April 16th, 2014Grand Hyatt New York, NYC
~ Your Capital ~ Your People ~~ Your Brand ~
Presented by
Rescuing Service Profits Through Trust and Price Transparency
Jack Simmons
Average age of vehicle is
11.3 years old
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
Majorityof dealership profits came from Service and Parts between 2005 - 2011
IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013
86%Of vehicles are out of warranty
GREATER SERVICE DEPARTMENT REVENUE
THE OPPORTUNITY FOR
IS ONLY GETTING BIGGER
The service market is expected to grow 15% over the next 3 years
DME Automotive, “The Changing Service Loyalty Landscape,” February 2012
DEALERS ARE NOT SHOWING UP WITH DIGITAL SHOPPERS
R.L. Polk Co., March 2013
DEALERS HAVE THE INITIAL ADVANTAGE
Importance
Online Scheduling
Loaners/Shuttles
Flexible Hours
Type of Service Provider
Price Range
Location
Specials (Coupons/Discounts)
Online Consumer Reviews
Price Guarantee/Warranty
Tech Certification Level
2%
2%
2%
8%
8%
8%
10%
15%
21%
25%
IMPORTANT ATTRIBUTES FOR SERVICE SHOPPERS
Gfk Service and Repair Price Report, October 2013
Flex Hours
Online Scheduling
Loaners/Shuttles
5% Off Discount
10% Off Discount
Online Reviews 3+ Stars
20% Off Discount
Price Guarantee
Certified Tech
Parts & Labor Warranty
Price Guarantee/Warranty
Base
29%
30%
30%
31%
35%
40%
41%
44%
50%
50%
57%
27%
DEALER SHARE OF PREFERENCES
Gfk Service and Repair Price Report, October 2013
MOST IMPORTANT ATTRIBUTES WHEN CHOOSING A SERVICE
PROVIDER
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• Utilize third party resources for credibility, such as
review sites and price listings
IMPLICATIONS FOR DEALERS
97%Of Dealer Website is Sales Content
Only 3% of Dealer Website is Service Content
NADA data 2012
INCREASE VISIBILITY FOR SERVICE SHOPPERS
INCREASE VISIBILITY FOR SERVICE SHOPPERS
2 in 3 new car shoppers indicate service reviews are a factor when choosing where to
purchase a vehicle
• 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
• Grow service review volume and promote on dealership and popular review sites to increase consideration among both service and new car shoppers
EMBRACE DIGITAL MARKETING TO PROMOTE ADVANTAGES OF
DEALERSHIPS
April 16th, 2014Grand Hyatt New York, NYC
~ Your Capital ~ Your People ~~ Your Brand ~
Thank You!
Jack SimmonsDealer Trainer
Cars.com