The consumer is the life-blood of any business, and franchise auto dealers must implement consumer centric solutions that will encourage consumers to conduct business with your dealership(s).

As you read a few of the customer quotes below, it's important to note that consumers are conducting business with dealers that are geographically located further away, and dealers that are located closer to the consumer aren't winning their business. Why? Dealers that provide Service Customer Pick-up & Delivery are winning the consumer's business based upon improving the customer experience. Make it convenient for the customer and you'll win that customer.

"Chadwick was great. The service is amazing and I'm so happy it was available. It makes it easy to do business with Weatherford which is not necessarily our closest/easiest to get to BMW dealership"

"It's a good service to add for free to encourage people to use Weatherford. Otherwise would just go to SF BMW service center since it's easier to get to driving myself"

"This service makes it very convenient for my vehicle to be serviced at whichever time that BMW is available to provide service. Were I required to deliver my own vehicle, I would be more troubled to find a service time that was convenient for me as well"

"I love the service, it encourages me to stay with BMW vehicles. It allows BMW to stand apart from some of the other brand cars by offering this"

These are just a few of the thousands of customer comments regarding Service Customer Pick-up & Delivery Valet. Are you ready to start winning your lost UIO and conquest customers back today?

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. 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.

There will be about 350 Genesis dealers to start nationwide, but Raphael says the plan is that most buyers will seldom need to visit them. He says his goal is to take care of many service needs without a trip to the dealer. "We'll come to you wherever you are," Raphael says, "and bring a loaner car as good as what you have."

Service retention has been the Holy Grail for the auto industry. OEMs and dealers nationally are utilizing Service Customer Pick-up & Delivery as a means to stem customer defection, and reengage lost UIO. See complete article here; 

A few customer quotes regarding their Pick-up and Delivery experience.

"This service makes it vey convenient for my vehicle to be serviced at whichever time that BMW is available to provide service. Were I required to deliver my own vehicle, I would be more troubled to find a service time that was convenient for me as well"

"I love the service, it encourages me to stay with BMW vehicles. It allows BMW to stand apart from some of the other brand cars by offering this"

"If it's not broke don't fix it. A great experience, saves me time. And didn't have to change dr. appts. and you know what a pain in the ass that can be. Wonderful job guys keep up the good work. Kudos to all involved"

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. 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.

There are a few critical areas that Fixed Operation Directors need to focus upon to ensure your service departments are prepared for 2017 and beyond.

1. Consumer Behavior: Understand that consumers view auto repair as time consuming, inconvenient, and intimidating. Having a car repaired is one of the last things in the world that any consumer wants to do. Auto repair has become a need basis driven industry, versus a want and maintain industry. Consumers will put off auto repair as long as they possibly can. Consumer behavior is changing and we must adapt. We live in a convenience oriented world today. Everything we want is at our fingertips via the web...the web has made all of our lives easier and much more convenient. Consumers expect and demand convenience when it comes to auto repair. They enjoy convenience in every other aspect of their lives, why should auto repair be any different?
2. Employee Turnover: This is an industry wide problem that doesn't have to be. What's contributing to this problem? A) Commission driven compensation B) Excessive discounting-low effective labor rates C) Too many in warranty customers-few opportunities to sell customer pay D) Too few out of warranty customers-due to low numbers, lends itself to overselling E) Ineffective management
3. Excessive Discounting: Advertising loss leaders such as $29.95 LOF isn't an effective strategy for driving customer pay traffic. Discounts are also killing your effective labor rate. Franchise dealers should charge more for their services. It's ok to charge more than local independents, just be competitive and in the ball park. Consumers will flock to your dealership if you make the process convenient and not time consuming. The key is servicing the customer's vehicle without the consumer having to visit your dealership...sounds counter-intuitive, yet that's what consumers want.
4. Trust & Transparency: The auto repair industry has had a black eye for decades. Consumers are very skeptical of repair recommendations; do I really need this repair, or can it wait another 6-12 months? Electronic MPI that offers consumers validation of repair recommendations via photos and videos is essential.

A recent survey conducted by AAA shows that "one-third of U.S. drivers -- 75 million motorists in total -- have yet to find a trusted repair facility. The top reasons that American drivers mistrust car repair shops are:

• The shop recommends unnecessary services (76 percent).
• The shop overcharges (73 percent).
• They have had a negative experience with a shop (53 percent).
• They are concerned that the work will not be done correctly (49 percent).

