APCO/EasyCare/GWC
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 The eBook presents a compelling case for why dealers should ditch the outdated service absorption metric and use revenue per UIO to guide their service revenue growth strategy.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
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.
APCO/EasyCare/GWC
Variable Pay Plans: Motivators or Impediments?
To manage and motivate their service advisors, most dealers use highly variable pay plans based on gross margin. I believe such plans are counterproductive because they change the service advisor focus away from customer retention and those behaviors required to maximize dollars per units-in-operation.
This type of pay plan changes the focus along three dimensions:
- From the important to the immediate. Retention requires dealers to compete for all vehicle maintenance items, not just the most profitable one. For example, tires, while low margin, are significant defection points. Consumers replacing tires through other channels often defect for other maintenance and light repairs. Today’s pay plans discourage advisors to compete rigorously to defend strategically important, but less profitable business.
- From relationship to transaction. Advisors are encouraged to maximize $/RO, asking for the whole business today out of fear the consumer will not return. To better match consumer readiness and affordability, break work into immediate needs, near-term follow up items and longer-term requirements.
- From “what works for you” to “what works for me.” Scheduling is a prime example. Advisors often guide consumers toward openings in their calendars, not the consumer’s, frequently leading consumers to find more convenient or timely options. Advisors are also tempted to push more expensive options or “dealer recommended” products, undermining consumer trust. In fact, if consumers better understood advisor pay plans, defection would likely be higher.
Most importantly, highly variable pay plans are not working; too much work continues to escape the dealer channel and advisor turnover remains unsustainably high.
So, what should dealers do?
First, pay plans should place more emphasis on consumer retention, rewarding advisors when a consumer returns to the store, regardless of who serves them next. Such an approach would focus advisors on consumer experience elements, such as meeting delivery times and Fixed Right the First Time, which are better predictors of customer satisfaction than surveys, which can be coached or manipulated.
Then the focus should shift to actively managing advisors, rather than relying on pay plans to manage people. Service managers need to look beneath the numbers, insisting on advisors presenting multipoint inspection results and properly noting declined services.
Managers should review penetration rates among strategic commodities such as tires, batteries and brakes, to assure these items are being retained within the dealership. Advisors could then be rewarded for achieving desired penetration in these commodities.
Active management should also include “RO reviews” where managers review specific situations and coach on missed opportunities to uncover any deficiencies in product knowledge and selling skills. Ultimately, advisors should be expected to grow service dollars from their VINs managed. Advisors who achieve a higher level should be rewarded more, while those who do not achieve the standards should be exited. The bottom line is that to maximize service revenue potential, emphasis must move away from a transactional gross focus.
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APCO/EasyCare/GWC
5 Challenges Dealers Face in Growing Service Profits
To grow profits in today’s automotive environment, many auto dealers are focusing on growing service department revenue. Achieving this goal presents a number of challenges, including:
1) Declining new vehicle sales volumes
NADA predicts 2018 new-vehicle sales of 16.7 million units, down 2.3% from 2017. That’s not a huge decline, but new vehicle sales also face stiff competition from a glut of off-lease and used vehicles. Fewer new car sales means less future warranty work.
2) Higher quality vehicles
Available work per unit is declining as quality improves, service intervals lengthen and work shifts from repair to replace. Dealers can no longer count on substantial warranty work and in-warranty customer pay business from new vehicle sales as a way to feed steady business to their service departments.
3) Increased Competition
Independent aftermarket chains are entering a recession. Due to the recent spike in new vehicle sales, the volume of vehicles older than seven years and still in operation is declining.
This decline will continue until 2022, prompting chains to expand service offerings and launch aggressive marketing campaigns. Their prime target is customers with vehicles from four to six years old; the same customers that dealers like to target.
Dealers cannot afford to lose market share to independent chains. To maintain yield in this environment, dealers need to capture a greater percentage of their market service potential.
4) Shifting Customer Expectations
Today’s consumers expect a transparent and convenience-driven experience, which traditional dealer processes and systems are ill-equipped to deliver.
Your customers are baffled that they can track a pizza being made and delivered to
them, but must call your dealership several times to check on the status of their car, then wait to pay at a cashier.
