Service departments, on average, contribute only 10% to dealership revenue, yet deliver nearly 50% of the profit. In today’s environment, where new car profitability continues to decline, improving the service department’s performance is critical to the ongoing success of most dealerships.
By freeing up service advisors to sell more, by eliminating dropped calls into the service department and by attracting new customers with online scheduling, Xtime increases profitability by improving fixed operations.
For example, a BMW dealership in California, for the month of August 2007, booked $44,000 in new customer web ROs and $117,000 in new customer call center ROs via Xtime. A large dealer group booked nearly $700,000 in new customer RO’s for their stores in Atlanta, over a four month period (see graphs below). These are brand new customers that have neither purchased nor serviced a vehicle at the dealership, prior to making their first service appointment using Xtime.
According to J.D. Powers, customers place a high value on the ability to get accurate and convenient pricing and availability commitments from their service departments (just as they do today for airline, hotel, and rental car reservations). The increase in new customers and new customer RO dollars validates the benefit of addressing this need and, alone, easily justifies the use of Xtime at most dealerships.
- Dealers making money
- New channel to sell, book, and manage service
- Avg $6,700 for NEW customer CP per store*
- Avg $40,000 CP per store for Web appts
- Avg >12 brand NEW customers/month
- 7 to 1 monthly ROI just on new customers
- Xtime increased service leads by 3X
- 16,000 more online appointments per month for major OEM
- $4.5 Million in additional RO $’s /mos. booked by customer not advisor
- eScheduling = $1-2/appt vs. Advisor = $10/appt
- Eliminate dropped calls – 15% of calls on Mon and Tues AM
- Maximize shop utilization – Fill up unused capacity without overbooking
- Increase CSI
