For some time now there has been a new channel to consider for specific parts in the parts business. Let me introduce you to the Kiosk. Walk through most airports today and you will find kiosks selling electronics and items such as vitamins and other related health items.

Now let’s look at our parts business. What is it that our customers would like to have access to from you that needs controls, accounting reporting and inventory? On the job site it might be supplies or safety items. In their shops it might be general job supplies, liquid gasket, etc. They need to have an inventory accessible to their personnel both on job sites and in their shops, perhaps even in their field type vehicles.  It is like buying a candy bar or a package of gum. Push the number to access the product then put in a job card and employee card to assign the accounting distribution and off you go. On general job sites select the product and swipe your credit card to obtain the product. There are limitless possibilities. Isn’t it time to start leading with new products and channels such as this? The time is now.

When the customer hangs up the phone, or walks out of your door, after placing an order, do they have a feeling that you have everything under control and will do your utmost to satisfy their needs? How do earn the loyalty of your customers?

This is an interesting question to pose isn’t it? The best in the Industry has a market capture rate of less than 40% of their parts business. That is the parts are required to keep their brand of equipment running with proper maintenance and repairs.

That means we have lost 60% of the parts business. How did that happen? Don’t we care about the parts business or about the parts that the customer purchases? Why is it that so many dealers seem to be so complacent about their parts business? They are complacent too. Are you?

Sitting back waiting for the phone to ring; Putting the backorders into the supplier provided emergency network without doing any expediting.  How did we let ourselves get to this place? We are not any different than the next competitor. We have settled for substandard performance and now it is like we are doing the best we can do. We have undergone the drip, drip, of water torture and without knowing it we are happy with where we are now. I can’t believe this is true but the evidence is all around us.

Have you heard the story of the frog that was put in a pot of warm water on the top of the stove and then the heat was turned on? Well the water got warmer and warmer and the frog felt like he was in a bath and slowly but surely his energy drained out of him. By the time the water was boiling and he needed to get out of the water it was too late and he died.  That is where we are heading without any action.

Contrast that where a frog was dropped into a pot of boiling water on the stove top. He jumped out instantly, perhaps he got burned but he lived another day. Which frog are you? The time is now.

I mentioned in the Management Musings blog a terrific book by Simon Sinek called “Start With Why” which is on TED.com as a short presentation which should interest each of you. He posits that your customers by from you not because of what you do or even how you do it but rather why you do it.

The “What” you do is supply parts. The “How” you do it is with skilled personnel and inventories and systems and other specialized tools. But the why you do it is what will keep them coming back to you time after time.

I want you to consider the “Why” as the sense of urgency you have to find the part for the customer, provide it out of your inventory quickly and conveniently and if you don’t have the parts they require you will work tirelessly to find the part for the customer on the same day that they ordered it. That is why the customer comes back to you – or not.

I am afraid that over the years we have not found the parts we didn’t have in stock fast enough or consistently enough and that is why the customer has gone shopping to find parts from other sources. We need to fix this. We need to convey to the customer both in discussions and in action that we will find the parts that they require on the same day that they request them. Notice I didn’t say that we would supply all the parts the same day. I said that we would find where the part is available when we don’t have it and then we will let the customer know and allow them to make the decision about what they want us to do. Consistently performing to this standard we will improve customer satisfaction, customer retention and employee satisfaction as well. The time is now.