FRIKINtech Service Drive Equity Mining Stats

[Alex Snyder]

My prior experience with Equity Mining has been that it works fantastic for about 3-6 months (depending upon the driving cycle of the owner base) and then it slows significantly after that.

that was my experience at Checkered Flag. Aaand... getting the salespeople to make the calls after the first month was a headache on top of that

This is why we went into the service drive first with automation. The repair orders are the most accurate and freshest pieces of data to work from while the customers keep coming and going. It shouldn't dry up ever! Especially when we're finding most dealerships are servicing a lot more cars they did not sell than ones they did.

 

[Alex Snyder]

February results are in.

We processed over 100,000 repair orders to find 78% were customers and those were further funneled down into 18% that met the criteria of having valid email and/or cell phone numbers and were estimated to be in equity based on the configuration our dealers used. Remember, SERVICEiQ is an automated system that is fully customizable by dealers.

We had a tightening on the configuration last month by a few stores. I assume this was to lower the number of leads against a depleted inventory. I am also assuming we have some stores that need some tuning in their approach to calling these customers. We are working on that!

We saw a 13% opt-in rate via text message. This means 13% of eligible customers with cell numbers fully opted-in by responding YES to our invitation text to see an offer on their car. That was an average of 48 customers per store in February.

Email open rates continue to stay in the 30% territory with a click-through rate of 9%.

Between texts and emails, we fired an average of 62 ADFs into our dealers' CRM systems with a translation of what the customer did for easy follow-up. An average of 42 of those ADFs were highly engaged in our app playing with payments and cars.

I can't wait to see what SERVICEiQ does when dealers have more new cars because this is already blowing my expectations out of the water

 

[Alex Snyder]

March results continue to be consistent! That's FRIKINfantastic because we have a baseline and are about to put some new things in to help this sucker grow.

We doubled the number of ROs processed and are still seeing 78% of total repair orders being actual customers. There was a nice jump in eligibility over February. Eligible-for-an-offer customers went from 18% to 28% meeting the criteria of having valid email and/or cell phone numbers and was estimated to be in equity based on the configuration our dealers used.

The texting opt-in rate remained at 13% and averaged 87 customers per store in March. Also a nice increase as some higher-volume dealerships launched in March.

The overall email open rate was 29% with a click-through rate of 8% (roughly the same as February). Thousands more emails were sent in March, and we're still nowhere near the volume we should be at on email yet. That will change in April.

Where the rubber meets the road: an average of 96 ADFs were sent into dealers' CRM systems with an average of 71 of those leads being highly engaged. That's a lot of 1st party leads!

We just got our CDK Certification
And now we are building attribution reporting on sales & profits. Stay tuned.

 

[Alex Snyder]

I'm becoming a broken record here. April continued the consistency.

As more dealers are launched the number of ROs we process grows. I highly anticipate this to BLAST OFF as we have a number of dealers going live this month on the CDK Certified connection!

We found 41% of the customers that used the service drive were eligible for an automated equity offer. I believe this is due to continued tuning on our end mixed with dealers wanting to get more aggressive with the equity number they target. You can tune a lot inside SERVICEiQ - it ain't a black box like some other things out there

A number of dealers who are good with negative equity went live in April. They were targeting equity situations well into the -$3,000 upside-down territory.

Email was by far and away my favorite stat to watch last month. Email is not dead!!! With a 5% daily click-thru rate, a lot of customers were playing within our app to become highly-engaged leads. And the email also serves as a receipt for this service, so the non-clickers did not respond with an unsubscribe rate that is mentionable.

Speaking of leads, we saw that grow too. An average of 137 ADFs were sent into CRM systems with an average of 80 of those leads being highly engaged.

Our engineering team gave us a taste of the first version of our Sold Attribution reporting on SERVICEiQ this week. Yes, we will be able to show the number of deals and the gross based on DMS data very soon. In checking our numbers against one of our dealers, he responded with "It is dead-on balls accurate" and he can't wait to show it off at his next GM meeting for the group.

