AG237 Building Service Sales “What’s in it for the Customer / Guest?” Robb Baldwin

Training Objectives Increase parts and service sales by building your understanding of: Service tools to help sell maintenance service Service programs / sales aids to help build additional sales Typically missed sales opportunities The advantages and benefits of regular maintenance, Toyota / Lexus Genuine Parts and dealership service Essential needs assessment and sales skills Build your skills and confidence in relation to identifying and building service sales and overcoming objections

Today’s Agenda Your Impact Selling Service – The Challenges Service Tools, Programs and Sales Aids Sales Opportunities Building Service Sales – Key Steps, Skills and Actions Personal Excellence Plan Throughout the day: Tools and Skills Practice For Today… Customers = Customers + Guests Service Advisor = Service Advisor + Assistant Service Manager

Let’s Meet Each Other Introductions Simply put: Who are you Where are you from Years in the business, plus: One thing about you we don’t know! Workbook page 2

Life on the “Front-Line” Your Impact Life on the “Front-Line” Drive customers’ satisfaction with your dealership and with the Toyota, Lexus and Scion brands Directly influence customers’ repurchase decisions Support every dealership department Influence the strength of the Toyota, Lexus and Scion brands The true bottom line is that YOU represent Toyota’s promise of exceptional service experiences on a daily basis!

Toyota – The Detroit Auto Show

Activity: Current Sales Practices This is a quick, personal activity that will help you build value for your customers. Please be candid! Workbook page 4

Discussion: What are the Challenges of Selling Service?

Current Situation Service Retention vs. Annual Costs Service Retention vs. Annual Maintenance & Repair Cost Source: CVSH (Sept. 2014)

Statistics tell part of the Story: Current Situation: Potential Sales vs. Actual Sales Statistics tell part of the Story: Maintenance/Repair business down 1.4 billion from preceding year Decline derived from: Average amount spent per vehicle Overall number of service visits Vehicles 4-7 yrs old lost $65.00 per visit over preceding year “Will return” reaction from customers who were informed about other service work = 65% (47%) where no education process was used

Current Situation Potential vs. Actual Sales Cabin Air Filter Regular maintenance – replace every 16,000 km 2014 Potential Sales ~ 800,000 cabin air filters 2014 Actual Sales ~ 380,000 cabin air filters sold (47.5%) Battery Life expectancy ~ 4.5 to 6.5 years (depending on usage conditions) 2014 Potential Sales ~ over 200,000 batteries 2014 Actual Sales ~ 75,000 batteries sold (37.5%) Wiper Blades Recommended replacement every 12 to 18 months 2014 Potential Sales ~ over 1,000,000 wiper blades 2014 Actual Sales ~ 470,000 wiper blades sold (47%) Source: CVSH and Cognos (Sept. 2014)

Toyota Canada’s Solution We shall overcome! Service Support Tools, Programs and Point-of-Purchase Tools / Sales Aids Service Manager Training Service Advisor Training… Service Tools to help build sales of maintenance service Point-of-Purchase Programs and Sales Aids to help build additional sales Key Selling Steps, Skills and Actions

What We Offer Promises accurate, efficient and reliable servicing at every Toyota Dealership in Canada

What are the advantages? Discussion: What are the advantages with Toyota Quality Service and Parts?

What We Offer Toyota-trained Technicians and Service Advisors (what does this mean to YOU Toyota experts who service Toyotas and nothing else Specifically designed tools, equipment and procedures Toyota Genuine Parts, maintaining the integrity of every vehicle Service based on the factory-required maintenance schedule, the Maintenance Menu Immediate access to the most up-to-date: Product, parts and service communications Technical updates and expertise

What We Offer Specifically designed and manufactured for Toyota / Lexus / Scion vehicles Original equipment parts The very same parts that were used to build your vehicle Best parts, best fit Ensures the vehicle continues to perform at optimum levels Enhances resale value Warranty: 24 / 40,000km

We are not “Order Takers” Sales Opportunities? We are not “Order Takers” Toyota Quality Service focuses on encouraging customers to have their scheduled maintenance performed at a Toyota dealership. This can, in turn, generate opportunities for sales of unscheduled maintenance and repair service.

