CDX Service Advising and Management Chapter 1

SAMPLE CHAPTER 1

Service Advising and Management

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Education Foundation Lorem ipsum

Gary LaRosa

CONTENTS

Chapter 1

Introduction to Inspection-Based Selling

Chapter 2

Vehicle Operations and Communicating with Technicians

Chapter 3

Phone Skills

Chapter 4

Preparing for Customer Arrival

Chapter 5

Service Process—The Write-Up

Chapter 6

Selling the Service

Chapter 7

Delivery and Follow-Up

Chapter 8

Communicate Effectively with Service Customers

Chapter 9

Warranty Essentials

Chapter 10

Applying Your Write-Up Skills

Chapter 11

Applying Your Relationship Skills

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CHAPTER 1

Introduction to Inspection-Based Selling Learning Objectives ■■ ■■ ■■

1-01 Complete an inspection report.

1-02 Set customer expectations.

1-03 Assess the findings of the inspection report with the customer to promote repair and maintenance services.

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■■

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1-04 Reinforce the value of the recommended products and services.

1-05 Restate the importance of the inspection report upon delivery of the customer’s vehicle.

1-06 Develop trust and long-term relationships with customers.

You Are the Advisor When most people think of an automotive expert, they don’t jump to anyone in the service department first. Service advisors come from all over: they could be former technicians or people who love to communicate with others, mixed with a passion for cars. ­Success in the service department can lead to promotion within the company or automotive business because there are clear measurable outcomes that are easy to track. Service advisors exist to facilitate sales within a repair facility, and their job is to push additional sales.

However, the job title is service, so there is a whole other layer to the field. Service advisors are also viewed in the repair facility or dealership as the main customer support line for customers. Strong customer support is often overlooked but is sometimes the key to making sales. That is why the service advisor is more than just another sales representative. Their role is to provide customers with a trustworthy place to bring their vehicles and to create a long-term relationship with customers. Once the bond between customer and service department has been successfully created, the advisor is able to use the tools provided to create a mutually beneficial bond for both parties. This isn’t done by guessing or using lingo to convince customers. Instead, successful dealerships use extensive inspectionand diagnostic-based selling to ensure accurate repairs for customers’ needs and recommendations that make sense for their vehicles.

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Chapter 1 Introduction to Inspection-Based Selling

In this chapter, there will be an introduction to the benefits of inspection-based selling. An unfortunate theme in the automotive world is that dealerships and repair facilities are just trying to rip off their clients. For a dealership or repair facility to be successful, the relationship has to be mutually beneficial for the customer and the service department. Upon arrival to the dealership, a customer will be there either for a routine service or to diagnosis a specific problem. Whether this is a new customer or returning business, the process should remain the same. The service advisor will be expected to use the tools made available to them to research the history of the vehicle and any potential service recommendations.

For example, a customer brings in their vehicle for a regular oil change at 30,000 miles (48,000 km). At that mileage interval, the service schedule may require a tire rotation and air filter replacement, in addition to the oil change. The customer is most likely unaware of these recommendations, so the advisor must inform them before leaving their vehicle for service. Taking the steps to prepare for incoming customers creates a more efficient ­environment and might save the advisor a phone call to try to upsell services that they should have already recommended.

▶▶ Introduction The service field of the dealership is often overlooked in comparison to the actual repair shop. When the consumer thinks about expertise, they expect the mechanics working on their vehicle to have all the correct certifications and skills required to service their vehicle. The same is true in the service department: a repair facility cannot be successful ­without a trained and competent group of service advisors (FIGURE 1-1). The service department acts as a buffer between the customers and the technicians to create a professional environment and instill trust in those who are leaving their vehicles for maintenance repair. Inspection-based service provides the knowledge of how to use an inspection report to identify and recommend additional needed services to customers. Through this process, the service advisor can actively deliver the vehicle in a way that helps build customer trust and long-term relationships.

FIGURE 1-1 A service advisor team.

▶▶ Inspection 1-01 Complete an inspection report.

Report

Inspection is right there in the title: inspection report. Selling products and services are measurable outcomes for service advisors. As is the case in vehicle repair, selling products isn’t a guessing game, and the customers of any repair facility don’t want to make uninformed decisions. Trust is a huge aspect of any service-based position, as it is with vehicle servicing. The inspection report and steps leading up to the service presentation should all be viewed as a means to making a visit mutually beneficial to the shop and the customer.

A multipoint inspection allows you, as the advisor, to focus on more than just recommendations for that appointment. The inspection report is detailed with every aspect of the service check, as shown in FIGURE 1-2, and should be used as a tool to inform the customer.

Greet the Customer The initial greeting of the customer is the first step in c­ onducting an inspection report (­FIGURE 1-3). This is the portion of the service where the advisor will gather all the necessary information, i­ ncluding the customer’s original intent for coming to the dealership. This is the first opportunity the service advisor has to build a ­relationship with the customer.

During this process, the role of the advisor is to look up any customer history, which could also be an indication of some work that was recommended on a past visit. That information should be noted on the inspection report, also referred to as the vehicle report card or multipoint inspection.

If the customer has never visited the dealership or shop before, the service advisor has to find out their name and address to enter them into the system and create a service record.

