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Dealer service departments are resilient. Despite major industry challenges, dealer service center market share is up 1% since 2018 and dealership service departments continue to be most used service provider, according to the 2021 Cox Automotive Service Industry Study. But there is a lot of room for growth and improvement, and a lot of potential revenue ($214 billion) still up for grabs.  

Tracy Fred, Tracy Fred, VP Operations — Dealer Sales and Service Solutions, sat down with CBT News to discuss the 2021 Cox Automotive Service Industry Study and how dealerships can have a consumer-first focus to increase revenue. Specifically, she discussed how dealerships can:  

• Better leverage digital tools to meet and exceed modern consumer expectations 
• Overcome barriers that prevent consumers from returning to dealer service departments 
• Offset operational challenges by creating convenient consumer experiences 
• Strengthen consumer relationships by offering and promoting digital tools and services 

By improving the consumer experience, dealer service departments can overcome industry challenges and common consumer frustrations to increase revenue and attract new customers. To learn more about how your dealership can have a consumer-first mindset, download the complete 2021 Cox Automotive Service Industry Study. 

If you missed the Dealer User Summit 2021, we’ve got you covered. Here are a few of the highlights. One common theme that really stood out? The most successful dealerships all have a heavy focus on fixed operations. 

Leverage Fixed Operations to Keep Profits High While Inventory is Low 

Today’s inventory shortage challenges call for a comprehensive, cross-departmental strategy. Your service department, in particular, can be a rich resource for sourcing and selling vehicles.  

During the event, Tiffani Stefanescu, Senior Performance Manager with Cox Automotive, discussed ways to leverage Xtime to address inventory shortages and acquire used cars. She walked through how to effectively promote used car purchases, identify and reach out to trade-in prospects, and get notified when those prospects are in for service. 

The Habits of High-Performing Fixed Ops Dealerships 

Forming good dealership habits takes time, but making changes now to build a strong workplace culture and embrace technology can help you build a world-class service experience.  

Gerald Gregory, manager of Performance Management at Xtime, shared the specific habits, techniques, and practices that separate good service departments from great ones. He taught how to anticipate future needs and make changes to provide the experience and culture your customers want.  

Digitize Your Customer Experience to Increase Customer Satisfaction 

Every year, customers become more tech savvy, more interested in digital experiences, and more likely to manage vehicle service online. So every year your service department does nothing to adapt, it risks falling behind.  

In his session, Matt Hamby, Senior Performance Consultant at Xtime, displayed Xtime’s ability to help you overcome daily inefficiencies and give your customers and staff a modern, world-class digital experience. Atendees learned how to change their client experience to achieve higher retention levels and greater profits. 

See! You don’t have to miss a thing. When you’re ready, our experts will show you how to digitize the service experience and improve customer satisfaction to earn more revenue from your service department. 

You’ve witnessed the first phase of digital transformation. With more personalization and more options, there are more ways than ever before to meet the needs of today’s consumers. Deliver a great experience—no matter which purchase path your buyers choose—with a comprehensive suite of digital tools.

Download this ebook for the new rules of engagement when interacting with customers during the car-buying process. You’ll learn the best practices and technology tips for engaging customers and closing more deals in today’s digital-first retail environment.

Why wait for your customers to tell you the make and model they’re interested in buying, or even whether they’re ready to buy?  

On the new road to the sale, successful dealerships aren’t waiting around for customers to make the first move. They’re proactively reaching out to customers with personalized messaging and offers, thanks to cutting-edge technology that lets them identify shoppers’ interests and intent. 

Make the First Move 

By using both your CRM and automotive intelligence technology, you can gain valuable insights into online shoppers’ interests and intent based on their browsing behavior. With these insights, your sales team can make the first move in the dealer-buyer relationship to give your dealership a competitive advantage.  

