Maximize Your Service Growth With 5 Simple Rules

1. Maximize Your Service Growth With5 Simple Rules • Presented by: Don Reed, CEO, DealerPro Training Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

2. Question? Is it possible to increase traffic and improve owner retention with an average CSI rating, while lowering sales and reducing Net Profits? In other words, can a successful marketing campaign result in your dealership losing money? Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

3. Consider the Following • Average monthly customer pay RO’s = 1,000 @ 1.5 HPRO • Marketing Campaign Produces 10% increase in RO’s • 100 Additional Incoming Service Calls • 100 Additional Service Appointments • 100 Additional Maintenance Menu Presentations • 100 Additional RO’s to Dispatch • 100 Additional Vehicles to Inspect • 150 Additional Technician Hours • 100 Additional Vehicles Requiring Parts • 100 Additional Vehicles to Park • 100 Additional Outgoing Phone Calls for Advisors • 100 Additional Customers to Cashier • 100 Additional Active Deliveries • 100 Additional Next Appointments to Schedule Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

4. Marketing Case Study 736 New Customers Produced a Net Loss of $165,831 How Can You Prevent This From Happening in Your Dealership? 4 Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

5. Follow These 5 Simple Rules Rule #1 – Define Your Marketing Plan Goals Rule #2 – Evaluate Your Capacity for Growth Rule #3 – Train Your Service Team Rule #4 – Measure Performance Daily Rule #5 – Prepare a Profit Improvement Plan Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

6. Rule #1: Define Your Marketing Goals • Increase Customer Pay Traffic • Improve Customer Retention • Raise CSI • Increase Sales • Build Net Profits Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

7. Rule #2- Evaluate Your Capacity for Growth • Shop Productivity(Total Hours Billed Divided by Total Hours Worked - Benchmark @ 120%) • Current Shop Productivity % ____ • Goal for Shop Productivity % ____ • Number of Technicians • Current Number _____ • Need to Hire _____ • Skill Level _____ • Number of Service Bays _____ • Number of Lifts _____ • Need to Add _____ Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

8. Rule #2- Evaluate Your Capacity for Growth • Customer Driven Processes • Parking Spaces • Service Reception • Number of Service Advisors (12–15 customers per day) • 15 Minutes Per Customer • Service Greeters • Cashier Process • Back-up Plan • Service Advisor? • Waiting Room Capacity Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

9. Rule #3-Train Your Service Team 3 Customer Touch Points • Phone Calls • Walk-ins • Website Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

10. Shocking Facts About Service Writers 81% of all Customer Pay Labor Comes From the Phones 86% Try to Diagnose the Customer’s Concern on the Phone 81% Quote Mechanical Repair Prices Before They Know What’s Really Wrong 95% Quote Higher Prices Than Independent Shops, Allowing the Customer to Shop other Places 57% Do Not Offer the Customer an Appointment The Aftermarket Does Just the Opposite Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

11. Rule #3 – Train Your Staff for Growth • Phone Calls – Incoming • Appointment Coordinators/Call Center NOT Advisors = More Appointments! • Do NOT Quote Prices for Mechanical Repairs over the phone • Avoid Diagnosing Over the Phone • Sell Appointments at 15 Minute Intervals Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

12. Rule #3 – Train Your Staff for Growth • Walk-ins – Drop offs & Waiters • Never Say NO • Can Do Versus Can’t Do • Allow 20% of Schedule for Walk-ins & Up-Sells • Must Have Capacity to Sell Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

13. Rule #3 – Train Your Staff for Growth • Website • Interactive Online Maintenance Menus • Current Service Specials • Build Value in Your Dealership Services • Online Appointment Scheduling Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

14. You Can’t Manage What you Don’t Measure Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

15. Rule #4 – Measure Performance Daily • # Of Incoming Calls • # Of Appointments • Service Advisor Daily Performance Tracking • Performance Board for Advisors • Technician Daily Performance Tracking • Performance Board for Technicians • Track Sales Results by VIN # • Marketing ROI Profit Pro Forma Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

16. Rule #4 – Measure Performance Daily • # Of Incoming Calls • Going Up – Going Down – Stagnant • Record Phone Shops for Accountability • # of Appointments • Schedule 15 Minutes Apart by Advisor • Sell 80% of Capacity Per Day • Follow-up on All No Shows to Reschedule Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

17. Rule #4 – Measure Performance DailyService Advisor Performance • Average # RO’s per day, per Advisor • Customer Pay & Warranty Customers @ 12 – 15 • Internal RO’s – What’s Your Policy? • Service Advisor Performance Metrics • Margins - Labor @ 75% & Parts at 42 – 45% • Sales Per RO • Hours Per RO • Month to Date Sales and Travel Rate • CSI Trends • Closing Ratio – Upsells vs CPRO’s Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

18. Rule #4 – Measure Performance DailyTechnician Performance • Productivity • # of Hours Produced vs # of Hours Worked • # of Multi-Point Inspections Completed • # of Additional Service Requests • Total Gross Profit Produced MTD • # of RO’s – Customer Pay, Warranty & Internal Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

19. Marketing ROI Without Training NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270% Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

20. Marketing ROI With Training NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270% Plan B: RO count increases 10% to 550---HPRO remains the same produces ROI of + 145% Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

21. Marketing ROI With Training & Profit Improvement Plan NOTES: Assume CRM process produces a 10% increase in RO count for $2500 per month Plan A: RO count increases 10% to 550---HPRO declines by .2 produces ROI of -270% Plan B: RO count increases 10% to 550---HPRO remains the same produces ROI of + 145% Plan C: RO count increases by 10% to 550--HPRO increases by .3 w/training, produces ROI of + 768% Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

22. Rule # 5 Profit Improvement Plan DefineYour Goals Evaluate Your Capacity Train Your Personnel Measure Performance Daily Track Marketing ROI Don Reed | DealerPro Training | CEO | dreed@dealerprotraining.com

23. Share an important takeaway you received from this session using hashtag #DD17 for a chance to win an iPad. Contact Info Full Name: Company: Job Title : Email: Don Reed DealerPro Training CEO dreed@dealerprotraining.com