CSI vs Warranty vs Warranty Expnse

[Michael White]

this year has been a very good CSI year for us. But am finding a conflict between CSI and goodwill with a mandatory recall.
On 3 occasions, we had 3 buicks come in with recalls and under 50K miles. All of them never did any maintenance with us. All 3 came in with minor additional issues like rattles in doors, a fit/finish issue, and a brake squeel. Sinc e all were close to 50K and not good customers, we told them they are past warranty and no assistance. In all 3 cases, we were done on time, and the car was washed. All three customers recieved a CSI squestionaire, and all 3 rated us only "satisfied" because we did not reslove all of their concerns.

To start, I think it is grossly incorrect of GM to issue a CSI statement when it is past warranty, and grossly incorrect of a customer to rate us because we would not do a goodwill #$%^& warranty repair for a customer that does nothing with us (we did not even sell these cars) Buick sales are dieing beyond belief. GM is not making a Buick that is attractive to anyone that is under 85 years old.

My resolution to the probelm is if they are under 5 years old and under 50K, do whatgever they want when they come in for a recall. Buick customers, due to that lack of Buick population in centeral California, is a minimal part of my warranty business. But if you look at Buick CSI, it is below average, as compared to GMC and Pontiac which is way above average.
So I will increase my warranty expense for Buick just to get a better CSI. If GM is going to hold me to a good CSI, and issue a CSI report to someone whos is past 3/36, then I am going to act as if that vehicle is still under bumper to bumper. GM made me do it for their illogical programs. Have others experienced this??

[This message has been edited by Michael White (edited 09-06-2003).]

[KZSOUTHGAL]

I agree with you 100 %. I get my wrist smacked for having high warranty expense and then in the same sentence get told I am not goodwilling enough. Well, lets make up our mind here.

It's gotten to be a real joke on warranty expense. They tell ya not to touch it, repair it but replace it on certain items, then your AVM comes in and threatens you with an audit, your trying to make customer, GM, dealer, AVM and everyone happy when no matter what you do, your going to get burned everytime.

It's pretty much a lose-lose situation. I don't understand why all of the sudden GM started sending the recall customer's survey's. You know they are not going to be happy when they come in, they don't want to be there, don't want to wait and then want you to repair everything else on vehicle at no charge as well.

I will get off my soapbox for now, but I would love to hear if some of you out there are having these same problems.

Thanks.

[PucHed]

Hell, Saturn sends surveys to every Saturn owner that gets service work, warranty or CP. Imagine how happy the customer with 85k is with their $250 repair bill. Well they might get a survey too. That is rough.

[eric the red]

It's not just GM, boys, but Ford, too. Think about sitting on these particular RO's until the time limit for a survey has passed, but still within payment guidelines. Probably about 45 days.

[Michael White]

Sitting on warranty ro's is bad business practice. GM gives us too many double edged blades. they have in the past been selective on recall versus CSI. Case in point, several yers ago, Cadi was having a serious electrical recall that downed cars with no parts available. Instead of taking the CSI hit, they just did not send them a CSI report. In our area, CSI is a major push and it should be. But warranty expense issues are always a "item" to be watched. I am getting jumpy about charging a customer any kind of deductable when I do a goodwill adjustment, jsut because I do not want the customer to be upset with us his vehicle cost him some money. Tough decision/process. Do a recall on a cross line warranty vehicle under 50K miles, and have them get upset with you because you are not allowed to do a goowill assist. The4y will get a CSI. My feelings are if a CSI is issued, there can be no difference between goodwill, recall and bumper to bumper (there are exceptions)

[farfinator]

I have to chuckle. I spent 12 years in dealerships in Service, Parts and Body Shop Management and could never get the masses to understand CSI. Now, at an independent shop, free of the pampered techs, fingerpointing and manufacturer retoric, I enjoy fabulous CSI and profitablity. Why do you ask? What's the difference? First, we are in the business of fixing cars. If my techs see a broken door pocket in the course of a 30K that requires a minute and a half to repair, they fix it. They don't document it on the RO indicating 1.5hrs to R&R the door panel and wait for the upsell which finally happens at 3:30 and hold the car over or reschedule the repair. They just fix darn thing. Second, we like our jobs. We care about our customers and give them great service because we genuinely care, not because of some stupid survey, and believe me, actions speak loader than words. All the forced phone follow up by uninvested personel only exacerbates the customers sense of artificial sincerity. If you want to inspire loyalty and respect you must earn it and demonstrate it by action. Can you honestly say there was no compromise you can think of that would have satisfied the customer with the rattle and pads that would have earned you his favor? I used to sit in the manufacturers sponsored advisor seminars and laugh at the amount of energy spent on teaching "How to handle angry customers". If only the same energy was spent on teaching "How not to piss them off in the first place!" This week our shop performed 4 warranty repairs. A strut modification, 2 check engine lights and an airbag light. A sum total of about $800 in repairs. All of which our customers perfered to PAY us to remedy, rather than put up with dealership B.S. How about that, not only are we stealing your service business, but now your warranty? Maybe you'll figure it out someday. Until then, thanks for the business!

[Michael White]

Farfinator, I can respect and in some cases admire the simplicity of working in an independent shop. Not having to spend $75,000 a year in training, $350,000 in essential tools, dealing with the policy and procedures with a major manufacturer, the list can go on and on. You did not understand totally the complaint tht I had. To start, we do not do everything just the the CSI. CSI is one of the tools we have but not the goal. the real measurement is the volume, growth, and profitability. Our business has grown over 45% in the last 2 years. that is a measurement of success. Yes, having good measureable CSI also helps with the measurement of success, Again, CSI is one of the tools. Unfortunately, we do have to interact with the factory with warranty expense which can conflict as I mentioned with CSI, So as you are aware, many times there is a balance what you have to do. As an independent, you have the ability to pick and choose. We do not. We have all the business we can deal with. but if the manufacture makes the rules, and we work within those rules, we have the right to suggest changes in policies that affect us.