 

[Tallcool1]

I'm becoming a broken record here. April continued the consistency.

As more dealers are launched the number of ROs we process grows. I highly anticipate this to BLAST OFF as we have a number of dealers going live this month on the CDK Certified connection!

We found 41% of the customers that used the service drive were eligible for an automated equity offer. I believe this is due to continued tuning on our end mixed with dealers wanting to get more aggressive with the equity number they target. You can tune a lot inside SERVICEiQ - it ain't a black box like some other things out there

A number of dealers who are good with negative equity went live in April. They were targeting equity situations well into the -$3,000 upside-down territory.

Email was by far and away my favorite stat to watch last month. Email is not dead!!! With a 5% daily click-thru rate, a lot of customers were playing within our app to become highly-engaged leads. And the email also serves as a receipt for this service, so the non-clickers did not respond with an unsubscribe rate that is mentionable.

Speaking of leads, we saw that grow too. An average of 137 ADFs were sent into CRM systems with an average of 80 of those leads being highly engaged.

Our engineering team gave us a taste of the first version of our Sold Attribution reporting on SERVICEiQ this week. Yes, we will be able to show the number of deals and the gross based on DMS data very soon. In checking our numbers against one of our dealers, he responded with "It is dead-on balls accurate" and he can't wait to show it off at his next GM meeting for the group.

I am really enjoying this thread! Keep sharing your stats here. Congratulations to you and your team. Keep it up!

 

[Ryan Everson]

I'm becoming a broken record here. April continued the consistency.

As more dealers are launched the number of ROs we process grows. I highly anticipate this to BLAST OFF as we have a number of dealers going live this month on the CDK Certified connection!

We found 41% of the customers that used the service drive were eligible for an automated equity offer. I believe this is due to continued tuning on our end mixed with dealers wanting to get more aggressive with the equity number they target. You can tune a lot inside SERVICEiQ - it ain't a black box like some other things out there

A number of dealers who are good with negative equity went live in April. They were targeting equity situations well into the -$3,000 upside-down territory.

Email was by far and away my favorite stat to watch last month. Email is not dead!!! With a 5% daily click-thru rate, a lot of customers were playing within our app to become highly-engaged leads. And the email also serves as a receipt for this service, so the non-clickers did not respond with an unsubscribe rate that is mentionable.

Speaking of leads, we saw that grow too. An average of 137 ADFs were sent into CRM systems with an average of 80 of those leads being highly engaged.

Our engineering team gave us a taste of the first version of our Sold Attribution reporting on SERVICEiQ this week. Yes, we will be able to show the number of deals and the gross based on DMS data very soon. In checking our numbers against one of our dealers, he responded with "It is dead-on balls accurate" and he can't wait to show it off at his next GM meeting for the group.

Impressive!

 

[Alex Snyder]

I have full-on claims with $$$ for the month of May! We are now looking at sold counts and profits along with lead counts.

Before I jump into that, I want to say the consistency has been so strong that we are now guaranteeing ROI. Starting today, if any new dealer does not double their ROI on our product in the 1st month, we will pay for the 2nd month - yes, we are putting our money where our mother FRIKIN mouth is!

A significant drop from April's 41% to May's 24% of service customers were eligible for an equity offer. However, lead counts stayed consistent with an average of 136 ADFs sent into the CRM with an average of 75 of those leads being highly engaged. If my math is right, that's $9.55 per lead.

Email jumped from April to a 31% open rate with a 9% click-thru rate

And the texting opt-in percentage rose as well. Tuning of who is targeted, mixed with some higher quality data, may be why we saw the decrease in eligibility but the same high lead counts.

The new thing we have are the sold numbers. With depleted new car inventories I'm stoked to see dealers on SERVICEiQ averaging 4.2 deals in the month of May. They averaged $4,888 on each deal done in May and trades/acquisition of used cars sold in May averaged $3,253 profit per deal including wholesale loss. Because we only charge $1,299 for SERVICEiQ, I think you can now see why we aren't afraid to guarantee an immediate ROI.

