'Stop-In' Service Boosts Customer Scores, Technician Satisfaction and Service Profits for Pohanka Group

Tim Pohanka knows that all service customers want “express” service, just as they do at airports, rental car counters and other transportation services.

Yet when they arrive at a dealership’s service department for a scheduled appointment and find bays clogged with cars and dozens of other cars awaiting service, frustration sinks in, customer satisfaction drops and loyalty fades.

“When those appointments are being set by advisors, the advisor is looking at what their current schedule is,” Pohanka, vice president and executive manager of the 23-dealership Pohanka Auto Group, located in the Washington, DC, area, tells WardsAuto. “They’re not looking at what the shop load is. So, you need to look at what a technician is capable of producing versus what they’re being given.”

If a technician is given five appointments, they are not motivated to work efficiently, he says. Instead, they will work to complete those five appointments in the hours they are scheduled to work so they don’t have downtime.

The solution: Tell customers to bring their cars anytime without an appointment. Not only will customer loyalty and satisfaction rise, but profits will increase. The key is for service advisors to set expectations in the lane.

“The advisor will say, ‘Just to tell you, we’re a bit busy today so this might take a bit longer than usual,’” says Pohanka. The customer may have somewhere to be, so the advisor will say: ‘Here’s the great news. We have 40 available rental vehicles. We’ve got a shuttle service or we could get an Uber for you. Tell us what we can do to make this more convenient for you.’ Customers love that.”

Boosts Satisfaction Scores, Profits

Pohanka gives a real-life example of an acquaintance who needed a windshield replaced. His local dealer said it would cost $600, but they couldn’t schedule the work for at least six weeks. A call to an independent repair shop got him an immediate appointment and a bill of $200 for the same work.

“He would have paid the $600,” says Pohanka. “He just couldn’t wait weeks to have the repair done.”

Of course, service advisors and technicians initially might balk at a no-appointment system. When such doubts were expressed to Pohanka, his response: “’Ok, try this, and if something can’t get done, come to me, and we’ll reassess.’ The work was completed without any problems.”

Some automotive business consultants, who asked not to be identified, tell WardsAuto they question the system’s effectiveness over the long haul.

Yet Pohanka says the business model has been successful for over a decade.

“We show consistent year-over-year RO (repair order) growth. We are running 60% maintenance, and since 2016 our total hours for the year have increased over 10,000, showing significant growth YOY (year-over-year),” says Pohanka.

Transitioning to a No-Appointment Model

Brandon Hartfiel, director of fixed operations and training for Florida-based JM&A, says the no-appointment model can work for other dealers with some caveats.

“There is opportunity for dealerships to be successful in both models, but the key to success with a no-appointment service model is preparation,” Hartfiel tells WardsAuto. “For those interested in transitioning to this model, it is imperative that they begin to track wait times and staff their dealerships adequately.”

Beyond that, though, Hartfiel advises dealers who want to transition into a no-appointment model may want to take a hybrid approach.

“Dealerships need to be tracking their wait times, not just the busy ones, to adjust staffing accordingly. Of course, you can only prepare so much. There will always come a time when you receive an unexpected influx of customers, which leads to increased wait times, which has potential for an increased negative (CSI (Customer Service Index),” Hartfiel says.

“For most dealerships, the busiest times are in the early morning, around lunchtime and in the late afternoon,” he says. “We’ve found that using an appointment calendar during these influxes allows the store to manage the inflow and deliver services in a reasonable timeframe.

“During the non-busy times, we recommend opening the scheduling calendar and allowing walk-ins. Utilizing both of these models allows the service department the best opportunity to deliver a high-level customer experience.”

Michael Moore, service director at several Pohanka dealerships, says service generally provides up to a 13-hour window for customers to drop off and pick up cars.

“We do that because we understand the most important thing for clients is their time,” Moore tells WardsAuto. “I’ve had other dealers say that the no-appointment plan can’t work, but it does.”

He discusses a customer running late for a 9 a.m. appointment. When the customer arrives at the dealer’s service department at 9:30 a.m., they may need to make another appointment. At Pohanka dealerships, customers come in at their convenience.

Despite some initial reluctance, technicians are on board with the no-appointment program, says Moore.

“Technicians want to be busy,” he says. “And because of our extended service hours, we basically have a couple of shifts. It makes for a very good working environment. Guys like me who wake up early can come in at 6 (a.m.) and go home (in the afternoon). Other guys might work 9 (a.m.) to 7. Everybody's busy throughout every single portion of the day, so you're not hurting yourself by taking the early shift or the late shift. It’s worked out really well. Technicians actually like it.”

And customers do, too, with about half opting to stay in the waiting area equipped with a gourmet coffee bar, Wi-Fi, HDTV and comfortable seating options. Most repairs are completed in about two hours.

Others take advantage of Uber or other transportation options the dealership offers.

“We’ve learned that what is convenient for the customer ends up being convenient for you,” says Pohanka. “Isn’t that something?”