The good news is that you have the opportunity to garner your fair share and more of the 75 million motorist whom are seeking a trust-worthy repair facility. Consider this; even if you adequately address employee turnover, excessive discounting, and trust & transparency...are those accomplished tasks going to drive consumers to your repair facility? The answer is no...it will have a minimal impact. It takes a lot of time and money to convey to your lost UIO and prospective conquest customers that your service facility has limited employee turnover, competitive pricing, and provides for a trustworthy and transparent experience. Consumers must experience these attributes...get their vehicle in the door, provide a great customer experience, and your customers will advertise for you.

The average franchise dealer is spending $10K-$20K a month in service discounts. Those discounts aren't driving traffic to your dealership. Shift your excessive service discount expense to service pick-up & delivery, and watch your traffic count soar. The only means to drive lost customers and conquest customers to your service drive is through pick-up & delivery service. Once you have the customer's vehicle in your dealership, then you can demonstrate the quality of your staff, competitive pricing, and how your service center provides consumers with a trustworthy and transparent experience.

Cadillac and their Project Pinnacle is the latest OEM to require their franchise dealers to provide service customer pick-up & delivery. Lincoln and Hyundai Genesis are also providing service customer pick-up & delivery. Service retention has been very elusive for OEMs and their franchise dealers. Land Rover and Jaguar will require their dealer body to incorporate Rover and Jaguar loaner fleets effective January 2017...how are dealers going to increase loaner efficiency to ensure consumers don't have loaners longer than necessary? Make 2017 the year you focus upon service pick-up & delivery, and provide a convenience driven model for your customers. Consumer behavior will continue to change, and the auto industry must adapt to the ever changing needs of the consumer.

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. 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.

We have all read about employee turnover, and the challenges the industry faces with hiring needs. A recent article in Automotive News cited "Two of every five service advisers leave each year. How can dealers keep their best ones from burning out?"

What struck me the most, and should be a red flag for the Dealer and his/her Fixed Operations Director are the reasons cited by advisers for quitting their job and leaving the industry all together. The following list is per the Automotive News story.

• Long workdays and oppressive schedules, including weekend shifts, that play havoc with family life. 

• Inadequate pay, especially when their income depends too much on commission sales. 

• Ever-increasing and demanding duties, coupled with disrespect and verbal abuse from bosses, shop colleagues and customers. 

• Automakers and dealers relying too much on rigid customer-satisfaction surveys to judge the advisers' performance and set their pay. 

• Feelings of powerlessness and lack of appreciation. 

• Pressure from managers to lean on customers to buy service work and products they may not need in order to meet dealership profit targets. 

There are numerous reasons for the aforementioned list cited by advisers for leaving, however, I'd like to address some not so obvious concerns as it pertains to the cited reasons.

1. I've spoken of service drives being busy with the wrong type of work, specifically too much recall/warranty work. Dealers need customer pay work. Understanding that a lot of recall and warranty work is out of the dealer's control, please don't think your service drive is busy, when it's busy with the wrong type of work. This simply fuels the reasons for all the employee turnover. It's very difficult to "up-sell" a recall/warranty customer, with the exception of a token LOF.
2. Industry wide service retention rates of 30% are killing your fixed operations, and once again fueling employee turnover. Unfortunately, the 30% retention rate isn't compounded monthly or yearly, it's a variable metric. You may have a 30% retention rate, but those customers are in constant flux, thus it's virtually impossible to grow service retention rates significantly. That's why dealer service departments are full of in warranty vehicles, and a very small percentage are out of warranty.
3. Waiters and inefficiencies are a contributing problem as well. Waiters want everything done yesterday, and contribute to less than average tickets as they're unwilling to wait for additional work to be completed. The more customers coming into your drive, the less efficient and productive your team will be. Think about it, what you really want is the customer's vehicle in your service drive, but not the customer. Waiters and customers are time consuming, and drain dealer personnel of valuable time.
4. The average vehicle on the road today is now 11.6 years old. How many vehicles in your drive are 4-5 years old and out of warranty? More than likely a small percentage. While it's important for new car customers to visit your dealership, it's just as important for out of warranty vehicles to visit the dealership. There are ample customer pay opportunities, trade opportunities and new car customer prospects. The aged vehicle is a vital link to the dealers overall success.
5. Dealer advertising contributes to waiters and less than average tickets. Dealers promoting an Express LOF are contributing to waiters and anxious customers that expect their LOF to be completed in 20 minutes...one mishap and you have an angry customer, and probably a lost customer. Stay away from aggressive price discounts, and simply be competitive. Competitive pricing combined with a great customer experience is what your customers are seeking.

