A Business Model Of Maximum Customer Satisfaction And Retention

1932 Words8 Pages
Tom Peters, in his video “Radically Reengineering Business” (BBC, 1993), got it right: The world was, indeed, getting crazy in the 1990’s, and it is getting even crazier. Dealership Service Departments everywhere, including my own, are no exception. In a short few years, we have gone from a business model of maximum sales per ticket (sometimes at any cost!) to a model of maximum customer satisfaction and retention. While manufacturers have been singing the Retention song for what seems like forever, some dealer groups and franchise owners have not yet fully bought into this long-term type of thinking. Therefore, by necessity, Service Managers everywhere must rapidly adjust their own plans as their General Managers flip-flop between…show more content…
One example of this is in the development of a new strategy for our Express department. One of the ways our dealership has managed to maintain over 100% net customer retention versus the Units in Operation in our marketing area is by offering a convenient Express Lube department. While Express Lube has always struggled to make a profit, its very existence, by allowing inexpensive and quick oil changes to happen for thousands of customers every month, has ensured that our showroom is provided with hundreds of potential customers every day, with as many as 5% of these customers coming to our store for the first time. The efficiency of our Express operation relative to that of our same-brand competitors has, in part, contributed to the continued growth of our new car department where we now enjoy a nearly two-to-one lead in retail new vehicle sales in our Zone, and a market share that the other dealers in our Zone can only dream about. Nevertheless, amidst the already hyper-competitive environment we work in, a massive change is coming over which we have no control: The switch to a one year oil change. Starting for the 2016 model year vehicles, all Toyota oil change intervals will go from 8,000km or six months, to 16,000km or 12 months. Suddenly, doing a great job at oil changes will no longer suffice
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