Why is there a Parts Advisor in the showroom?

Stateline Chrysler Jeep Dodge has implemented the Insignia process with a twist! By relocating a Parts Advisor in the showroom they acheived $54,087 in accessory orders for August ($784 per customer).

Download a PDF version of the Stateline interview here

Now set that BIG NUMBER aside because this story is not about the money. Stateline Chrysler Jeep Dodge is on pace to sell $750,000 annually, yet that only discloses the result. How did they go from $0 in May to $54K August and again, why is there a Parts Advisor in the showroom?

First, let’s go big picture. The financial success is merely the result of Stateline’s process. There are actually 6 benefits to leveraging a vehicle personalization sales process and they all address the dealerships biggest challenges:

1. Improving CSI scores
2. Decreasing sales staff turnover
3. Replacing low margin profits
4. Increasing service conversions
5. Creating new F&I opportunities
6. Building brand value for the dealership and OEM

We spoke with Paul Allred, Parts Director and Mopar Master as well as Ian Grohs, Parts Advisor for Stateline Chrysler Jeep Dodge in Fort Mill SC:

Coming into 2014 your pre-load program averaged just over $59,000 per month. How has the new Vehicle Personalization department impacted your successful pre-load program?

Paul: We signed up with a well-known vendor in October of 2013 then launched the process and training in June once Ian was in place. We have experienced no negative impact on our pre-load program; in fact our PNUR has increased.

What is Stateline’s vehicle personalization sales process?

Paul: The sales team is trained to turn over the customer to Ian once the sale is secured. This happens prior to F&I so the customer is not left idle, having doubt or feeling abandoned. A critical step is allowing the customer to shop, giving them the control. This removes the “selling” pressure and introduces a “shopping” experience which is fun for the customer.

What do you view as the most critical part of your process that yields success?

Ian: I use a similar process that our sales people do. I use a series of questions probing the customers’ lifestyle, and establishing a connection with them. Using questions like “What led you to purchase the Jeep Wrangler?”, “What did you like most about your last car?”, or “What do you enjoy doing with your free time?” I’m able to get an idea of what products I should directs my customers to.

How do you manage order processing and fulfilment considering vehicle personalization touches sales, service, parts, the customer and at times a 3rd party installer?

Ian: We have created a process that takes me from the sale of the part all the way to the fulfillment of the order. First, once the product is sold, either I or the customer submits the order through our vendor’s vehicle personalization system. Next, I acknowledge the order electronically and place the actual order for all of the required parts. Once the parts arrive I call the customer and schedule an appointment for the installation of the parts. Finally, I quality check the work and fulfill the order in our vehicle personalization system. The system manages all of our data and reports all activity. The parts department owns the process and sales supports it.

What motivates the sales team to support parts and what are your plans for the service department?

Paul: This is a team effort and therefore the sales associate as well as management are compensated on items sold. We are discussing a similar approach in the service department, placing a Parts Advisor to evaluate service vehicles to identify up-sell opportunities. F&I wait time has long been identified as a CSI killer.

How would you describe the customer experience with this process?

Ian: This process reduces the customers’ perception of the amount of time they have to wait because it occupies them for a while during the wait. It also gives the sales person a break from entertaining the customer, and it keeps the customer from rethinking the vehicle purchase.

What advice would you offer to a dealership considering a Vehicle Personalization department?

Ian: I think that the accessories arena is one of the most overlooked areas that a parts department can focus on. Many parts departments try to enter the wholesale arena, but they must sell at a very low margin in order to gain market share. An accessories department capitalizes off of the excitement of new car buyers and creates a stream of relatively high margin business. In order to get started, I recommend that a parts department identifies the individual whose personality would work best for this position, trains them on what accessories are offered by the manufacturer, and finally enlist the help of an organization that provides a solid process and tool for selling accessories.