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Inspection Report

Multi-Point Inspection Report Card As Recommended by the Manufacturer Customer Name:

Year/Model:

RO/Tag:

Date:

Mileage:

CHECKED AND OKAY AT THIS TIME

MAY REQUIRE FUTURE ATTENTION

REQUIRES IMMEDIATE ATTENTION

Check Battery

Recommendaed Scheduled Maintenance Services

State of Health

Accessory Drive Belt(s)

Oil Filter

Cabin Air Filter

Seat Filter

Engine Air Filter

Spark Plugs

Engine Coolant

Time Rotation

Fuel Filter

Transmission Filter

Oil Change

Transmission Fluid

0%

Comments:

Good

Bad

Battery Terminals (Clean it Necessary) XXX Battery

100% Check Brakes Measure Front / Rear Brakes Linings

LF

RF

LR

RR

Checked Fluid Lavoie and Fill OK

FILL

OK

FILL

OK

FILL

Engine Oil

xxxxx

Transmission xxxxxxxxxxxxxx

Brake Reservoir

xxxxx

xxxxxxxxxxxxxx

Check Following System/ Components Operation of horn, Interior lights, exterior lamps, turn signals, hazard and brake lamps Radiator, heater and air-conditioning hoses for leaks and damage

xxx

xxxxxxx for creoks, chips and pitting xxxxxxx washer spray, wiper operation and wiper blades Accessory xxxxxxxxxx Brake system (including lines, hoses, and parking Brakes) and wheel and for end-play and bearing noises

Over 8 mm 7/32” (Disc) or Over 2 mm or 3/32” (Drum) xxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx Less than 3 mm or 4/32” (Disc) 1 mm or 2/32” or Less than (Drum) Brake Measurements Not Taken This Services Visit Comments:

Check Tires TREAD DEPTH

LF

Clutch operation (if equipped)

702° or Greater

RF 702° or Greater

Constant velocity (CV) drive code boots (if equipped)

4/32” to 6/32”

4/32” to 6/32”

Drive shaft, transmission, u-joint and shift linkage (if equipped) and lubrication (as needed)

3/32” or less

3/32” or less

702° or Greater

Engine Cooling system, hoses and clamps Exhaust system (leaks, damage, xxxxx parts) Oil and / or fluid leaks

702° or Greater

4/32” to 6/32”

4/32” to 6/32”

3/32” or less

3/32” or less

LR

xxxxxxxx and other suspension components for leaks and/or damage

xxxxxxxxxx LF

WEAR PATTERN/ DAMAGE

LR

State Inspection Due (IF APPLICABLE)

RR

RF RR

Tire Wear Indicates: Comments:

Alignment Check Needed

Wheel xxxxx

Comments:

The Courtesy Inspection Completed by Your Dealership Team!

Service Advisor: Technician:

Tire Pressure Set to Factory Recommended PSI FRONT

REAR

Customer Signature:

FIGURE 1-2 Multipoint inspection.

This is an important part of the process because by creating a record for each customer, the service department can retain documentation of the customer’s visit history. Oftentimes, customers aren’t able to perform recommended services during their visit, so they rely on the dealership’s recommendations to plan ahead for the future. Accuracy of the customer’s information entered into the system is key here; if the wrong data is saved, it could affect the appointment setting process for those services. This is especially true for new customers who may not have expected other services to be recommended at the time.

The service advisor is the first person that a customer will see when entering a dealership and will be the person who guides them through the service process. The initial greeting is important because if there is a bad connection from the beginning, the customer is less likely to trust the recommendations from the shop. They are going to associate the relationship and

FIGURE 1-3 Initial greeting with a customer.

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Chapter 1 Introduction to Inspection-Based Selling

▶▶ADVISOR TIP In any service department, there are going to be customers coming and going throughout the day. Remember that when greeting a customer, even if you had a bad experience earlier, that bad experience shouldn’t affect how you treat future customers. Potential customers of your facility should be treated with the same friendly and upbeat attitude no matter what time of day or what may have happened in a previous instance.

Those interactions often determine the amount of trust a customer will have when working with the advisor.

▶▶ADVISOR TIP Oftentimes during the walk-around inspection, the customer will join the advisor at their vehicle. Remember that a customer values their vehicle, and the advisor should use this time to build on that relationship with their customer. Feel free to personalize the visit and get to know the customer base. If the customer stays back at the desk during this inspection, try to be prompt without sacrificing any of the key checkpoints when looking over the vehicle. If the advisor spends too much time with the vehicle, the customer might become impatient.

trust that they have with the service advisor before making any decisions about their vehicle. There are plenty of cheesy phrases out there, like “service with a smile,” but those initial reactions and relationships are crucial to a long-term relationship with the customer base.

Perform a Walk-Around Inspection An inspection report is exactly as it sounds—an inspection. Early in the service process, the advisor must perform a walk-around inspection of the vehicle for various reasons. The best practice is to perform this inspection with the customer joining the advisor, to build further on that relationship and trust. This way, the customer is part of the process and aware of what the advisor is doing.

One of the important pieces of information to gather in this process is to check the vehicle for any damage. Doing this with the customer allows both parties to feel comfortable with the current state of the vehicle from that perspective. This protects the dealership from getting blamed for preexisting damage. This process also protects the customer because if something were to happen to their vehicle, there would be a reference point: the status of the car before it came into the shop.

The walk-around is also a great time to check over the vehicle for certain services that may be recommended. The multipoint inspection breaks the services down by color: green, yellow, and red. If you write something in the green, then there is nothing for the customer to worry about, because it looks great. Yellow is a recommendation that is coming for the future; it is a way to make the customer aware of what to expect in their next couple of visits, to lessen the shock value of a recommendation. Services marked in red indicate that they should be taken care of during this visit or very soon to ensure safe vehicle operation.

Some of the services that should be checked during this part of the process are the status of the tires, wiper blades, fluid levels, and mileage. Since these items can be checked rather quickly, checking them doesn’t burden the customer or force them to wait around too long. To solidify these checks, the service advisor can use a tire gauge to get an accurate measurement and recommend replacement based on service standards for tire life. This is a great example of how a walk-around inspection can be instrumental in upselling additional services.