I would encourage every Dealer and Fixed Operations Director to drive a five mile radius around your dealership any day of the week, and take note of how many aged units are sitting at independent repair facilities...it's astounding. Every one of those lost customers represent an opportunity, an opportunity to gain a lost customer, gain additional customer pay, locate a valuable trade and even sell a new car.

Out of warranty vehicles are vital, and drive every department within the dealership. OEMs and dealers promote sub-vented leases, 0% APR, and thousands off in an attempt to drive traffic and sales. OEMs and dealers promote Express LOF and aggressive service pricing in an attempt to drive traffic and sales. Dealers and their department heads utilize third party aggregators to drive sales and service traffic. It's a vicious circle that never addresses the underlying problem...too few out of warranty vehicles. How much would your dealership save in advertising each month if you didn't have to constantly chase the elusive lead?

How do you drive out of warranty vehicles to your dealership? Take your dealership to the customer, provide Service Customer Pick-up & Delivery, with the ability to schedule, dispatch, track, monitor, utilize company drivers or your own, and provide a very turnkey uber=like system to manage the process. Consumers have made it very clear that they would prefer not to visit the dealership, why not support the customer and give them what they really want...Service Customer Pick-up & Delivery. The majority of consumers want to service their vehicle at the dealership, they just don't have the time, nor want the inconvenience.

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. 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.

1. Lack of Customers in your Service Drive...The Right Customers
2. Too Many Late Model Recall Units
3. Declining Dollars per RO
4. Too Many "Waiters"
5. Service Retention Rates of 30% or Less
6. Continued Customer Defection
7. Too Many In-bound Customer Phone Calls Inquiring about Vehicle Status
8. Too Few Aged Recall Units (3-7 Years)
9. Minimal Success with the Sales of Additional Service Recommendations (ASRs)...20-30% is Unacceptable
10. Minimal Success with Declined Service Marketing...2-3% Conversion is Unacceptable

These are a few of the critical obstacles facing service centers daily. These are also the same challenges that have plagued the industry for decades. Why is it so difficult to address these concerns and why do they continue? Answer-The industry has yet to address the primary reasons that keep consumers away. Consumers perceive the dealership experience as time consuming, inconvenient and intimidating.

Every Dealer and their Fixed Operations Director should look at their dealership(s) and answer the following.

• Has my dealership addressed "Trust", do consumers perceive my dealership and personnel as trustworthy?
• Has my dealership addressed "Transparency", do consumers perceive my dealership and processes as being transparent...does my dealership provide consumers with evidence that a repair recommendation is necessary?
• Has my dealership addressed "Pricing", do consumers perceive my dealership as competitively priced? Franchise dealers don't need to be the least expensive, nor do they need to offer $29.95 LOFs. Be competitive in your pricing, offer both OEM and after-market components...provide your customer the option.

According to JD Power, one of the most critical areas in service is customer wait time. Wait time is in play with "waiters" and dealers promoting express lanes. "Customer satisfaction averages 835 when the wait time for a maintenance issue is less than one hour and 40 minutes. When the wait is longer, satisfaction averages about 756. The survey found 17 percent of customers will wait under an hour or not at all for their vehicle to be serviced. To help address the concerns of these customers, J.D. Power recommends offering a loaner vehicle, shuttle service, or some kind of amenities in the waiting area."

Many dealers feel their service departments are pretty busy today, the challenge is that your service drive is busy with the wrong type of customer. Keep in mind that any customer is your service drive is certainly a positive. The service drive is busy with recall business. The majority of these customers have vehicles that are 1-3 years old, still under warranty, and represent very little customer pay opportunity. The odds are that these recall customers will have their warranty work performed, there will be little to no up-sell opportunity, and industry data supports that the majority of these customers won't return.

