Automotive Copywriter
How Will the Auto Service Industry Change Moving Forward?
In the fall, nobody could’ve predicted what the world has faced over the past few months. The coronavirus has forced companies to quickly adapt how they do business – IF they can do business yet. Luckily, service departments have been designated as essential business through most of it, keeping the dealership machine moving in stores across the nation.
It hasn’t come without challenges. From PPE and hasty plexiglass shield installations to scrambling for personnel as pick-up and drop-off requests skyrocket, service departments have been implementing changes at breakneck speed. By and large, it’s been a job well done by franchised American dealers.
But the question now turns to… what now? Were these just temporary modifications to the business structure, or are there going to be lasting effects for the future? That’s where we want to focus our perspective in America’s recovery efforts.
What a Service Visit May Look Like
Like all dealers posing the question, I don’t have any hard and fast answers. However, sitting still and waiting for the answers puts dealers in a reactionary position when being proactive is the better place to be. So, preparing for potentially permanent changes and being a leader in those could very well be the key to success.
Serving the Customer
A question I’ve heard a lot from friends, family, and acquaintances is, “How long do you think people will keep being cautious?” Undoubtedly, you’ve heard people ask similar questions, even whether we’ll shake hands again or if other greetings will prevail. I think it will be a matter of personal conscience for everyone – either confident or cautious – and there needs to be room for everyone.
For the auto dealer’s service department, that will likely mean that contactless greetings will be prevalent for the customers who choose to bring their own vehicles in. I also believe we’ll see a much higher uptake in valet servicing. Regardless which method the customer chooses, there should be no judgment about it. And while the service probably should be offered, it’s also reasonable to charge a nominal fee to pick up vehicles.
Sanitary Practices
Since we’re still months or years from the development of a vaccine, it’s safe to say that heightened wariness of shared spaces like lounges and coffee pots will be around awhile. There will also be people who are scared of others touching their cars inside. The service department will need to maintain visible cleaning practices for now, and potentially forever, to reassure customers.
Less Waiting, More Leaving
Customer lounges will be less densely occupied even during the busiest service hours for fear of viral transmission. Service departments can expect that demand will be higher for shuttles – regularly wiped down throughout the day – as well as courtesy cars that are sanitized between customers.
It would suit a service department well to have the resources at the ready if the need arises. That can mean a staff member designated as an overflow shuttle driver or a handful of low-cost rental cars or loaners.
Temporary Cash Flow Disruptions
In areas hardest hit and less affluent neighborhoods, it’s expected that dollars per RO as well as RO counts will be lower, on average. People either don’t have the same amount of funds to spend or they are more hesitant to spend on repairs and maintenance that could possibly wait.
Two things: prioritize estimated items (as you normally should), and consider offering service department financing through one of the many lending options on the market.
This may not be much of a departure from business as usual for some dealers. For others, it will seem like a major paradigm shift. Expect that it will affect your workers as much as your customers.
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1 Comment
Rob Steiman
Smythe Auto Group
This will be a main part of our process moving forward because its now the new norm.