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 class.

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.

The parts and service businesses within the construction equipment Industries has never had a precise method to calculate the share of the parts market for a specific brand. To some degree this has allowed the parts business to operate without a critical performance measure being in place.

This program married the market potential, that we cover in another class, with the actual sales for a dealership for a specific brand. The market potential model allows a dealer to calculate the potential consumption of parts on specific machines. That, together with the actual parts sales, allows a calculation to be done arithmetically that determines the percentage of a customer business obtained by a dealer.

This class provides a detailed methodology to calculate the share of the market the dealer obtains. This is the market capture rate that the dealer obtains in the parts business. Ideally, we would be able to perform this calculation by machine model. Unfortunately, we do not get the model and serial number for each parts sale.

Similarly, we touch on the “mean time to failure (MTF)” statistics provided by the OEM’s for their products. With territory potential, market capture we can drive market coverage methods which with the MTF the sales force can be targeting customer needs in a timely manner. This program covers all the details and methods required to perform the calculations required to measure market capture.

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.

Everyone knows about the repair and rebuild business. That is where the excitement is for technical people. In the product support business, we have two major goals: reduce the owning and operating costs for the machine owner, and protect the residual value of the machine. The first step to understanding how to reduce owning and operating costs is to understand the importance of the maintenance service recommended by the OEM. Most customers view maintenance as the necessary evil of changing fluids and filters. There is much more to it than that. How to develop a maintenance program to reduce those operating costs is the theme in this program.

There is a fundamental conflict that has to be dealt with in the labor management group. Maintenance is boring, anyone can do it. In fact the OEM dealer has less than 6.5% of the maintenance market. Nearly 90% of the maintenance is done by a customer mechanic. Yet survey data indicates that nearly 90% of the customers would give the maintenance business to the dealership if their price was less than what the customer currently pays.

This program will discuss the methods and processes to follow in order to be able to meet that price and performance need.

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.

The management and supervision in business is in many cases misunderstood. You manage process but you have to lead people. Often, we get consumed by our need to improve our processes. Since the 1980’s with the “Japanese” continuous improvement movement we have been obsessed with eliminating non-value added, tasks and processes. But what have we done to inspire management to improve their ability to lead their employees.?

Leadership is a complicated function. It involves compassion, courage, trust, integrity, commitment, loyalty, inspiration, and communication. A true leader will take people to places that they would not have gone to on their own. This program explores the true meaning of leadership and talks about differing leadership styles and their impact on performance.

Leadership has to ensure that the day to day operations are performing and at the same time they must focus on the future. They also have to understand and accept how important managing change is to improvement. They have to be able to look at their businesses with “fresh eyes” to ensure that they can identify and eliminate their “sacred cows.” This is a critical class for anyone in a leadership position.

The days of your customers walking into your business have long since passed. This is truly a shame. Some thirty to forty years ago, we taught our customers that our inventory management meant that those parts that the customer wanted would not all be available when they came to our store. So they started to use the telephone and we didn’t see the customer in our store very much at all.

Yet it still continues to be true that you have an opportunity to create an interesting and successful retail store. This is the first step in becoming a retail operation. From Harley-Davidson to Ski-doo to Artic Cat, there are specialty suppliers that have made merchandising an art form. We will look into the successes in other Industries and how we can learn from them. The layout of your merchandising area, as well as the methods to keep it fresh and appealing, will go a long way to determining your success. All of this and much more will be covered in this content rich class.

Others dealerships and other Industries have turned this into a customer convenience and money making proposition. This is much more than just setting up shelves and displays. They have made the store a pleasing environment for both employees and customers. Learn the ins and outs of successful In-Store Merchandising with this comprehensive program.

Customers want to know how much the repair work will cost before they approve the job you will perform. We have to provide this important information. In order to do this, we must manage our repairs with job codes. We must determine standard jobs, and then track them every time we perform them. In this way, we can develop a “standard time” which is different than average time. You will learn the secrets of flat rating in this very detailed program.

The job code structure is where this begins. The manufacturers provide a job code for use with warranty jobs. This is the same logic that dealers must use to manage the repair and maintenance jobs. The code needs to be easy to understand and search out in a file or on a system. Once we have the job codes, then the inspections and job structures need to follow the same logic. How to develop the job codes and then utilize them to develop and manage history is a critical element of this program.

The determination of the standard time is also misunderstood by most. It is NOT about the average time to perform the job. Learn the perils of assuming all the risk on jobs, and how to provide for those risks with standard times. This program will be of value to anyone in management who wants to move away from a job shop structure.

In the parts business we communicate with the marketplace in a variety of methods. With the telephone, with people walking into your store, some customers will send orders by mail, or via a fax, 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 sales 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 the part numbers that they need, to the customer that can order parts from an electronic catalogue on the internet, 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 class.

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.