Dealers need general maintenance and service work in their drives. Recall business is fine, however, the recall business you really want is the 3-7 year old vehicles that are out of warranty, and have ample customer pay opportunities. These are also "lost customers" that left the franchise dealer world years ago...let's get them back.

Since consumers perceive the dealership experience as time consuming, inconvenient and intimidating...how is your dealership going to address these customer perceptions? How is your dealership going to address customer wait time?

OEMs tie a lot of financial incentives to CSI. JD Power has recognized "Pick-up & Delivery" as a tool that provides significant uptick, as well as an additional 40 points worth of CSI. How much OEM financial incentive is being left on the table in the absence of "Pick-up & Delivery" service?

Service Customer Pick-up & Delivery addresses consumer perceptions of franchise dealer visits being time consuming, inconvenient and intimidating. Service Customer Pick-up & Delivery also address the 10 challenges noted previously that plague franchise dealer service departments daily. The key is to get the customer's vehicle in your service drive, without the customer visiting your dealership and being inconvenienced. Consumers simply don't have the time to bring their vehicle in for service...make it convenient and they will come.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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.

Dealer discounting for both service and sales have gone entirely too far. This discussion will focus upon service, and we'll address sales in our next discussion.

OEMs and their franchise dealers placed a heavy emphasis on becoming competitive in the service market place dating back 25 plus years. This effort was designed to stem defection of customers to the independent repair shops, become more price competitive, and drive more traffic back to the franchise dealer. Has this strategy paid dividends to the OEMs and their franchise dealers? I would say "no."

Franchise dealers have been so focused upon "price", that many dealers are now priced significantly less than independent repair shops. Independent repair shops have been very savvy, and have moved their pricing up, while franchise dealers move their pricing down. Have you ever noticed how many independent repair shops, inclusive of the large chains don't list price? The smart independent repair shop will advertise "dollar discounts", yet they don't list prices like the franchise dealer.

Compare https://www.jiffylube.com/auto-services to your service specials, and note there isn't any pricing, only "dollar discounts." Here's a random independent repair shop http://larrysindependent.com/specials.html, note how the service specials are displayed. While the franchise dealer is promoting price, the savvy independent is promoting convenience, has higher pricing, and continues to take market share.

General rule of thumb is that a service department will spend 3% or less of customer pay labor sales on discounting. If a dealer generates $500k/month in customer pay labor, then your average dealer will spend approximately $15k/month in service discounts. I believe this methodology is flawed. Industry data supports that the franchise dealer is losing the service retention battle, yet we continue to advertise service specials in the same fashion as we did 25 years ago.

How does the franchise dealer beat the independent?

1. Scale back your service discounts, and spend a small portion of those savings on Service Customer Pick-up & Delivery. The independent repair shop can't compete with this service. Your service discounts will be less, and your gains will be greater. Service Pick-up & Delivery will yield more customers, more aged units, greater dollar per RO, and greater CSI.
2. Promote more "dollar discounts", and minimize listing service pricing for all of your competitors to shop. Independents charge $89 plus for an LOF all the time. How many times does an independent visit your web site, see $29.95 LOF advertised, and in turn charge a much higher price?
3. Clean up your website. Too many dealer's websites are overly convoluted with service and part specials, to the extent that it's very confusing and overwhelming for your customer. Jiffy Lube has one of the cleanest and most intuitive web designs going. Less is more when it comes to service and part promotions.

There's a reason why Lincoln Motor Company, Hyundai Genesis and now Cadillac are requiring Service Customer Pick-up & Delivery. It's time to win back your UIO.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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.

Consumers seek convenience in every aspect of their lives, inclusive of shopping for a new car. Consumers are very busy, and simply don't have time to visit the dealership when considering a new purchase...the solution is very simple, deliver the Test Drive to the consumer using your staff, inventory and a turnkey uber=like system to manage the process.

Technology is currently utilized by OEMs and franchise dealers to deliver Test Drive experiences directly to the consumer's home. Along with convenience, consumers enjoy driving in their own neighborhood, fitting the car in their garage, and seeing how their golf clubs or bike fit in the trunk.  There are many benefits to the dealer such as accurate contact information and awareness of other cars in the garage.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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. 