If you feel like your dealership is being too forward, don’t. Today’s top dealers are implementing these technologies and sales strategies to improve the car buying experience for their customers. In fact, 38% of dealer loyal customers purchase their vehicle after initial contact from the dealership, according to recent Cox Automotive research.  

Predict the Purchase  

According to the 2020 Cox Automotive Car Buyer Journey, two out of every three U.S. car buyers shop at Cox Automotive sites, including Autotrader, Kelley Blue Book, and Dealer.com websites. That is a lot of consumer data! And it all flows into VinSolutions tools, which in turn deliver insights to dealers that identify which customers are most likely to buy. VinSolutions Connect Automotive Intelligence also predicts the exact make and model each customer will purchase, ensuring you have all the information you need at the exact moment the customer needs a car dealer.  

With this information in hand, your sales team can reach out to customers with confidence. In fact, when consumers are classified as “ready to buy” by Connect Automotive Intelligence, they are 15 times more likely to buy, compared to consumers with inconclusive Buying Signals. * 

Being a forward-thinking dealer isn’t being presumptuous about shoppers. It uses data-driven technology to give your customers what they want and move the sale forward.  

*Source: VinSolutions Connect Automotive Intelligence Data predictions for 30 days prior to purchase in Aug 2020–Feb 2021. 

At Mile High Acura, in Denver, Colorado, turning customer data into new opportunities has yielded great success. With the help of VinSolutions Connect CRM and Connect Automotive Intelligence, the dealership is able to better manage tasks, analyze customer data, and capitalize on every sales opportunity with the help of a few key features: 

• Customizable CRM processes 
• Intuitive reporting tools 

• Personalized customer insights 
• Integrations with other dealership solutions 
• Ongoing support from a VinSolutions Performance Manager 

Download the case study to learn more about how Connect CRM with Connect Automotive Intelligence has helped Mile High Acura thrive. 

Best practices for engaging customers in a new sales environment.  

Instead of following the same scripted, step-by-step car sales process that’s been around for decades, today’s shoppers are forging their own unique path to the sale. But with nearly as many paths to purchase as there are shoppers, how does your sales team engage customers and close deals?  

This guide, Sealing the Deal: The New Rules of Engagement, will show you best practices and technology tips to help you stay in step with today’s shoppers. You’ll learn how to: 

• Build and maintain brand awareness 
• Identify customer interests and buying intent 
• Make personalized offers 

• Leverage data to retain customers  

Download our ebook and learn the new rules of customer engagement.  

Want to deliver the perfect digital service experience? Join Darrel Ferguson, Xtime Director of Performance Management, to learn the “why” and “how to” of implementing a digital service experience that meets customers’ needs.

• Cox Automotive study reveals dealership market share up to 34% with another 66% of the service market still up for grabs, translating to $214 billion in potential revenue.
• The majority of dealerships say the service department is not fully staffed, and 80% expect labor shortages to worsen.
• 9 in 10 vehicle owners who schedule their service visit online are highly satisfied with the experience, but awareness of this and other digital features is still a barrier.

MISSION, Kan., October 11, 2021 – Despite current headwinds and market conditions, dealership service centers remain resilient and continue to be among the most preferred service providers. According to the 2021 Cox Automotive Service Industry Study released today, 34% of consumers prefer dealership service centers, a 1 percentage point increase from 2018, and ahead of general repair shops. And while this is great news for franchise dealers, there is still a majority of the market dealerships aren’t capturing – translating to $214 billion in potential revenue.

Dealership service centers are the most preferred because of their existing relationships. In fact, 55% of consumers say it is because the dealership knows their vehicle. On the other hand, dealerships continue to combat the perception they are overpriced and expensive. The top barriers to returning to the dealership are not only cost, but also location according to consumer rankings, all of which makes way for what owners consider easier and more convenient options, like general repair shops. On top of that, nearly 1-in-4 consumers also say their dealership service visits take longer than expected, adding to their frustration.

