These days, your customers can do just about anything from the convenience of their homes. Outings are becoming optional and errands more obsolete, and businesses are responding to changing customer preferences. From hospitality to healthcare and retail to real estate, nearly every industry is changing to bring on-demand goods and services directly to the customer. It’s the natural evolution of industry—businesses change as customer preferences change—and the automotive service industry is no exception.
Within the last few months, sparked by customer demand, many dealerships have started to offer vehicle service pick-up and delivery. Customers can have their cars serviced at the dealership without ever leaving their home or office. This shift to an on-demand service model is the natural evolution of vehicle servicing, and as with other industries, customers are taking notice of the convenience.
An Opportunity for Additional Revenue
Although still relatively new, according to Cox Automotive industry data, service pick-up and delivery is already a hit. About 22 percent of vehicle owners have used service pick-up and delivery since the start of the COVID-19 pandemic, and 90 percent said they were satisfied with their experience. In fact, an overwhelming majority (91 percent) of customers said service pick-up and delivery will be a key criterion in deciding where to service their vehicles moving forward.
“Consumers that have experienced this service love it,” said David Foutz, VP of Sales at Xtime. “And they’ve indicated that they’re willing to pay more for this service going forward.”
Currently, only about six percent of dealers are charging for service pick-up and delivery, suggesting a new source of revenue for 90-plus percent of dealers. But even aside from the extra revenue opportunity, service pick-up and delivery can help dealers attract new customers and help with dealership customer retention for those that appreciate the convenience.
“It will drive retention,” Foutz said. “Consumers are telling us how much they value and appreciate this convenience. …It’s about options, it’s about letting our consumers tell us how they want to do business with us. Having that availability and fluidity of options is going to be key going forward.”
A Sustainable Service Solution
In an industry where customers demand convenience and already have so many service shop options available, some as close as the corner quick lube, service pick-up and delivery can be a competitive advantage for dealerships. It removes barriers and gives customers a compelling reason to service their vehicles at the dealership. It saves time for customers and gives dealers an opportunity to provide additional service recommendations at scheduled, convenient times for customers.
Understanding that there is value in service pick-up and delivery, Xtime is working to help make this service a sustainable and profitable solution for dealers. Clutch Service Pick-Up and Delivery with Xtime gives dealers an automated and efficient concierge service, where customers can book service visits online directly through Xtime, while viewing real-time availability of loaner vehicles and valets. Once the service is scheduled, customers can provide payment and necessary vehicle and insurance information from the convenience of their phones.
“This tool, when you combine it with your BDC outreach, with tailored insights about your vehicle and your service needs really does remove obstacles,” Foutz said. “This can be a powerful tool in dealers’ hands.”
