FRIKINtech Service Drive Equity Mining Stats

[Alex Snyder]

We are now in the anniversary month of SERVICEiQ (September 2022), and we are getting very close to launching a complimentary product: EQUITYiQ. Can't wait to inform you all of how that one works! Stay tuned...

August SERVICEiQ numbers continue to tell the story of consistency.

• 84% of total service ROs were customers. 16% were internal jobs and fleet stuff.
• 21% of those ROs were eligible for an equity offer.
• 54% of the offers sent were delivered. Try tracking that with snail mail
• 28% of those offers were viewed.

This resulted in creating an average of 67 fresh leads per rooftop. It brought 115 enhanced leads from people who returned to view the offer again.

For the second month in a row, we saw more VINs acquired as "street buys" than trades. All in all, the average gross generated in August was $17,846 on an investment of $1,299. This means we continue to see a 14X ROI on average. I can't wait to see what happens when there are more new cars for these people to trade their cars on!

Texting opt-ins remain steady at 13%. Email opens remained at 37%, and the click-thru rate went up one point to 10%. These are stats that blow away the traditional text and email marketing.

 

[Alex Snyder]

September's SERVICEiQ numbers are in, and I'd like to hit on some highlights first:

We are getting close to a 2:1 ratio of straight acquisitions to trades. The trend of "street buys" continues to grow, and I can only offer theories. My leading theory is now that SERVICEiQ has opened this door for dealers, they're getting better at the straight "buy from a customer" process. A weaker theory is customers realize the market is softening and are trying to take advantage while they can.

The days to sell a car sourced from SERVICEiQ is still 14 days! I have been stoked to see how quickly cars turn from this source all along, and I'm super stoked to see it settling into a two-week turn rate. This is the second month in a row we have seen this speedy turn. It makes total sense. People who service cars at the dealership take better care of their cars, and dealers who pull those customers out are better at controlling their expenses on these units vs. something from an auction. All of that makes these units more appealing for the sales staff to turn quicker.

As expected, we see signs of a cooling market - this typically happens as Summer shifts into Autumn. Kids return to school, and all the rigors of normal life come back. With that said, the small declines are tiny. There were fewer VINs traded, but the overall average gross on deals sourced out of SERVICEiQ was $17,668 vs. August's $17,846. Dealers are still getting the money! So a 14X ROI remained.

There were fewer ROs closed in September vs. August. As repair orders are the trigger to start it all, it makes sense to see the number of offers sent and viewed decline. The amount of equity-eligible customers came down a little too. This cascaded to a small drop in lead volume too. Again, these were small declines.

However, the consistency in email open rates, click-thrus, texting opt-ins, delivery rates, and lead conversion percentages has remained steady since we launched the beta over a year ago. These are the mechanics we continue to build from.

 

[Tallcool1]

September's SERVICEiQ numbers are in, and I'd like to hit on some highlights first:

We are getting close to a 2:1 ratio of straight acquisitions to trades. The trend of "street buys" continues to grow, and I can only offer theories. My leading theory is now that SERVICEiQ has opened this door for dealers, they're getting better at the straight "buy from a customer" process. A weaker theory is customers realize the market is softening and are trying to take advantage while they can.

I am sure that these dealers are getting really good at buying from the customers, but believe the task is much easier with the record high used vehicle market.

I would guess that it is a combination of the two that is driving this 2:1 ratio. We will know more in the coming months!

 

[Alex Snyder]

I am sure that these dealers are getting really good at buying from the customers, but believe the task is much easier with the record high used vehicle market.

I would guess that it is a combination of the two that is driving this 2:1 ratio. We will know more in the coming months!

For sure we will! We're going to keep a close eye on this one.

 

[Alex Snyder]

This will be my last month updating this thread with SERVICEiQ stats because we are launching EQUITYiQ

...announcement post to follow...

In October, we processed an average of 3,771 repair orders per store. We hit this high number because we hunt down 90 days' worth of ROs for vehicles and equity situations that could qualify for an offer. The ones that may not have qualified 80 days ago may qualify now.

As the used car values soften, we did see a small decline in eligible customers. But we saw an increase in customer engagement!

Texting opt-ins were up, and email open rates almost hit 40%, with click thru rates up too. To summarize: the activity was there despite the decrease in customers. This leads me to believe demand is still high. It may be more difficult to act on that demand because of inflation and rising interest rates.

It sounds like October sales numbers were significantly down for many dealers I've spoken to. We all need to hang in there! This too shall pass.

And if you have not successfully tapped your service drive, SERVICEiQ can help. Stay tuned for a new thread with full equity mining-powered stats.