5) Lack of Service Growth Strategy
Growing service revenue doesn’t just happen. Growth requires the creation, execution and management of a strategic plan. Many dealers don’t have a strategic plan, unless you believe that doing more of the same counts as a plan.
What was it someone once said about doing the same thing over and over again, but expecting different results?
The good news is, it’s not all bad news. Our industry is exiting a period of unprecedented tailwinds that have created exciting opportunities for growth.
Since 2012, the combination of increased new vehicle sales and a 13 percent reduction in the number of auto dealerships has created the highest units-in-operation (UIO) to dealer ratio in history.
To take advantage of this opportunity, you need to accomplish two things:
- Increase service yield from current customers/UIO
- Increase market share
Do you know what your dealership’s current revenue-per-UIO is? Do you know what you have to do to increase market share?
If you’re not sure, the first thing you should do is ditch the service absorption metric. I’ve written before how I believe that service absorption is a dangerous number and is an outdated metric for modern times.
One major problem with this metric is that you can have 100 percent service absorption, yet still be losing market share. You can’t manage what you can’t measure.
Revenue per UIO allows you to measure both service yield and market share, so you can establish a baseline from which to grow.
How to Increase Service Yield
Most auto dealerships capture less than half the work needed on vehicles that enter their service lanes. To increase service yield, focus on providing complete vehicle care to your current customers.
To do this you must identify, communicate and capture all service needs. This may require changes to your write-up, multi-point inspection (MPI) and service recommendation processes.
Technologies such as mobile tablets can help, but incentives may need to be put in place so advisors and techs are encouraged to spend the appropriate amount of time with every customer. Additionally, data must be leveraged so your staff can easily identify recommended repairs.
When customers arrive in the service lane, an advisor needs to check the following, every time:
- Is there an open recall?
- Are there declined services from last time?
- What are recommended services/repairs on a vehicle like yours?
The last question is key to making upsells and capturing more service business. Also, prepare your customers for the next visit with a list of service recommendations for the next 10,000 miles.
How to Increase Market Share
Most dealers’ service marketing efforts utilize mail and email channels to remind customers about factory scheduled maintenance and select seasonal campaigns. Many conquest campaigns rely on “oil change” offers to bring new customers in.
This marketing strategy performs significantly below potential impact. To drive more responses, an integrated marketing campaign must replace the “fire and forget” mentality.
Omni-channel marketing leverages the following channels and delivers highly relevant offers to each customer:
- Direct Mail
- Facebook/ Instagram
- Google/SEO
- Service PPC
- Display ads
- IP-based retargeting
With every customer interaction, data is collected and used to create a message or offer that drives the customer to the next stage. The customer is guided through needs notification to scheduling, to the appointment, to in-service notifications and post-service follow up.
This marketing strategy is designed to build relationships, instead of a one-and-done service experience. Creating processes and marketing programs that focus on the relationship, rather than the here and now, is a critical part of any service growth plan.
2 Comments
ACT Auto Staffing & ACTautostaffing.com
Scott, great article! I read survey after survey that finding qualified personnel and techs is the greatest challenge in dealerships and any kind of auto shop. Based on lots of blogs here, most dealers could use at least 2 more techs.
FordDirect.com
Well written Scott. You demonstrate key strategy and activity sets in place to properly align with the value proposition the dealer is providing. I would also suggest a properly trained staff answering the phones. First impressions to first appointments is a key component of stemming "leakage" from in market customers.
APCO/EasyCare/GWC
Competing Against Nothing
When asked “who are your competitors in service?” most franchise dealers answer, “independent repair shops,” and state that the focus of that competition is price.
While it is certainly true that most consumers who defect go to independent repair shops -- particularly the large chains, and these shops tend to be less expensive -- that is only part of the story.
In fact, when VINs are lost, independent shops are often not the largest leakage source, particularly during the warranty period. Rather, it is the most fearsome competitors -- the evil twins “decline” and “defer.”
At AutoNation, we believed we only completed half the work needed on the VINs entering the service lane. We either failed to find, or failed to sell, that additional work. Most often price was not the primary factor giving rise to the evil twins. We failed to achieve our service potential because of inadequate trust and communication.
