During the month of January, Downtown Motors faced several problems. They had too much inventory, customer complaints, overtime, cost of emergency orders, … Keeping that in mind as service managers, we came up with following strategy to create a sustainable business.
High quality and service at correct price
Our customers will become our top priority. We already have a quite high customer satisfaction level but we would like to raise it up to at least 90 percent. By optimizing our internal processes and work schedule – hiring & training technicians at the right time - we hope to see the waiting time for our customers reduced.
Satisfaction and motivation of our staff
First of all we are going to hire technicians and let them get used to the firm. We will offer them training programs to improve their skills and efficiency. To keep the employees satisfied and motivated they will be paid wages that are higher than the market rate. By doing so we hope to create a longterm relationship. Also, we will invest in adequate equipment like alignment rack, express oil change, ... When it comes to overtime, we will try to minimize the hours after 5pm. Nonetheless we realize that in peak periods overtime is inevitable.
Inventory
We will adjust our inventory schedule to the seasonal effects. Because of the unpredictability of the sales, emergency purchases will be inevitable. Nevertheless, we will try to minimize them. This will reduce our storage costs.
Promotion & Advertising
Our two main activities are ‘Customer Pay Repair Orders’ and ‘Wholesale’. We will base our advertising campaign on these pillars.
Pricing
Annually, we will increase our price slowly to build up quality and image in a hope to maintain customer loyalty.
With this strategy we hope to achieve a cumulative profit curve and a gross increase of 5-10%. When we talk about service, we want to increase our service satisfaction rate to at least 90%.