No matter how good the product, running a successful dealership is as much about looking after the customer as it is about the trucks. Supporting hauliers through the life of the vehicle with advice, driver training and reliable maintenance so that they can get the most out of the equipment is crucial in building a good relationship. Scania dealer Haydock Commercial Vehicles has put these principles into practice and in the process won the Dealer of the Year at this year's Motor Transport Awards. Managing director Simon Dykes says: "Our aim is to work as one team focused on customer service at all times."
Three sales executives who between them have more than 25 years experience of Scanias are in regular contact with customers to keep up to date with what vehicles people will be looking for and when. This involves talking to companies about their plans in making follow up and courtesy calls to see what stage they have reached. Dykes says: "We take time to explain the product rather than just bidding with the lowest price. Scania is a premium product with a premium price, so we emphasise things like service, residual values and a strong network. We avoid trying to get customers to view the front-end price and encourage them to look at the total life cost."
Customer
The needs of customers are carefully analysed to come up with the right product. "Most vehicles we sell are built to customer specifications and very rarely does someone come in and buy a truck that is already waiting there in the yard. However, we don't have a hugely long lead time while they are manufactured," Dykes adds. Twice a year Scania uses an independent firm to assess levels of satisfaction by contacting customers and for the past three years in a row Haydock's scores have improved. Its rating of 83.4% is the second highest in the Scania dealership network.
This is achieved by offering support from the moment the truck is delivered and beyond. Customers range from owner-drivers to large retailers and each receives a personal letter from Dykes thanking them for their business and welcoming them to Scania. A full day's training is delivered by Haydock's in-house driver development consultant - training is also provided for existing customers to help them maintain good fuel economy. "We don't just take the order, deliver the vehicle and put the keys on the desk. We maintain the contact. The driver has got to know exactly how the truck operates, which is why training is paramount," Dykes explains.
Maintenance is a hugely important issue for keeping on good terms with customers and keeping their loyalty (see panel below). If there are any complaints on this or any other issue they are taken very seriously and monitored weekly in each branch. All complaints are brought to the directors' attention and appropriate actions discussed. Haydock has five depots in the North-west and North Wales, at Preston, Haydock, Mold in Deeside, Widnes and Ellesmere Port. Dykes took over the dealership in 2003 in conjunction with his partner Graham Whittaker, the finance director. Previously Dykes had run Union Trucks, a Scania-owned dealership that is now known as Scania North East and was runner up in the 2002 Dealer of the Year category.
He heard that the previous owner of Haydock, who he knew well, was retiring and undertook a management buy-in with the full approval of Scania. "We already had an understanding of Scanias, so taking on the business was mainly a matter of familiarising ourselves with the customers and the staff. Running your own business obviously carries different pressures but is very enjoyable," he says. Dykes and Whittaker have different roles within the company - "I kick the ball and he keeps score," Dykes says - but both are committed to a hands-on style of management. Each week every depot receives a visit from one of them to assess KPIs, discuss debtors and sort out any customer queries.
The role of the company's 195 staff is pivotal in delivering good service and in each depot there is a Customer Service Improvement Team made up of technicians and people from the parts, service and administration departments. The teams work from an 'Everything Speaks' checklist to ensure that all elements of the operation provide a good experience for customers. The team might, for example, recommend that the toilets are redecorated, older vehicles moved to the rear of the premises or that the workshop is kept in a tidier state. "We are always looking to improve the standards for our customers," Dykes explains.
Training
There is also a strong commitment to training and during 2006 Haydock has invested £350,000 for this purpose. This has included expenditure on 521 days of training for technicians and on employing 20 full-time apprentices. The company runs a computerised health and safety system and offers a tool purchase and loan scheme for fitters. If bonuses are gained from Scania for achieving certain standards a proportion is put into a fund for staff recreation days. In addition, there was recognition of the staff's role in winning the Motor Transport Award in the form of bowling, golf, meals out, trips to Alton Towers and go-karting. "All of our employees are important in improving the business and if people work hard we look after them," Dykes comments.
What the judges said...
- Very well run business since management buy-out in 2003. Provided strong customer testimonials. Simon Dykes and his team are worthy winners.
- Tremendous results in customer satisfaction and strong financial results.
Keeping the wheels turning leads to repeat business
Haydock puts a great deal of effort into its after-sales service, particularly into maintenance. The company's MoT pass rate is 85% and its workshop activities are geared to keeping the customers' trucks on the road at all times. There is a preventative maintenance policy on all contract vehicles and an electronic quality control system that is closely monitored."Good maintenance is vital because it helps you to sell the next truck. If we do a good job customers will come back," Dykes believes.
As well as Scanias, Haydock will service customers' trailers and their non-Scania models, in the hope that they will be replaced with a Scania next time a purchase is being considered. Many customers are interested in environmental concerns and Haydock has introduced initiatives to become more sustainable. For example, waste oil is burnt and parts are recycled.
The company has strong views on the EGR v SCR debate. Dykes comments: "High operating costs claims for EGR were demolished by Commercial Motor's exhaustive Euro 4 road test and R+M costs and service intervals remain unchanged. AdBlue is corrosive to alloy, copper and brass, so leaks could have serious consequences, and EGR is available on all our engines up to 480hp. In summary, put in the diesel and drive, just like Euro 3."
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