Whitepapers

3 Ways to Drive Dealership Profitability Through the Service Drive Cultivate a Homegrown Inventory For dealers, generating revenue from the same vehicle repeatedly represents the pinnacle of profitability. Focusing on cultivating a homegrown inventory – where a vehicle sold new, serviced, re-acquired through trade, reconditioned and sold again as pre-owned – is critical. This process starts with maximizing ROI on your first new vehicle sale by minimizing costs and identifying the highest value sales prospects. By leveraging behavior prediction tools, dealers can identify buyers before they enter the sales process and engage them with the right messaging at the right time. By engaging prospects before they begin shopping and comparing prices, dealers can maximize profitability. In fact, Market EyeQ's predictive marketing campaigns empower our dealer partners to generate up to 15x ROI. Maximize Service to Sales Connections Commonly missed revenue-generating opportunities at the dealership level are often due to a disconnect between service and sales. Research finds customers who return to a dealership for regular service within the year of ownership are almost 75% more likely to return to that same dealership for their next purchase. But many dealerships are failing to capitalize on this trend. Following unprecedented low dealership inventories, tightening margins and stiff competition, today's automotive dealers are tasked to find new ways to maximize the profitability in every department. Many of these opportunities start in the service drive. However, many dealers struggle to put the proper process in place to connect the dots between their service departments and the rest of the dealership in an efficient, profitable way. To uncover the best possible return on investment and increase dealership profitability through the service drive, dealerships must: 1. Focus on cultivating a homegrown inventory 2. Maximize their service-to-sales process 3. Focus on improving customer loyalty Global light vehicle production is expected to drop to in 2020 (a 19.6-million-unit decline from 2019) IHS MARKIT, AUGUST 2020 69.3 MILLION UNITS

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