Dealerships Working Against Operational Challenges

Exacerbated by the pandemic, service departments cite part delays from manufacturers (58%) and finding or hiring the right technicians (45%) as their top operational frustrations, and both can directly impact the consumer experience, including the notion that service departments take longer than expected. On average, dealerships cite a decline in the consumer satisfaction they deliver, with only 55% of dealers believing satisfaction has improved in the past 12 months (down from 71% when surveyed in 2018). Specific to staffing, 57% of dealership respondents say their service department is not fully staffed, and 80% expect these labor shortages to continue or worsen in the future. The majority (60%) also say the service technician is the top role they plan to grow this year, so there is a focus on investing in this area of the business.

“The industry is ripe for transforming the consumer experience,” said Tracy Fred, vice president of operations for Xtime. “Despite a challenging marketplace, opportunities exist to better leverage digital tools to deliver on and even exceed consumer expectations, while also offsetting some operational challenges. Elevating the entire service experience with a consumer-first mindset and the use of technology can help raise overall profits, capture additional market share and help mitigate the frustrations service departments are currently facing.” 

Opportunity Exists to Better Leverage Digital Solutions to Improve the Service Experience

Dealership service centers offering digital features have a more positive outlook. Of the dealers saying the experience has improved in the past year, ridesharing, progress tracking, online cost estimates, mobile check-in, and other digital services. Not only are they offering these conveniences, but they have the added benefit of meeting consumer demand for a more digital service experience.

Car owners particularly want the ability to schedule their appointment online, and it seems the dealer is striving to meet consumer needs there with 74% of dealers offering this option today. Of those owners scheduling online, 91% are highly satisfied with the experience; however, a third of consumers are unsure if their service provider offers this feature, which is consistent with the 2018 Cox Automotive Service Industry Study.

Consumers also want to review and approve repair estimates online (67%) and access their vehicle service history (66%), which according to those surveyed are among the most critical digital features a service center should offer and provide an added level of transparency and convenience to the service experience.

Top Performers Excel Across Efficiency and Consumer Experience, Helping Boost Profits

Top performing service departments have a consumer-first mindset and use technology to enhance the experience by offering digital tools and convenience-focused services, like rideshare and reviewing and approving repair orders online. Nearly all top-performing dealers surveyed (99%) agree that improving consumer experience is an important focus moving forward.

“Consumers continue to stress the importance of a digital experience, and dealerships must evolve and offer flexibility by enhancing online capabilities,” said Fred. “Meeting consumer demand for convenience by considering new service lines like ridesharing also can help combat location as a barrier. These same services can also be leveraged as new staffing strategies to allow your existing staff to focus elsewhere.”

About the 2021 Cox Automotive Service Industry Study

The 2021 Cox Automotive Service Industry Study included 2,502 consumers in the U.S. from ages 18-75 that have had at least one service visit in the past 12 months, and 529 franchise dealers with decision-making authority over fixed operations. For the complete 2021 Cox Automotive Service Industry Study, visit https://xtime.com/content/guide/service-industry-study/.

About Xtime

Xtime is the leading end-to-end software solution that drives consumer loyalty and revenue for automotive dealers in each stage of the service process. With easy-to-use technology and industry experts, Xtime helps dealers meet changing consumer expectations. As an advanced, connected solution that provides exceptional support, Xtime is committed to helping dealers deliver the ultimate service experience. Through transparency, convenience, and trust, Xtime Spectrum — comprised of Schedule, Engage, Inspect, and Invite — facilitates more than ten million service appointments monthly. Xtime is a Cox Automotive™ brand.

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader^®, Dealer.com^®, Dealertrack^®, Dickinson Fleet Services, Kelley Blue Book^®, Manheim^®, NextGear Capital^®, VinSolutions^®, vAuto^® and Xtime^®,are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

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Media Contact:

Brenna Buehler                                                              

949-473-6595                                      

brenna.buehler@coxautoinc.com