The
concept of "Maximizing Potential" is one of the most misused
and misunderstood concepts in relation to Fixed Operations improvement.
In the hundreds of customer retention studies we have conducted
across the country we find that after the "Maximizing"
is done, the customer leaves - forever.
Our
position on this issue is much different than the norm. We highly
recommend taking a "long term" view of maximizing potential
through planned and consistent development of long term customer
retention. We support maximizing gross profit revenue over the new
and used car ownership period rather than planning to maximize on
the relationship "short-term." This business/marketing
approach will decrease gross profit per customer transaction short
term but that is "OK" because more Total Gross Profit
will be generated over the long haul "not to mention the additional
new and used cars you will sell because the customer comes to your
dealership more often over time."
All
of our programs and Service Consultants' sales training are geared
toward striking a balance between selling each customer as much
as is needed on each visit and being sensitive to the customer's
perception of what's happening to him/her. We firmly believe customers
should not leave your service department (on each visit) without
knowing the condition and needs of their vehicles. However, the
presentation closing techniques used should be tempered with the
thought of making sure the customer returns as often as their service
needs arise. We know that if our clients embrace and support this
concept, they will truly "MAXIMIZE POTENTIAL." |