How A Major Dealership Saved $5,000 in Damage Costs In Just 2 Months

Car Dealership Damage Costs & Damage DisputesService drive managers are constantly being tugged in multiple directions. On the one hand, they are expected to oversee high quality service and vehicle maintenance. Yet on the other hand, they’re expected to increase service drive profitability while keeping customer satisfaction and CSI scores incredibly high.

However, damage disputes can put a wrench in this entire juggling act:

  • Disputes Hurt Profitability: Rather than argue with a customer over who caused damage, service managers will often accept the blame and absorb the cost of damage repairs. This recurring cost regularly hurts a service drive’s month-over-month bottom line.
  • Disputes Hurt Customer Satisfaction: Arguing with customers over who is at fault for damage is certain to anger customers and destroy satisfaction. Yet even if you accept the blame, customers are now left thinking your service drive damages customer vehicles. Again, another hit to customer satisfaction.
  • Disputes Hurts CSI Scores: With those declines in customer satisfaction, you’ll naturally see declines in your CSI scores.

Body shops and dealer service drives across the country are wrangling with these issues all the time, and some are finally finding ways to decrease damage disputes and costs once and for all.

How A Major Dealership Drastically Decreased Damage Costs

A high-end Los Angeles car dealership service center that sees over 100 cars a day was faced with a major challenge: drive down service center costs while keeping customer satisfaction levels at their all-time high. The service center knew that a major opportunity was costs they incurred from vehicle damage. Specifically, this was vehicle damage they were confident they hadn’t caused, but couldn’t prove otherwise.

The dealership had long relied on paper forms to jot down vehicle damage prior to bringing a car in for servicing. However, as the service manager told us, the forms were unreliable and only caused problems when there was a damage dispute. “We would reference the paper forms, but all we had were ambiguous hash marks. We couldn’t zero in on a particular dent or scratch. We ended up paying for this damage even though we were certain we didn’t cause it.”

They turned to Record360 and its approach to digital documentation as a way to improve how they recorded vehicle condition. Remarkably, in just two months the service center saved itself from repairing $5,000 in damage they did not cause, a savings that translated to a 10X ROI for using Record360. Thanks to high-resolution photos and videos, they were clearly able to show customers that the damage preceded the service drive visit. The service manager let us know, “Our customers leave completely satisfied and we aren’t stuck with damage expenses.”

She noted an added bonus to using digital documentation. “We’ve also removed all disputes over missing items, fuel levels, or mileage counts. We take video of the car’s interior and exterior, and snap shots of the fuel and mileage gauge.” Thanks to this additional level of documentation, the service center never hears about items missing from a customer’s car or too many miles having been driven.  Learn more at http://www.record360.com.  

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s