Digital Dealer - December 2019 - 46

S A L E S & VA RIA BL E OPS: Fixed Operation s Continued from pg. 45

ONE-FOURTH OF CUSTOMERS SAID THERE HAD
BEEN NO INTRODUCTION, AND ONE-THIRD SAID
THEY COULDN'T REMEMBER IF THEY HAD BEEN
INTRODUCED TO THE SERVICE DEPARTMENT."
tomer must accompany the
salesperson to the service
department and meet the
manager or advisor.
2. EXTEND SERVICE
HOURS.

Another reason why the
sales to service handoff
doesn't happen is because
the service department is
closed. Most people go car
shopping on weekends or
evenings, and many dealerships close their service
department early and are
closed on Sundays. This is
like going to CVS or Walgreen's and the pharmacy
is closed. To increase the
sales to service handoff,
dealerships need to extend
their service hours. Besides, weekends and evenings are also when most
service customers would
prefer to get their vehicles
serviced.
3. CREATE A VIRTUAL
INTRODUCTION.

If the handoff can't
physically happen, text or
email the customer a video
immediately after they leave
the dealership. The video
should introduce the service
manager and other staff
members. Include a virtual
tour of the department and
a tutorial on how to use the
online scheduler.
Make your videos model
specific. Let the customer know how many miles
before their first oil change
and provide a coupon code
46

DECEMEBER 2019

for their first scheduled
appointment.
Follow up this video
with additional videos
that include educational
information; e.g. how to use
the entertainment system,
how to check tire pressure
or how to program the trip
odometer. These videos will
help build customer trust
and keep your dealership

services compared to rack
rate-especially since the
dealership is going to make
money from the financing of
that package.
Yet, most PPM plans
don't offer discounts at all.
If they do, they aren't sufficient to capture customer
attention.
5. ADJUST PAY
PLANS.

IF THE HANDOFF
CAN'T PHYSICALLY
HAPPEN, TEXT OR
EMAIL THE CUSTOMER
A VIDEO IMMEDIATELY
AFTER THEY LEAVE THE
DEALERSHIP. "
top of mind until it's time for
service.
4. ADD VALUE TO
PRE-PAID MAINTENANCE
(PPM) PLANS.

If 100% of people need
service, why do only 38
percent of people buy PPM
plans? The answer is simple. Dealers don't provide
any added value. Instead
of looking at the long-term
profitability of retaining a
customer, they look at the
short-term gain of another
transaction.
If a customer is going to
buy service in volume and
commit to coming back to
your dealership, that customer should receive a substantial discount on those

D I G I TA L D E A L E R . C O M

Salespeople are compensated on sales transactions, not on service,
so what's the incentive
for them to introduce their
customers to the service
department?
I've always believed
that sales and service staff
should be compensated
on the customer lifetime
value (CLV) of a customer,
instead of on individual
transactions.
Compensating on transactions encourages staff
to say anything they think
will open up the customer's wallet at that moment,
instead of giving advice
based on the customer's
best interest.

Compensating on CLV
gets the entire sales and
service team on the same
page. Additional small
spiffs can be awarded to
team members each time
the customer returns for
service.
The sales to service
handoff is an important process that contributes to increased customer retention,
but most dealers don't do
a great job. Improving the
ratio may require process
change and dealing with
pushback from employees,
but the long-term increase
in fixed ops revenue will
make the effort worthwhile.
SCOT EISENFELDER is a 25+
automotive market veteran who
has driven innovation across
multiple auto sectors. Previously,
Scot was SVP Strategy at
AutoNation, responsible for
major change initiatives in
eCommerce, pricing, IT and
creating a blueprint for auto
retail transformation and
before that served as acting
CMO, focused on realigning
marketing spending. Before
that, Scot led JM Family's dealer
software business and was SVP
Product Management, Strategy
and Marketing at Reynolds
and Reynolds, leading both
companies through valuecreating sales. He has an MBA
from Wharton School, graduating
with distinction and is a Palmer
Scholar. He attended Mannheim
University in Germany as a
Fulbright Scholar and graduated
summa cum laude in economics
from Princeton. EMAIL:
seisenfelder@affinitiv.com


