The challenges posed by the inventory shortage are so pervasive that it’s already becoming difficult to remember a time when we weren’t all talking about it. And while those challenges aren't going to magically disappear any time soon, I think we also need to start preparing for some predictable issues down the road for fixed operations.
The rise of EVs means that vehicle service is likely to change more dramatically than at any other time in the last century. As technology continues to improve on the manufacturing side, vehicles are being brought to your service lane less and less often. But you already know this; what else is on the horizon?
Here's what we know:
1. Dealerships are selling more used cars
2. People are delaying vehicle purchases
3. Dealerships are selling more off-brand vehicles
Combined, those three factors create a perfect storm. The sales challenges your dealership faces today could very quickly become long-lasting service challenges, if they haven’t already. Thankfully, dealerships are not powerless victims of circumstance.
Here's what can be done:
1. Incentivize service retention through an unparalleled customer experience, loyalty programs, renewable benefits (roadside assistance, road hazard tire protection, etc.), and an impeccable sales-to-service handoff.
2. Increase focus on tires — many vehicle owners still don't think of dealerships when they think of tires, yet rotations are becoming the most frequently needed maintenance item.
3. Map the customer journey, identify any and all defection points, and proactively fill in the 'potholes.'
4. Include prepaid maintenance with purchases — remember: the goal right now is secure loyalty.
5. Promote CPO vehicles — the key here is ensuring that customers fully understand their warranty coverage and the value of servicing their vehicle at your dealership.
Let's take action now and put an end to the surprises.
The rise of EVs means that vehicle service is likely to change more dramatically than at any other time in the last century. As technology continues to improve on the manufacturing side, vehicles are being brought to your service lane less and less often. But you already know this; what else is on the horizon?
Here's what we know:
1. Dealerships are selling more used cars
2. People are delaying vehicle purchases
3. Dealerships are selling more off-brand vehicles
Combined, those three factors create a perfect storm. The sales challenges your dealership faces today could very quickly become long-lasting service challenges, if they haven’t already. Thankfully, dealerships are not powerless victims of circumstance.
Here's what can be done:
1. Incentivize service retention through an unparalleled customer experience, loyalty programs, renewable benefits (roadside assistance, road hazard tire protection, etc.), and an impeccable sales-to-service handoff.
2. Increase focus on tires — many vehicle owners still don't think of dealerships when they think of tires, yet rotations are becoming the most frequently needed maintenance item.
3. Map the customer journey, identify any and all defection points, and proactively fill in the 'potholes.'
4. Include prepaid maintenance with purchases — remember: the goal right now is secure loyalty.
5. Promote CPO vehicles — the key here is ensuring that customers fully understand their warranty coverage and the value of servicing their vehicle at your dealership.
Let's take action now and put an end to the surprises.