The walk-around inspection is also the time to discuss with the customer in more detail exactly what is going on with their vehicle. Since the advisor will be gathering information, they can strike up conversation with the customer to learn more about the potential issues they might be having with their vehicle. If the customer brought the vehicle in for more than just routine maintenance and to instead diagnose an issue, it is crucial to gather as much information as possible about what is the status of the vehicle before it is brought into the shop. Providing the mechanic with more information surrounding the problem helps them in the diagnostic process and provides a quicker and more accurate fix for the customer. This, in turn, helps the dealership and the advisor build trust with the customer.

Create the Repair Order

FIGURE 1-4 Obtaining prior approval.

After all the information has been gathered, the service advisor returns with the customer to the advisor’s desk in the service department. At this point, the advisor takes all of the information gathered to generate a repair order, which is the beginning of the record stored in the computer system. The repair order is the document used to authorize the work being requested by the customer and any additional recommendations they have approved. After this has been generated, the next step is to give an accurate cost estimate to the customer and let them review the repair order. Once the customer has agreed and signed the repair order, demonstrated in FIGURE 1-4, they are now providing prior

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Customer Expectations

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approval for the repair. Prior approval is the dollar amount agreed upon by the customer to allow the technician to service or diagnose the vehicle. The service department can begin to work on the car and diagnose customer requests.

After the initial part of the service agreement has been completed, the service advisor is then responsible for ensuring that the customer is aware of a timeline for the repair and for gathering appropriate contact information. Once the repair has been authorized the communication and relationship building continues throughout the service process between the advisor and the customer. For example, if the advisor were to tell the customer that the repair will be done right away, but the car is in the shop for the entire day, the advisor would not be providing an accurate representation of the repair. Each instance is different: Some customers may be in for only a routine oil change and may opt to wait for the vehicle to be repaired. That is why it is crucial to provide accurate repair estimates with timelines, so that there are no questions or flags raised that could affect how the customer trusts the dealership.

After the repair order has been finalized, the service advisor must deliver the information to the technician or the dispatcher. Part of the appointment setting process is to ensure that vehicles scheduled to come in actually do come into the shop. The appointment process is discussed more later on in this text, so let’s just assume for this case that the schedule has already been set. Once the technician has the repair order and brings the vehicle into the shop, they can complete the inspection report based on the customer service requests. The multipoint inspection is typically a courtesy done by the dealership during an oil change service to make the customer aware of any additional recommendations. For example, the technician checks the brakes and the suspension components and looks for any leaks. The technician should also follow the same protocol of marking items with the green, yellow, red status. In addition to the multipoint inspection, the technicians diagnose any potential problems initially reported by the customer. The repair order and vehicle report card are the tools used to report their findings, whether on the paper itself or in the computer, so that the service advisor can follow up with the customer. The technician’s findings and diagnosis are the final stages of completing an inspection report.

▶▶ Customer

Expectations

In any successful dealership or repair facility, the service advisor is successful in selling additional products or services and in developing trust within the community. Typically, advisors are measured on two key factors: sales and customer satisfaction. Although those two categories encompass many things and may be expanded based on a specific dealership, sales and customer satisfaction are the building blocks for any successful advisor. Since they are measurable, they are a method to track improvement from a personal perspective or by management at the repair facility. Customer expectations are guided by both of these factors; every phase of the service process contributes to increasing sales and improving customer satisfaction.

1-02 Set customer expectations.

The Vehicle Handoff Setting expectations with the customer base is a key component of building a trusted and well-known dealership. Local dealerships and shops are successful because customers know they can bring in their vehicles without the fear of being taken advantage of by the service department. Oftentimes, dealerships develop bad reputations because, along with higher prices, they are selling customers services they may or may not need. To avoid a bad reputation and instead build trust, communicate with the customer every step of the way and set realistic expectations.

After the repairs have been authorized and the customer is ready to leave the vehicle with the service department, the advisor must communicate an accurate timeline for repair or diagnostics. The best way to do this is to ensure the preferred contact phone number or email is marked, which also cuts down time for getting customer approval. If a customer has brought their vehicle in for a specific problem that needs to be diagnosed, they are going to want to have an idea of exactly when that diagnostic will be performed. It

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Chapter 1 Introduction to Inspection-Based Selling

▶▶ADVISOR TIP Remember that when a customer hands over their keys and leaves their vehicle for the day, expectations are already set in their mind. You must stay connected with the shop so that if there are any changes to the previous expected outcome of a repair, you can inform the customer and make arrangements before it becomes a last-minute scramble.

is not a good business practice to wait until the end of the day to diagnose a vehicle with an appointment, because the expectation is that the repair after the diagnosis will take some time. Customers are more likely to understand extended repair times if that level of trust has been built.

The vehicle handoff happens after the initial walk-around inspection and after some level of communication has already happened with the customer (FIGURE 1-5). The customer is already setting a level of expectation, and the service advisor is responsible for following through or legitimizing those expectations. If the customer is being unrealistic in their requests, it will do no good for the relationship to agree to impossible terms and not follow through on them. As mentioned before, each situation is different, and the advisor is responsible for adapting and personalizing each experience.

Reporting a Diagnosis

▶▶ADVISOR TIP Remember that, as an advisor, you are going to be more familiar with some of the technical jargon concerning repairs. That is going to be to your advantage when speaking with the mechanics, because they will have less to explain about the complexity of their diagnosis. However, keep in mind that the customer will not necessarily be knowledgeable, so you have a responsibility to relay the benefit of a repair in a way that makes sense without making the customer uncomfortable or feel like they are being talked down to.

Customers bring their vehicles into the service department for a variety of reasons: one of the main reasons customers return to the dealership is that they want factory-certified technicians to diagnose their vehicle’s issues. Customers expect the dealership of their vehicle to be the expert, and they understand that such expertise might come with a premium cost.

Dealerships have this level of legitimacy typically as an assumption, something that local shops have to build up over time with their customer base.