Service Tools To Help Sell Required Maintenance Service The “tools” from the Maintenance Menu and Inspection Reports to the “silent” partners (POP material) provide honesty and clarity for the customer.

Toyota Service Advantage+ The background images (words) are what this program is all about!

Toyota Service Advantage+ Addresses price, convenience and relationship/quality of service issues When do you feel these resources would be helpful for you and the customer? Workbook page 6

Maintenance Menu Question: When would you USE the Maintenance Menu? Step 1: Infostream Link Step 2: Search by VIN or by Model/Model year Question: When would you USE the Maintenance Menu? Workbook page 7

Maintenance Menu Page 1: Required Maintenance Services

Maintenance Menu Page 2: Full Schedule: Required Maintenance Service

Maintenance Menu Page 3: Dealer Advantages and Dealer-Recommended Service

Service Hub When you search by VIN…

Service Hub – Service History Declined Services in red font

Inspection Reports NB: Service Advisor task Workbook page 8

Inspection Reports Question: How many use Inspection Reports regularly with customers?

Inside Look Do YOU Have a Copy? Via Infostream/Toyota.ca In Print via TU Customer reaction? Benefits? Workbook page 9

Inside Look Innovation and the Customer A useful feature of the Inside Look binder is your ability to e-mail a customer. You will be able to ATTACH: Product page Explanation page The How To: Access Inside Look on Infostream Click on the target page(s) to send An email screen will open Enter a customer e-mail address or multiple addresses as well as any comments you would like to include Workbook page 10

Building Additional Sales Service Programs and Point-of-Purchase Tools To Help Build Additional Sales Sales aids that help prompt customers to consider service needs beyond those that brought them to the department

Express Service Perform regularly-scheduled maintenance In one hour or less Performed by 2 Technicians Can include other services such as tire rotation, wiper blade replacement, front brake pad replacement Appointment-based service

Toyota Tire Centre (on toyota.ca) Its all you ever wanted to know about tires! Includes Tire Hazard Protection information Toyota.ca

Tire Selector (on Infostream) A superb tool – advisors can search by model and print quotes for customers! E-mail – why not!

0W20 Upgrade Brochure Benefits!!

Toyota Touch Three levels of Toyota Touch Cleaning and Detailing Services to meet customer needs and budget Deluxe, Premium and Ultimate packages Workbook page 12

Lexus Reflections Two levels Executive President

Toyota Touch - Products Professional quality cleaning and detailing products Formulated specifically for automotive use and are environmentally responsible Workbook page 12

Parts & Service Offers Available online Seasonal campaigns Workbook page 12

Club Toyota/Lexus & Merchandise

Extra Care Protection (ECP) Workbook page 12

Your “Personal Excellence Plan” Part I: Using Service Tools & Sales Aids Too General: “I need to do a better job of advising Customers about services available” More Specific: “As a Service Advisor, I need to inform the Customer about specific maintenance services that are applicable to this visit - I will use the Maintenance Menu! Workbook page 32

Your Current “Sales Performance” Group Activity: Please work together to create short lists that answer these questions: When are the opportunities to sell? What typically have you sold? What do you find is easy to sell? What do you find is hard to sell? What are typically missed sales opportunities in your dealership? Workbook page 13

Building Service Sales Key Steps, Skills and Actions We’ll take a look at the key steps, skills and actions involved with using these tools and sales aids to build service sales in the context of meeting customers’ needs Also, we’ll determine ‘how’ you can use these resources and tools to, not only sell - to build service sales - but also to build customer satisfaction and comfort levels

Prepare Yourself Know What You Sell AG115 Maintenance Menu AG233 Service Walk-Around AG230 Selling Skills AG235 Selling the Maintenance Menu Infostream: Inside Look Product knowledge training Tire training

Prepare Yourself Know ‘How’ to Sell - The 5 Core People Skills Workbook page 14

The Four-Step Selling Process Prepare Yourself The Four-Step Selling Process Step 1: Determine Customer Needs Step 2: Build Value – explaining the ‘feature’ and how it benefits the customer Step 3: Ask for the Sale Step 4: Confirm Value - address any objections Selling Skills – AG230 introduces these 4 steps ABOVE ALL – DO NOT APOLOGIZE FOR THE PRICE! NB: It is important to know what you sell (TU courses, Infostream Product Training and Inside Look, oil selector chart, tire training) It all builds credibility and consistency, advisor to advisor!

