MORE TOOLS AND SERVICES ARE EMERGING TO HELP SERVICE DEPARTMENTS STEP UP THEIR GAME AND PROVIDE A BETTER CUSTOMER EXPERIENCE
Todays’ vehicle shoppers are smarter and better informed than they’ve ever been in the history of the retail vehicle industry, and often arrive at dealerships armed with bewildering amounts of information on the kind of product they wish to purchase.
The result of all this “customer empowerment” has been more intense competition than ever, in both vehicle sales and service operations.
With new vehicle profit margins cut to the quick, it’s become more critical than ever for dealerships to maximize profitability at the service end of the operation.
Thankfully, there are lots of specialized companies providing tools to get the job done in the most effective possible manner, and help build income beyond the sales floor.
The challenge is that new vehicle buyers not only shop around extensively for their next set of wheels, but also they have the knowhow to research the service sector.
Increasingly, a buyer may not necessarily have his or her vehicle taken care of by the dealership where the product was purchased.
Winning a new vehicle buyer’s service business is no longer the “given” it once was. But with the right strategies, that business can be secured.
Just about every dealer and service operation we spoke to on this topic emphasized the importance of customer relations, and of establishing a good rapport on a continuing basis.
If the relationship with a customer has a solid foundation and is viewed as an ongoing strategy to be constantly nurtured, that customer will not only return to the dealership for both service and replacement vehicles, but will also recommend the dealer to family and friends.
Many dealers point out that referral business is right at the heart of ensuring profitable customer relationships for the long haul.
AutoPoint’s tools provide valuable information customers need
In the luxury car field, leasing is a useful aid to meeting this customer relations goal because many buyers, especially in the luxury segment, replace their vehicle every three years or less. Most luxury vehicle dealers we spoke to indicate that over 70 per cent of buyers lease their vehicles.
One company that specializes in developing systems to enhance efficiency and profitability in the automotive service industry is AutoPoint, which works on the principle of keeping service customers “informed and engaged.”
The AutoPoint platform is an integrated system that uses powerful software to make extensive use of video and smartphone/computer communication, to keep the customer fully informed of the entire vehicle service process.
There is no need to play “phone tag” with a service representative, and the customer keeps in close touch with exactly how the service is progressing.
The focus is on providing customer service at a high level, creating a “transparent” experience for that customer after a vehicle is handed over for service, and retaining that customer’s business.
AutoPoint’s philosophy is that the better the customer is informed of the service process and the options available, the more likely that customer is to return to the dealership the next time round.
Hunter Engineering provides tools to
help optimize fixed ops processes
Hunter Engineering’s alignment equipment is aimed at enhancing shop efficiency and claims to offer the best after sales care in the industry. The company guarantees that whatever the problem, its equipment can be serviced and brought back up to speed in 48 hours, minimizing downtime and the effect that has on dealership profitability.
The company has a new semi-automated tire-changing system that’s meant to eliminate potential errors using a foolproof design concept that’s aided by computer numerical control (CNC) technology.
Hunter Engineering points out that customer retention for the dealer is a major target with this advanced equipment.
DealerSocket offers an impressively wide range of products for service operations, and the company’s website is a worthwhile resource for innovative upgrades — many of them focused on ensuring customer loyalty.
DealerSocket’s tools help to improve the customer’s service experience
Liability can be reduced by attaching photos, videos and even audio recordings to the inspection report.
Nothing will impress a customer more than sending the inspection report and pre-work order to them by text or email.
The tablet can also play a role in alerting the advisor to profit opportunities created by adding services recommended by the vehicle manufacturer and even upgrades and accessories which may appeal to the customer.
DealerSocket lists “top tips” for upgrading fixed operations profitability and increasing customer retention levels, condensed as follows:
- Give your customers reasons to return: Treat them well, “wow” them and earn their trust;
- Marketing: People need to constantly see your dealership name to remember that it exists and to consider it as a viable option for their needs;
- Convenience: Make it as easy as possible for customers to have their vehicle serviced by your dealership. One key point is to keep convenient hours. Most people work from 9 a.m. to 5 p.m. and cannot get to the dealership in that time period. What works for the dealer may not work for the customer;
- Train and incentivize: Train salespeople to set first-service appointments every time they sell a car. Measure their upsell processes. Even simple non-monetary incentives can be effective in maximizing employee performance;
- Keep your mind online: Your online reputation is vital. People are more likely to share bad experiences than good ones. Encourage happy customers to post positive views about the dealership. Email simple surveys to contented customers. Rectify customer problems before they have a chance to post negative reports online; and
- The takeaway: It’s unreliable to count on vehicle sales to drive fixed operations profitability. The key is to “fix” fixed operations efficiency and ensure ongoing, recession-proof business success.
The bottom line is that spending more time on enhancing the effectiveness and profitability of fixed operations can pay off handsomely.
There are many suppliers focusing on service department efficiency, and most of them are worth exploring for ideas.
This may involve some investment on the part of your dealership, but it will almost certainly pay off in customer satisfaction and retention, not to mention the overall reputation of the business.