The service advisor is the main point of contact for the repair estimate. After the technician performs the multipoint inspection and diagnoses the vehicle, it is their job to gather the quote for necessary parts and hours to complete the job (FIGURE 1-6). They pass this information onto the advisor to call the customer and report their findings. This quote may also include other recommendations found by the technician during their diagnostic.

When communicating the technician’s findings, it is important to initially focus on the repair required to fix the customer’s initial reported issue. This way, the customer doesn’t feel like the mechanic is trying to upsell without focusing on the issue they expressed to the service advisor. The service advisor can also use this opportunity to further build on that level of trust from the initial greeting process. After the advisor has communicated the technician’s findings related to the initial repair, it is still the service advisor’s job to present recommended repairs found by the technician as they are related to the safety of the driver and the vehicle. Although the customer may not want to perform additional services during this visit, it is important to note everything in their service record to help set expectations for future visits and limit surprises.

Presenting a Quote An integral part of setting expectations is accuracy in cost as well as time to complete the repair. Maintaining a car can be costly, and customers are aware of how much money they

FIGURE 1-5 Customer drop-off.

FIGURE 1-6 Technician inspection.

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Reporting and Promoting Additional Services

are able to spend to perform this maintenance. As a service advisor, part of the role may be to work with a customer’s budget to ensure that they are performing necessary repairs and that they know of any major safety issues. These factors (budgets and informing customers) should be taken into consideration by the service advisor before making the call to recommend repair, because they could be crucial to building a positive relationship with that specific customer.

When presenting a repair estimate, write out an exact quote, which can also be included on the repair order. This creates another part of the history report, which can be referenced if a customer chooses to make a repair in the future. It gives the dealership or shop a chance to stick to its word about the cost of repair, and it gives the customer peace of mind that the cost will not change on their next visit. The importance of logging all findings with quotes is a huge part of business development, which is a major role for the service advisor.

Each quote should contain the amount of labor required to perform the repair, as well as the necessary parts to perform the repair. The customer may request these details during the presentation of the quote. If this information is accurate, it will help build trust and set accurate expectations. For example, if the labor to require a repair is extended, a customer might be more understanding about the fact that their vehicle will be in the shop for a longer period of time, maybe for several days. Part of the customer accepting labor times for repairs is them having an accurate understanding of the work being performed. The service advisor’s job is to explain the repairs in a way that makes sense to the customer and aligns with the quote that the advisor is presenting.

It is also important not to sell “time” to customers—that is, not to present them with an exact time. When customers drop off their vehicle at the shop, they are typically paying a set price per labor hour for a repair. Before a repair is performed, the service advisor has to get the go-ahead from the customer for the technician to work on the vehicle. There are labor guides that align with repairs that give technicians accurate service times for what they are recommending. When delivering the repair cost, if the advisor sells an exact time, the customer will be more aware of when the repair should be done on the hour and more likely to question costs if the repair is done sooner.

▶▶ADVISOR TIP Remember that although the focus is building trust with the customer base, for a dealership to be successful, the advisor has to be able to sell the repairs recommended by their mechanics. Dealerships are profitable when customers are able to have their vehicles repaired in an efficient, fair manner and when they honor their promises. Part of the job as an advisor is to navigate that process between the shop and the customer, to make both parties happy.

Closing the Sale The likelihood of closing a sale is much greater if expectations are set and followed throughout the service process. The best way to ensure a customer agrees to a repair recommendation is by setting the expectations of repair early and following through or exceeding those expectations. Oftentimes, there is a stigma that the service department is out to get customers, instead of providing help for their vehicle. The service advisor must eliminate that stigma by following through on expectations and providing fast, accurate, and efficient service to their customer base. This makes the process of closing a sale seamless as customers are far more likely to agree to recommendations after they trust and have a relationship with the service department.

▶▶ Reporting

and Promoting Additional Services

Service advisors facilitate the exchange between the customer and the technician.

Mechanics are valued for their ability to repair quickly and efficiently. They are often classified at different levels based on their skill. In most cases, technicians are paid based on labor hours for a particular job, which is why the inspection report is a key tool in the service process. After performing a diagnosis, it is the job of the service advisor to inform and present findings to the customer in a way that makes sense and doesn’t pressure them. If this is done properly, then promoting additional services, which can often be viewed as pressure selling, will be perceived by the customer as genuine and the customer will trust the recommendations. Purchasing a vehicle is an investment, and customers generally want to take care of their investment. Trust and quality service are two key factors in providing a place where the customer can confidently bring their investment for multiple services.

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1-03 Assess the findings of the inspection report with the customer to promote repair and maintenance services.

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Chapter 1 Introduction to Inspection-Based Selling

Reporting the Technician’s Findings

▶▶ADVISOR TIP Every manufacturer has a different set of scheduled maintenances for its vehicles.

The computer system at your dealership most likely has a program in place to present those recommendations based on the vehicle identification number (VIN). A good practice is to provide that information to the customer, because it will represent an accurate and consistent timeline for repairs. This way, the customer sees that you are informed on their vehicle’s needs and consistent with what they might be seeing in their ­owner’s manual.

The main role of the service advisor is to provide a professional environment where customers feel comfortable dropping off their vehicle to a knowledgeable staff without having to deal with the mechanics directly. But a dealership or shop will not be successful without a service staff that can sell additional work to accompany the original intention of the service visit. The service advisor is responsible throughout the process to report findings to the customers. Talking directly to the technicians can be intimidating for customers, and they rely on the service department to act as that buffer to deliver information in a way that makes sense and makes them feel comfortable with the repairs being performed, as shown in (FIGURE 1-7). The service advisor is also the point person with the customer’s needs and other factors in mind that help determine which repairs should be the focus of their presentation.

The initial diagnosis is always the most important item to report, because that is why the customer brought their vehicle into the shop. That should be the focus of the service advisor’s delivery, and it legitimizes the diagnosis that was performed. The next step is to report any essential safety recommendations that might cause unsafe driving conditions for the customer if they don’t perform the repairs. Any other services that are recommended for that visit that aren’t essential should be prioritized as such. Each instance with the customers will be different, and it’s up to the service advisor to isolate and adapt to those differences.

