Auto Service Customers Spend 20% More When They Don't Come to the Service Center

Industry Conventional Wisdom Flipped On Its Head!

​RedCap Technologies, a provider of White Labeled Out of Store Experience workflows to the US Automotive Industry, has released its first data set, covering more than 250,000 Franchised Dealer Service Appointments.  The data shows a significant advantage to dealers offering their customers Out of Store service options.  With Service Operations being the core profit center for Franchised Dealers, the significance of service retention & revenue lift is the difference between success and failure.

While analyzing data from more than 250,000 Repair Orders, customers that came into the store were separated from those that chose to have their vehicle picked up, with or without a loaner, thereby choosing to work with the dealer from their home or office.  The results were consistent across brands with all showing a revenue lift on both Customer and Warranty Pay work.  In the high line segment, which includes brands like Audi, Mercedes-Benz, BMW and Jaguar/LandRover, a revenue lift of 20% was customary.  For import and premium segments such as Infiniti and Lincoln, revenue lifts exceeded 25% and peaked at nearly 40%.

Customers spend more money with products and services that are easy, think Amazon. With vehicle service, customers preferring to service their vehicle with a dealer from their home or office are spending more than in store customers. Upselling is easier when time is not a factor. Our platform makes it easy for dealers to work with customers off site.

Stephen Kelley, President & Product Lead

When asked why this revenue lift occurs, Stephen Kelley, President and Head of Product for RedCap Technologies, explained: “Customers spend more money on products and services that are easy, think Amazon.  With vehicle service, customers preferring to service their vehicle with a dealer from their home or office are spending more than in store customers. Upselling is easier when time is not a factor. Our platform makes it easy for dealers to work with customers off site.”

RedCap’s findings are in stark contrast to the way most in the automotive industry view the customer service.  By building large dealerships with sizable customer lounges and amenities, dealers believe customers are happy to sit there.  The data and customer feedback tell a very different story.  Dealers traditionally have to do heavy marketing and discounting to get customers in the store.  More than 50% of customers don’t claim Free Maintenance offers because it is inconvenient to visit the dealership.  By vehicle pick-up and delivery, customers' service only involves minutes of their time as opposed to hours.

About RedCap Technologies:

RedCap is the leading provider of Out Of Store Experience workflows to Automotive Manufacturers and their Franchised Dealers.  RedCap’s platform allows OEM’s and Dealers to provide an “Amazon/Uber-Like” experience to their service and sales customers.  Those running the software can seamlessly offer their customers a Loaner or Test Drive Delivery and Vehicle Pick-up, thereby allowing the customer to avoid the dealership.  The RedCap platform consistently increases CSI, Revenue per RO while reducing certain operational expenses such a staffing and loaner costs.

Media Contact: 
David Zwick
Phone: 954-205-2555 
Email: david@getredcap.com

Source: RedCap Technologies

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