Rewind a few years and I'm willing to bet that you looked at your best practices a bit differently than today. It’s one of the many essentials COVID-19 brought forward — at least in part.
The workforce was different then. So were hiring practices. Pay scales were different, as were budgets. Training looked different and for many, not in a positive way. Market share was different, too, and so probably was your level of comfort.
Justin Trudeau, the prime minister of Canada, said, “The pace of change has never been this fast, yet it will never be this slow again.”
Put your dealership in a decade-long time warp and several best operational practices have — or at least should have — changed. And there are fundamental shifts still happening that will profoundly impact your business.
We can’t have this discussion without the word “value.” As one of my previous columns noted, the definition of value varies dramatically. But your customers’ definition is much more consistent. What customers want and need isn't a secret.
Customers want and need a locally owned shop that is top of its market. There's nothing better than a super well-run, locally owned service provider — one that will listen to and understand customers, while being super-convenient and fairly priced for the value being delivered. Those tire dealers who get this right reap the benefits. It’s a major competitive advantage.
Now is the perfect time for you as an independent operator to flex your strength and value.
So operationally, what are some best practices being used out there today that are working? Here are a few that I have picked up based on conversations within Dealer to Dealer Development, the 20 group that I run:
Communication. When dealing with customers, it’s all about expectations. While we assume, erroneously, that customers know about things like caster and camber, they assume we know things they haven't explained to us, either. Often, these are their expectations. Unless the customer’s expectations are stated, by way of effective communication, we don't stand a chance at meeting or exceeding those expectations. It's simple, really. Ask relevant questions and listen to the response until you're 100% satisfied you can deliver. Day, time, price, value package, warranty, wait or leave — there's a finite group of questions that shorten the curve. Are your questions dialed in?
Sales strategy. Everyone who answers your phone should know that what's about to happen on that line is emotional. Sure, some folks are all about price and getting something for nothing. Sure, some folks think they are the experts — trying to steer you, your service and the price. Sure, some folks trust you and will simply throw you their keys. (We love those customers!) But what about the customers you don't have? By and large, those customers are shopping for tires everywhere. They should be your customers. Your dealership must differentiate itself by getting consumers to buy what they're looking for. It's emotional!
Convenience. The appointment process is crucial, from both the consumer and operator standpoint. It should work for both parties. Is your customer service team tuned into your service schedule and able to intelligently squeeze in an appointment here or there? Can you take walk-in, non-diagnostic work multiple times daily? What's your current level of productivity? If you don't know, your customers certainly do. Convenience means getting the job done — all day, every day.
Community involvement. Relationships matter, hard stop. Many dealers’ marketing budgets have been minimal over the last few years. Those marketing efforts that work are community- based. You must have your operation dialed in to invest heavily in your local community. That's where your value gains share.
Technology. You should aim to send a digital vehicle inspection text and/or email to the customer with pictures and even video within 20 minutes of their vehicle entering the shop. Any questions?
Pricing. The services and products you and your team provide are extremely valuable. If you're a true, top performer, you can set market price, within reason. If you’re among the majority of the market, you're probably relying on the average market price. If you're cutting prices, something is going to give.
Notice how price is last on my list. Large competitors who devalue our skills and expertise by giving away service or playing the price game only reinforce the misguided notion that independents have a ledger line they can’t touch. Are you proclaiming your value, loud and proud?
