A Customer RO, or Customer Repair Order, is essentially a service document. It details all the work requested by a customer for their vehicle. In its simplest form, it’s a structured breakdown of services performed, parts used, labor hours, and costs associated with a specific service visit. Every time a customer brings a vehicle in for maintenance, diagnostics, or repairs, the dealership generates an RO as a record of services provided and associated costs.
Think of it as the bridge between customer service and service operations, helping the dealership track customer-approved work and improve transparency.
In dealership settings, a Customer RO might go by other names, including:
• Customer Work Order or Service Order
• Customer Ticket or simply Service Ticket
• Service Repair Order
Common Components of a Customer RO
Customer & Vehicle Information
Each Customer RO starts with the basics: customer name, contact information, vehicle make, model, and VIN (Vehicle Identification Number). This data provides the groundwork for accurate record-keeping and aids technicians by confirming vehicle details.
Complaint, Cause, and Correction (3Cs)
Customer ROs follow a standard service template:
• Complaint: What the customer reported as the issue.
• Cause: The diagnostic results from the technician.
• Correction: Actions taken to resolve the complaint, including parts and labor.
Labor and Parts Details
This section itemizes the work completed and parts used, covering each service, repair, and part replacement with associated labor hours and costs.
Signatures & Authorization
Customer authorization is a key aspect of the RO process. By approving the work before it starts, customers prevent surprise charges, ensuring they’re fully aware of expected costs.
Overall
Customer ROs are about Transparency, Record-keeping, and Compliance:
• Transparency: Detailed ROs help build trust with customers. With clear documentation of work and costs, customers understand what they’re paying for and why.
• Record-keeping: Customer ROs become part of the dealership’s permanent records, assisting with warranty claims, audit trails, and service history.
• Compliance: Following the RO process accurately protects the dealership from potential disputes and provides clear records for any compliance reviews.
Departments That Handle Customer ROs
The Customer RO process spans multiple dealership departments:
Service Department: Technicians rely on the RO to diagnose issues, document findings, and perform work based on customer authorization.
Parts Department: Customer ROs detail parts needed for a repair, helping parts teams keep inventory aligned with service demand.
Accounting and Administration: ROs play a crucial role in billing, warranty claims, and financial reporting for customer repairs.
Customer Experience: The Customer RO is key in building transparency and trust, as it serves as a customer-friendly breakdown of the work completed.
Differences Between Customer ROs and Other Types of ROs
Customer ROs are specifically initiated and authorized by the customer, distinguishing them from other repair orders:
• Warranty RO: Covers repairs funded by warranty rather than the customer.
• Internal RO: Used for dealership-owned vehicle maintenance, such as preparing used inventory for sale.
• Campaign RO: Generated for service recalls or OEM-specific repair campaigns.
In short, Customer ROs are unique because they directly impact the customer relationship, requiring clear authorization, transparent pricing, and detailed documentation of service performed.
Customer ROs, commissions, who Cares?
Customer ROs don’t just guide the service team—they also influence how commissions and spiffs are calculated for employees in relevant departments:
1. Service Advisors: Service advisors, who interface directly with customers, may earn commissions based on Customer RO sales, including upsells or value-added services.
2. Technicians: Some dealerships offer techs bonuses or incentives linked to productivity on customer-authorized work.
3. Parts Team: Commissions might also extend to parts staff if the dealership offers spiffs for certain part sales or targets.
Accurate ROs, in this sense, directly affect earnings by providing a clear record of the services completed and the upsells achieved, linking productivity and service quality to pay.
Dealers, Managers, and Accounting Teams Care Most
Customer ROs impact the dealership’s revenue, expense tracking, customer experience, and, ultimately, employee earnings.
• Dealers and Service Managers rely on ROs to gauge service performance and identify areas for improvement in customer satisfaction.
• Accounting and Payroll Teams depend on ROs for precise commission calculations, linking completed services to incentive pay.
• Technicians and Service Advisors benefit directly from accurate ROs, as they clarify job expectations and boost confidence in commission accuracy.
Customer ROs aren’t just paperwork; they’re pivotal to the dealership’s service department. Accurate ROs improve service efficiency, customer satisfaction, and the bottom line.
Customer Loyalty: A transparent, itemized RO process increases trust, helping retain customers over the long haul.
Data for Service Optimization: Aggregating RO data allows dealerships to identify common service issues, optimize inventory, and schedule repairs more effectively.
Revenue Insight: ROs provide insights into revenue from parts and labor, helping service departments evaluate and adjust pricing, labor allocation, and parts ordering.
The bottom line? Well-managed Customer ROs streamline operations, drive profitability, and help create a clear connection between service work and employee compensation.
