Ken Hite

Company: RedCap

Ken Hite

RedCap

Mar 3, 2017

The Dealer and His Sales Department are Responsible for Service Retention...What?

How do you expect your service department to improve upon their service retention indexes when 50-75% of your new/pre-owned units sold are never going to set foot in your service department? Think about it, every new and pre-owned customer you sell month in and month out have already decided where they will service their vehicle, and the majority aren't coming back to your dealership.

Initially, it's the dealer's responsibility and his sales department to provide the customer with the "Why Should I Service My Vehicle With You?" Consumers will make servicing decisions based upon the service facilities proximity to their home or office. If a customer has traveled any distance to purchase a new or pre-owned vehicle in the name of price, rest assured that will service their vehicle at a dealer located closer to their home or office, or at their local independent repair facility.

How can the dealer persuade consumers to purchase vehicles from their dealership, and simultaneously convince the consumer that they should also service their vehicle at the same dealership in which they purchased, regardless of distance from the consumer's home/office? Two simple steps.

  1. Promote that your dealership offers Test Drives at the consumer's home.
  2. Promote that your dealership offers Service Customer Pick-up & Delivery, in which the consumer never has to leave their home/office to have service performed.

Take your dealer hat off for a moment, I know it's tough but trust me, and put your customer hat on. Yes, dealers are consumers also, hard to believe, but it's true. I want you to think about the shopping you do online. It doesn't matter what the product/service is, yet you're doing the same thing your customers do when deciding which dealer to conduct business with. You're going to start with your research, make a decision, and more than likely purchase online. Why are you purchasing online versus visiting the brick and mortar equivalent? It's all about convenience. It's easier, less time consuming, and enables you to multi-task simultaneously. Dealers and their personnel are very busy, and work a lot of hours. You don't have time to visit brick and mortar for your everyday shopping, thus you purchase as much as you can online, all in the name of convenience and time savings. Why do you think your customers are any different? They're not, they're also busy with both spouses working, taking care of kids, socializing, etc., the last thing they want to do is take time out to visit the dealership, let alone come in for service.

Make your sales process convenient and easy by offering consumers the option to Test Drive at the consumer's home, and provide your customers with Service Pick-up & Delivery. If you provide it, they will come, and they will stay.

I want to clarify that Service Pick-up & Delivery doesn't include your shuttle, nor does it include the customer bringing their vehicle into your service drive. It means that a Service Concierge Driver is taking the dealer's loaner out to the consumer, exchanging vehicles and returning to the dealership with the customer's vehicle...the customer never had to leave their home or office. This is precisely what you the dealer, and your personnel would want if getting your personal vehicles serviced...why should it be any different for your customers?

Consumer behavior has been changing, and will continue to change. As a retailer, you must change with the consumer, otherwise you will become obsolete. The brick and mortar world is being decimated by online, which offers convenience and time savings for the consumer. The auto industry, and the auto dealer isn't immune.

 

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for Service Customer Pick-up and Delivery, as well as Consumer Test Drives conducted at the consumer's home. Ken has 25 years experience within the automotive industry, inclusive of retail, OEM, after-market and start-ups. The auto industry must learn to exceed customer expectations and implement business processes based upon customer convenience.

Ken Hite

RedCap

Senior Vice President Enterprise Sales/Business Development

1097

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