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Dealers Missing Dollars: One Third of Dealership Service Dollars Potentially Lost in Missed Afterhours and Overflow Service Calls

New analysis by DMEautomotive of over 8,500 dealership calls shows that nearly 70% of missed service calls are from ‘Swing Loyalists’ who represent 31% of dealership spend

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Daytona Beach, FL – January 21, 2015 – A new analysis by DMEautomotive reveals that dealerships are missing out on calls from customers who represent nearly one third of their total service dollars. The study of 8,537 overflow and afterhours service-related calls across 172 dealerships identified nearly 70% of those callers as ‘swing loyalists.’ These customers, according to DMEa research, represent 31% of all dealership service dollars and have a high propensity to become loyal customers, thereby increasing their value to the dealership even further. The data also showed that one fifth of those potentially missed calls were from dealership ‘loyalists’ who represent a whopping 59% of dealerships service dollars.

“The message of this data could not be clearer: dealers must have effective programs and processes for handling after hours and overflow calls or risk losing a large chunk of service revenue and, critically, valuable loyal customers,” said JoAnn Bedenbaugh, vice president and General Manager of DMEautomotive’s Customer Interaction Center.  “With the explosion of smartphone usage, the phone call has once again become an essential source of leads and communication with customers. In fact, phone leads are growing at a greater pace than Internet leads – and, as our data shows, represent some of a dealership’s highest value service opportunities. Unfortunately, those are the calls most likely to be missed.”

DMEautomotive analysis

According to DMEautomotive’s segmentation studies[1], the highest value dealership service center customers are ‘swing loyalists’ who either give a dealer more of their visits or more of their spend, but not both, and ‘loyalists,’ who give a dealership both. 

Low Overall Service Industry Rates

Share of Industry Dollars

 

Loyalists

59%

Swing Loyalists

31% (In Play)

Disloyalists

10% (In Play)

 

And, it is these two groups who make up the highest proportion of a dealership’s after hours and overflow callers - ninety percent.

Highest Proportion of a Dealership’s Callers

 

Afterhours

Overflow

Swing Loyalists

67.7%

69.4%

Loyalists

21.6%

21.3%

Disloyalists

10.7%

9.3%

 

Considering the proportion of revenue each segment represents – ‘swing loyalists’ 31% / ’loyalists’ 59% - dealerships who are not adequately handling after hours and overflow calls are potentially losing one third of all their service revenue, risking a poor customer service experience and, ultimately, defection from the customers who comprise the majority of their business.

* DMEautomotive analyzed 8,357 calls across 172 dealerships between June 1st, 2014 and October 31st, 2014.

About DMEautomotive
DMEautomotive (DMEa) is the industry leader in science-based, results-driven automotive marketing, and provides turnkey marketing to the largest and most innovative automotive organizations, from automobile dealerships to many of the largest aftermarket companies in the U.S. DMEa's uniquely panoramic view of the complete automotive sales and service market, combined with its cutting-edge, science-based marketing programs, increases customer yield, conversion and retention. 

DMEa does not take marketing performance on faith, and each product and service is measured by a simple, precise scientific approach: Is it true? Prove it. Will it work? Test it. Does it generate results? Show it! Supported by DMEa’s proprietary, cloud-based Red Rocket Technology Platform, the DMEa product suite includes science-based, data driven, multi-channel customer acquisition and retention marketing programs; best-in-class campaign reporting; data management and analytics; auto-focused Customer Interaction Center solutions, and complete on-site mail and email fulfillment services. Headquartered in Daytona Beach, Florida, DMEa also has major operations in Jacksonville, Florida. 

Media Relations

Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com
Crystal Hartwell, mWEBB Communications, (949) 929-4637, crystal@mwebbcom.com

 

[1] http://www.dmeautomotive.com/marketing-success-in-a-changing-loyalty-landscape

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