There’s so-so service, there’s good service, and then there is the kind of service that Indiana Business Equipment (IBE) provides, service based on measurable metrics that clearly identifies just how well the dealership is doing compared to everyone else in the industry using the same metrics.
And what those numbers show is nothing short of impressive. We’ll get around to that shortly. First let’s meet IBE.
Humble Beginnings
IBE began in 1987 as a two person manufacturer’s rep selling copiers and typewriters. Since then the dealership has grown to 15 employees and has moved into a new 10,600 square foot facility.
The dealership, run by co-owners David and Tom Goss, services customers in nine counties in West Central Indiana and six counties in East Central Illinois within a 90-minute radius of the company’s headquarters in Terre Haute.
“The nice thing about being in a rural area is we have a variety of customers from single unit locations up to large government, college, and medical installations,” says David. “All customer sizes are important to us and we have a good representation in all market segments and sizes.”
The owners of IBE (center) pose with the dealership’s service team.
Four full time technicians and a couple of part timers who take additional service calls when necessary are responsible for servicing 1,500-1,600 machines under contract.
IBE is a single-line Canon dealer, something that’s an exception in the industry.
“We thought it made sense to focus on doing one thing really well vs. being adequate at two or three things,” explains David. “We also are probably an exception in that we use all OEM parts and supplies in servicing our Canon machines.”
Prior to partnering with Canon in 2009, service was a modest part of the company’s revenues. For many years the manufacturer was responsible for servicing IBE’s customers. Things changed with the switch to Canon and since then IBE’s service revenue has grown by double digits every year. That double-digit growth has ranged from a low of 20 percent to today where service represents 44 percent of IBE annual revenue.
“Our main focus has always been to treat customers the way we would want to be treated and always do the right thing for the customer,” says Tom. “Our focus on the customer by every employee in our business is the main reason for our tremendous growth over the years.”
Ramping Up Service
When IBE transitioned to the traditional sales/service dealer model in 2009, management understood that the biggest challenge would be building a competent and effective service organization to take care of customers and be a profit center for the business.
It helped that both of IBE’s owners possessed strong marketing backgrounds.
“We believed the way to do that was to invest in the best people, training, equipment, and software from the beginning,” notes David.
That started with hiring Forest Raines as IBE’s service manager. Raines shared IBE’s company values and his 27 years of experience in the industry was an excellent foundation for the dealership’s service organization.
Canon has played a huge role in IBE’s service department’s success by supplying reliable equipment and excellent training support. “All of our techs go through Canon factory training on every product they service vs. in house training,” says Raines.
Not too long after bringing on Raines IBE signed on with BEI.
“I can’t tell you how important that decision was,” emphasizes David. “BEI gives us objective data that allows us to plot a course of continual improvement.”
The Truth of the Matter
As much as David doesn’t want to bring up an overused phrase regarding why dealers typically select BEI Services, he can’t ignore the reality. “BEI shows us ‘what good looks like.’”
IBE’s numbers are excellent with a first call fix rate running in the 65 percent range. Their call back rate is exceptional too, according to BEI’s Steve Sharkey.
“Our goal is 25 percent; these guys are consistently in the low 20’s; right now they’re at 22 percent,” reports Sharkey. “And their incomplete for parts rates run in the teens. Right now it’s at 14 percent, but I’ve seen it as low as 10-11 percent in certain months. It’s a very good indicator that not only are the technicians well stocked from a prepared for parts standpoint, these guys have the technical skills so when they get in front of a machine the vast majority of the time they’re able to address the problem and get the customer up and running.”
It’s not like IBE was doing a poor job prior to implementing BEI. “We were actually pretty good to start with,” reports Raines. “BEI came in and worked with us and saw that our numbers were good, and were able to help us fine tune car stocks for the geographical area we cover. That’s been a huge help; our hold for parts percentages have improved the most because of BEI.”
Using BEI data, IBE revamped its entire parts inventory and car-restock process in an effort to improve hold for parts numbers. “It’s critical, especially in our rural geography, that we fix machines on the first visit and get them to run as long as possible between calls,” says Tom.
Another benefit is that management can sit down with techs individually on a monthly basis and review their performance using objective data and plan out where they can improve.
“That’s where a big part of the value comes from,” states David. “The goal is to improve our customer experience and by doing so the techs can leverage the BEI Comp Plan. We are all rowing the boat in the same direction.”
These reviews are something that BEI’s Sharkey finds essential. “Whether you’re using BEI or not, you owe it to your people to give them regular and routine feedback, let them know what they’re doing well and recognize that and also identify areas where individuals can improve and become a more valuable asset to the company. Technicians are dying for that information and attention and the fact that these guys do that every month is a big part of the reason they’ve been as successful as they have been.”
Is Raines satisfied with the numbers or does he see areas where IBE can improve?
“I don’t think you can ever be satisfied,” he says.
And with David chiming in about ‘parts,’ Raines adds, “We want to make sure the guys are using parts instead of assemblies whenever possible.”
Diamond of Excellence
Everyone at IBE was ecstatic to learn that it achieved the Diamond of Excellence Award. This is particularly impressive considering they only started laying the foundation for their service organization six years ago. Management views this award as a testament to Raines’ direction and dedication and IBE’s continuous commitment to customer satisfaction.
Plus, IBE techs who have been with the company for at least one year have earned individual BEI Services awards, including one tech that achieved the highly coveted Diamond level, which places him in the top 5 percentile of the more than 6,300 techs monitored by BEI nationwide.
“It’s something we’re all proud of here, not just the techs,” acknowledges Tom. “Everybody that touches our customers on a daily basis from the dispatcher to the delivery people played a part in that award.”
And earning this award can’t help but contribute to customer retention, something that IBE excels at already.
“Once we get a customer we don’t lose them very often; we have a loyal customer base,” adds David.
“Everything we do here is customer first, whether it be the person answering the phone or dispatching service calls, and the technicians do a great job of carrying that out,” emphasizes Raines. “It’s the customer that determines our ultimate success and everyone gets that here.”
Additionally, the Diamond Award is a great motivator for everybody in the organization.
“It’s like reaching the playoffs in sports,” says Tom. “Once you are there, you want to keep improving and come back again.”
Asked if he has any advice for other dealers looking to improve their service operations, Tom says, “It’s the best way to objectively monitor and benchmark not only your service department, but individuals as well, and to help techs become better. Without the data we wouldn’t have the road map to go forward.
Indiana Business Equipment
1301 Ohio Street
Terre Haute, IN 47807
www.goIBE.com
Number of service technicians: 4 full time and 2 part time
Number of machines under contract: 1,500-1,600
How they’re doing:
• First Call Fix Rate of 64%
• Call Back Rate of 22%
• Incomplete for Parts Rate at 14%
