The Tech Box: The Foundation for "Best-in-Class" Customer Service

Every step or stage of the work order lifecycle is critical to delivering a best-in-class customer experience. The dealership service team must provide an outstanding customer experience, because it will equate to higher profits and increased cash flow.

Before we build this experience, we have to build the foundation to allow your service team to be successful at “wowing” the customer and increasing the dealership's bottom line. One reason dealerships struggle to be the best in their service departments is that they need to understand the service process, and they believe service is just changing oil and replacing that shorted-out starter. They do not see it as a profit center, they see it more as a necessary evil that really gets in the way of the more profitable and exciting departments of the dealership.

Being the best-in-class doesn't necessarily hinge on having the most skilled technicians or maintaining a parts department with a fill rate above 90%. The real key to success lies in understanding the service process. This understanding is not just beneficial but crucial. If you need clarification or help in the service process, this article is written with you in mind.

In my book “Service by the Boxes”, I have broken down the service process into ten individual stages, or what I'd like to call boxes. This helps us understand the service process and know what is required to be best in class at each stage or box. This approach enables us to understand the service process better and identify what is needed to excel at each stage.

The Tech Box is the foundation of the service process, allowing the service manager to create a top-notch customer experience. Skipping any box or step in the service process will only extend the life cycle of the work order. This leads to subpar customer service, ties up cash in the dealership, and reduces profitability.

Everyone needs to take responsibility. Every service department member must own their respective box or step and aim for excellence. Understanding and effectively managing this process is crucial to the dealership's success. Understanding the service process will empower and enable a dealership to deliver exceptional service and profitability.

From Inbox to Tech Box

The process begins with the Inbox. This is where customers drop off their equipment, and a member of your service team will meet them outside at the trailer to assist with unloading. We then conduct a thorough visual inspection, verifying hours, serial numbers, and all necessary information to open or generate a work order. This ensures that we provide the highest level of service.

Once a work order is generated, assigning it to a technician within 24 hours is essential. If everything goes as planned, you should be able to contact your customer within that time frame with an update and, ideally, an estimate for the repairs. For this to happen, the work order must move from the Inbox to the Tech Box. This is where the work order is assigned to a specific technician who will handle the machine's diagnostics and repair.

A mediocre to subpar service department often begins to falter at this stage. They need to establish a solid foundation for the work order process to succeed. However, the service manager sometimes allows technicians to choose the jobs they prefer to work on selectively. This approach is never beneficial and fails to create a top-tier customer experience. Instead, the service manager should strategically assign jobs based on each technician's skills and prioritize the current workload. This strategy can enhance service efficiency and improve the customer experience. While technicians can be tactical, the service manager should prioritize a more strategic mindset.

Prioritizing Your Work

When discussing being strategic in assigning work orders, we must prioritize the incoming workload effectively. The traditional method of prioritizing, based on a "first in, first out" approach, is impractical and does not deliver good service to our customers. Instead, we should prioritize the shop's workflow that better aligns with the dealership's strategic goals.

When dealing with used equipment in a seasonal business, preparing it for sale within the same timeframe or season it was traded in is essential. If this is not done, the dealership risks having cash tied up in that used equipment until the following year, which can negatively impact profitability and cash flow. Therefore, effective management and prioritizing of used equipment is crucial.

The following customer segment we should focus on is rental equipment. Although renting ties up a significant amount of cash in inventory, it can also greatly enhance profitability and cash flow. However, if we fail to maximize the utilization of our rental fleet due to a lack of prioritization, the dealership may start to experience a decline in profits. It's clear that the quicker we can turn around rental equipment, the more we can improve our profitability.

You should prioritize new equipment as your next customer. Once sold and put into operation, new equipment will generate long-term revenue through parts and service, necessitating regular service and maintenance. The service department should be committed to deploying new machines quickly and efficiently in the field.

Now, let's concentrate on your top customers, also known as key accounts, as referred to by Walt Macdonald. Notably, 80% of your revenue comes from just 20% of your customers. These top 20% are essential for keeping your business thriving and should receive the highest level of service. However, it's vital to recognize that losing one of these key accounts can significantly impact your profitability and cash flow. This is a responsibility everyone at the dealership shares. On the other hand, losing some of the other customers could be a blessing in disguise.

Finally, we must prioritize any customer unit that is down and hindering progress. After addressing those, we have flexibility in choosing which machines to bring in. However, focusing on jobs that can be completed quickly is essential. This approach is crucial to prevent tying up man-hours and parts costs in machines that customers either can't or won't pay for, leading to financial losses. The service manager plays a significant role in managing this process.

Estimating the "Whole Job"

After the work order is assigned to the appropriate technician, it's essential to maintain our best-in-class status and profitability. This includes diagnosing the customer's complaint within 24 hours, conducting a thorough machine inspection, and documenting all necessary repairs or failures. A detailed inspection is vital for identifying and addressing all potential issues, enhancing our efficiency, and directly influencing customer satisfaction and company profitability.

By estimating the "whole job" instead of just the one repair the customer initially inquired about, the service writer or manager can effectively sell the "whole job" to the customer. If you focus solely on the customer's initial concern, you limit your ability to negotiate. Should the customer find the price unfair or not to their liking, the dealership may absorb a loss on the job.

On the other hand, if you provide an estimate for the "whole job"—such as addressing the original complaint along with three additional repairs—and the customer expresses that the price is too high, you can engage with them more constructively. This empowers the customer to say no and choose which additional repair they would prefer to forgo.

By empowering customers to say no, we place them in control of their choices. They can decide which repairs to complete immediately and which ones to schedule for a later date. This approach allows the dealership to maintain profitability, even when the customer is price-sensitive.

When service technicians inspect the machine and address any issues, and the customer is provided an estimate for the "whole job," it lays the groundwork for an exceptional customer experience. This process empowers customers to take control not only of their finances but also of their equipment's maintenance. As a result, trust is built with the customer. Later, suppose one of the recommended repairs becomes critical, and the customer's machine is down. In that case, they won't have any reason to blame the dealership or the technician because the customer is the one who took ownership and declined the repair. This trust stems from clear and open communication, which should be fundamental to service interactions, helping customers feel reassured and confident in their choices.

Manage Your Human Capital

Employee payroll represents one of the most significant operating expenses for a dealership. The most valuable resource in any business, including a dealership, is its human capital. Employees and team members are often the most costly asset for the dealership. Therefore, managing this resource wisely and ensuring that our processes are prudent and efficient is essential. We must avoid redundancy to prevent the dealership from paying two employees for the same work simultaneously while achieving only one outcome.

Most dealership management personnel would likely agree with this perspective. However, I continue to be surprised by the number of dealerships that compensate two employees for performing the same job simultaneously, ultimately producing a single result. This practice diminishes profitability, yet it remains the norm for many dealerships in the heavy equipment industry.

In today's world, if you can order an item from Amazon, check your email, and scroll through social media, you can look up your parts. I am often baffled when I enter a dealership and see a service technician standing behind the parts counter, relying on the salesperson to look up the parts on the screen. Ironically, the parts personnel clicks on the part that the technician is pointing to.

Given the wages technicians receive these days, they should be able to look up their parts. However, managing their time efficiently is equally important. When there are issues with super sessions regarding part numbers, serial number breaks, or sub-models, we can depend on the expertise of the back parts counter. This support enables technicians to use their time effectively and focus on servicing other equipment.

You can find my book "Service by the Boxes" on Amazon.