At Sterling McCall Lexus in Houston, customers can get help setting up their iPads, advice on choosing the right cellphone and even a breakfast prepared by a country club chef -- all for free.
The complimentary services are boosting the dealership's bottom line by bringing customers into the store more often, says General Manager Joey Dupuis.
About 18 months ago, the dealership started a team to teach customers how to use the technology in Lexus vehicles. Today, many customers return to the store seeking help with other tech devices.
Customers also come in to enjoy a gourmet breakfast each Saturday. The dealership started offering that perk in mid-2011 to drum up more Saturday service business.
"What's started happening is our customers really appreciate the time they spend at the dealership," Dupuis says.
Edward Yosowitz is a physician, but he says he's "not the smartest person in the world with electronics."
A onetime patient of his, Lisa Gallagher, is a technology specialist at Sterling McCall Lexus, where Yosowitz bought his LS 460 in February.
"It's a blessing they have her," Yosowitz says. "I have sent some of my doctor friends and other friends to the dealership, and the first thing I tell them is, 'You have to talk to Lisa to help you on the technology.'"
Initially, Dupuis was reluctant to form a technology team that would require staffing, training and certification.
But Lexus required all of its dealerships to have such a team because of the additional technology in its vehicles, Dupuis says. A dealership of Sterling McCall's size requires a two-member team, he says.
"I was hesitant at first because it is an additional expense. Even though Lexus has a portion of the money coming back to you as part of margin restructuring to cover it, it was still money in our front end margin going away," Dupuis says. He declined to discuss specific margin and cost figures.
But Dupuis soon noticed a return on his investment as the technology service grew into a customer-retention tool.
"Our technology specialist answered some questions about an older car and the customer was real impressed with what the older car can do," Dupuis says. "But when she told him what a new car can do and showed him, it resulted in a sale of a new car."
Sterling McCall Lexus is owned by Group 1 Automotive Inc. Group 1 declined to release the number of new and used vehicles the dealership sells per year.
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Dupuis: Know-how - plus a gourmet breakfast
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Howard Pollock bought a 2013 GS 350 sedan in early August at the store. He says he has returned at least three times for the technology team's help.
"I'm a little slow on picking this stuff up," Pollock says. The dealership's technology specialist "has shown me a couple of things on my phone as to how it pertains to my car, setting up Pandora and things like that."
It takes about a week of training and the ability to pass several tests to become a certified Lexus technology specialist, Dupuis says.
Dupuis had one technology specialist in place in February 2012 and a second by midyear. The dealership is training its third now. Lexus does not require a third specialist, but Dupuis is adding the position because customer demand is growing and he sees the benefit.
"It happens frequently that a customer buys a new car and realizes they have an older phone," Dupuis says. "They see all the things their car is capable of doing, so they call our technology specialist to get advice on which new phone to buy and to [set a time to] come back and have them help set it all up."
A perfect Saturday combo: A discounted oil change, a little help with the iPad and an omelet built by local chef Xeno Miranda.
'Help me'
Dupuis says a few customers regularly return for help using other electronic devices. Mostly they need help setting up apps, he says.
"It's more than just, 'Help me with my car. It's about, 'Help me with all my technology,'" Dupuis says.
Customers who return for technology help or vehicle service often lead to new-vehicle sales, Dupuis says.
In February 2012, Sterling McCall Lexus started renting iPads to customers in the waiting area. The service department's waiting area is near the technology center.
"If our tech specialist is not busy with someone, she will strike up a conversation with an iPad user. It's a conversation starter and a perfect lead-in to offer her services in the technology center," Dupuis says.
It also allows the specialist to talk about the technology on the newer cars and show the customer some new vehicles, Dupuis says.
In the past five months, 12 new-vehicle sales have resulted from technology specialists initiating conversation about technology with a customer using one of the store's 10 iPads.
"And I think that number is only going to improve," Dupuis says.
Sterling McCall Lexus is also focusing on driving more service business.
In late 2010, the store increased its Saturday service hours to 7 a.m. to 5 p.m., Dupuis says. It had been 8 a.m. to 4 p.m.
Dupuis believed there was demand for the additional hours. He was wrong.
For the first several weeks, only one or two people came in during the first hour. "We tried advertising, but it wasn't picking up," Dupuis says.
An employee suggested serving breakfast, he says.
"We approached a local country club that we had done some golf marketing events with and they agreed to send their chef over to set up an omelet station," Dupuis says.
In mid-2011, the dealership started serving breakfast from 7 to 10 a.m. The service manager also offered a $20 discount on an oil and filter change during that time, Dupuis says.
On the weeks that the club can't provide the chef, Dupuis says he spends about $400 to buy breakfast sandwiches and other food to serve. But it's worth it. Since starting the breakfasts, the repair orders on Saturdays have "more than doubled."
"It's directly attributable to getting those customers in during those early hours in the day and the word of mouth it generates in the community," Dupuis says. "We don't advertise it outside of our owner base."
Dupuis says the technology team and the breakfasts keep customers coming back regularly and gaining a level of comfort with the dealership and its staff.
He says the customer feedback he gets frequently is, "Now I can come and have some of your free coffee and something to eat and drink and visit with your technology specialist. It's a great value and it doesn't cost me anything."
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