http://www.DIGITALDEALER.COM

Digital Dealer - December 2019

Table of Contents for the Digital Edition of Digital Dealer - December 2019

Digital Dealer - December 2019
Online Extras
Four Keys to Build a Better YOU
9 Areas That Build Value in Your Dealership
From Speculating to Selling: Overcoming Sales Challenges with Technology
For Sustainable Profit – Build a Purchasing Department
Meet the Marketing Mastermind Speaking at Digital Dealer Orlando
Get a Jump on Making It a Great New Year
Job Management Makes or Breaks Your Bank
Interview with Derek DeBoer of TC Chevy
Elevate Your Year-End Sales Event with Immersive Instagram & Facebook Stories
It’s Time to Move Beyond the Chaotic Dealer Website Experience
The Power of Used Car Marketing
9 Benefits of Doing a Year-End Social Media Audit
Auto Brands and Dealers Need to Move Toward a ‘Tierless’ Marketing
A Case for an Efficient 2020 Dealership Advertising Budget
4 Critical Components of Effective Sales Training
Five Tips to Improve the Sales to Service Handoff
Seasons of Opportunities
Digital Dealer - December 2019 - Digital Dealer - December 2019
Digital Dealer - December 2019 - Cover2
Digital Dealer - December 2019 - 1
Digital Dealer - December 2019 - Online Extras
Digital Dealer - December 2019 - 3
Digital Dealer - December 2019 - Four Keys to Build a Better YOU
Digital Dealer - December 2019 - 5
Digital Dealer - December 2019 - 9 Areas That Build Value in Your Dealership
Digital Dealer - December 2019 - 7
Digital Dealer - December 2019 - 8
Digital Dealer - December 2019 - 9
Digital Dealer - December 2019 - From Speculating to Selling: Overcoming Sales Challenges with Technology
Digital Dealer - December 2019 - 11
Digital Dealer - December 2019 - For Sustainable Profit – Build a Purchasing Department
Digital Dealer - December 2019 - 13
Digital Dealer - December 2019 - Meet the Marketing Mastermind Speaking at Digital Dealer Orlando
Digital Dealer - December 2019 - 15
Digital Dealer - December 2019 - Get a Jump on Making It a Great New Year
Digital Dealer - December 2019 - 17
Digital Dealer - December 2019 - Job Management Makes or Breaks Your Bank
Digital Dealer - December 2019 - 19
Digital Dealer - December 2019 - Interview with Derek DeBoer of TC Chevy
Digital Dealer - December 2019 - 21
Digital Dealer - December 2019 - 22
Digital Dealer - December 2019 - 23
Digital Dealer - December 2019 - 24
Digital Dealer - December 2019 - 25
Digital Dealer - December 2019 - 26
Digital Dealer - December 2019 - 27
Digital Dealer - December 2019 - Elevate Your Year-End Sales Event with Immersive Instagram & Facebook Stories
Digital Dealer - December 2019 - 29
Digital Dealer - December 2019 - It’s Time to Move Beyond the Chaotic Dealer Website Experience
Digital Dealer - December 2019 - 31
Digital Dealer - December 2019 - 32
Digital Dealer - December 2019 - 33
Digital Dealer - December 2019 - The Power of Used Car Marketing
Digital Dealer - December 2019 - 35
Digital Dealer - December 2019 - 9 Benefits of Doing a Year-End Social Media Audit
Digital Dealer - December 2019 - 37
Digital Dealer - December 2019 - Auto Brands and Dealers Need to Move Toward a ‘Tierless’ Marketing
Digital Dealer - December 2019 - 39
Digital Dealer - December 2019 - 40
Digital Dealer - December 2019 - 41
Digital Dealer - December 2019 - A Case for an Efficient 2020 Dealership Advertising Budget
Digital Dealer - December 2019 - 4 Critical Components of Effective Sales Training
Digital Dealer - December 2019 - 44
Digital Dealer - December 2019 - Five Tips to Improve the Sales to Service Handoff
Digital Dealer - December 2019 - 46
Digital Dealer - December 2019 - Seasons of Opportunities
Digital Dealer - December 2019 - 48
Digital Dealer - December 2019 - Cover3
Digital Dealer - December 2019 - Cover4
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