Summary
New opportunities for fixed ops professionals to achieve rapid growth though digital technology, transparency, and convenience.
As a fixed operations professional, it’s crucial to understand your challenges and opportunities so you can implement strategies that keep profits growing and customers satisfied. Here are some tips to tackle the takeaways from the latest Cox Automotive Service Industry Study.
Prepare for Influx
Rapid growth creates a big opportunity for you. Consumer spend for automotive care is expected to surpass $400 billion in 2025. We’ve already seen a 50 percent hike in service sold from 2021 to 2023.
Tip! To service more cars faster, embrace digital transformation and leverage technology solutions that get ASRs sent by your team and approved by the customer with the tap of a phone to improve efficiencies.
Battle for Share of Service Visits
Dealer market share is now 30 percent, which represents a significant decline from a 35 percent share in 2021. You may be losing ground to the chain retailers and quick lube.
Tip! Stand out from the competition and increase share of service visits by prioritizing transparency and personalization.
- Transparency comes from easy-to-understand and consistent information about services, pricing, and service history, and builds confidence and trust in you.
- Personalization demonstrates you know your customer and are committed to them and their service priorities. Use your data to greet customers by name, understand their preferences, and tailor communications and offers specific to them.
Fight Rising Costs
We’re all feeling the pinch of rising costs right now. Compound that with the perception dealership service is less affordable than its competitors, and you have a challenge you can’t afford to sleep on.
Four out of five reasons your customers may not return are cost related:
- Not a convenient location
- Total cost is unreasonable
- Dealer will overcharge
- Unreasonable labor charges
- Unreasonable parts charges
Tip! Offer service financing to create convenience for your customers and show you care about their day to day need while ensuring cash flow for your dealership.
Overcome Frustrations
Nearly half of dealer customers were frustrated with their service experience according to the recent service study. Convenience was a common theme as one of the top drivers of the dissatisfaction, manifested through difficulty scheduling an appointment and the time investment for maintenance repair or completion.
Tip! You guessed it, go digital. Utilize your service technology to make the service process easy – and fast – from scheduling online to approvals and payment with a tap of a phone.
You’re a fixed operations professional taking the time to understand what’s crucial to your customers and drives efficiency for your team. We’d love to partner with you to help you navigate challenges and smash your goals.