Is your dealership convenient for consumers to conduct business with? Industry wide, the answer is a resounding "no". Service customers wouldn't defect at a rate of 70% plus if your dealership made the consumer experience convenient.

Listed below are numerous customer comments (unedited) from franchise dealers that provide Customer Pick-up & Delivery for service customers (CP/Warranty/Recalls). The highlighted quotes demonstrate how Pick-up & Delivery Service can have a significant impact upon where consumers choose to have service performed.

• "I really like this pickup and deliver service. It sets [Customer's Dealership] apart from other dealers in a big way."
• "Very easy process. A ok'd service."
• "great service for times when no loaner"
• "Great service but it really should be included. Other high end dealerships have it."
• "I love the service , it encourages me to stay with [Customer Vehicle Make] It allows [Customer Vehicle Make] to stand apart from some of the other brand cars by offering this ."
• "I would pay to save the time. Plus, [Competing Vehicle Make] charges 35 for a loaner so it would be a wash in my mind."
• "Nick is a most pleasant young and and always helpful with any of my questions."
• "Thanks you for a great service"
• "The driver is sooooo nice and kind."
• "great experience! thank you!"
• "Great service, great people"
• "My first service experience at the dealership was not great. I feel like someone noticed and is trying to make that right which is the important. Things happen but it's how you deal with that really matters and in that I'm very satisfied."
• "The driver Jess was very pleasant and professional."
• "Good idea especially for a disabled persons like me who use a cane."
• "Right on time for the vehicle exchange. Great service"
• "This is the first time I've used this service and so far it's extremely convenient. I hope it continues. I would prefer not to have to pay for this service in the future but I could be persuaded!"
• "Smooth and on time as scheduled. Like this service
  So easy! Thank you!"
• "appreciated the service - very conducive to business (and its a business lease) thank you"
• "A smart way to capture the business."
• "This service would eliminate the hassle of getting to your "X" Ave. location. I'm for it."
• "Perhaps a lower nominal fee (20-40 dollars). However, It's a good service to add for free to encourage people to use [Dealership A]. Otherwise would just go to [Dealership B]Service Center since it is easier to get to if driving myself."
• "if valet service was complimentary, i would likely service my car there after warranty expires, rather than somewhere closer to my house"
• "Great service! Mike, the valet driver, did a great job. He was punctual, and extremely polite and professional. Excellent communication regarding arrival time via text and phone calls. Thanks for a great experience! Oh, and my car was washed! 72,000 mil"
• "Wonderful ! Great idea!"
• "It's a great benefit, especially when for recall work. Not sure I'd pay for it for service in warranty."
• "This is a great service and I am glad you have it. If this could be billed into the extended warranty service or an option when the car is purchased. It may work best if there will be a charge in the future."
• "Friendly and very timely exchange"
• "great personal service, the driver was great, showed up before our scheduled time which was perfect for me"
• "I would definitely use this service on the future."
• "Amazing offering - hope it's sustainable and scalable for residents who live farther away."
• "It was easy and fast. Best thing ever!"
• "It would be nice to know when the servicing would be done when the driver picks up the vehicle."
• "This is a great service! Way to think outside the box to expand your customer service and build brand loyalty! Given the mark up that you all charge for parts and labor it's a minimal cost to absorb on your end to create raving fans. ????"

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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.  

According to J.D. Power's 2016 CSI study, the key areas that dealers need to pay specific attention to are...

• Wait Time: Consumers are willing to wait 1-2 hours for service. Unfortunately, the majority of customer visits are well past 1-2 hours. I also have to believe that customer defection wouldn't be at 70% if customers didn't have to wait and be inconvenienced.
• Service with a Smile: Service satisfaction improves considerably when consumers are greeted within 2 minutes. What percentage of the time are your customers greeted within 1-2 minutes?
• In Search of the Elusive Tire Customer: In the first five years of ownership, the components that customers most frequently replaced during the past 12 months are front wiper blades (25%); tires (22%); brake pads (6%); rear wiper blades (6%); and batteries (5%). Among these, tires are the only replacement component that customers are more likely to have replaced at a non-dealer facility than at a dealer facility. Dealers should take note of this finding, as their ability to retain customers for tires is important. Among customers who purchased tires at a dealership, 40% say they “definitely will” repurchase the same brand, compared with 31% of those who purchased from a non-dealer.
• Dealers Need to Get on the Text Message Bandwagon: only 2% of all customers currently receive service updates via text message or email.
• The Value of Getting it Right the First Time: 94% of customers who take their vehicle in for service indicate that the dealer fixed it right the first time.

