HCC: Service Market Segmentation

Marketing is the process of identifying and satisfying customer needs. That process becomes impossible with the thousands and thousands of customers that you have in your assigned area of responsibility (AOR). As a result of that truth, it becomes important to be able to find out what the customer needs and wants, and then to be able to find common elements of their business that will allow you to group them with other customers of common needs and wants.

That is the aim of market segmentation. Market segmentation is the process by which marketeers divide potential customers into smaller groups that are looking for similar benefits from a product or service. The goal is to isolate a group that prefers these features and benefits, and to develop a sustainable differential advantage that satisfies their needs. All of the methods and processes that are required to perform this are covered in the program.

We cover the industrial focus, the individual demographics, and the psychographics. We also have to assess the dealer strengths and weaknesses, as well as reviewing the same strengths and weaknesses in the competition. All of this and much more is covered in this comprehensive program.

HCC: Service Leveraging Assets

The service department is known to provide repairs, rebuilds, and maintenance services. We manage the labor function to have the highest possible labor efficiency and quality. High performance in a Service Department must maximize efficiency, maximize quality, and satisfy customers.  The first step to understanding and accepting what we have to do is to understand the assets at our disposal. From the technical skills of the mechanics, to the bays and vehicles we work from, and the specialized tooling there is a lot to consider. How to leverage these assets is the theme in this program.

Individual employees want to do a good job and they want to be able to provide the highest level of skill possible. We have a responsibility to maintain those skills with professional training programs. From the OEM’s, to specific training within the dealership we will explore all that training entails. It starts with the skills set inventory for each technician, and then a training plan for each person can be developed. We are expected to make money on our labor. What is less understood is that we are intended to be able to recover our costs on all of the tools and technology we use. In this program we uncover methods to be able to recover these department costs in a manner that is fair to customers and the company.

Each employee can show off their skills and knowledge especially well if we provide them with the comprehensive training and tools necessary to deliver world class service. We must provide leverage on these assets. This class is an important piece of their learning.

HCC: Service Make It Matter

Everything that we do in the labor business has a profound impact on our customers, suppliers, coworkers, and other stakeholders. There has to be a difference in what and how you do your work that is visible and obvious to everyone that you touch in the performance of your work.

You have to be able to answer two very simple questions. But they are not that easy to answer. What do you provide?  What do you do? Most of us will look at these questions and think it is obvious, it is self-evident. We supply labor solutions – repairs, rebuilds and maintenance.  Pretty simple, isn’t it? The trouble with it is that there are many people trying to do it. We have to recapture the business we have lost from our customers and competitors. We have to make a difference. We have to make what we do “matter.”

We will explore who you are and what you bring to the organization and to the customer. We will explore how and why you make a difference. Each of us has to create our own brand. That is how we will differentiate ourselves and what we do from the crowd. We will explore serving people in the parts business. We will explore all that our work means to the market and how we make a difference: how we make it matter.

HCC: Service Labor Efficiency

Labor efficiency and labor quality are the two most important performance measures for supervision of a service department. The way in which you measure labor efficiency leads you to be able to manage labor efficiency.  Detailed definitions and calculations, as well as tried and true methods to achieve high labor efficiency are the hallmarks of this program.

When employees are given specific direction the results are impressive. Without it, the results can be disastrous.  Billing efficiency, or the amount of time that can be billed versus paid, is not the same as labor efficiency. Labor efficiency is owned by the technician, but is directly influenced by the methods used to schedule work by the first level supervisor. This brings together inspections, job segmentation, standard jobs coding, and standard job times. Fundamentals of scheduling then can be applied and allow the performance of the work by a service department to become predictable.

Finally, the elements that interfere with good labor efficiency are exposed and suggestions developed for each so that they can be overcome. The customer will benefit greatly from predictable completion dates which will be the “intended” consequence of this program for all service management and supervision.

HCC: Service Delivery Systems

In the service business, we communicate with the marketplace in a variety of methods. With the telephone, with people walking into your store, some customers and some use the internet. But the variations of the work don’t stop there: we also have to contend with a variety of “delivery” systems as well. These are not transportation systems. This is a customer service delivery system.

We process work orders for our customers and we all know that not all customers are created equal. Some customers spend a lot of money with you and deserve to get special treatment. Well, we also have some processes that are cost intensive but also some that are very efficient. These are the customer service delivery systems.

From the customer who does not know what is needed, to the customer with their own mechanics, there are wide ranges of differences. Each of the delivery systems has a different cost component, and that can lead us to provide differentiated services dependent on the delivery system that is chosen by the customer. We explore all aspects of the delivery systems we offer to the market in this important program.

