Lessons to be learned from Toyota

Don’t take the myopic view that an acceptable bottom line results in your business operating effectively.

Viewing a financial snapshot while not considering your operational efficiency may potentially overlook deficiencies in customer expectations potentially resulting in a slippery spiral downward.

In the course of working with many dealers of all sizes, brands and in various markets a frequent forewarning of potential demise is complacency resulting from exclusive financial performance evaluation.

Industry observers have seen this pattern of short term profits trounce long term growth on several occasions from dealers to several different manufactures.

Toyota is the most recent company to breach its principals with an incalculable consequence to its long term prospects.

How did a relatively run of the mill product recall evolve into an exhausting attack on Toyota who has been generally held in the highest regard by consumers?

Admittedly their short term fixation on sales volumes and profits defeated their core values of quality, customer experience and long term profitability leading to continuous growth.

Reportedly, having prior knowledge of these issues including calculating the cost consequence analysis associated with delayed reporting has turned out to be the most serious breach of consumer trustworthiness.

Toyota’s admitted omission of facts has the potential to generate the highest impairment to current client confidence and future consumer relationships.

Regardless of all the theories surrounding these events the damage is done.

So what does this mean at our stores today?

You may represent a brand producing double digit sales growth being a benefactor of shifting consumer demand for your products with the related enhanced profitability.

Excellent sales gains with exceptional profitability and employee prosperity….sound like Toyota… or may this possibly be your store?

If you are looking at the bottom line solely as a true measurement of your success you are potentially vulnerable.

Having achieved those extraordinary sales you need to make certain you are prepared to handle the increased volumes right through your business resulting in maximum revenues from every new customer on the road to the next sale through owner loyalty and customer satisfaction.

Consider the following:

• Do you have a process in place for integration from sales to service?
• Who ensures follow up of customer satisfaction?
• When and how does this follow up happen?
• Do you have a dispute resolution process in place?
• Have you a customer appreciation event reintroducing new sales clients to the service, ensuring your customers understand all the features of their new vehicle, an offering of accessories available and every other service your business offers?
• Is the first appointment booked for customer convenience?
• Do you sell and store seasonal tires?
• Does your customer know who to see and when if service is required?
• Who calls to confirm appointment, missed appointments and satisfaction of visits?

These considerations are a small quantity of operations that scratch the surface illustrating particular processes you ought to have in place building the infrastructure primary to an affirmative customer experience.

Importantly these steps must be measurable and accountable monthly at minimum complimenting your financial statement so you can be assured that each and every client is presented the best possible experience at your store leading to peak ethical revenues from every customer contact.

Integrity must be your business foundation and in the event an error or omission occurs frankness is your best option. Undoubtedly declare to all employees your position of integrity and empower your employees to resolve issues as swiftly as possible.

Be honest with yourself because not a soul has all of the answers and don’t be afraid to ask for help.

You cannot repair what you do not identify until it’s too late.

We assist dealers by providing custom designed solutions with measurable and accountable results offering an excellent customer experience in addition to profitability you ought to have with the utmost integrity.

Feel free to call or email me and we can discuss your current situation.

Hoping you all enjoy a prosperous March!

Mike Nelson
Adrenaline Automotive Consulting

Dealer Process Improvement Solutions
519 984 8802
mike@adrenaline4auto.com

www.adrenaline4auto.com