The importance of aftersales

Dealers urged to capitalise on aftersales opportunities as competitve climate heats up

Paul Humphreys, Managing Director at incadea UK, is urging dealers to recognise the importance of aftersales and servicing to offset the fall in trade as the new car market declines.

New car sales fell 5.7% in 2017, according to the latest data by the SMMT, released last week.

Paul Humphreys said: "While the used car market is performing strongly, it has been a challenging time for new, and for many dealers, this has hit their bottom line. However, there is a huge opportunity for dealers to counter this downturn and increase profitability through improving their aftersales service.

incadea service provides dealers with a full range of aftersales tools

"Reviewing service capabilities not only helps the sales process by making it more appealing to new customers, it is also a significant retention opportunity for existing customers, and certainly should not be overlooked. At present, we believe dealerships are not speaking loudly enough about their capabilities, and as such, they are missing key opportunities to maximise profit."

Recent research shows that 40% of consumers do not intend to buy their next car from the same dealership that they bought their last vehicle from.* And, in addition, 74% of motorists said they rely on independent garages for servicing and repairs** rather than their dealership.

Humphreys continues: "Times have changed, gone are the days where dealers can rely on buyers going back to the same dealership, or seeking their advice, time and time again.

"When buying a car, customers expect the dealer to offer a wide range of services, not only during the buying process but throughout the lifetime of the vehicle. It's critical that dealers recognise this, rather than opting for a 'car sold, job done' approach.

Loyal customers are essential to dealership survival, through repeat purchases and recommendations
- Paul Humphreys, Managing Director at incadea UK

He added: "Ensuring quality levels of service are maintained is how they will return time and time again.

"Many dealers may not have considered the impact on customer loyalty that can be gained simply by improving their aftercare. If service levels are poor, or non-existent, customers will not remember the experience well, if at all, and will undoubtedly seek alternatives when it comes to their next purchase or service need."

incadea service, formerly known as Xtime RTC, was launched this January sitting within the incadea family of products. It provides dealers with a full range of aftersales tools, through its Advisor app, Workshop platform, Contact call management and Inspect, its integrated electronic vehicle health check system.

With incadea service, dealerships have the ability to enhance and streamline the customer service, workshop booking and vehicle management processes. The online, interactive system helps dealerships control resources, prioritise critical work, and optimise service bookings, as well as benefit from parts ordering, service scheduling and integrated electronic vehicle health check systems.

Humphreys concludes: "Reviewing the aftersales service, in terms of database management, resource control and optimising bookings, is a key step and can generate a substantial return for dealers, much needed in the present climate. If they don't act upon this and evolve with the times, then they stand to lose out to their competitors - both from a car sales and servicing standpoint."

 

 

 

* Cox Automotive / Car Buyer of the Future research as provided in the attached release

** Research by MyCarNeedsA.com, November 2016.