I routinely see OEMs and franchise dealers trying many different advertising strategies, messaging, promotions, discounted services, give-aways, etc., all in an effort to attract consumers to their service departments. The end result is a lot of money and time is spent with very little to show for it.

The industry has yet to understand the primary reasons why the majority of consumers defect to the aftermarket. Consumers perceive automotive repair, particularly at the franchise dealer level as:

• Inconvenient
• Time Consuming
• Disruptive to their day
• Proximity Based

Consumers are defecting to the aftermarket based upon the independent repair facility being closer to their home/office. In most cases, a customer's home or office is located much closer to an independent repair facility versus a franchise dealer. You have to put yourself in a customer's shoes. Which option would you prefer?

1. Independent Repair Facility: Located 10 minutes from my home/office. No appointment necessary. One or two customers ahead of me if I choose to stop in unannounced. 10 minute write-up and I'm gone. This is a 20-30 minute process.
2. Franchise Dealer: Located 30 minutes from my home/office. Appointment is highly recommended. Consumers perceive stopping by unannounced as not an option. Multiple customers showing up at the same time despite different appointment times. 30 minute write up and loaner processing and I'm gone. This is a 60-90 minute process.

Consumers are going to opt for convenience, time savings, and the option that is the least disruptive to their day, thus the independent repair facility continues to win consumers.

One of the biggest complaints I hear from dealers is how today's consumer is deferring service intervals...why do you think that is? Consumers are deferring service intervals because getting their vehicle maintained is inconvenient, time consuming and disruptive to their day. Consumers will continue to defer service until the industry makes maintaining their vehicle easy and convenient. OEMs and dealers can change this industry trend by offering Service Customer Pick-up & Delivery with loaner. You have the option to eliminate all of the customer's excuses for not visiting a franchise dealer.

If we were having this discussion ten years ago, we'd be addressing the following:

• Competitive Pricing
• Transparency
• Trust

The majority of franchise dealers have done a very good job addressing competitive pricing (too much in a lot of cases), transparency and trustworthiness. The internet and companies such as Amazon have spoiled us all. We have immediate access to all the information we need, and can essentially have anything we need delivered to our home in a matter of hours. Convenience, time savings, and the least amount of disruption to the consumer's day will drive traffic and even more sales.

Amazon isn't necessarily the least expensive, in many cases, consumers end up spending more with Amazon, yet they're happy to spend more money all in the name of convenience, time savings, and transacting business with a company that isn't disruptive to their day. The consumer can access Amazon from their home, office, beach, gym, wherever...Amazon has made commerce very easy and simple. The auto industry must adapt to the changing consumer, and how consumers want to transact business today.

Consider the following quote from a consumer whose franchise dealer provides Service Customer Pick-up & Delivery with loaner. "The overall Service Experience was beyond Exceptional. The delivery service of a loaner car and pick-up and return of my car is a service that separates you from any other experience that I have ever had. I could not have been more pleased with the overall service and the ease at which it was accomplished. Also, the timely pick-up and delivery of my vehicle was exceptional as well." This dealer will continue to win customers, retain more consumers, win back lost UIO and generate significantly more customer pay business.

Remember, the consumer pays all of our paychecks, from OEM to Dealer to Technology provider...provide the consumer with convenience, and they will spend even more money with all of us.

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.