Step 1: Determine Customer Needs How do you need to feel as a customer? As the introductory slide states: “What’s in it for the Customer” And with that in mind, you must present the value and advantages of Toyota service and parts to address each customer’s individual needs and wants.

Step 1: Determine Customer Needs Basic Needs To feel welcome To be understood To feel comfortable To feel appreciated To feel important To be respected

The Six common customer needs and strategies Meeting “Basic” Needs The Six common customer needs and strategies Robert W. Lucas Workbook page 15

Preparing Your Customer Building the customer’s comfort level First, explain to the customer what is to be done Second, tell the customer why this step needs to be done Third, describe how the customer will benefit from what is to be done NB: Always be aware of ‘What’s happening next’ throughout the Service Cycle Workbook page 16

Activity: Preparing Your Customer Group Activity What could you say, instead of saying: “Just sign here then I can get the Technician started with your car.” “Yeah, you can pick up your car after 4 p.m. I’ll call you if anything else comes up.” “The Technician wrote that your brakes need to be serviced soon. If you want you can have it done at your next appointment.” “We’re doing the oil change today like you asked.” “Next time you’re in, you should have the cabin air filter changed.” Workbook page 17

Assessing Current “Service” Needs Tools/strategies that help identify your customer’s current service needs, identifying relevant sales opportunities. Service Walk-Around Industry best practice Better assess customer’s needs Builds customer’s awareness of needs firsthand Builds rapport Identify additional service needs Training: AG233 Service Walk-Around Workbook page 18

Determine “Current Service” Needs Service Hub is generated when you access using VIN Identifies required maintenance Inspections, lubrications, adjustments and part replacements Current and future inspections Service history Service campaigns Applicable ECP information Essential Training: AG115 Maintenance Menu AG235 Selling the Maintenance Menu Maintenance Menu Workbook page 19

Determine “Service” Needs Service Hub / Consolidated Vehicle Service History - CVSH Workbook page 19

Activity: Sales Opportunities Group Activity What sales opportunities can be identified: During the Service Walk-Around? By referring to the Maintenance Menu? By viewing the Service Hub? Workbook page 20

Your “Personal Excellence Plan” Please…remember to be specific! Part II: Identifying Service Needs Please…remember to be specific! Workbook page 32

Competition is everywhere and retention is everything Step 2: Build Value Build Value! Competition is everywhere and retention is everything Value in your Service Department is the sum of… The quality of the product + The service with which it is delivered + The customer’s experience + And the price attached Value is all that your customers get for their money – build it and they will come!

Explaining ‘Feature, Advantage, Benefits’ (FAB) Feature: What the service is Advantage: Why your dealership’s service is superior Benefit: How the benefits match the customer’s needs Sample – workbook page 21 Service Tools that help you? Workbook page 21

Activity: Explaining FAB Group Activity: Please fill in the boxes and categories using the FAB approach Cabin Air Filter Replacement Maintenance Service Tire Rotation Engine Oil System Cleaner Combustion and EFI Service What are the advantages of dealership service? What are the advantages of Toyota / Lexus Genuine Parts? Workbook page 22/23

Service sales are easier when a customer… Educating Customers An educated consumer is my best customer! Service sales are easier when a customer… Is knowledgeable about his or her vehicle’s required maintenance service Is regularly informed about the condition of the vehicle’s key components Understands that parts wear over time Understands the value of Toyota / Lexus Genuine Parts Enjoys a “relationship” with the Service Advisor Cont...

Educating Customers Feels comfortable and confident about recommendations provided Believes that your dealership is the best place to service his or her vehicle Understands the time and cost involved for performing a particular service **Enjoys a “relationship” with the Service Advisor Workbook page 23

Building Value and Educating So many tools…so much unsold time… Maintenance Menu Toyota Service Advantage+ Inside Look Props New vs. worn Genuine vs. aftermarket Dirty Clean Workbook page 24

Building Value and Educating Discussion: At the bottom of the page there is an opportunity for you to put your table group’s unified thinking to the test! What other service tools / programs can be used to build value for your dealership service? How? Workbook page 24

Your “Personal Excellence Plan” Part III: Building Value Workbook page 32

It is now time to ask for the sale! Step 3: Ask for the Sale! Long believed to be a generally difficult area for many service advisors: It is now time to ask for the sale! Show what is needed Advise what should be done and why, focusing on customer benefits Ask for the sale… Check out the examples on workbook page 25 Is there something you do that works well?

