"rescuing service profits" | jack simmons presentas at the 2014 drivingsales executive...
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October 12th-14th, 2014The Bellagio Hotel, Las Vegas
Rescuing Service Profits
Jack Simmons
Reach consumers throughout the ownership lifecycle
Connect with Consumers
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
Majorityof dealership profits come from Service and Parts
Understanding the Space
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
86%Of vehicles are out of warranty
Understanding the Space
Average age of vehicle
is 11.3 years old
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
Understanding the Space
DME Automotive, “The Changing Service Loyalty Landscape,” February 2012
Consumer Loyalty to Service Providers is Eroding
The service market is expected to grow
15% over the next 3 years
DME Automotive, “The Changing Service Loyalty Landscape,” February 2012
The opportunity for greater service department revenue is only getting bigger
Opportunity is Growing
Winning with the Digital Service Shopper
Dealer Disadvantages
Price Perception Digital Marketing Void
?
Customer Perceptions
C+R Research, April 2013
1. Restaurants
2. Auto Parts3. Building Contractors
4. Physicians & Surgeons
5. Legal Services
6. Auto Repair and Service
7. Pet and Animal Service
8. Real Estate
9. Automobile Sales
10. Financial Services
Consumers Go Digital When Searching for Service and Repair
YP.com Local Insights Digital Report July 2012
R.L. Polk Co., March 2013
Dealers Aren’t Showing Up With Digital Shoppers
Dealers Have the Initial Advantage
Top 3 qualities in service providers that consumers value:
What do Consumers Want?
2 in 3 new-car shoppers indicate service reviews are a factor when choosing where to purchase a vehicle
Why Service Reviews Matter
90% of consumers who read online reviews claimed that positive ones influenced buying decisions, while 86% said buying decisions
were influenced by negative ones.
Service Reviews Build Reputation
“The Customer Service and Business Results” by Dimensional Research for Zendesk, 2013
Remind consumers of the dealer’s high-quality services, including: Factory-certified technicians mean the job will get
done right
OEM parts are the highest-quality parts
Parts and labor warranties offer confidence consumers will only pay once
Create confidence that dealership prices are reasonable relative to competitors: Post actual prices on basic service
Offer price guarantees within an established range
Put prices in context to others in the marketplace
Use third-party resources for credibility, such as review sites and price listings
Implications for Dealers
Embrace digital marketing to promote the advantages of choosing dealerships
Intercept auto owners when and where they are investigating service and repair providers
Establish a digital presence and grow the visibility for of the service department to get considered and ultimately, selected versus competition
Using digital advertising and interacting with service and repair websites will enhance the service component of your dealership website and improve results in only searches
Implications for Dealers
Be transparent with prices
Build your service content on your website
Be mobile optimized
Put processes in place for service reviews
Build your service reputation
Work to stay current on industry insights
Action Items
October 12th-14th, 2014The Bellagio Hotel, Las Vegas
Thank You!
Please take a moment to rate my presentation in the DSES mobile app!
Jack SimmonsCars.com Dealer Training [email protected]