a car, behind the scenes. Autotrader.com.Myers, S. (2014, November). Head Searvice Tech. (B. Cope, Interviewer)