VW Service Strategy 076-077

Agenda
1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

 Current Scenario
Cr Sales
1.6
1.4
1.2 1.20 Cr.
1
0.8
0.6
0.4
0.2
0
1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

 Growth
Cr Sales
25
19 Cr.
20

15 14.40 Cr.

10

0
Yearly Sales (based on 6 months Target 076-077
data)
1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

 Growth Drivers

32% Growth = 4.6 Cr.

25% Active Selling

25% Improved Productivity

16% Dent Paint & Accessories Sales

12% Dealer Sales

12% Alternative Service Leads

6% Dead Stock Selling

6% New Car Park and Lost customers retention

 Growth Drivers

25% = Active Selling = 1.15 Cr

Active Selling

 Model specific service campaigns

 Door to door service campaigns for premium models
 Service packages
Creating relevant service and parts package with discounted prices (ex:
wear and tear maintenance package)
 Tailored AMCs for old cars with competitive pricing offers
 Incentive based cross-selling targets for frontline staff
 Mobility and road side assistance
 Growth Drivers

25% = Improved Productivity = 1.15 Cr

Improved Productivity

 Infrastructures in very good working condition at all times.

 To increase throughput of Avg. 14.12 to at least 15 cars per day.
 Service planner/Dispatch Board for maximum utilization of Bays and Technicians
 KPIs and Reviews for all employees
 Incentive based active selling approach for frontline staff. (including training)
 Tools and Equipment audit and check for revenue generation.
 Service readiness check with optimum inventory management
 Growth Drivers

16% = Dent Paint + Accessories Sales= 0.73 Cr

Dent paint + Accessories Selling

 Partnership with third party for accessories sales.

 Value based accessories marketing and selling to customers.
 Segregation of accessories sales and accessories display in dialogue reception
area
 Present contribution of Dent/Paint on total sales is too low on around 5-7 %. This
needs to be increased to 12 % for this year.
How?
 Growth Drivers

16% = Dent Paint Accessories Sales= 0.73 Cr

Dent paint + Accessories Selling

1. Monitor Vendors - KPIs

2. Add upselling packages (eg. Headlight restoration with full body dent paint,
tailpipe restoration in discount with Full body dent if customer is only thinking
about full body dent paint)
3. Create offers (eg. Monsoon offer- glass care and treatment - check all glass parts)
 Growth Drivers

12% = Dealer Sales= 0.55 Cr

Dealer Sales

 Target Setting on service sells for dealers based on their carpark

 Reverse logistics and co-ordination among dealers on service readiness and
inventory management.
 Revenue sharing on service and parts sales carried out by Balaju technicians on
dealers request.
 Growth Drivers

10% = Alternative Service Leads = 0.46 Cr

Alternative Service Leads

 Online appointment booking system

Web platform for customers to book a service appointment
 Co-ordination with recondition house for used VW car sales and offering service
 Service Hotline
 Growth Drivers

6% = Dead Stock = 0.41 Cr

Dead Stock Sales

 Dead stock verification

 Identifying the relevant customers for the dead stock
 Checking dead stock relevant repairs
 Creating Sales package for the dead stock
 Dead stock sales to third party (insurance agency)
 Growth Drivers

6% = New car park and Lost Customer Retention = 0.41 Cr

New Car Park and Lost customers retention

 Service sales by increased car pool

 Increase customer retention from 85% to 90%
 Monitor customer loyalty against customer retention and improve customer
loyalty
1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

 Short Term Action
1. Clean workshop
2. Stop customers from entering the floor. Customer in floor is a potential safety risks
3. Train SA on active listening of customer problems & general courtesy and to think
from customer’s perspective.
4. To use dialogue receptions more or less mandatorily
5. Decrease SA’s time to customer from 25 min per customer (my observation) to 20
min maximum during rush hours
6. Implement one-face-to-customer policy
7. Repeat Repair job cards on different color so that technicians can give extra
attention to it
8. Each Car to have color codes to determine the SA responsible at all times
 Short Term Action
9. SA’s to memorize pricing of frequently asked parts by heart or have it within seconds
of customer query
10. Analysis of order quality after completion of work.
11. Check for stock variance between system and physical count.
12. Regular Follow up: Pending Vehicles, Outstanding balances
13. Tools and equipment status
14. Daily short meetings for 20 min to discuss Good News, Priorities, Stuck/shortfalls
& Appreciations
15. Start Non-Technical training
16. Dealer visit to streamline service processes.
17. KPI’s
1. Current Scenario

2. Growth

3. Growth Drivers

4. Short Term Actions

5. Medium Term Actions

 Medium Term Action
1. Implementing single ERP/DMS instead of Autoboom and Navigator
2. Innovative services like online appointment booking, service planner and dispatch
board
3. Streamlining procedures for staff leave request
4. Service Marketing
5. Customer Loyalty Index
6. Work status display board in customer lounge
7. Beautifying dialogue reception area with welcome terminal
8. Maintaining optimum inventory level by different analysis (ABC, XYZ)
9. Demand driven and Consumption driven inventory requirement planning.
VW Service Strategy 076-077

END