Whether done manually or via 3rd party vendor, frequent repair order reviews are an important way to improve Customer Retention, Gross Profit, CSI, Repair Order Sales & more in your Service Dept.
As a Service Manager one of the most critical “best practices” that you could ever do in your Service Dept., is conducting frequent Repair Order Surveys (or Repair Order Analysis).
Creating a process for RO Survey on a weekly or even a bi-weekly basis can help you to determine a number of things happening within your Service Dept. It will assist you in determining Service Advisor performance, to see which Service Consultants are just order takers vs. the Service Consultants that are providing your customers with the most maximum level of service that they deserve. This data can now arm you with the results needed to hold each Service Consultant & Technician accountable for his or her actions. The data can also be used mentor, coach or provide additional training in certain areas for your Service Staff. You will be able to share this useful data with your Technicians in your Tech meetings to drive home the importance of performing a proper MPVI (Multi-point Vehicle Inspection), & identifying ASR’s (Additional Service Request), that will lead to the increase in Sales & Profits
As an example a Repair Order survey can be instrumental in determining some of the following:
- Advisor Performance (i.e. selling skills, deficiencies, strengths, etc.)
- Work Mix (CP vs. Warranty & Internal)
- ASR Tracking
- Hours Per RO
- Single Line RO Count
- Flat Rate Hours Calculation
- Effective Labor Rate
- Identify Parts Mark-Up %
This is just names a few things that you can track, to ensure that your Service Department is constantly improving profitability.
With the information that you’ve gathered from your Service Dept.’s Repair Order survey, can be used to structure better pay plans for your Service Consultant and/ or Technicians in key areas that may need attention.
On a daily basis there are a lot of missed opportunities that just constantly walk out of our doors. By developing & properly monitoring your Repair Orders on a frequent basis, you can now focus on working on the business vs. working in the business. In order to become a more effective Service Manager, you simply just need to “Inspect what you Expect”.