The cool part about these sold numbers is we now know exactly which stores are struggling with talk tracks and follow-up processes and who are doing quite well. Our client success team has already begun reaching out to assist. I'm looking forward to watching the improvements!

I'm also stoked to announce we have begun the development of EQUTYiQ to send personalized texts and emails to sold customers with their own personalized landing page experience. The pairing of SERVICEiQ + EQUTYiQ is going to be a whole 'nother level. The combination of SERVICEiQ and EQUITYiQ will launch at $1,699 per month.

 

[Alex Snyder]

June stats are in. Let's start with what we've been covering.

Over 300,000 repair orders were processed to pull out 84% as actual customers. 25% of those customers were eligible for an offer, which remains a firm ratio. So, dealers, if you service 1,200 repair orders a month, expect 1,008 (1,200 x .84) not to be internal jobs or fleet-type stuff. Then a quarter of those (1,008 x .25) are 252 customers who you can send an offer to trade or sell their car.

Of the ones with good cell numbers, we continue to see a 12% opt-in rate to get the offer and subscribe to future texts. On average, that was 79 customers per dealership last month. We were able to hit an average of 37 customers with a subsequent offer too!

On the email side (where there are a lot of bad email addresses entered at many stores), we saw an average of 127 customers open the email for a 36% open rate, and 33 of those customers jumped into the sales offer for a click-thru rate of 9%. This does not include the customers who schedule their next service out of that email.

All in all, the average number of fresh new leads from dealership service drives was 76, with an additional 55 updated customer records in the CRM due to previous interested customers coming back to play again.

The average number of deals delivered was three units against an average gross total of $16,186.12. This does not include new car orders or customers who did not trade the car we sent an offer on. Every single one of these deals came with a trade attached. SERVICEiQ is $1,299 per month, and with that average gross, dealers saw a fully tracked 12x ROI against their SERVICEiQ bill in June of 2022.

SERVICEiQ is a demand creation software. It is not capturing in-market shoppers, it is incepting the idea of buying a car into your loyal service customers' heads.

Of note was a significant increase in vehicle acquisitions by many more stores. We saw 70% of what was the entire Q2 of street buys happen in June. I'm stoked to see them getting the hang of those!

 

[Alex Snyder]

Any manager wants to know the baseline of his team/product/store, and I'm stoked to say we have enough data to feel confident in SERVICEiQ's baseline. Since we began the Beta in September of 2021, customer engagement percentages have remained constant. Two things change:

1. The number of dealers grows.
2. We add to or make tweaks to the product and will continue to enhance based on these baselines.

July 2022 Service Drive Mining stats:

We still see 84% of all (including internal repair orders and fleets) ROs being individuals with good communication data with a cell phone or email address. 21% of July's repair orders were eligible for an equity offer. That was just shy of 700 people per dealership.

An average of over 600 customers per dealership received a text offer to see how their equity worked on every single car the dealer had in stock, and 13% responded to that offer with "YES." This percentage has remained steady since we launched this product. That turned into roughly 80 customers per store, raising their hands to engage.

Email open rates remained steady at 34%, with click-thru rates at 9%. More baseline percentages.

We saw several dealerships that had been on SERVICEiQ for a while pick up an additional 40ish customers who were using the service department again. These customers raised their hands to look at the offer a second time. The combination of email and text offers generated an average of 69 fresh leads with an additional 123 CRM records updated from repeat visitors.

The ROI grew in July from an average of 3 deals delivered to 4 with a $2,000 avg increase in gross over June! The average gross was $18,137.96. One Chevrolet store grossed $71,213 on 23 deals in July. We saw a CDJR store break $85,000 in gross. And one Toyota store broke $74,000.

These stores spent $1,299 on SERVICEiQ in July, soooooo..... $18,137.96 average gross divided by $1,299 = 13.96x return on that investment.

July was the first month we saw street buys (acquisitions) out-pace direct trade deals

 

[Tallcool1]

You guys are killing it @Alex Snyder . Great job to you and your crew.