Training Tidbit #1

Training has long been a problem for many dealerships.

  • The employees should come to the job trained and ready to work
  • The employees should continue their schooling on their own time
  • Why should I train people they just leave me and go work for the competition

On the other hand

  • I don’t want to have under skilled people ever
  • I will support learning in any form
  • I expect my employees to be curious and hungry learners

In the years since 2008 – which I will label “BBS” – “Before Bear Stearns” dealerships have reduced their expenditures on employee training dramatically.

We offer management training through associations and directly to manufacturers and dealers for Parts Management, Service Management, Parts & Service Marketing Management and Product Support Selling via a Company called Quest, Learning Centers. We have developed nine programs each of which is a fifteen hour training class. These Quest classes had an average attendance of 25 to 30 managers and supervisors in our “class room” sessions. Since 2009 that number has fallen to from 10 to 15. One of the many different advantages from class room learning is the interaction between attendees both in the room and after hours.

Our response to this reduction has been to produce and provide alternative forms of learning; The Webinar and Internet Self Study.

As an educator I am not happy with the webinar format. I cannot see the learner. I don’t know if they got it or not. I don’t know if they are paying attention of not. But I have created sixteen webinar classes; eight for parts and eight for service. We offer each of them twice a year, each of them lasts about an hour. Technology is advancing and we now have available a format where we can see the attendees on a webinar and they can see each other and the instructor. On Self Study we have been slow to get to market. It has been a learning curve but we are in the final phases of introducing our internet self-study programs. There will be four for the parts group and four for the service group and each program will take from four hours to six hours to complete.

I believe in learning. I believe that each individual has a responsibility to continue their education through their complete life. I live that belief too. I hope you agree with me and will join me in encouraging everyone to continue their personal development through attending learning sessions whether it is in a classroom or some other format. The time is now.

Marketing Missiles v1.9

Marketing is a broad topic covering a lot of different sins.  It is mass mailings, it is seasonal cards, it is monthly or bimonthly newsletters, or quarterly specials. It is promotional materials and handouts. It is sales catalogues. It is also CRM (customer relationship management) systems and sophisticated information reporting. It is a bunch of stuff.

In columns I write and other documentation I have been stressing the new forms of marketing being taught at schools of higher learning, in marketing undergraduate and master level degrees. It is called “relationship marketing.” The educators and schools are acknowledging that marketing is about building and nurturing relationships not just all of the stuff listed above. Week I don’t think that is going to come as any surprise to any of you in the business. We all know that business is people to people. So our marketing efforts need to take on a much more serious tone.

We need to “touch” our customers more frequently and with a higher level of skills and quality.

The first order of business is to have a specific purpose for the “touch”, the call. Each and every time you “touch” the customer you have to have a reason that the customer will understand is aimed at reducing their owning and operating costs. The call should be about them – not you. You are providing a service to the customer. You are looking out for their best interest. What do they use of your services? What parts aren’t they buying from you? Who are they using if they don’t use your services? Are you monitoring the operating cost per machine hour? Are you advising the customer to trade in the machine when the costs are too high on a monthly basis? These are all part and parcel of marketing – the new marketing; Relationship Marketing. We will deal with this in much more depth in the weeks ahead. The time is now.

Service Statement v1.8

The comparison in the last service blog to the doctor is a clear statement on how I view the responsibilities of a service department.

  • We are here to keep the machine operating as it was designed.
  • To reduce the owning and operating costs for the machine owner
  • To protect the residual value of the machine

That to me is very clear, straight and to the point.

And I also believe that without properly conducted maintenance as prescribed in the owner and operator manual we cannot achieve those objectives. But today more than ever I am excited. With telematics we will be able to monitor equipment all day long. We will know how many hours it is working, how long the engine is idling, if the filters are clogged; we will know everything.

Imagine that world. You will have a “mission control” – walls of computer monitors on the walls, each representing a machine, with people manning the “support center” 24/7. You will be able to “alert” the customer to anything and everything about their machine that is abnormal or needs attention. This will become a new service for you to offer. And guess what? No one else will be able to do this for your branded equipment. Very rarely do we get second chances in life but this is clearly a second chance for you to obtain and retain service market capture rates. The question is now in the air. Will you take advantage of this second chance? I sure hope so. The time is now.

Parts Pondering v2.1

I will assume that you have the correct number of skilled people in your parts department, now we need to look into what it is that they do. This is about much more than the parts order processing factory isn’t it? It is about more than answering telephones and greeting customers who come into your store. It is more than managing the instore merchandising displays. It is much more than inventory management and warehousing. Isn’t it?

It is about selling too I think. Don’t you? So how well trained are your parts personnel on selling? Do they have selling skills? Have they had sales skills training? Do you have product knowledge? How well versed are they on your competition? How well do they overcome objections? Can they close a deal? I hope so as it is in their hands that your success will come.

Many dealers know and give lip service to training. Don’t fall for that. Or said more bluntly don’t go there. You need to have monthly meetings with your parts personnel. You need to review product knowledge, review processes and talk about matters of interest at the moment. You need to do this regularly. Do you?

Oh I know it is work. It is supposed to be which is why work is a four letter word.

Have your supplier’s representatives attend the meetings. Go further and have them contribute to it either with news or a training session. Organize the meeting so that it is never longer than ninety minutes. The employees need to have a clear understanding about the commitment they are making and not have you run over all the time. This will build a team of talented people who will understand that you are making and investment in their future and they will contribute to your future as well. The time is now.