HCC: Service Market Strategy

The only way to position your labor business is to provide customers with something they value.  The fundamental principles of customer value are to offer something the customer wants and needs and to provide that offering better than your competition can.

This class provides methods and a road map to follow in developing a strategy. We identify three key strategies for enhancing customer value. Companies focus on being: Better – through the provision of superior quality labor and service. Faster – sensing and meeting changing customer requirements more quickly than others. Closer – creating durable linkages and even partnership with channel members and customers.

This program takes you more deeply into operational excellence offers customers good pricing as well as convenience and reliability. Then we examine labor leadership which is the result of superior product performance. Finally, customer intimacy which utilizes “micro” marketing techniques. These strategies for providing customer value indicate the importance of the marketing focus in overall strategic planning. Customer value offers a way to gain strategic advantage over competitors and to differentiate the company’s products or services.

Communications is the critical element to successful implementation of a strategy for the parts business. The final emphasis of this class is to ensure that the strategy is effectively communicated to all employees so that they will be committed to executing the strategy.

HCC: Service Work Order Process

The core function within every Service Department is the work order process. Despite that, little attention seems to have been given to this most important function. During this program we will take you through the complete process from the “Service Request” up to and including the Invoicing of the finished job. The process is not complicated, but there are a lot of details which, if mishandled, will not satisfy either the customer or the dealership.

The only group within an equipment dealership that allows a business to differentiate itself from the competition in the market is the Service Department. Yet the typical dealership leaves the Service Department and the dealer business system to establish the methods to be used. This program addresses the complete process from labor posting to outside purchases, from ordering parts to returning them, from introducing the structure of the job to the scheduling of work. We will address them all.

The individual elements will be covered in complete detail in further programs but the basic structure to employ will be detailed in this session. You will be able to return to your work and review how your structure relates to these “Best Practices,” and begin the transformation of the department from a place where repairs and maintenance are performed to a productive, high quality, and safe service shop. This is the type of work order process that attracts talented people to work within it, and retains the customers who use it.

HCC: Service Territory Potential

One of the true challenges in the parts and service business is to determine the successful penetration of the market: the market capture rates. This is another term used to represent your “market share.” How well you are looking after the needs of the customer is the real question at this point.

With this class, we develop a “market potential” model which can be used to determine the purchase potential of each machine. With this tool, an overall potential can be developed for each customer. This is a tool that can be used by management and the sales force to develop strategies to improve performance. We deal with the creation of the model and all the variables within in this comprehensive program.

It all starts with the machine population. That is the list of equipment owned by each customer, and the work application and hours worked each year. With this and the statistics available from the OEM’s and their mean time between failure facts, a reasonable degree of precision can be developed. The major components can be managed in this manner: engines, transmissions, and hydraulic systems.  The wear rates of ground engaging tools and undercarriage can assist in the life of these wear parts. Finally, we have maintenance as the last element. Don’t miss this market potential class.

HCC: Service Time Management

Time is one of the many elements of our lives that we deal with every day. It is one of those elements, however, that does not change.  We do not have the ability to add more time to a day. As a result of that fact it is important that we use all of the time that we have as effectively and as efficiently as possible.

Rarely do we accomplish that. We do things over and over again, we defer conclusions and decisions, we get interrupted with unrelated issues, we have to deal with meetings and the internet and the telephone. There is a lot to the use of your time.

This course will introduce you to different styles of work and a series of steps that you can consider to more effectively manage your time. At the conclusion of the course you will have been exposed to a wide range of options for you to consider that will assist you in managing your time more effectively and efficiently.  Don’t miss out on this powerful learning program.

HCC: Service Customer Retention

All of the training and tooling in service, and the inventories and systems in parts, and all the good work by professional salesmen will be wasted if you cannot keep your customer for life. The Japanese taught us that in the 1970’s, and Harvard Business School did the definitive research in the 1980’s. This class deals with the facts of customer retention and “how to” minimize the number of customers that “defect” from your dealership.

The statistical impact of defection on profitability across differing Industry groups is exposed. It is shocking. In the Industrial Distribution business, if you can increase your customer retention 5%, then you can increase your profitability as a Company by 45%. There is no single element of what we do that has the impact on dealership profitability like customer retention. The tools you should use to minimize customer defection are discussed in detail in this impactful class. Everything that we do in the performance of our jobs is at risk if our responsiveness and convenience are not to the customers’ liking. Don’t miss out on this powerful program.