Manufacturer-Recommended Maintenance A large portion of business that comes into the service department is routine maintenance performed on the vehicles. Services such as oil changes, fluid services, and filter replacements are well-known maintenance repairs that most customers are aware of when servicing their vehicles. Also, customers rely on the vehicle report card to inform them of the status of their fluid, filters, brakes, and other maintenance items. These are typical components checked by the technician during a vehicle inspection.

Along with physically checking the components, the manufacturer of each vehicle has a set schedule, shown in (FIGURE 1-8), for their customers to follow regarding routine maintenance. For example, they set a schedule that aligns with oil changes, which includes other services recommended at certain intervals. Dealerships or shops should use this schedule as a tool to promote selling additional services. Since the vehicle’s manufacturer creates this service schedule, the customer can also find this information in their owner’s manual. Following this schedule legitimizes the recommendations from the service department at certain mileage, and selling these services increases the profitability of the service department.

Everything goes back to trust and the relationship that the dealership and advisor have built with their customer base. If a customer trusts the dealership from a good experience with a repair, they are more likely to bring their vehicle back after the warranty expires and have that same dealership perform the routine scheduled maintenance. The larger the customer base that follows through on service with the dealership, the greater the profitability for the dealership and more likely for them to become a trustworthy part of the community that others rely on for repair and service.

Selling Additional Recommendations

FIGURE 1-7 Explaining the technician’s findings.

Any wearable component on a vehicle will potentially have to be serviced at some point. Some are easy to throw a mileage recommendation on, like replacing an air filter every 15,000 miles (24,000 km). Many factory standards don’t vary too much between manufacturers. Other service items require a more in-depth inspection to determine their state and whether a repair or replacement should be performed. Most dealerships will do a brake inspection on a vehicle during an oil change inspection. There are standard recommendations across the industry for brake measurements that dealerships and shops should follow when delivering their quote. If the brakes are measuring in the red, the service advisor will report that information to the customer and offer to repair that item for them. A successful dealership will be set up to take

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Value Provided by the Service Department

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MANUFACTURER RECOMMENDED MAINTENANCE INTERVALS VEHICLE MAINTENANCE INTERVALS Determind by Service Indicator or Perform Oil Service every 6 months Mileage is approximated

miles (x1000) km (x1000)

7.5 12

15 24

22.5 36

30 48

37.5 60

45 72

52.5 84

60 96

months Inspection Type

6 Oil

12 1

18 Oil

24 II

30 Oil

36 I

42 Oil

48 II

67.5 75 108 120 54 Oil

60 I

82.5 132

90 144

66 Oil

72 II

97.5 105 156 168 78 Oil

84 I

112.5 120 180 192 90 Oil

96 II

BMW INSPECTION II (Includes all items listed in Inspection I and the following) Procedure

Component Automatic Transmission fluid

Replace

Manual Transmission fluid Rear differential fluid (CRW)

Replace Replace x

Spark plugs

Replace Replace

Fuel filter (up to 1994) Air filter

Replace x Check/Adjust Check

Engine drive bells Halfshafts CV-joints Body, rust, perforations

Check Check

Clutch disc wear Timing belt, M20 Engine Oxygen Sensor Suplimental restraint

Required at 1000.000 miles

Replace x Replace Inspect

Inspect supplemental restraint system(SRS) 10 years after date of production

1

Perform maintenance all the same interest for mileage beyond that on this chart

2

Change white engine at normal oprerating temperature. Replace engine oil and filter by Service Indicator or every 6 months, whichever occurs first Do not exceed 7,500 miles

3

Do not reset Service Indicator between the normal service interests if perfoming addtional oil charges

4

Replace fluid every 2 years. Time period begins from vehicle production data

5

Including spare time

6

If tread pattern treadwear uneven, suggest alignment

7

Replace more frequenly in if driven in confessed industrialized urban area or if climate control air flow is reduced

8

Except M3 Models with ZF A53 3toZ transmissions and Esso LT Lifetime Fix

9

Replace. except lifetime oil check label transmission for oil type. Lifetime oil used on early E36 M3 and most E36 models since 1996. For details consult a BMW dealer

10

Every other Service if beginning with model year 1996

11

Required for all models up to and including 1994, except california. otherwise replace as necessary or if fuel pump become noisy

12

Replace more frequently if drives in congested industrialized urban areas of heavy dust

13

Every 4 years or the first service after 50.000 miles

FIGURE 1-8 Scheduled manufacturer-recommended maintenance.

in additional services that weren’t scheduled, in order to exceed customer expectations and still complete the work efficiently.

Oftentimes on vehicles, there will be more in-depth maintenance recommended by the technicians simply from an oil change service. Customers use the service department as their knowledge base to have somewhere they can go where they trust the diagnosis and willingly perform recommended repairs. So, during those visits where the service advisor has to recommend a large repair that might be costly, the customer will already have that trust built from routine service and repair in the past.

▶▶ Value

Provided by the Service Department

A successful service department has to be more than just a place where customers come to go through the motions. Oftentimes, dealerships create an image where customers bring their vehicles in only when they have warranty issues, or they create a preconceived notion of ripping customers off. One of the effective methods to eliminate this issue is to make the customer base aware of every benefit available at the dealership. There might be customer retention programs or loyalty discounts. Whatever the value added, if customers aren’t aware of the benefits for that service, they are less likely to reward the dealership with continued patronage.

Service Benefits The only way that customers will continue to build on the relationship with the service department is if the advisor can accurately articulate the value added to the services performed on a customer’s vehicle. If the customer doesn’t understand the service performed,

1-04 Reinforce the value of the recommended products and services.