You mentioned the goodwill you do. If you are an average sized independent, our dealership probably does more goodwill in a month than you do business in a week. We do a lot of personal touch issues in our dealership and community to show care and concern. Those qualities are not limited to indepedents. Probably your shop is well trained and knowledgeable. You mentioned how so many poeple come to you to do warranty work and thanked us for the business. Independents have a great role to play in our business. Its easier for a customer sometimes to deal with a small organization, with the perception you are more reasonable than the dealers. Sometimes it is true independents may be 5% or so less. Independents do not come even close to the expense structure required at a dealership. But in general, the quality of dealership work is higher than independents. Independents do not come even close to the complex repairs dealerships are involved with day in and day out. You should know this, judging by your experiences.
Good luck to you

[This message has been edited by Michael White (edited 09-06-2003).]

[farfinator]

Michael,
No doubt, the impact of volume warranty and the role of CSI as it relates to allocations has far greater implications for a dealership than an independent. But I would like to make a final comment the ideas of intimacy and perception you brought up. Let me ask you how you feel when you get trapped in a great phone abiss. Hit 1 to get blah blah, Hit 2 to get blah blah. At the average dealership, the customer 1st gets the general receptionist, followed by a service secretary/appointment/cashier gal, then possibly the advisor or their voicemail, who translates their needs to a dispatcher who then interfaces with the technician. Somehow, some expert has convinced the masses of Dealership management that imposing that many levels of middlemen is going to enhance productivity and free the advisor to focus on the customer. But at what cost to the intimacy and trust the customer feels? It invariably happens that an unskilled receptionist or a hurried advisor makes an appointment without investing any effort or capitalizing on the opportunity to take control of the customer's expectations at the time of appointment-taking the time to discuss & presell the work. Then all hell breaks loose at the tail end. I don't believe in middlemen. I have always felt they compromise intimacy and stage the perception of a meat market style service experience. I am currently at a specialty high end european shop. I do take my old '94 Chevy truck to the dealership, and the only reason I still do is because I have established a solid relationship with the advisor. I know with unfailing certainty that I can make a list on the drop off envelope, leave the keys, leave the credit card, the repairs will done by my favorite tech, the truck will be locked out, the bill will be right and all is good! But, I have known the guy for 8 years and worked with him. I also know having worked with him that I am among the rare 1% that can honestly have that kind of faith in their service department. Its exactly what I get that the average guy seems to be yearning for and getting from the independent. To this day it drives me crazy why it is so difficult to make it happen in a dealership.

[Michael White]

Farfinator, you bring up some good, valid points. When you are writing up 75 to 100 repair orders a day, structrure is a must, and if you ae not careful, you can give the perception of being rushed, and impersonable. Our dealership handles over 500 phone calls a day. We do not use a computerized phone system; have voice mail, utilitize e mail technology, have more advisor staffing than normal, have very strict standards on communication. Structure is so important. It would be great to be able to "shoot the bull" with every customer that comes in. We do actually go out of our way to give the customer the opportunity to if that was pleases them. Again, a staffing issue. With constant communication, trying to do things alittle different, being responsibile for our actions, showing empathy and care to the customers, and communicating with them, are all critical concerns that must go on. Your trus "salt" in our business, is when you have a difficult customer unhappy about something, is how you take care of him.Listening to theirs concerns, and responding in the way they want you to, even if you dissagree, is important. When I told you our goodwill policy is probably higher than your a weeks work for you, I'm not kidding. As long as i does not cost us too much, almost always we give help, if we feel we can promote satisfaction and repeat business.

Best of luck to you

[farfinator]

Mike,
I've really enjoyed this exchange. On CSI, your initial question that I quicky diverged from-
With the advent of the CSI surveys, came the science of "achieving a score", which all too often has little or nothing to do with the customer's true satisfaction. Customers have been wrongly trained to expect the ridiculous by service personel who have spent the last decade or so aquiesing in the pursuit of "the score" rather than governing the customer's expectations. Now its biting everyone in the ass. I quess the question now is how to stop the vicious cycle? The CSI scores are crap, every knows it, but no one is willing to say screw it, and restore common sense, smart business practice, and a "do the right thing" ethic, which makes independents sooooo easy and profitable and pleasant to deal with. Just what are the advantages vs the disadvantages of being so wholely focused on the magic numbers? I wonder if you sat down and worked out the expense of trying to achieve "the score" whether it would honestly make any sense any more? Does it make you more profitable? Does it enhance customer retention? How much time to you and your employees spend a month in activities specifically related to "the score"? How much money do you spend buying "the score"? How much money do you spend incentivizing your advisors and techs to achieve "the score", (a function which should be an implicit part of their normal duty, not an extra?) Doesn't it strick any one odd that dealers are actually paying a premium if they want their cars fixed right the first time and their customer's treated well? How the hell did that happen?---"THE SCORE!!!!" So I would submit that it is unadvisable to give in further to GM or any manufacture and continue the cycle of giving in. If efforts were honestly made to present a legitimate non-warranty repairs to that customer and they were rejected and it did not appear to be a logical business decision to invest in that individual than screw the score, it doesn't make sense.