Day 2: Detroit

There are several buzz words bantied about to describe customer retention, but the terms aren't as important as the foundation of the value in retaining customers. You will start to see and hear things like CSSR, Free Agent Initiative, Customer Lifecyle Managerment, Customer Retention. The important thing here again, is the philosophical root. We need to retain our customers and take effective action to keep everyone on board.
Intuitively you know that this is true, that it is an important pursuit. As your resident analysis, let me share a few stats that apply: customers who have an outstanding experience are SIXTEEN times more likely to bring their vehicle back to your dealerhsip to service and maintain their vehicles as customers who have less than an outstanding experience. These same customers who have an outstanding experience are FIVE times more likely to repurchase another vehicle from your dealership.
Knowing these extreme return probabilities, it behooves us to figure out ways to be outstanding. Let's break down the word: OUT STANDING. Our charge is to be different in a great way from other experiences that our customers have. Remembering again that our customers do not simply compare you to other vehicle dealerships. On the contrary, they compare you to Walmart, Spangles, Amazon, Holiday Inn, United Airlines, Quik Trip, the DAV, zappos, Home Depot, the dry cleaners, the grocery store, etc. Literally every place your customers do business is a comparison point to you. Your job is to STAND OUT as different, nay, better than these commonplace places.
As I told you yesterday, two fantastic tools will be available at no charge next year to all SFE dealers that will help you define your retention and aid in managing and increasing it: DealerPulse Pro 2.0 and Preferred Owner Program.
The market shift is transforming our business like it never has before right now, and we have Free Agents that will soon need to be courted and won.
I'm anxious to get busy with you using these new tools... plus, more great news here is that you don't even have to wait til January to start using them. You can enroll at no charge now before the January rush and start benefiting now. Woohoo! Let's roll!

Day 1: Detroit

Straight from Mark LaNeve’s mouth was the description of the pillars to “great retail execution”. The pillars are Free Agent Initiatives, Essential Business Elements, Mark of Excellence, and Standards for Excellence.

Some things are the same and some things are very, very different. The timeline of all the things that have happened in the industry and in particular at GM over the past year are breathtaking in their stature. And they all set up the situation at hand and the fight and focus that GM has for succeeding, for coming back, for getting back on top.

I like this fight and this spirit. I like the fact that great experiences are the focus and the foundation. I am happy to see that because it really is what our focus and foundation of SFE has been… to be excellent, to grow, to exceed our customer’s expectations, to be more profitable.

Anyway, you guys are going to be thrilled to see how SFE is shaping up for 2010. Here’s just a couple of the components INCLUDED next year:

• GM Preferred Owner Program
• DealerPulse Pro 2.0
• CSI at same or minor adjustment
• Digital Performance Bonus as stand-alone bonus opportunity
• New Bonus Pay-outs based on Quarterly SalesYear-End Adjustment Bonus Opportunity

And, all this for the Same Enrollment Fee!

I’ll fill you in on all the details soon. October is enrollment month, so watch for details in the mail and you’ll be able to view the new process manual on www.gmsfelive.com starting October 5th.

More news tomorrow, so tune in!

It Was Their Last Chance

Everybody wanted bacon-burgers but me so that meant I had to go pickup so I could pick out my different meal. I really wanted a salad and told myself the asian chicken would be really good. Love the dressing, love the almonds, love the crunchy noodles.

So off I go to the drive up, give the order, pay and then pull up to the pick up window and hear the dreaded words: "could you pull forward, your grill order will be 8 minutes cuz we're out of chicken?"

You're out of chicken at 12:30? How can you be out of chicken? We could substitute a BLT salad. She had no idea the irony of that so-called substitution. No, I'll wait.

So yeah, I'm miffed but thinking it will be worth it to have the crunchy salad. I just turn up the tunes and try to enjoy the chance to do nothing without feeling guilty.

Drive the meals back to the gang, unwrap our lunches and what do I find? A dry salad, no dressing, no almonds, no crunchy noodles. You can't be serious! I imagine I am McEnroe throwing a tantrum on the court. If I was a Yosemite Sam, the smoke would be shooting out my ears and the train whistle blowing. Not to mention the unmentionable cursing noises coming from my lips.

I can't even articulate how angry I was. Here's a clue. It happened 3 days ago and I am just now able to sit down and write about it.

Sometimes a mistake really impacts people. And this one impacted me. I will never go to that restaurant again. No, not that chain anywhere in the world. Because it makes me relive that day and the incompetence that I was subjected to. I'm mad, it smarts, and that was their last chance. The asian salad must have crunchy noodles! It must be delivered properly and completely. You don't get a second chance to deliver what it is that you say you are delivering!

The Powdered Cream Has Got to Go

Okay, okay, you’ve done everything to help your customers spend more money with you while waiting for their vehicle repair. Now go sit in their chairs for an hour and tell me if you want to do it. Is that area comfortable? Probably not tremendously. Here are some ideas for how to make the wait more comfortable, but remember, this is only after you have made as much money out of the area as possible (see yesterday’s rant):

• Wi-Fi
• Tables and chairs where I can work on my laptop
• Food and beverage – better yet, why not follow the lead of a Minnesota dealer who negotiated with a neighboring sandwich shop for discounts on their sandwiches for every customer that the dealer delivers there each day? Why wouldn’t your next door fast food space give your customers $2 off or a free drink if you guaranteed them 10 or 20 customers every single weekday between 11 & 2?
• Lose the powdered creamer... yuk!
• Test drive in a new vehicle
• Appraisal of my vehicle
• Discounts or coupons for completing in-depth surveys on the dealership’s service
• Up to date magazines… have you looked at your offerings lately? Please!
• Play area for my tots
• Massage chair
• Something else to do – run your shuttle to the nearby home center or discount store or nail salon or someplace that your customers could shop while waiting

Captivity Can Equal Dollars

Can you think of another demographic more perfect to market to than customers waiting for their vehicle to be serviced? They are current users of your product, they are probably bored, and they are definitely captive. Yet I have yet to enter a dealership that is taking full opportunity of this audience.

There are things you can do to make their wait more comfortable, but how about making their wait more lucrative?

Tell me why you don’t have catalogs or order forms or a kiosk set at the GM Accessories site so customers can see ideas for making their vehicle more “me” or more cool or more comfortable or more workable.

Tell me why you don’t have a Dealership store with car-themed stuff, cleaning or maintaining supplies, duplicate keys, touch-up paint, clothing, and ready-to-buy accessories.

Tell me why there isn’t compelling OnStar or XM radio information, hopefully electronically, for those who haven’t yet signed up or could use an upgrade.

We’re captive. We’re bored. We want to shop. Do you honestly think that the airline’s in-flight shopping catalogs would still be in print if those weren’t generating some serious cash? Please.

Password Please

I know it's bad when I've forgotten my password just to sign in to my blog. oops. Just to let you know, this little experiment had two purposes:

1. KEEP ME WRITING. I'm a writer and if I don't, I rust. this was a way to keep me writing stuff that's fit for other people to read. lately, I've been writing more bodice rippers than blogs and that's okay for a change, but I'm getting back today, to blogging.
2. KEEP YOU INFORMED. It's really hard to send emails out to all 25 dealerships that I support without several of them coming back. yeah, if there is something critical it gets a phone call or a personally addressed email, but the day to day is best addressed here.

I know my password now. I'm in. I'm on.