▶▶ADVISOR TIP Remember that the inspection report is generally a complimentary check done by the mechanic to inform the customer of additional needed services. A customer is most likely not aware of the measurement of their brake pads, so the inspection provides an opportunity to sell the repair before it becomes an issue.

Creating trust with the customer is key to closing this type of sale.

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Chapter 1 Introduction to Inspection-Based Selling

▶▶ADVISOR TIP Don’t be afraid to break the notion that the dealership is a rip-off. All manufacturers have reward programs and promotions when their customer base brings the vehicle back to the dealership.

Remember to mention this information and use it to your benefit when selling additional services; there are often rebates or other specials that the customer might not realize are out there.

they may not trust the advisor going forward and thus look elsewhere to have work done on their vehicle. Every recommendation must come with a reason for that repair other than that some repair or replacement is due at a certain time or point. The purpose of the repair and communicating how those components work in the vehicle are integral pieces of information that must be reported to the customer as a reason for the repair. That way, the customer isn’t left in the dark about why a repair is made and can continue to build trust with their service advisor.

The service advisor should also be comfortable in the process of making a customer aware of the advantages to bringing their vehicle to their dealership. Providing the customer with information about having factory-trained and certified technicians legitimizes the repair shop and allows customers to feel comfortable leaving their vehicle.

It is not common for customers to repair their own vehicles, so automotive repair will always be a trade, and any substantial shop has a service department. The service department creates an environment where customers can gain the full value and benefit of a shop without feeling uncomfortable about leaving their vehicle.

Dealership Value The value of a dealership can often be understated because of the stigma commonly associated with them. Common themes are that the “dealership is too expensive” or “they rip people off.” That is why the value of the service department is so crucial to the success of a dealership. Without that buffer between the shop and the customers, communicating with customers would be a much more difficult obstacle to overcome. Technicians are successful at performing their work, but they wouldn’t be as efficient if they needed to also sell during the service p ­ rocess. To remain ­successful, they need to rely on the advisors to handle the communication and selling parts of the process so that they can focus on diagnostics and repairs. This creates a successful chain in the dealership, where the customers have a one-on-one service experience without taking away from the t­ echnician’s efficiency or role in the process.

Since communication is so important for the service ­advisor, they need to understand the customer’s needs and align those needs with the technician’s recommendations.

The advisor’s role is to provide that personal communication channel with the ­customer and create that value in the dealership. The service department can focus solely on selling repairs because the technicians are able to focus solely on making those repairs. The service ­advisor is the most integral part of this process because they are the information hub for the customer and the technician.

Specials or Discounts

FIGURE 1-9 Service marketing tools.

A successful dealership or shop provides incentives to c­ ustomers, which are marketed as specials or discounts. These can be a means to provide additional discounts for existing customers or to incentivize new customers to come into the dealership. A successful service advisor should be fully aware of any and all discounts or specials available to customers as a means to sell additional services. FIGURE 1-9 shows some examples of promotional materials to assist with service sales. Although the intent is to bring customers into the shop, the benefit can work both ways.

Customers who are provided with a special may be more likely to pursue other repairs, but it is up to the service ­advisor to promote those options.

In addition to dealership-sponsored specials, oftentimes manufacturers make specials available to factory dealerships. For example, if you are a service advisor at a Ford dealership, there might be quarterly specials for customers that the service department can provide. This is beneficial for the service department because the manufacturer supports the special and because it reinforces already recommended services. Any time the manufacturer recommends a service, the advisor can use that as a tool to help close the sale.

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Deliver the Vehicle

FIGURE 1-10 Dealership service department.

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FIGURE 1-11 Building the relationship with the customer.

To promote return business, there are often rebates or rewards programs for customers. For example, if a brake job is recommended and there is a special for that service with a rebate, the customer might be more likely to bring their vehicle back at a more convenient time for that service. This promotes customer retention, and the customer is still able to take advantage of an offer presented by the service department (FIGURE 1-10).

Incentive to Return Retention is a huge factor in the success of a dealership or shop. Without creating a base of customers who are willing to return for service time after time, the dealership will fail.

The service advisor is the key in customer retention, which is a measurable value of success (FIGURE 1-11). Service records generate a history of customer visits, and that information can determine how much work a customer may or may not have done. That information is crucial in the write-up process, because it might affect the strategy during inspection-based selling.

If a positive relationship is built during the service process, customers will be more likely to agree to an advisor’s future recommendations. When a dealership generates clear and accurate quotes for future services, customers have a reference point when thinking about their next visit. Not every customer can perform the services on that same visit, and a service advisor shouldn’t see that an as impediment or a negative. The advisor should use that as a bridge for future visits. Since a successful dealership uses a schedule for maintenance, a service advisor should focus on setting an appointment for recommended repairs in which the customer can plan their visit and the cost associated with the repair. By taking away the need to do it right then and there, the customer may feel more comfortable about coming back for service because the department doesn’t seem desperate for the repair. It’s important for the service advisor to remain impartial so that the customer can feel good about the relationship and return visits.

▶▶ Deliver

▶▶ADVISOR TIP Don’t miss out on any opportunity to solidify a relationship with your customer base. Ensuring confidence in the repair done at your facility happens at every phase of the service process. If you deliver the vehicle to the customer and promise something has been done, make sure that is the case.

the Vehicle

An active delivery of the vehicle is a key part of the service process. At this time, instead of just taking the customer’s money and handing them their keys, the service advisor has an opportunity to review the work performed as well as inform the customer of any future services they recommend. The inspection report comes up again as the key tool in this part of the process, because it has become familiar to the customer. Any additional safety check items or recommendations from the technician are available as future information for the customer. An active delivery ensures that the customer is fully informed of every aspect of their service visit and what to expect in the future. This is also an opportunity to encourage the customer to fill out a survey or for you to provide them with promotional information, if applicable.

