Mastering the Walkaround: Boosting Gross Profit and Customer Satisfaction

What is a Walkaround?

A walkaround is typically one of the first interactions with your team – it is an opportunity to get to know the vehicle being serviced and the individual that brought that vehicle to you.

How can we properly advise folks if we’re not first understanding them and their needs? Spoiler alert – you can’t.

Right now, you need to build rapport and trust alongside the customer in a journey to understand them and their vehicle. You’ll want to make notes about any visible damage, excessive wear, and seek out how they use the vehicle to identify maintenance needs.

For example, if a customer has a tow hitch – you should ask them if they actually tow with the vehicle! Excessive wear means shorter maintenance periods and could mean that they need to have their differential serviced.

Importance to Gross Profit and Increased Average RO

A well-executed walkaround has a significant impact on both gross profit and the average Repair Order (RO) value – vital metrics to keep a pulse on your business (and money in your wallet.)

As you identify additional service opportunities during the walkaround – you should be educating them on what you’re observing. Then and only then, you can advise on necessary maintenance and repairs based on their vehicle’s history and more.

This proactive approach not only boosts immediate revenue but also builds customer trust, leading to a higher Customer Life Time Value (CLV).

Common Mistakes in Performing Walkarounds

Despite its importance, many dealerships and shops fall into these common (and to us inexcusable) pitfalls when performing walkarounds:

1. Skipping the Process: Rushing through or entirely skipping the walkaround due to time constraints or complacency. If doesn’t matter if you’ve been in the industry five years or twenty-five years – you should be performing a walkaround.
2. Lack of Customer Engagement: Failing to actually engage the customer during the walkaround, missing an opportunity to build rapport and trust. Do we have an opportunity to build a connection based on something we’ve spotted on the vehicle? Think sports, extracurriculars, etc.
3. Inconsistent Execution: Not following a standardized procedure, leading to missed service opportunities and inconsistent customer experiences. What happens if you pop the hood but never check the wear on the tires? Could be a missed opportunity to show the customer in real time what is happening with their vehicle. While newer technology has given us ways to take videos in the shop – there is no replacement for real face-to-face discussion.
4. Poor Documentation: Neglecting to properly document findings, which can result in lost upsell opportunities and misunderstandings with the customer. If you’ve been a service advisor long enough – you’ll unfortunately also run into those trying to get that dent taken out at your body shop at no-cost based on something that “definitely happened in your shop.” Don’t be a victim of this and cost your company thousands – simply take the few moments to do the walkaround.

Best Practices for Performing a Walkaround

To maximize the benefits of walkarounds, follow these best practices:

1. Standardize the Process: Implement a consistent, step-by-step procedure for every walkaround to ensure thoroughness and reliability. We’ve provided a free guide below for you to use.
2. Engage the Customer: Involve the customer in the inspection process, explaining what you are looking for and why. This builds transparency and trust, mitigates the amount of education you have to do later on, and soft-sells any potential maintenance or repairs.
3. Use Technology: Consider adopting tools and apps to document findings and create a comprehensive record that can be easily referenced and shared with the customer. We’ve observed dealerships go from #23 in their dealer group to #3 just by adopting his process in earnest.
4. Focus on Communication: Clearly explain any issues found and recommend necessary services, emphasizing the benefits and importance of addressing these issues promptly (for example, getting a transmission serviced four times over the lifetime of a vehicle is way less than the cost of replacing a transmission at 100K miles.)
5. Training and Development: Regularly train your team on the importance of walkarounds and the correct execution of the process. Be sure to hold your team accountable for performing this to a certain percentage of cars they see. If not, you’re literally letting money drive past you every day.

Impact on Customer Satisfaction Index (CSI)

The customer’s vehicle walkaround does something that so many fail at – it sets expectations with our customers. Of course, if we told our customer it would be ready in 24 hours and it takes 72 hours – they’re understandably upset. Similarly, customers who feel their vehicle is in good hands are more likely to return for future services and recommend your dealership or shop to others. By performing the walkaround we’re contributing to this positive experience for our customers.

A well-conducted walkaround significantly enhances the Customer Satisfaction Index (CSI) by proactively identifying and addressing potential issues. This demonstrates a commitment to the customer’s vehicle’s well-being, which fosters trust and loyalty.

What to Do if Your Team is Not Performing Walkarounds

If walkarounds are not being consistently performed, it is essential to take corrective action:

1. Assess the Situation: Identify why walkarounds are not being conducted. Is it due to a lack of training, time constraints, or staff resistance? Understanding the “Why” behind this not happening could be an easy fix.
2. Provide Training: Ensure all team members understand the importance of walkarounds and are trained in the best practices for conducting them. If they are not educated on the process of performing the walkaround – then that is on the manager to ensure they’re fully compliant which cannot happen prior to educating them.
3. Implement Accountability Measures: Set clear expectations and hold team members accountable for performing walkarounds on every vehicle. We’ve had luck for particularly “challenging” teams by directly tying compensation or incentives to the process in the short-term.
4. Monitor and Review: Regularly review walkaround performance and provide feedback to encourage continuous improvement. It is not enough to train and enable your team – it is critical to monitor these motions, ensure they’re being done properly, and the team intimately understands the importance of this action.

Conclusion

Incorporating a thorough and consistent walkaround process into your service routine is a game-changer for boosting gross profit, increasing average RO, and enhancing customer satisfaction. By avoiding common mistakes, following best practices, and ensuring your team is fully engaged and accountable, you can transform the customer experience and drive significant business growth.

KT Automotive – Walkaround Sheet 1.0