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"Rescuing Service Profits" | Jack Simmons presentas at the 2014 DrivingSales Executive Summit

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"Rescuing Service Profits" | Jack Simmons presentas at the 2014 DrivingSales Executive Summit

  1. 1. October 12th-14th, 2014 The Bellagio Hotel, Las Vegas Rescuing Service Profits Jack Simmons
  2. 2. Connect with Consumers Reach consumers throughout the ownership lifecycle
  3. 3. IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013 Majority of dealership profits come from Service and Parts Understanding the Space
  4. 4. IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013 86% Of vehicles are out of warranty Understanding the Space
  5. 5. Average age of vehicle is 11.3 years old Understanding the Space IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
  6. 6. Consumer Loyalty to Service Providers is Eroding DME Automotive, “The Changing Service Loyalty Landscape,” February 2012
  7. 7. Opportunity is Growing The opportunity for greater service department revenue is only The service market is expected to grow 15% over the next 3 years DME Automotive, “The Changing Service Loyalty Landscape,” February 2012 getting bigger
  8. 8. Winning with the Digital Service Shopper
  9. 9. Dealer Disadvantages ? Price Perception Digital Marketing Void
  10. 10. Customer Perceptions C+R Research, April 2013
  11. 11. Consumers Go Digital When Searching for Service and Repair 1. Restaurants 2. Auto Parts 3. Building Contractors 4. Physicians & Surgeons 5. Legal Services 6. Auto Repair and Service 7. Pet and Animal Service 8. Real Estate 9. Automobile Sales 10. Financial Services YP.com Local Insights Digital Report July 2012
  12. 12. Dealers Aren’t Showing Up With Digital Shoppers R.L. Polk Co., March 2013
  13. 13. Dealers Have the Initial Advantage
  14. 14. What do Consumers Want? Top 3 qualities in service providers that consumers value:
  15. 15. Why Service Reviews Matter 2 in 3 new-car shoppers indicate service reviews are a factor when choosing where to purchase a vehicle
  16. 16. Service Reviews Build Reputation 90% of consumers who read online reviews claimed that positive ones influenced buying decisions, while 86% said buying decisions were influenced by negative ones. “The Customer Service and Business Results” by Dimensional Research for Zendesk, 2013
  17. 17. Implications for Dealers  Remind consumers of the dealer’s high-quality services, including:  Factory-certified technicians mean the job will get done right  OEM parts are the highest-quality parts  Parts and labor warranties offer confidence consumers will only pay once  Create confidence that dealership prices are reasonable relative to competitors:  Post actual prices on basic service  Offer price guarantees within an established range  Put prices in context to others in the marketplace  Use third-party resources for credibility, such as review sites and price listings
  18. 18. Implications for Dealers  Embrace digital marketing to promote the advantages of choosing dealerships  Intercept auto owners when and where they are investigating service and repair providers  Establish a digital presence and grow the visibility for of the service department to get considered and ultimately, selected versus competition  Using digital advertising and interacting with service and repair websites will enhance the service component of your dealership website and improve results in only searches
  19. 19. Action Items  Be transparent with prices  Build your service content on your website  Be mobile optimized  Put processes in place for service reviews  Build your service reputation  Work to stay current on industry insights
  20. 20. October 12th-14th, 2014 The Bellagio Hotel, Las Vegas Thank You! Please take a moment to rate my presentation in the DSES mobile app! Jack Simmons Cars.com Dealer Training Manager jasimmons@cars.com

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