Page 20 - On The Move - Volume 18, Issue 1

fter inking the deal on a car purchase, many dealership customers
Athen get a quick tour of the service department and meet the
service manager. The thinking is that such visits will increase the
S likelihood of the buyer returning to the dealership for eventual service
Steve Finlay, teve Finlay,
R
Retired WardsAuto Senior Editoretired WardsAuto Senior Editor and maintenance work. But some people question the effectiveness of
that traditional practice.

One of the doubters is David Foutz, vice service,” Foutz says. “We’re seeing a Although some high-end dealerships
president-sales for Cox Automotive’s strong movement in that direction.” have offered the service for a while, it
Kelley Blue Book, Dealertrack DMS has become increasingly popular during
and Xtime, a provider of software that, the pandemic, a time when many people
among other things, allows customers to are reluctant to venture here and there
book service appointments online. “Cox unless they must. Foutz says dealership
recommends getting away from that pick-up and delivery service won’t end
traditional person-to-person customer when the virus crisis abates. “It’s one of
handoff,” Foutz says. those things that is here to stay. People
love the convenience of the dealership
For one thing, in the age of COVID picking up their car for service and then
there isn’t always a customer on the bringing it back to them.”
premises to hand off. That’s because of
an increase in consumers who prefer to Another service department extra effort
do the lion’s share of the automotive- that is going over well with customers:
purchase process online. The dealership auto technicians video recording and
instead home-delivers the vehicle to photographing what on a customer’s
them. It has become a well-received vehicle needs immediate or eventual
convenience. “But it has put a wrench repairs. The technician then emails or
in the sales-to-service handoff,” Foutz texts the visuals to the customer. Rather
says. than just saying what the problem is, “a
video of a technician telling and showing
As an alternative, he recommends you what is broken is powerful,” Foutz
dealership salespeople introduce Nearly 70% of surveyed consumers says.
customers to Xtime’s service say pick-up/delivery service would
appointment tool and show them how draw them to a dealership offering it, It’s all part of getting car buyers to rely
to use it to make their first maintenance he says. And more than half of them on the dealership for service work.
appointment. Whether done with the said they would be willing to pay $20 Dealers can struggle with service-
customer in the store or online, that for each pick-up and delivery. “That customer retention. Many car buyers
approach accomplishes two things, he barely offsets the cost, but we also are end up not returning to the dealership
says. One, it familiarizes them with seeing that people who use pick-up and for service work but instead patronize
how Xtime works. “It is a moment of delivery average a $200 increase in independent repair shops or chain car
orientation,” Foutz says. Two, it opts repair orders,” Foutz says. care centers.
them into the Xtime system so they
will receive systematic follow-ups and He advocates charging something for “In some cases, 40% to 50% (of car
appointment reminders. Customers pick the convenience because “something buyers) don’t show up for service at
their preferred communication channel. for nothing hasn’t as much value, and a dealership once a vehicle is out of
“Xtime also facilitates the pick-up the average consumer assumes you will warranty,” Foutz says.
and delivery of vehicles going in for charge something.”

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