What would happen to the three key areas that dealers need to pay specific attention to if customer pick-up and delivery was provided? I'm not speaking to offering this type of service to only heat customers or very highline customers, but to all customer pay, warranty and recall customers.

• Wait Time would no longer be an issue as consumers wouldn't be waiting at the dealership. Their vehicle would have been picked up and delivered on the customer's behalf.
• Service with a Smile would happen every time since consumers aren't being inconvenienced with taking their vehicle in for service. Your greeters and or advisors wouldn't be rushing to engage with a consumer within 1-2 minutes.
• In Search of the Elusive Tire Customer would result in considerably more tire sales. Consumers would be more than happy to purchase tires from the dealership if customer pick-up and delivery was offered. Consumers would even be willing to pay more for the added convenience.

One area that J.D. Powers doesn't address is conquest customers. How many more customers would take advantage of your service and part operations if customer pick-up and delivery was provided? How many more new car customers would service their vehicle at your dealership if customer pick-up and delivery was provided? How many more new and pre-owned vehicles would you sell each month if consumers knew you offered pick-up and delivery service for customer pay, warranty and recalls. You can even offer test drives at the consumer's home!

80% of consumers take advantage of customer pick-up and delivery when dealers offer this level of service.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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.  

The majority of service departments are busy today, I've even heard "I don't need any more business", and that comment is concerning. Service departments are busy with recall work, but not necessarily customer pay work.

Most vehicles visiting dealerships today are late model, under warranty, and have minimal opportunities for customer pay work. They also provide little upside for new car sales opportunities. General maintenance and service, the industries bread and butter, has been the missing link within the franchise dealer world.

Are franchise dealer's service departments at risk of becoming nothing more than warranty/recall centers? The independent repair shops and service disruptors certainly hope so. Have you ever considered why franchise dealers can't retain service customers? Consumers don't want to take the time to bring their vehicle in for service.

Where's the majority of the customer pay business going today? Same place it's been going for decades, independent repair shops. Why? Do they have better facilities? Do they have better technicians? Do they have better tools and equipment? Do they have better pricing? Do they have factory technical support? Do they have OEM sponsored PPM programs included in the purchase of the vehicle? The answer is no, so what do they have that the franchise dealer doesn't?

Consumers view automotive repair as time consuming, inconvenient, and disruptive to their daily lives. Consumers are willing to put off repairs as long as possible. Consumers enjoy and demand convenience in every aspect of their lives. Regardless of the business and or industry sector, if you don't provide customer convenience, the end result is a diminishing customer base. 

Consumers are going to take the least path of resistance and service their vehicle with the service center that makes the process the most convenient.   How does the franchise dealer win the CONVENIENCE game? How does the franchise dealer make the repair process not time consuming, convenient, not disruptive to the customer's daily life and create an environment where consumers don't put off repairs?

Customer Pick-up and Delivery is vital for franchise dealers to win back consumers. OEMs and franchise dealers are currently offering pick-up and delivery service on all customer pay, warranty, and recalls starting with the 2017 model year. 80% of consumers utilize pick-up and delivery service when offered. Your customer never has to leave their home or office to have their vehicle serviced. OEMs and franchise dealers are providing their customers with a loaner, as well as pick-up and delivery service. Why would the customer go anywhere else but the franchise dealer when this convenience model is provided to the customer at no cost? The dealer that provides the path of least resistance will win the customer's business. See how Lincoln Motor Company Dealers are providing customer pick-up and delivery service. http://www.nxtbook.com/nxtbooks/crain/fixedops_201608/#/24/OnePage 

Your drive may be busy today, but don't bank on recalls fueling fixed operations long term, nor can you count on recalls to fuel new/pre-owned sales. Win the service customer, and the rest will take care of itself.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for test drives and service customer pick-up and delivery. 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.