Digital Dealer - April 2020 - 10

DEALER OPS & LEADERSHIP

Fixed Operations

By
Ed Kovalchick
CEO & Founder,
Net Profit Inc.

Fundamentals That Drive Critical
Service Customer Retention

>

If you have been on top

of what's going on in our volatile
industry, you know that new vehicle sales departments have been
struggling, and for the most part
swimming in the red most months. Sales
personnel turnover has been as high as
an adolescent in Colorado, managers are
jumping from store to store like primates
in trees, inventories are as fat as a skillet
of lard, and competition raging like the
latest political debate. Frankly, if it wasn't
for leasing capabilities most new vehicle
dealers would be SOL, and that's no exaggeration.

Good News
The good news is that failing new vehicle
sales departments are being propped up
by much more successful family members,
provided these affiliates are structured and

10

[ d i g i t a l d e a l e r. c o m ]

managed suitably. Currently, no one dealer
division is getting a free ride to profit in
the dealer world; however, the used vehicle
group, service assemblage, and parts entities are in a much better position to toss
positive dough into the pot.
Fortunately, new vehicle sales have
been universally steady for some six-plus
years now, pumping service-needy vehicles
onto the thoroughfares. Even better, with
more and more dealer merchants focusing
on the "so-much-better-gross-per-vehicle-than-new" used vehicle department,
mileage-laden autos are hitting the streets
with so much more added service and
parts needs, than new ones just out of the
package.

The Challenge
There are somewhere between 160,000 and
230,000 places (depending on where you

harvest the figure) to get a vehicle serviced in the U.S. Vehicles running up and
down the highways vary from 260,000,000
to 280,000,000, again depending on the
source at a particular time on a particular day. The new franchised dealer count
varies too, from 17,000 to 18,000 depending on how duels and such are counted
on any given day. Consequently, there's a
ratio of some 14 or so repair shops to get a
buggy serviced per one authorized dealer.
These figures calculate out to about 1,100
vehicles per service center including all.
The bottom line is that of all the
choices consumers have available for
vehicle service, about seven percent are
franchised outlets - ouch. When one
examines these impactful stats, the need
to exercise aggressive programs to retain
customers, besides praying for warranty
and recall issues, is very apparent.

April 2020


http://www.digitaldealer.com

Digital Dealer - April 2020

Table of Contents for the Digital Edition of Digital Dealer - April 2020

Digital Dealer - April 2020
Up To Speed|Tech, Dealer News, & People On The Move
Direct From Facebook |Q&A With Facebook
Fixed Operations Fundamentals That Drive Critical Service Customer Retention
Succession Planning Estate Taxes - Still A Problem For Succession
Buy/Sell The 2019 Buy/Sell Market In Review And Expectations For 2020
Branding Sorry, Your Customers Aren't Buying It
Analysis What’s Next In Tier 2 Advertising? Making The Case For “Direct-To- Dealer”
Process & Performance Why Sales Efficiency Needs To Be Your Mantra In 2020
Branding When Dealership Leads Aren’t Enough To Make Your Month
Customer Retention Turbocharge Your Owner Retention Program (Orp) Marketing
Website Less Is More: Optimizing Websites Through Design
Seo/Sem Google Changes The Google My Business Rules For Car Dealers
Digital Retail Lessons From Amazon: How Dealers Can Avoid Becoming The Next Blockbuster
Industry Happenings |Nada 2020 - A Quick Look Recap
Fixed Operations Trading Dollars For Service And Trading Service For Dollars
Digital Dealer - April 2020 - CT1
Digital Dealer - April 2020 - CT2
Digital Dealer - April 2020 - Digital Dealer - April 2020
Digital Dealer - April 2020 - Cover2
Digital Dealer - April 2020 - 1
Digital Dealer - April 2020 - 2
Digital Dealer - April 2020 - 3
Digital Dealer - April 2020 - 4
Digital Dealer - April 2020 - 5
Digital Dealer - April 2020 - Up To Speed|Tech, Dealer News, & People On The Move
Digital Dealer - April 2020 - 7
Digital Dealer - April 2020 - Direct From Facebook |Q&A With Facebook
Digital Dealer - April 2020 - 9
Digital Dealer - April 2020 - Fixed Operations Fundamentals That Drive Critical Service Customer Retention
Digital Dealer - April 2020 - 11
Digital Dealer - April 2020 - Succession Planning Estate Taxes - Still A Problem For Succession
Digital Dealer - April 2020 - 13
Digital Dealer - April 2020 - Buy/Sell The 2019 Buy/Sell Market In Review And Expectations For 2020
Digital Dealer - April 2020 - 15
Digital Dealer - April 2020 - 16
Digital Dealer - April 2020 - 17
Digital Dealer - April 2020 - 18
Digital Dealer - April 2020 - 19
Digital Dealer - April 2020 - 20
Digital Dealer - April 2020 - 21
Digital Dealer - April 2020 - 22
Digital Dealer - April 2020 - 23
Digital Dealer - April 2020 - Branding Sorry, Your Customers Aren't Buying It
Digital Dealer - April 2020 - 25
Digital Dealer - April 2020 - Analysis What’s Next In Tier 2 Advertising? Making The Case For “Direct-To- Dealer”
Digital Dealer - April 2020 - 27
Digital Dealer - April 2020 - Process & Performance Why Sales Efficiency Needs To Be Your Mantra In 2020
Digital Dealer - April 2020 - 29
Digital Dealer - April 2020 - Branding When Dealership Leads Aren’t Enough To Make Your Month
Digital Dealer - April 2020 - 31
Digital Dealer - April 2020 - Customer Retention Turbocharge Your Owner Retention Program (Orp) Marketing
Digital Dealer - April 2020 - 33
Digital Dealer - April 2020 - Website Less Is More: Optimizing Websites Through Design
Digital Dealer - April 2020 - 35
Digital Dealer - April 2020 - Seo/Sem Google Changes The Google My Business Rules For Car Dealers
Digital Dealer - April 2020 - 37
Digital Dealer - April 2020 - Digital Retail Lessons From Amazon: How Dealers Can Avoid Becoming The Next Blockbuster
Digital Dealer - April 2020 - 39
Digital Dealer - April 2020 - Industry Happenings |Nada 2020 - A Quick Look Recap
Digital Dealer - April 2020 - 41
Digital Dealer - April 2020 - Fixed Operations Trading Dollars For Service And Trading Service For Dollars
Digital Dealer - April 2020 - Cover3
Digital Dealer - April 2020 - Cover4
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