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?