The majority of service departments are busy today, I've even heard "I don't need any more business", and that comment is concerning. Service departments are busy with recall work, but not necessarily customer pay work.
Most vehicles visiting dealerships today are late model, under warranty, and have minimal opportunities for customer pay work. They also provide little upside for new car sales opportunities. General maintenance and service, the industries bread and butter, has been the missing link within the franchise dealer world.
Are franchise dealer's service departments at risk of becoming nothing more than warranty/recall centers? The independent repair shops and service disruptors certainly hope so. Have you ever considered why franchise dealers can't retain service customers? Consumers don't want to take the time to bring their vehicle in for service.
Where's the majority of the customer pay business going today? Same place it's been going for decades, independent repair shops. Why? Do they have better facilities? Do they have better technicians? Do they have better tools and equipment? Do they have better pricing? Do they have factory technical support? Do they have OEM sponsored PPM programs included in the purchase of the vehicle? The answer is no, so what do they have that the franchise dealer doesn't?
Consumers view automotive repair as time consuming, inconvenient, and disruptive to their daily lives. Consumers are willing to put off repairs as long as possible. Consumers enjoy and demand convenience in every aspect of their lives. Regardless of the business and or industry sector, if you don't provide customer convenience, the end result is a diminishing customer base.
Consumers are going to take the least path of resistance and service their vehicle with the service center that makes the process the most convenient. How does the franchise dealer win the CONVENIENCE game? How does the franchise dealer make the repair process not time consuming, convenient, not disruptive to the customer's daily life and create an environment where consumers don't put off repairs?
Customer Pick-up and Delivery is vital for franchise dealers to win back consumers. OEMs and franchise dealers are currently offering pick-up and delivery service on all customer pay, warranty, and recalls starting with the 2017 model year. 80% of consumers utilize pick-up and delivery service when offered. Your customer never has to leave their home or office to have their vehicle serviced. OEMs and franchise dealers are providing their customers with a loaner, as well as pick-up and delivery service. Why would the customer go anywhere else but the franchise dealer when this convenience model is provided to the customer at no cost? The dealer that provides the path of least resistance will win the customer's business. See how Lincoln Motor Company Dealers are providing Pick-up and Del...
Your drive may be busy today, but don't bank on recalls fueling fixed operations long term, nor can you count on recalls to fuel new/pre-owned sales. Win the service customer, and the rest will take care of itself.
Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. Ken has 25 years experience within the automotive industry, inclusive of retail, OEM, after-market and start-ups. The auto industry must learn to exceed customer expectations and implement business processes based upon customer convenience.
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