t/t

VOLVO

Incentive Program for Superior Dealer Service

As part of an incentive program to encourage excellentservice support for its cars, AB Volvo, ,hJ.o*pu.ry,.international headquarters in Sweden, ran a worldwidecompetition for service technicians. Winners becamemembers of VISTA (Volvo International Service Techni_cal Associa[ion) , Their achievemenb were recognized atweekJong festivities in Sweden.

In the United States and Canada, a year_long batteryof tests distinguished superior mechanics. The WSTA IIINorth American program was labeled ,.most

successful,,by AB Volvo. Fourteen of the 42 international finalistswere Americans and Canadians. An American achievedthe highest score ever recorded on the final tests.

Volvo's comprehensive scheme is to ,,help dealers

profit through balanced. service.,'Balanced service in_cludes shop management, technical proficiency, andowner-dealer relationships.

\4STA III concentrated on improving technical pro_ficiency, with secondary rewards for gooJ shop manage_menr. It urged technicians, ,,Fix ir right the first time ar areasonable price."

Volvo of America wanted its technicians to be aware

recognition winners would receive.Like a sports car rally, \{ISTA III used checkpoints

marking participants, progress_four series of writtentests and two phases of hands_on tests leading to a finalein Sweden.

The first yardstick was a series of four open_bookwritten tests administered quarterly, which all Americanaurl Canadirn Vohro technicians lvcrc cligible tu take.

For completing one to four tests, technicians re_ceived token ad specialties-a pocket screwdriver with aVolvo-VISTA III inscription, a money clip, a key tag, anda mug-and up to 100 award points per tesr. The pointswere redeemable for prizes listed in five award folders.

A technician with a 60 percent or bettcr averagescore on all four tests qualified for a rank.

Master technicians obtained average scores of 75percent or better on the tests; they earned 400 extrapoints, in addition to those accumulated per test, and arecognition award. They had to be completely certifiedby NIASE (National Institute for Automotive Service Ex_cellence) or hold a provincial

Journeyrnan,s License.NIASE, a nonprofit, independent organization dedicatedto professionalizing the field, awards certificates rotop technicians. A Canadian organization awards thatcountry's mechanics similar provincial

Journe;,rnan,slicenses.

Certified technicians averaged 7b percent or moreon the tests, but were required to hold only partialNIASE certification and did not need a provincial

Jour_ne)'man's License. They received 100 points for takingeach test, plus an extra 200 points, plus an award ofrecognition.

"Even without NL{SE ccrtification or drc provincialJournepnan's License, you still can be numbered in asmall yet respected group of professional Technicians,,,Volvo told these mechanics.

Quality technicians scored 60 to 74 percent on thefour tests. They received, in addition to points accumu_lated earlier, 100 points and honorary awards.

Ranking technicians were given VlSTA_imprintedbelt buckles and appropriate certificates ancl patches,Vlaster anct cer.tilicd technicians were given King Louie

ou/

608 Case 17 Volvo

blue weatherproofjackets stitched with patches denotingrank.

Only master technicians, however, could enter thesemifinals,

Eleven Regional Volvo Training Cenrers held semifi_nals. This second measuring point screened out all butthe most highly skilled workers in the Volvo of Americaregion; competitors were tested in hands-on and closed_book written exams, Each center's three highest scorerswere eligible ro compete in measuring stick B_the finalsat the New Jersey headquarters-a three-hour and 20_minute hands-on test.

For h,vo days,42 Americans and Canadians Iaboredto solve eight servicing problems. Under identical condi_tions, each repaired car brakes, rear axles, automatictransmissions, and electrical systems,

By completing the tasks, contestants could earn atotal of 400 points. Bruce Donaldson of Almartin Motorsin South Burlington, Vermont, achieved 390 points, thehighest score ever attained in a VISTA program. Earlierwritten test scores determined winners in the eventof a tie.

AII finalists received plaques and VISTA III officialfinalist watches.

"Your performance will be advertised,', Volvo VicePresidentJohn Theis told finalists at an awards banquet.'Volvo owners will be made aware that they can totallyrely on dealer service operations which ernploy \|ISTAand NIASE certified technicians,,' Notices appeared innational, regional, and local publications. Volvo,s maga_zine for its dealers, Pnspectiae, listed the fabricated situa_tions each finalist faced.

"How well would you have done?', the magazineasked its readership.

Eleven Americans and three Canadians finishedwith grand honors; these men went to Sweden. Duringtheir one-week, all-expense-paid trip they, along with 2gmechanics from other countries, toured Volvo headquar_ters, attended honorary dinners, and met with Volvo ex_ecutives.

These expert technicians received blazers, trousers,and patches. They were presented as a group ro theirpeers from around the world.

'VISTA will have helped you become a rechnicianwho has no superior; a major contributor to your dealer-

ship, a top money-earner, and the most respected in yourzone. You will benefit from your course participationand all the world will know it," Volvo told Grand prizcwnners.

VISTA III's secondary objective was to reward eIfi_cient shop management. It encouraged teamwork anclgave points redeemable for prizes to Volvo service mal-agers. Each dealership's technicians' combined te.sr

scores were added together and averaged; teams averag_ing scores of 75 percent or better received recognition,Each team member obtained I00 additional points an<lthe service manager won 400 prize points. Volvo hosteclmembers of the top team from each region at a specialbanquet.

Volvo's printed communication with the 1,400 par-ticipating technicians and service managers was simple.Prior to the program start, it mailed mechanics kilspresenting the program and containing a prize catalog,It also mailed a pop art poster to dealers for in-shopdisplay-and a second one to record the mechanics' suc-cess. Volvo sent participants scorecards after each test;the cards also listed the total number of points accumu-lated. To redeem points for gifts, technicians could re-turn prize coupons printed on the back of the scorecard,

Eighty-five percent of all Volvo technicians enrollecland participated in VISTA and g3 percent of all Volv<rdealers enrolled. The promotion met approximately 90percent of the qualification objectives for master, certi-fied, and qualiry technicians; Volvo said participation wasexcellent.

AB Volvo, the international headquarters, recog-nized the United States program as the best of all nationsinvolved.

Discussion Questions

1. Evaluate Volvo's incentive program for improvingdealer service. What are its major strengths? Arethere any weaknesses? What would you have donedifferently?

2. How might programs such as this help to fosterchannel member cooperation and reduce conflictin the marketing channel?

{z