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Scot Eisenfelder

Scot Eisenfelder CEO

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Affinitiv Releases Free eBook for Auto Dealers: Why Service Absorption is a Dangerous Number

eBook offers a detailed guide on how to grow service profits using revenue per units-in-operation

Chicago, IL—March 13, 2018—Affinitiv, a leading provider of marketing and technology services to automotive manufacturers and dealerships, today announced the release of a free eBook for auto dealers, titled Why Service Absorption is a Dangerous Number: An Auto Dealer’s Guide to Growing Service Revenue Using Revenue per Units-in-Operation. The eBook presents a compelling case for why dealers should ditch the outdated service absorption metric and use revenue per UIO to guide their service revenue growth strategy.

“Service absorption is dangerous because it doesn’t measure a store’s achievement relative to its potential. Your service department can be at 100 percent service absorption but still be losing market share,” said Scot Eisenfelder, CEO of Affinitiv. “Using revenue per UIO as a metric forces effort on activities that grow market share and increase customer retention.”

To grow profits in today’s automotive environment, auto dealers are focusing on growing service department revenue. Achieving this goal requires overcoming a number of challenges, including declining vehicles sales, more replace than repair work and aggressive competition.

To grow revenue, auto dealers need to increase service yield from their current customers (UIO) and increase market share. The best metric to measure and track these two goals is revenue per UIO.

“A focus on maximizing revenue per UIO creates a fundamentally different strategic and operating mindset where the dealer does not concede any revenue to the aftermarket,” said Eisenfelder. “When dealers calculate their revenue per UIO it’s an eye-opening experience, and not necessarily in a good way.”

Using revenue per UIO as a metric better represents a service department’s true potential and provides dealers with a better understanding of their strengths and weaknesses.   

To download the free eBook, click on this link: Why Service Absorption is a Dangerous Number.

For more information about Affinitiv, visit Booth #3174C at the NADA Convention & Expo in Las Vegas, or visit: www.affinitiv.com

About Affinitiv:

Affinitiv is a leading marketing technology company serving automotive manufacturers (OEMs), dealership groups, and individual dealers. Affinitiv’s Connectiv1 Platform is designed to provide a 360° view of customer, vehicle, dealership and marketing campaign effectiveness all in one place. Connectiv1's advanced predictive analytics engine makes it easy for auto dealerships to leverage data and target customers with the right message at the right time on the right communications channel.

Affinitiv enables dealerships to produce, manage, measure and optimize omni-channel communications to drive brand loyalty and increase revenue. Affinitiv’s digital and analytic capabilities support a consistent customer experience through the entire ownership lifecycle. Affinitiv was formed in 2016 and is headquartered in Chicago, IL.

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