Case Study: A Major Domestic Automaker

Standards for excellence improve performance of major domestic automaker.

Standards for excellence improve performance of major domestic automaker.

Situation

According to a study by J.D. Power and Associates, more than 25 percent of those who left a dealership without buying a car did so because they objected to how the salesperson handled the possible sale. Dealership service is another area where too many customer relationships are lost.

This Client, an automotive giant and its dealers know this well. As far back as 1994 one division responded in two ways to the customer satisfaction challenge that all automobile manufacturers face. First, they began preparations to re-ignite the brand and introduce a new line of products that appeal to a younger and more contemporary audience as well as the company’s traditional customers. Then, to in­crease the likelihood that its many new customers would become completely satisfied, repeat, or even lifetime buyers, the automaker took an additional important step. The Client, in conjunction with Maritz, initiated the Standards For Excellence (SFE) process.

Solution

Together they set about to create a continuous improve­ment process focused on operationalizing brand critical stan­dards to improve sales, customer satisfaction and profitability. To deliver on this strategy it was necessary to:

  • Understand drivers of customer satisfaction.
  • Enable, engage and empower front-line employees.
  • Motivate dealers to achieve superior performance.

Research sets the stage
First, each dealer that participates in SFE receives dealer specif­ic research concerning its existing customers. A comprehensive questionnaire filled out by customers enables Maritz to provide detailed and actionable feedback concerning the customer experience with both sales and service. The research team also surveys the brand’s competitors’ customers to understand what they’re looking for in a dealership experience. That information, in conjunction with interviews from dealership employees, results in a gap analysis that points to elements of the dealership operation where potential challenges may exist.

Interpretation and action
In the second phase, SFE facilitators meet with the dealer’s management team to review the research data, discover the is­sues that are critical to the dealer, and explain the SFE process in relation to research. According to a Maritz Field Integration Lead, “We take them (dealers) through a sales discovery process around what this data tells them, and what it is telling them that they need to change. Then we help them build action plans to focus in on the areas that they need to improve.”

The dealer and the SFE facilitator arrive at what are called “Targets for Action.” These consist of the three or four things in that particular year that are very important to attack. A cross-functional team of employees known as the Continu­ous Improvement Team or CIT, is assembled to work on the challenges that the dealer’s leadership team has identified. This group identifies the current processes, analyzes alternatives, brainstorms potential solutions, and recommends the ones they feel will best achieve their goals. The CIT then helps implement the improved processes that will lead to real cultural change within the dealership. The SFE Facilitator follows up regularly to track the CIT progress.

Improvements earn performance bonuses
The SFE Performance Bonus is another reason the program has had so much success. To earn that bonus, dealerships must meet, at minimum, three requirements, including specified sales objectives, improvements in the Customer Satisfaction Index, and required training. Through Maritz, The Client provides a website that updates sales every day to help dealers focus on their sales goals. Every SFE dealer can log onto the site to view how their store is performing and get the dealership’s latest CSI score. It’s an important motivational tool designed to help both the brand and individual dealers reach–and exceed–their goals.

Results

According to the Client Sponsor; “Standards for Excellence creates a cultural change within dealerships that enables them to improve the customer experience, leading to higher sales volume, and, improved dealership profitability.”

Since the beginning of the SFE program the brand has consis­tently achieved high scores in Sales Satisfaction and Customer Service. Recently they have received the following rankings:

  • J. D. Power and Associates/2006 Sales Satisfaction Study
  •  The brand ranked 2nd
  • Forbesauto.com – the brand ranked 2nd in SSI and 3rd in CSI
  • Business Week/Customer Service Elite – the brand ranked 3rd
  • SFE dealers consistently outperform non-SFE dealers in customer satisfaction, leading to higher sales and profitability.
  • The Client expanded SFE to other brands in its line.