Working the Drive 101: How to Maximize Service Revenue

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800.801.0018 | info@automotiveMastermind.com ©2021 automotiveMastermind ® . All rights reserved. | A business unit of IHS Markit™ LEARN MORE automotiveMastermind.com HOW TO SUPPORT INVENTORY ACQUISITION EFFORTS With new inventory shortages continuing for the foreseeable future, dealerships are on the hunt for popular, well- maintained used vehicles. As auction prices have risen steadily alongside the consumer index, buy-backs and trade- ins have become critical to maintaining a profitable and sustainable pre-owned inventory. The service drive offers dealers a prime opportunity to acquire in-demand pre-owned vehicles. But to stand out against steep trade and buy-back offers from competitors, it's important dealers take a proactive approach when mining their service drive for pre-owned acquisition opportunities. Utilizing the previously mentioned advanced technology, task your team to review your upcoming service appointments to identify high-quality vehicle acquisition opportunities. Your team should assess each customer's service and purchase history to understand their buying trajectory and identify patterns in their portfolio. This is again where the service BDC or service-to-sales liaison can assist in a major way. Dedicating a member of your crossover team to efficiently identify proactive trade opportunities and engage prospects before they enter the service drive sets the stage for an excellent buyback experience. HOW THE SERVICE DRIVE SUPPORTS CUSTOMER RETENTION Typically representing a dealer's highest ROI sales and the most likely to generate service and other fixed-ops revenues, keeping your loyalty customers continually benefits your dealership's bottom line. But as aggressive offers from competitors and emerging online retailing options tempt customers to shop around, dealers need to stay in consistent communication with their loyalty audience to curb defection. The service department offers dealers a natural solution to staying in contact with buyers after the sale. By utilizing behavior prediction technology, dealers are empowered to stay in consistent contact with customers through conveniently timed service alerts. These tools enable dealers to build each customer communication upon the last, acting as a service concierge that keeps customers engaged long term. Instead of competing on cost, craft messaging to your loyalty customers that focuses on your service department's advanced knowledge of their vehicle – and them – as compared to the more generalized service shop down the road. IHS Markit, November 2021 Semiconductor supply isn't forecasted to catch up with industry demand until late 2022, with some persisting into 2023. As new inventory challenges continue and the average age of vehicles on the road rises, dealerships' service departments have grown increasingly important. With proactive, data-driven processes in place, your team will be well-equipped to drive increased profitability right from the service drive, supporting your dealership's sales, acquisition and loyalty efforts. Interested in learning how automotiveMastermind can help your dealership effectively work the service drive to fuel sales and grow your portfolio? Contact us for a free demo. Customers who service their vehicles at the dealership are 2.5x more likely to buy from that same dealer. automotiveMastermind, based on consumers who returned to market over a 120-day window

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