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Rescuing Auto Dealership Service Profits Through Trust and Price Transparency

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Cars.com Manager of Dealer Training, Jack Simmons, new data from research firm Gfk at the 2014 DrivingSales Presidents Club Most Valuable Insight competition.

Published in: Automotive, Business
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Rescuing Auto Dealership Service Profits Through Trust and Price Transparency

  1. 1. April 16th, 2014 Grand Hyatt New York, NYC ~ Your Capital ~ Your People ~ ~ Your Brand ~ Presented by Rescuing Service Profits Through Trust and Price Transparency Jack Simmons
  2. 2. Average age of vehicle is 11.3 years old IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
  3. 3. IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013 Majority of dealership profits came from Service and Parts between 2005 - 2011
  4. 4. IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013 86% Of vehicles are out of warranty
  5. 5. GREATER SERVICE DEPARTMENT REVENUE THE OPPORTUNITY FOR IS ONLY GETTING BIGGER The service market is expected to grow 15% over the next 3 years DME Automotive, “The Changing Service Loyalty Landscape,” February 2012
  6. 6. DEALERS ARE NOT SHOWING UP WITH DIGITAL SHOPPERS R.L. Polk Co., March 2013
  7. 7. DEALERS HAVE THE INITIAL ADVANTAGE
  8. 8. Importance 2% 2% 2% 8% 8% 8% 10% 15% 21% 25% Online Scheduling Loaners/Shuttles Flexible Hours Type of Service Provider Price Range Location Specials (Coupons/Discounts) Online Consumer Reviews Price Guarantee/Warranty Tech Certification Level IMPORTANT ATTRIBUTES FOR SERVICE SHOPPERS Gfk Service and Repair Price Report, October 2013
  9. 9. 29% 30% 30% 31% 35% 40% 41% 44% 50% 50% 57% 27% Flex Hours Online Scheduling Loaners/Shuttles 5% Off Discount 10% Off Discount Online Reviews 3+ Stars 20% Off Discount Price Guarantee Certified Tech Parts & Labor Warranty Price Guarantee/Warranty Base DEALER SHARE OF PREFERENCES Gfk Service and Repair Price Report, October 2013
  10. 10. MOST IMPORTANT ATTRIBUTES WHEN CHOOSING A SERVICE PROVIDER
  11. 11. 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 • Utilize third party resources for credibility, such as review sites and price listings IMPLICATIONS FOR DEALERS
  12. 12. 97% Of Dealer Website is Sales Content Only 3% of Dealer Website is Service Content NADA data 2012 INCREASE VISIBILITY FOR SERVICE SHOPPERS
  13. 13. INCREASE VISIBILITY FOR SERVICE SHOPPERS
  14. 14. 2 in 3 new car shoppers indicate service reviews are a factor when choosing where to purchase a vehicle
  15. 15. • 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 • Grow service review volume and promote on dealership and popular review sites to increase consideration among both service and new car shoppers EMBRACE DIGITAL MARKETING TO PROMOTE ADVANTAGES OF DEALERSHIPS
  16. 16. April 16th, 2014 Grand Hyatt New York, NYC ~ Your Capital ~ Your People ~ ~ Your Brand ~ Thank You! Jack Simmons Dealer Trainer Cars.com

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