So, what can a dealership do to handle these evil twins? Here are a few tips:
1) Build Trust: Addressing Trust needs to start in the showroom. Years of adversarial negotiation -- final prices that aren’t final and opaque add-ons such as Doc Fees -- set the stage where consumers are conditioned to decline services not included in the glove box plan, almost as a reflex.
You do not help yourself in the service lane by adding high margin services with unclear value propositions, often at the expense of tires and other lower margin necessities. Most pay plans are aligned with this behavior, as writers are paid largely on the gross generated, not on perfectly meeting the needs of each customer.
While addressing these root causes requires more fundamental change than I have time to cover in this blog, it is important to acknowledge how traditional retailing practices are undermining lifetime value realization, as that realization is becoming more crucial to retailer success.
You can start improving Trust by addressing transparency and consistency in your pricing. Publish pricing for your most common service work on your website. Move from “percent off” to specific offers, and carry those offers proactively from marketing to scheduling to service lane, rather than forcing consumers to ask. Focus selling menus on items consumers absolutely need; factory maintenance, worn items, deferred services and recalls.
While I am not philosophically opposed to services over and above factory recommended, calling them “dealer recommended” is practically suicidal, reinforcing every negative view consumers have about dealer service. I always tell stores, “sell them if you believe in them enough to use in your vehicle and call them by their purported benefit,” – e.g. longevity, fuel economy, or performance packages.
When it comes to selling, the best advice I got was “intent trumps technique.” If your service writer clearly has the consumer’s best interest in their heart, consumers with say “yes,” even if the writer fumbles through the talk track.
So, the question to ask is whether you are hiring “care takers” or “mercenaries” as writers, and compensate them accordingly. Sorry, I am drifting back to pay plan and other bigger issues.
2) Communication: Next, you need to take on Communication. First, most dealership communications are too slow, not informative enough, and in the wrong media. The largest leakage point is the inability to reach consumers in a timely fashion, with sufficient information for them to decide on additional service requests. With predictive analytics, you can prepare consumers about likely service needs before they leave the store; and while they have time to thoughtfully consider a major expense.
Too often, writers rely on phone calls rather than texts or emails. These days, digital communications tend to be preferred. They are more likely to be received during the business day and can carry the contextual information the consumer needs to make any major purchase decision. According to JD Power’s 2016 CSI study, nearly 40% of consumers prefer to learn about vehicle needs via text, yet only 3% received a text. Now that stat is improving, but we have a long way to go.
3) Break down the MPI Results for the Consumer: When MPIs generate a long and expensive repair list, you can learn selling techniques from dentists. As one who too often procrastinates regarding dental visits, I am confronted with multiple issues which need to be addressed. My dentist does not ask for the full order that day, but rather she breaks it into the urgent, the important and the cosmetic. I think we could learn a lot from that approach.
4) Third Party Validation: Finally, third party validation can give consumers confidence on the items presented.
In summary, if you address Trust and Communication, not only could you realize more service revenue from the vehicles entering your service lanes today, but it would also go a long way to stemming later defection to the independent shops.
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APCO/EasyCare/GWC
Affinitiv CEO Scot Eisenfelder Challenges Auto Dealers That Service Absorption is a Dangerous Number
Auto dealers would be better served if outdated metric was retired and replaced with a focus on service revenue per units-in-operation.
Chicago, IL—November 6, 2017— Affinitiv, a leading provider of marketing and technology services to automotive manufacturers and dealerships, today announced that CEO Scot Eisenfelder is challenging the auto industry's long-held assumption that service absorption is the best measure of a dealership's fixed ops revenue potential. Instead, Eisenfelder proposes, dealerships would be better served by the adoption of service revenue per unit-in-operation (UIO) to maximize fixed ops revenue potential.
“Service absorption is one of the most frequently cited metrics at 20-group meetings. While asking the service department to carry store profitability has never been more important, I believe that focusing on service absorption as a metric is not only limiting, but dangerous to dealerships in the long-term,” said Eisenfelder.
According to Eisenfelder, his primary issue with service absorption is that it's composed of two unrelated measures and does not accurately reflect store achievement relative to potential. “Service profits are not substantially driven by store fixed costs. Most dealerships' fixed costs support vehicle sales, not service, so there is no reason to expect correlation between the two metrics. Therefore, the metric itself does not provide any guidance for how to optimize service profitability,” Eisenfelder said.
