Overcoming the Diagnostic Fee Dilemma HOW TO OVERCOME THE DIAGNOSTIC DILEMMA In order to overcome the diagnostic dilemma, it is important to understand and implement the 3-Tier Diagnostic Process, a powerful marketing tool designed to boost customer engagement and increase repair sales. Understanding the 3-Tier Diagnostic Process The 3-Tier Diagnostic Process is not just another way to diagnose vehicle issues; it’s a strategic approach aimed at winning over customers and selling necessary repairs. As the name suggests, it involves three diagnostic charges, cleverly named DIAG1, DIAG2 and DIAG3. These charges are designed to play a vital role in getting customers through the door and convincing them to proceed with the required repairs. • DIAG1 — The Customer Engager: DIAG1 is the lowest‑priced diagnostic fee and serves as a tool to encourage customers to come in for a diagnostic service. This diagnostic can be sold over the phone, making it perfect for service advisors and BDC reps to use when talking to customers. By charging a small fee for this service, the shop can filter out those who are merely curious and not willing to invest in necessary repairs. DIAG1 sets the stage for the entire process. • DIAG2 — Convincing the On-Site Customer: DIAG2 comes into play when the customer is already in the shop and explains an issue with their vehicle to the advisor. It is priced higher than DIAG1 but remains reasonable enough not to drive the customer away. By offering DIAG2, the shop increases the likelihood of the customer staying on-site for Enhancing Customer Trust and Satisfaction By Dynatron Software Almost daily, we encounter situations on the phone or on the service drive where customers are hesitant to proceed with a diagnostic service and repair due to cost (the dreaded diagnostic fee). At your dealership, it’s essential to strike a balance between maintaining profitability and ensuring customer satisfaction. In this article, we’ll explore two common scenarios where the diagnostic fee can create barriers and how we can address them leveraging service to build stronger customer relationships AND sell the diagnostic and the repair 90% or more of the time. SCENARIO 1: THE LOST CALL Picture this — a concerned customer calls in, describing a mysterious squeaking noise in the front of her car. They inquire about the cost and the possibility of your earliest appointment. However, the service advisor informs the customer about the $129.95 diagnostic fee required to identify the issue. The customer says they need to mull it over and will call back. Sadly, the call never comes, and the opportunity may have slipped away. SCENARIO 2: THE WALL OF HESITATION Another customer walks into the shop with a strange noise issue in the car’s front end. The service advisor mentions the $129.95 diagnostic fee to uncover the problem and provide a repair quote. The customer hesitates and considers backing out, deciding to stick with just an oil change instead. The advisor quickly offers to waive the fee if the customer chooses to have the repair done at the shop, seemingly removing the barrier. While offering to waive the diagnostic fee might seem like a win-win solution, it can lead to an unintended consequence. If the repair quote includes the diagnostic fee, the customer might feel misled, perceiving the shop as unnecessarily expensive. This can drive them to seek alternatives, potentially losing the customer altogether. 18 CATA UP TO SPEED
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