1-05 Restate the importance of the inspection report upon delivery of the customer’s vehicle.

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Chapter 1 Introduction to Inspection-Based Selling

What Is the Inspection Report?

The inspection report, or vehicle report card, is the service advisor’s tool to represent the information found when the technician diagnosed the customer’s vehicle. This report card is presented to the customer, and the customer is given a copy at the completion of the service.

In addition to a printed repair order with detailed information concerning pricing and recommended work, this report contains the physical inspection results from the technician who inspected the vehicle. This becomes more than just a write-up in the computer that reflects only discussions from the service process. Rather, it becomes a visualization that the service advisor can use to explain to the customer why certain potential repairs are at different stages.

The inspection report is also an accurate representation of the process throughout the service experience. The customer shouldn’t receive an inspection report that doesn’t reflect measurements and the status of everything that was checked and mentioned to them. Calling the customer during the day to recommend servicing the brakes when their vehicle’s inspection report had the brakes marked in the green would not legitimize the service experience. All of these tools are in place to solidify the bond between the customer and the service advisor while helping the customer understand the service process and the recommendations from the visit. Inspection reports follow common factory standards for recommendations, and the service advisor has to use that knowledge to convey confidence when selling or delivering the vehicle.

Prioritize Recommendations Delivering the vehicle is the process of returning a customer’s vehicle to them after service has been performed, another of the service advisor’s integral roles in the inspection-based selling process. As mentioned before, not every recommendation is completed on each and every visit, so the inspection report should be used in conjunction with the repair order to convey that information. When the service advisor delivers the vehicle, they have the chance to present those recommendations and prioritize them in a way that makes the most sense to and for the customer. By using the color-coded stages for repair—green, yellow, and red—from the vehicle report card, the service advisor can review the positives and potential recommendations before the customer pays for the service.

During this process, remember to focus on the positives as well as the recommendations for service. Many components are checked during the inspection report, and the customer should be reminded of all the items that passed inspection. That way, the focus isn’t solely on the negative, and it doesn’t appear that the dealership is worried only about performing those services. Providing positives also helps transition into more serious safety recommendations, which may need to be performed soon, and it promotes a positive relationship when trying to upsell other services for the future.

Delivering the vehicle in a positive way also helps promote future service. If the customer has a firm understanding of the services performed and the ones recommended for the future, they may opt to schedule service at the time of delivery. That is where a strong service department can come together by keeping an accurate schedule and setting realistic expectations for a time to have the customer bring their vehicle back to the dealership.

Review Services Performed The next stage in the delivery process is to review any services that were performed. This is a chance to connect again with the customer and to make sure they are fully aware of everything that was done to their vehicle that day. The review ties back to the importance of ensuring accurate quotes and timelines, preventing sticker shock when a customer pays.

If the inspection report and repair order are different from the original discussion between the service advisor and the customer, then that immediately breaks any trust that may have been created.

This reinforces the importance of communication throughout the service process. If a quote is changing, the service advisor must contact the customer with an update to determine whether they would still like to move forward or whether they need to discuss other options. All of the services performed and changes made should be reflected in the final write-up and there for the delivery. That way, the customer knows exactly what the cost

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Develop Trust

13

of service is when they pick up the vehicle. This process should be transparent so that any other advisor can deliver the vehicle if the original service advisor isn’t present at the time of delivery.

Set an Appointment for Return If the delivery process goes well and there are other service recommendations, this might be the best time to set an appointment for a return visit. The customer should feel confident and comfortable because they won’t have to go through the diagnostic process again, so they will have an appointment only to service the recommended repairs. This also ensures that there won’t be surprises on the return visit because the recommendations from that repair order will be pushed to the next appointment. It also shows the advantages to using technology in the service department because it creates a record in the system that can be referenced.

Setting future appointments, shown in FIGURE 1-12, is important in the service process because time and convenience are often factors in the decision-making process of having services completed. Customers want to feel comfortable and empowered with the opportunity to perform those services at a later date. The service advisor can set expectations and follow through by allowing the customer to be part of that process and solidify their relationship with the dealership.

▶▶ Develop Trust Trust is a key factor of any relationship, especially when it comes to handing over an investment. Since a customer’s vehicle is such an important investment in their lives, they are less likely to bring their vehicle to a service station that they do not trust. Dealerships have the benefit of a brand name, and that allows them an assumed level of expertise. Local repair shops often are less expensive, but sometimes can be viewed by customers as less reliable. In either case, the service advisor provides the buffer between the customer and the technician to develop a relationship with the community and create trust. Once trust has been gained, it must be maintained to promote consistent future visits and new business.

Recap the Service

FIGURE 1-12 Setting future

appointments.

▶▶ADVISOR TIP Not every dealership has an appointment coordinator, and some are automated or sourced out to a third-party phone line. If a customer opts to perform recommended service in the future, take it upon yourself to set that appointment in the computer system.

1-06 Develop trust and long-term relationships with customers.

Trust and long-term relationships are the two key factors in customer retention and building a successful dealership. Vehicles are often among the most important things a customer owns, and they take them very seriously. No customer is going to return to a dealership after they have a bad experience, even if repairs were made. That is why ongoing communication is so important during the service process: It helps prevent any surprises or sticker shock from the customer’s viewpoint.

After the service has been completed, the service advisor either calls the customer or speaks with them in the waiting room. This is the phase where the service advisor recaps the services that were performed and delivers the vehicle. It is not a good business practice to just hand someone their keys, tell them the total, and go back to the desk. The service advisor is there to explain and recap all services performed, review the benefit of the service, and explain other recommendations.

Gather Customer Feedback Customer feedback is another measurable value item that can determine the success or failure of a dealership. Oftentimes, if the service advisor doesn’t hit all of the important touch points that determine a successful service experience, the customer might not mention any negative feedback at the time of service. So instead, facilities use surveys to gather customer feedback, where they are more likely to be honest in their review.

