What is Your Service Costing You?
In the Increase
Your Conversion Rate page I used the term “systems
not smiles” – i.e. don’t just think about
your staff and getting them to smile and be polite. A good
example of this idea in action, or rather not in action, is
the garage where I currently take my car to be serviced. This
is a major national dealership for a prestige German car manufacturer.
They have a very fancy showroom and all their staff are always
polite and courteous. Do they give good service? Generally,
I would have to say yes, but with a recent problem with my
car’s audio system, the answer is very definitely no.
My car has now been in eight times to fix the ongoing problem.
Each time, a nice gentleman comes to collect my car (something
I now insist upon) and they always bring it back clean and shiny,
but have they solved the problem? Not yet. The initial problem
was with the CD player, which was eventually sorted out after visit
four, but immediately on the car’s return, a new fault with
the whole audio system appeared, clearly as a result of the earlier
work. Why have they been unable to resolve it to date?
Well, after visit five, I thought I’d “share my views” with
the Dealer Principal and a very interesting fact emerged. Because
my car is now just out of the manufacturer’s warranty and
instead under an extended “dealership” warranty, they
have to follow a strict system for diagnosis and repair – in
crude terms this boils down to first changing the cheaper items,
to see if that works, before trying the more expensive ones.
So let’s look at what this system of repair has cost them.
I would guess with parts, labour, valeting and deliveries, well
in excess of £1,000. But what has it really cost them? Will
I take my car there next time it needs a service? Probably, but
only because it’s the only dealer anywhere near me. I like
the marques and have had many cars from the same manufacturer,
but will I buy my next car from this dealer? Most probably not.
Assuming I change my car every four years, they may have just said
goodbye to in excess of £200,000 over the next twenty years.
An expensive cost-saving system, I would say!
Would it be worth looking at your systems and procedures, to see
what they might be costing you?
If you would like to find out more about coaching/mentoring
and whether it’s right for you, call 0845 658 0940
or e-mail firstname.lastname@example.org to
arrange a no obligation, 30 minute consultation call.