Asking for the Sale “Given the visible tire wear pattern, shall we do the tire rotation along with your oil and filter service today?” “Shall we replace the Cabin Air Filter today as the Maintenance Menu shows your vehicle requires at its current mileage of 32,000 km? “Which detailing package would you like to have done today?” “Which detailing package would you like us to perform today?” “Shall we complete that required brake service today?” “Shall I have the Technician replace the worn blades with this new set today?” Workbook page 25

Confirm Value - Reaffirm the decision Address objections – 4-Steps Step 4: Confirm Value Confirm Value - Reaffirm the decision Address objections – 4-Steps 1. Restate the objection as a question 2. Express empathy 3. Address any misunderstanding or lack of perceived value behind the objection 4. Confirm that your customer agrees Discussion: What are some common objections you encounter? Workbook page 26

Preventing Objections Preventing objections from the outset! Consistently use Maintenance Menu Build Value through solid communications Reinforce relevant benefits: “We can have it done while you are here, helping to save you another trip.” “If you decide to sell or trade your car, having your regular maintenance services up-to-date will definitely increase your trade-in/selling value.” “It’s important to follow the required maintenance schedules because if a component that is covered by your warranty fails, you may be required to provide proof that required maintenance has been performed.” Workbook page 26

ACTIVITY: Preventing Objections Group Activity: Fill in the “blanks” for these 10 objections How could these objections have been prevented? Determine a possible “Root cause” What could have been done earlier in the Service Cycle to prevent such an objection? What may need to be further explained? Workbook page 27&28

Selling “What, Why, When and How” Workbook page 29

Selling “What, Why, When and How” Group Activity: Working again in teams, determine the: “Why”, the “When” and the “How” Categories will be assigned Workbook page 30

Addressing All Service Needs Conclusion: The 4-step Selling Process Step 1: Determine Customer Needs Step 2: Build Value – explaining the ‘feature’ and how it benefits the customer Step 3: Ask for the Sale Step 4: Confirm Value - address any objections And… Personalize your approach Treat customers as individuals not appointments or numbers Be committed to helping your customers with all their service needs Workbook page 31

Addressing All Service Needs Tools to use: Maintenance Menu - educate each customer about their vehicle’s maintenance requirements Consistently use CVSH to identify declined services for follow-up Inspection Reports - Review with each customer - builds value and educates Do the Service Walk-Around to identify other relevant service needs Club Toyota / Club Lexus - encourage joining for information on Inside Look Email relevant Inside Look product / service explanation pages Display point-of-purchase brochures whenever appropriate Seasonal offers - Keep yourself and your customers informed Discover lifestyle, hobby interests and driving habits to help identify possible accessories they might appreciate and direct them to the merchandise catalogue online

Your “Personal Excellence Plan” Part IV: Building Service Sales Workbook page 32

Wrapping up the day: Course evaluations Course: AG237 Date: ____________ Location: ____________ Facilitator: Robb Baldwin Workbook page 32

Actions that Delight Customers Actions that meet Customer expectations Actions that Delight Customers Actions that Disappoint Customers

Selling Service Excellence “To succeed, you’ve got to love what you’re doing. If you don’t love it, get out of the way for someone who does.” * * Gordie Howe

The Fundamentals of Customer Service Excellence Ensure my appearance and language are professional Provide a warm, sincere, prompt greeting with respect Ask appropriate questions and listen effectively Respect my Customer’s time Own the problem Keep my Customer informed Treat every Customer Interaction as an opportunity to build a relationship

toyota-training@mail.com In Summary Thank you for attending! Sales opportunities Regular maintenance service Additional relevant services Service tools and Point-of-Purchase tools / sales aids Quick Reference - page 33 Ordering information – page 40 Your Personal Excellence Plan Questions? Thank you for attending! Robb Baldwin Ph.D. toyota-training@mail.com