As an example, Eisenfelder points to brands such as Subaru, Hyundai and Kia that have done well over the last half-dozen years. Vehicle sales have expanded faster than store operations, so dealers have relatively low fixed costs and not a lot of service capacity. This results in naturally high service absorption ratios that give dealers a false sense of doing well, when in fact a high percentage of their UIO revenue is being leaked to independent repair shops.
Einsenfelder believes that the underlying premise of comparing service profits and store fixed costs represents an archaic view of automotive retailing. "Once upon a time, dealers could count on substantial warranty work and sufficient in-warranty customer pay business from new vehicle sales, so minor tweaks in fixed ops could achieve enough service profits to cover seasonal or temporary new vehicle declines," he said.
However, front-end profit is in permanent decline and very little service business is guaranteed due to less warranty work, higher quality vehicles, more replace-than-repair work and more aggressive independent aftermarket competitors. So, relying on historic approaches and goals is insufficient to achieve desired store profitability.
Most important, achieving 100 percent service absorption doesn’t represent a store’s service revenue potential. Today's franchise dealers only capture 20 to 25 percent of the revenue potential from their Units in Operation (UIO). "I would argue the focus on service absorption in part contributes to these results," said Eisenfelder. "Too many dealers are focused only on covering fixed costs, rather than competing on each revenue opportunity and driving the fundamental changes required to wrest dollars from aftermarket chains."
A recent trend illustrates how dealers are falling behind. From 2010 to 2017, one- to three-year-old units in operation increased 48 percent; however, franchise dealership service and parts sales increased just 41 percent. "This indicates that dealers are losing connectivity to consumers and vehicles, which is becoming more important as new vehicle sales slow and margins decline," said Eisenfelder.
Eisenfelder concludes that dealers would be better served by focusing on service revenue per UIO. Not only does this better represent the true service potential for each store, but the metric facilitates more meaningful cross-store comparisons and diagnostics.
Eisenfelder believes that maximizing revenue per UIO creates a fundamentally different strategic and operating mindset where the dealer does not concede any revenue to the aftermarket. According to Eisenfelder, a dealer focused on revenue per UIO should scrutinize all leakage points and determine what needs to be done to:
-
Provide superior value and convenience to customers
-
Engage in meaningful dialogue with consumers
-
Alter processes to mimic consumer experiences elsewhere
-
Leverage knowledge about customers and vehicle servicing needs
“With such a view, additional investments in marketing, service lane technology or loaner vehicles are not measured as an expense, but against their impact on incremental service gross profit. With only 25 percent service revenue capture, dealers have the opportunity to dramatically expand store profitability no matter what happens to new vehicle profits, but only if they are willing to look beyond service absorption,” said Eisenfelder.
Affinitiv’s end-to-end service marketing solution is driven entirely by data and advanced analytics, allowing dealers to send customers highly targeted messages at the right time on the right communications channel. Affinitiv’s layered, multi-channel communications approach has been proven to increase reach and frequency, boost response rates, lower marketing spend and improve customer retention.
In the past year, Affinitiv has continued to share its vision of creating connected customers for life with auto manufacturers. Currently a dozen OEMs are using Affinitiv aftersales marketing solutions to create loyal and repeat customers. Affinitiv's current OEM partners include BMW, Kia, Lexus, Chrysler, Volkswagen, MINI, GM, Porsche, Mitsubishi, Audi, Volvo, Rolls-Royce Motor Cars and Maserati North America.
Headquartered in Chicago, Illinois, Affinitiv has seven offices across North America and India, and employees more than 500 team members.
For more information, visit www.affinitiv.com.
About Affinitiv:
Affinitiv is a leading marketing technology company exclusively serving automotive manufacturers (OEMs), dealership groups, and individual dealers. Affinitiv enables its customers to produce, manage, measure, and optimize multi-channel communications to drive brand loyalty and increase revenue across the dealership. Affinitiv’s digital and analytic capabilities offer an end-to-end solution that supports a consistent experience across the entire consumer lifecycle. Affinitiv was formed through the strategic combination of DPS, Peak Performance, OneCommand, and TimeHighway.com. Affinitiv is headquartered in Chicago, IL.
