Auto Dealership Consortium
A consortium formed by purchase of multiple, traditional auto dealerships faced difficulties instituting a modern, uniform service delivery. The premise appeared simple: customers value the service delivery inherent in any purchase or repair/maintenance event. Everything that helped dealerships deliver value to customers along those lines deserved reinforcement and management support. Anything else added no value and was to be eliminated.
ICG was asked to evaluate service delivery. After an extended observation of Saturn dealerships, we identified five areas impacting service: sales of autos, insurance, extended warranties, service, and parts. We identified problems such as:
ICG proposed an overhaul of the service delivery process combining performance management, coaching, team building, training for systems and service delivery, communications support, and role/metrics balancing. The client was able to improve service delivery while reducing costs.
- New information systems overwhelmed the staff
- Measurement metrics and compensation did not support the desired service delivery model
- Dealer management controlled rather than coached
- Auto sales competed with insurance/warranty sales
- Online appointment repair booking was deficient for a “tech-savvy” customer base