Welcome Leaders of Pro Chrysler Jeep

We are about ready to close on 2004 and begin 2005 We learned a lot We have a lot of rethinking to do Our objectives today… Make 2005 a lot better than 2004 Your role today… Listen – don’t be defensive or judgmental Brainstorm isn’t just good idea’s - it’s all ideas We’ll prune the list later We’ll prune the list later

Thoughts from Nickelsen Today can be a real important day I have some things to share with you

Thoughts from Nickelsen Today can be a real important day I have some things to share with you

Thoughts from Nickelsen Today can be a real important day I have some things to share with you

Let’s hear from you Your name Your hot buttons A recent success

Before we get started… Pick a number from 2-9. Keep it to yourself. Multiply that number times 9. This should give you a two digit number. Add the two digits of that number together. Subtract 5 from that number. A=1, B=2, C=3, D=4, E=5, etc. Think of a Country that starts with that letter. An Animal that starts with last letter of the country. A Color that starts with the last letter of the animal.

Does anyone have an orange kangaroo from Denmark?

Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock

“No! I can’t be bothered to see any crazy salesman. We’ve got a battle to fight!”

“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” Peter Drucker, Business 2.0 (22August2000)

A high level strategy…

The Service Profit Chain

New vs. Old Basics Old BasicsNew Basics Find a “cowboy” to lead Sales & promotions Professional sales force Customer retention Engaged employees Best practice learning Process re-engineering Expense management Inventory control Competitive pay Increase Revenues Decrease Costs

Impact of Customer Satisfaction on ROI Year 0 Year 1 Change in Customer Satisfaction Average Change in ROI All Companies Customer Satisfaction + 3.3% - 3.6% Customer Satisfaction Source: Tom Jones, Elm Square Technologies

Impact of Customer Satisfaction on ROI Year 0 Year 1 Change in Customer Satisfaction Average Change in ROI All Companies Customer Satisfaction + 3.3% - 3.6% % % Customer Satisfaction Source: Tom Jones, Elm Square Technologies

“My ancestors were printers in Amsterdam from 1510 or so until 1750 and during that entire time they didn’t have to learn anything new.” Peter Drucker, Business 2.0 ( )]

Loyalty - Satisfaction ratio’s vary by industry Satisfaction Level Loyalty Level Low High Low High Local Telephone Airline Hospitals Personal Computers ©1998 Thomas O. Jones Elm Square Technologies

Loyalty - Satisfaction ratio’s vary by industry Satisfaction Level Loyalty Level Low High Low High Local Telephone Airline Hospitals Personal Computers Automobiles “5’s” don’t shop ©1998 Thomas O. Jones Elm Square Technologies

“If there is nothing very special about your work (dealership ), no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.” Michael Goldhaber, Wired

Creating Apostles “Intent to Recommend” Sales Service Sales Service “5’s” Completely Satisfied 98% 96% “4’s” Very Satisfied 62% 47% “3’s” Satisfied 17% 10% Source: US Automobile Manufacturer (upscale)

Active Customers Active Customers Never been Customers Never been Customers Non-Active Customers Non-Active Customers Showroom Buy Or Lease Phone Internet Walk-in Service Vehicles 1 st Service 3 rd Service 6 th Service 4 th Service 5 th Service Last Service before repurchase 2 nd Service Yes No Your Competitor Your Competitor It’s all about “efficiencies”!

Your goal today… Best state vs. current state Where are the gaps? Where are the gaps? What are the obstacles? What are the obstacles? We need strategies and operational efficiency

Duane Hagadon

Wes Rydell

Factors, Trends, Opportunities and Challenges Significant factors or trends effecting PCJ Top opportunities viable for PCJ Biggest challenges for PCJ Focuses Business office Business office Sales Sales F&I F&I Service Service Parts Parts

Arnesto Ancira

Happy Employees = Happy Customers

Clarence Kearce

Champion Chevrolet

Arnesto Ancira

Hiring the Right People

James Wood

Welcome to Starship Enterprise It is now December 3 rd, 2005! We have met back here… and we had a GREAT year! What did we do? Sales Sales New and used Service Service Parts Parts We’ll spend time developing ideas in each of these departments

Customer Communication Center

John Medved – Morning Meetings

F & I

Quick Lube

Rydell Evening Service

Service Department

Functional Service Teams

Parts Fill Rate