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APCO/EasyCare/GWC
Service Absorption is a Dangerous Number
Service absorption is one of the most frequently cited Fixed Ops metrics at 20-group meetings. While asking the service department to carry store profitability has never been more important, focusing on service absorption as a metric is not only limiting, but dangerous to the long-term.
My primary issue with service absorption is that it's composed of two unrelated measures and does not speak to a store’s achievement relative to its potential. Service profits are not substantially driven by store fixed costs. Most dealership fixed costs support vehicle sales, not service, so there is no reason to expect correlation between the two metrics. Therefore, the metric itself does not provide any guidance for how to optimize service profitability.
The underlying premise of comparing service profits and store fixed costs represents an archaic view of automotive retailing. Once upon a time, dealers could count on substantial warranty work and sufficient in-warranty customer pay business from new vehicle sales, so minor tweaks in fixed operations could achieve sufficient service profits to cover seasonal or temporary new vehicle declines.
However, front-end profit is in a permanent decline and very little service business is guaranteed due to less warranty work, higher quality vehicles, more replace-than-repair work and more aggressive independent aftermarket competitors. So, relying on historic approaches and goals is insufficient to achieve desired store profitability.
More importantly, achieving 100% service absorption doesn’t represent a store’s potential. Today, franchise dealers only capture 20 to 25% of the revenue potential from their Units in Operation (UIO). I would argue the focus on service absorption in part contributes to these results because many dealers are only focused on covering fixed costs, rather than competing on each revenue opportunity. This leads to tweaking service marketing and operations, rather than driving the more fundamental change required to wrest dollars from aftermarket chains or to more completely service vehicles.
Recent experience illustrates how dealers are falling behind. From 2010 to 2017, one- to three-year-old units in operation increased 48%! However franchise dealership service and parts sales increased just 41%! So franchised dealers lost share, indicating lost connectivity to consumers and vehicles, which will become increasingly important as new vehicle sales slow and margins decline.
As a dealer, you would be better served by focusing on service revenue per Units In Operation (UIO). Not only does this better represent the true service potential for the store, but facilitates more meaningful cross-store comparisons and diagnostics. Are underperforming stores not seeing enough VINs? Not seeing them with enough frequency? Not yielding enough revenue per VIN seen? Which operations are not being performed with enough frequency?
Most importantly, focusing on maximizing revenue per UIO creates a fundamentally different strategic and operating mindset where the dealer does not concede any revenue to the aftermarket. When focused on revenue per UIO, I encourage you to scrutinize all leakage points and determine what needs to be done to:
-
Provide superior value and convenience to customers
-
Engage in meaningful dialogue with consumers
-
Alter processes to mimic consumer experiences elsewhere
-
Leverage knowledge about customers and vehicle servicing needs
With such a view, additional investments in marketing, service lane technology, or loaner vehicles, are not measured as an expense, but against their impact on incremental service gross profit. With only 25% service revenue capture you could dramatically expand store profitability, no matter what happens to new vehicle profits. But only if you are willing to look beyond service absorption.
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APCO/EasyCare/GWC
For Vehicle Service, Luxury is Different!
I’ve had the privilege of working with several leading luxury brands including BMW, Lexus, Porsche, Maserati and Rolls Royce. From these experiences, I have learned to adjust owner communications to meet the unique needs of these brands and customers.
Following are some tips I have learned over the years form working with many luxury service departments. The key point to learn: Luxury is different!
- Use More Channels: To be successful, it is important to use more channels to reach luxury customers. Each channel added to a marketing communication increases response by at least one percentage point. With a higher RO value, each percentage point is worth much more for a luxury brand. Therefore, investing in more channels – mail, email, SEM, display and Social - nearly always pays.
- Invest in More Engagement: Not only is each luxury appointment worth more, but standard maintenance appointments tend to be further apart. With 10,000 miles between standard intervals, to maintain relationships, luxury brands need to find other reasons to engage their customers between service intervals. For example, early ownership events such as a 2nd delivery to maximize feature utilization; or pit stops to top off fluids, replace wipers or check air pressure; help address owner needs. These types of events build usage habits during the post-purchase honeymoon period. Another idea is to gather telematics and predictive failure data. This can provide valuable information that can then be used for regular communications regarding the customer’s full maintenance needs.