Customer feedback can also be a tool used by the service department to grade individual service advisors. Typically, one service advisor stays with the same customer throughout the service process, and many of the questions of the survey ask how the service advisor performed. It is important to gather as many surveys as possible for the dealership as a reflection on how the service process is going and to tie them back to customer retention.

Customers who had a bad experience generally won’t return to the facility, and their reasons

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Chapter 1 Introduction to Inspection-Based Selling

FIGURE 1-13 Following

up on service appointments.

are points of reflection as an opportunity for the dealership and service advisor to improve their process.

Although negative feedback is a measurable tool, positive feedback is also a means to justify the service department process and the employed service advisors. A strong service advisor team with solid customer relationships is crucial to building a strong service department. Positive surveys are a reflection of the hard work and training that goes into becoming a service advisor. Many dealerships judge their advisors not only on sales but on customer feedback because of how important it is as a reflection on the dealership.

Follow-Up

▶▶ADVISOR TIP Make use of your down time! If there are slow times at the dealership, speak with your service manager about reaching out to existing customers to inform them of a special or promotion. Follow up with your recent customers to ensure their vehicle is running as expected.

Just because the customer has their vehicle doesn’t mean that the quality service communication chain should stop. Following up with customers through a survey or a phone call is a great way to build on the relationship created from the initial service visit (FIGURE 1-13).

This also helps give a personal touch by calling the customer and discussing the services performed, how their vehicle is operating, and discussing recommendations. It gives the service advisors an idea of how they can improve and differences that could be made to increase sales from the inspection.

More importantly, it builds on the relationship with the customer because it makes the service process seem less like a chore. Customers want to have a voice in the business; by following up and hearing their feedback, the customers are now able to use that as a measurable tool to determine whether their feedback effects change in the business. It also gives the service advisor insight into small things that customers care about that may have been overlooked by the department. Making sure there is fresh coffee and smiling when customers walk in are small acts, but huge factors that ensure a successful service department.

Selling isn’t always a fun job, but service advisors are in a role where they can use the relationship with the customer to provide value added services. The customer shouldn’t look at the service department as pushy sales people who are trying to squeeze as much money out of their pockets as they can. Instead, shops and dealerships should create a friendly, professional environment where customers can bring their vehicles to someone they trust, and where they know the recommendations will be in the customer’s best interests.

▶▶Wrap-Up Ready for Review ▶▶ ▶▶ ▶▶ ▶▶

▶▶

Complete an inspection report.

Prepare for the initial customer greeting.

Conduct a walk-around inspection.

Finalize and create the repair order.

▶▶ ▶▶ ▶▶ ▶▶

Obtain prior approval for service/diagnostics.

Set customer expectations.

Assess the findings of the inspection report.

Generate and confirm service quotes.

Ensure preparedness with repair explanations.

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▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶

Wrap-Up

Provide details for repair time and expectations.

Close the sale.

Reinforce the value of products and services.

Understand the importance of manufacturer recommendations.

Communicate the importance of the inspection report upon delivery of the vehicle.

Be able to explain and sell additional recommendations.

Provide value to the customer.

Understand how to create incentives for customers to return.

Develop trust and long-term relationships.

Review the appointment during delivery.

Schedule future services.

Confirm the customer’s understanding of services performed.

Gather customer feedback.

Follow up and confirm customer satisfaction with the service.

Key Terms green, yellow, and red color codes that are part of the inspection report—red indicates a repair that requires immediate attention, yellow indicates a repair that requires future attention, and green indicates that no repair is needed. inspection report a report that provides a vehicle checklist used by the advisor and technician to measure and note anything that was inspected on the vehicle. The customer receives a copy of the inspection report after their vehicle has been serviced. It is also known as a multipoint inspection sheet. repair order the repair order acts as an invoice and contains all the services agreed on and performed for any vehicle. This

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provides a service history for the customer and the repair facility and also contains any recommendations for future service.

Service advisor the employee at a dealership or other repair facility who acts as a line of communication between the technician and the customer when presenting a diagnostic or recommendations for a vehicle.

Review Questions 1. Why is it important to complete a thorough inspection report on each visit?

2. What are the advantages to setting accurate expectations with the customers before and after diagnosing and repairing their vehicle?

3. What is the value in reinforcing products and services provided by the service department?

4. Why is the inspection report a key tool in the service process?

5. What is the importance of developing trust with a customer base?

6. Explain the importance of reviewing the invoice during vehicle delivery.

7. Explain the advantage of identifying future repairs for customers.

8. How can the advisor take advantage of making future appointments based on those recommendations?

9. Why is customer feedback so important when developing trust?

10. Explain the appropriate method used to prioritize recommendations for customers.

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SAMPLE CHAPTER 1

We Support

Education Foundation

Service Advising and Management

Lorem ipsum

Gary LaRosa Service advisors are an essential component of any service-oriented automotive shop. In Service Advising and Management, students gain the communication, customer service, and automotive knowledge they need to balance competing demands from customers, technicians, and shop management to become successful service advisors. n Covers effective communication skills for all phases of the service process, from

initial greeting and walk-around inspection to writing the repair order and vehicle re-delivery n Reviews basic vehicle operations for working with technicians and explaining

issues to customers n Explains the importance of inspection-based selling and producing strong

service write-ups n Emphasizes customer service and verbal communication skills with a focus on

active listening, addressing concerns, and eliminating barriers to customer loyalty n Puts knowledge into practice with application chapters that enhance write-up

and relationship skills n Contains real-world “Advisor Tips� and other pedagogical tools to reinforce

new knowledge, such as review questions, bulleted takeaways, and key terms for each chapter Service Advising and Management allows service advising students to become an integral part of any automotive shop, building long-term customer relationships and a better customer experience along the way.

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