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Ref: 95170

Call center Proactive

A PROVEN WAY TO INCREASE CUSTOMER TRAFFIC

Waiting for a customer to arrive for service

For many years the common assumption in the automotive business was that a customer

wants to maintain his car in good condition and he knows when it needs a service, so one will

arrive for service whenever is necessary. On top of that it was assumed that customers are

captive and will always come back for service.

Throughout the years, the automotive business has evolved. More models and brands are

now manufactured with different service maintenance rules and regulation. Moreover

customer behavior has changed. Today's customer is well aware of his options and checks

cost to benefit ratio before getting his car serviced.

These changes in customer behavior affected dealerships across the board. Most

dealerships recognized the new situation that was created and changes were made. As part

of the changes that were made, dealerships started calling customers to remind them of an

upcoming service. However this was a small transformation. A comprehensive method of

why, when and how to approach a customer was not adopted.

Understanding customer behavior

How can we know if a customer is loyal? Does he know when to arrive for service? Maybe he

thinks a car should be served only when it's down?

At the base of all these questions lies the full understanding of customer behavior.

Many factors affect customer behavior and all of them should be taken into consideration

when approaching a customer,

o Economical situation

o Customer's basic knowledge and belief

o Car brand

o Car's age and position in life cycle

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Changing your customer's habits

The first phase toward better results is changing customer's habits. By making customers

arrive for service on time, you increase car entries, improve your cash flow and strengthen

loyalty.

The second phase after customer's education is indentifying M.O.T's (moments of truth)

which influence customer's decision making and reaching customers at that right moment.

The two phase concept

First phase highlights

▲ Decrease period between entries

▲ Customer retention ▲ Customer behavior analysis

▲ Create new campaigns

▲ Data collection

Second phase highlights

▲ Abandonment alerts

▲ Analysis based pro active sales ▲ Warranty extension ▲ 2nd hand programs

▲ Sale leads for new car

purchase

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Four stages method

What is the path for better results?

Our ideal call center needs to be both effective and profitable by calling the correct people

with the right message at the right time.

We suggest a four stage methodology based on customer segmentation, prioritization,

analysis of customer needs, documentation of service interaction and analysis of

customer's response is a proven operational solution to manage your relationship with

your customer. The methodology is implemented through a proactive call center.

Call center goals

▲ Increase customers traffic to owned dealerships

▲ Improve customer retention rates ▲ Strengthen customer relations with dealerships ▲ Create infrastructure to carry out marketing programs according to

customer behavior analysis

First stage - Analyze entries data

The first stage is retrieving entry data from the DMS. It is important to choose the correct

period for which data should be extracted. Old data is likely to be less reliable. New data only,

is insufficient. Each car entry for service has few reasons, correct characterization of entry

data is highly important. After all data is obtained, customers should be divided into segments

according to their next entry probability. Different customers are analyzed and treated

differently.

Second stage - Calling customers

After data was retrieved, a raw list of customers is printed. But, each and every customer is

different and should be approached differently. Therefore customer segmentation is needed.

Calling customers according to predefined segments using specific call scripts is highly

important. Call scripts should be extensive and include all scenarios that the representative

may encounter. Interaction data is gathered in a CRM system and each and every

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conversation is coded accordingly and documented. Using correct coding will help in

response analysis.

Examples of basic customer codes could be:

o Left because of price

o Left because of bad service

o Sold the car

Third stage – Response analysis

As soon as a sufficient amount of calls were made, monthly response analysis is conducted.

Customer data form CRM system and service center ERP system is extracted and analyzed.

Specific action lines are produced for unsatisfied customers and the ones that did not arrive

for service. A process of data cleansing is done and all data is reentered to the system.

Fourth stage – special campaigns and action lines

The last and final stage is creating specific action campaigns for customers according to their

segment, coding response, car age etc.

This stage is dynamic and should be monitored frequently; pilot campaigns can be conducted

before broadening them to the entire network.

Here is an example of campaign effectiveness in one of our client's project After a successful pilot study, the campaign was rolled out to the entire network

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Summary The main entity of interest in an automotive business is a customer and NOT a car. As soon

as companies realize this axiom, real improvement can be made. Though conceptual change

takes time it is crucial for taking your business to the next level. A full conceptual change

includes: deep data analysis, changing flow processes and understanding customers and

their behavior.

A pro active Call center's biggest advantage is that changes can be done in small stages and

measurable way. Opposed to common belief, the basic cost of change is relatively low and

the impact on bottom line results is immediate.

In conclusion,

"Know your customer, satisfy his needs on a pro active way, be there for him in critical moments and you will gain his

loyalty and improve your business results"

About NG Group

NG Group is an automotive consulting firm specializing in business and management consulting and solutions.

Based on extensive experience, knowledge & know-how in the automotive industry, NG Group's Automotive Consulting solutions are constantly revised and updated to give our customers a competitive edge in an ever-changing market.

With NG Group's Automotive Consulting services you will be able to make a change and dramatically improve your network performance.

NG Group's Automotive Consulting solutions and service offerings are designed to answer the different challenges of the automotive distribution network and all its players, i.e. Distributors & Importers, Dealerships & Manufacturers.

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With our center of excellence, which includes teams of automotive consulting experts experienced in the various needs of the industry, and our delivery capabilities around the world, NG Group is ready

to support you in making a change and achieve your goals.

Visit our website at www.automotive-ngg.com

NIRAM GITAN is a leading management consulting group, with a unique combination of multidisciplinary capabilities. Our work is based upon knowledge, tools and expertise, acquired through years of extensive experience with hundreds of clients and projects in major industries in Israel and Europe.

Visit our website at: www.niramgitan.co.il