- Work the Data Harder: To catch repairs between service intervals, how about leveraging telematics and predictive failure data to inform owners regarding likely additional service needs? Luxury brands tend to have a high percentage of leases so consider identifying second owners to maximize revenue from each VIN sold, including pulling sales data from sister stores. In addition, leverage unsold customers in the CRM and use targeted SEM that is particularly focused on older model year parts. It is also important to make different offers near lease end to entice servicing throughout the whole owner experience, with an eye toward sharing reconditioning costs.
- Offers should Focus on Value over Price: While every owner wants a good deal, I am reminded of what Dave Power once told me; there are fundamentally two customer segments, “those who use time to save money; and those who use money to save time.” In luxury brands, we find more of the former than the latter, yet offers tend to still focus on discounts. Concierge services, or premium loaner vehicles, can be more effective enticements for the customer to return for declined services. It is also worth focusing on higher end voice-to-voice interactions and more liberal goodwill policies. Remember, these consumers are comparing their experiences to premium airline help lines, the Ritz Carlton, or their favorite fine dining, not Jiffy Lube or Pep Boys!
If you want to win with a luxury brand remember, Luxury is different! So, treat it that way and win. I hope these tips help provide some good food for thought.
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APCO/EasyCare/GWC
Maserati N.A. Selects Affinitiv to Provide Aftersales Marketing for LUX Owner Retention Program
Chicago, IL—October 9, 2017— Affinitiv, a leading provider of marketing and technology services to automotive manufacturers and dealerships, today announced it has been selected by Maserati North America as the exclusive aftersales marketing provider for its LUX owner retention program. The program is designed to bring customers back to Maserati dealerships for service after purchase of a vehicle, continue customer communications with multi-channel marketing and keep customers engaged throughout the ownership and re-purchase lifecycle.
“Our marketing solutions are strategically designed to build brand loyalty and to elevate customer perceptions' of Maserati dealership service departments compared with independent repair facilities," said Scot Eisenfelder, Executive Chairman of Affinitiv. "Our messages are highly relevant and personalized, demonstrating to customers that their dealership is committed to their satisfaction."
Affinitiv's end-to-end service marketing solution is driven entirely by data and advanced analytics, allowing dealers to send customers highly targeted messages at the right time on the right communications channel. Affinitiv's layered, multi-channel communications approach has been proven to increase reach and frequency, boost response rates, lower marketing spend and improve customer retention.
The Maserati LUX ownership retention program makes it easy for dealers to raise awareness of, and promote, their service department expertise as well as aftersales products like accessories and tires. Maserati North America's customers will receive consistent, timely communications regarding the handling and upkeep of their vehicles. This proactive marketing approach has been proven to build strong customer relationships and maximize dealership revenue.
Maserati dealers that enroll in the Maserati LUX co-op program are reimbursed 50 percent of their marketing cost. Maserati North America oversees the program and ensures that all design and messaging meets its corporate branding standards and guidelines.
In the past year, Affinitiv has continued to share its vision of creating connected customers for life with auto manufacturers. Currently a dozen OEMs are using Affinitiv aftersales marketing solutions to create loyal and repeat customers. Affinitiv's current OEM partners include BMW, Kia, Lexus, Chrysler, Volkswagen, MINI, GM, Porsche, Mitsubishi, Audi, Volvo, Rolls-Royce Motor Cars and Maserati North America.
Headquartered in Chicago, Illinois, Affinitiv has seven offices across North America and India, and employees more than 500 team members.
For more information, visit www.affinitiv.com.
Affinitiv is a leading marketing technology company exclusively serving automotive manufacturers (OEMs), dealership groups, and individual dealers. Affinitiv enables its customers to produce, manage, measure, and optimize multi-channel communications to drive brand loyalty and increase revenue across the dealership. Affinitiv’s digital and analytic capabilities offer an end-to-end solution that supports a consistent experience across the entire consumer lifecycle. Affinitiv was formed through the strategic combination of DPS, Peak Performance, OneCommand, and TimeHighway.com. Affinitiv is headquartered in Chicago, IL.
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