Tag: EFG Companies

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Featured

Be An ‘Early Mover’ in EVs

According to a J.D. Power Customer Service Satisfaction survey released this month, customer service satisfaction among owners of BEVs is 42 points lower than for owners of internal combustion engine (ICE) vehicles. The two leading factors are recall rates for BEV parts and poor service advisor knowledge.

“As the electric vehicle segment grows, service is going to be a ‘make or break’ part of the ownership experience,” said Chris Sutton, Vice President of automotive retail at J.D. Power. “The industry has been hyper-focused on launches and now these customers are bringing their electric vehicles in for maintenance and repairs. As training programs for service advisors and technicians evolve, EV service quality and customer experience must address both the vehicle and the unique customer needs. The EV segment has the potential to spur massive convenience improvements in how customers service their vehicles—but we’re not seeing the benefits yet.”

While you can’t solve the recall issue, you can address the knowledge issue when it comes to EVs – not just in the service department but throughout your entire dealership. There is no doubt that EVs are coming. Savvy dealer owners who are ‘early movers’ and embrace these new vehicles will reap significant benefits. But there are some factors to consider when adding EVs to the lot.

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EFG Companies Featured Fixed Operations

In Fixed Ops, Coordination Counts

When was the last time you did a health check of your fixed operations (fixed ops) department? How is fixed ops affecting your CSI scores? Is the department helping or hurting your customer retention efforts?

According to Cox Automotive, fixed operations as a profit center is more important than ever in 2023. Dealers should see continued strong dynamics in the service lanes, with or without a recession, as owners try to hold onto their vehicles longer. While the average ticket size increased in 2022, revenue is not a guarantee. In order to be successful in fixed operations, all of the cogs must be coordinated – not only within each dealership’s service bays but across rooftops as well.

Savvy dealers take a holistic approach to fixed ops, sales and F&I with the understanding that each area of the dealership directly impacts overall dealership operations and the total customer experience. While each department might occupy a separate line item in the spreadsheet, failure to understand and capitalize on a coordinated customer service approach reduces efficiency, profitability and customer retention. Let’s look at a scenario where lack of coordination within the service department impacted the bottom line.

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Recruiting

End the Year on a Hiring High

According to the most recent jobs report from the Bureau of Labor Statistics (BLS), the United States job market continued to grow steadily, with 261,000 jobs added in October 2022. This shows a slight decrease in the jobs added compared to the previous month, while the unemployment rate increased to 3.7 percent. Conversely, many high-tech companies have signaled – or already implemented – layoffs or hiring freezes. Could this mean a larger pool of potential recruits for dealers to scoop up?

With continued signs of strength in retail automotive and strong revenue potential, dealerships have some strong selling points to attract the best candidates. But don’t rush to hire the first available candidate. Successful hiring at the end of the year should be strategic. Hiring the right candidate is very different today. Let’s look at some of the challenges and opportunities dealers face when hiring.

Hiring Five Generations Deep

For the first time in modern history, there are currently five generations active in the workforce. Each generation brings a unique perspective to their job, providing an employer with a rich, cultural microcosm that can relate to every type of customer. Although the pandemic accelerated changes to the traditional workplace, many of today’s workers have reassessed their relationships with work, placing a priority on work/life balance as well as company culture. Making those diverse perspectives work effectively can be challenging for any employer.

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