Harness the Power of the Sales-to-Service Hand-Off

We hope that you’re starting to see signs of rebounding vehicle sales revenue.  However, are you aware that parts and service revenue is what enabled most dealers to weather the vehicle sales spiral from 2008?  Nationally, parts and service revenue creates 53% of dealers’ gross profit![1] With recent new car sales forecasts questionable, NOW is the best time to put the pedal to the metal on retaining new and used car sales customers in your service department. Lost Revenue Opportunity Manufacturer reports indicate that average dealerships NEVER see half of new and used car customers in their service department.  Furthermore, most dealers lose 10% of their service customers per year. This equates to dramatic lost revenue opportunity for the side of your business that represents over half of your profit.  If you want to maximize your gross profit opportunity, perfecting your sales-to-service hand-off is imperative. Cost-Effective Revenue Opportunity Acquiring new customers is five times more expensive than satisfying your current ones.  “Lost Soul” and “Recapture” advertising campaigns that create a 2-4% response rate are an example of this high cost with minimal return.  Retaining your existing customers is a more cost-effective solution to increasing revenue and profits. Your customers are the most focused and attentive during the vehicle purchasing process, meaning that there’s no better time to attract and maintain service customers.  If you do not effectively execute the sales-to-service hand-off at time of vehicle purchase, be prepared to spend five times more to re-acquire your customers into service down the line. The Introduction Before your salesperson hands over the keys of a new car, your customers should receive...

Monthly Vehicle Walk-Arounds Matter

We know that you love your car.  If you’re like us, the Spring weather has you even more enamored with your four-wheeled friend and you’re likely sprucing it up for joyrides on warm, sunny days.  While you’re busy washing and waxing, take the time to do a vehicle walk-around to ensure everything is in perfect working order.  As a matter of fact, make a commitment to keep doing our walk-around checks once a month so that your ride is in top shape all year long.  Read on for Krex, Inc.’s tips for readying your car for this season and beyond. Give It A Good Wash Washing your own car is a great way to get a good look at the various surfaces, both inside and out.  Removing winter’s residue makes your vehicle look great, but it also helps paint remain in good condition and reduces the likelihood of rust development.  Pay close attention to areas that are often forgotten, like wheel wells and the undercarriage.  Look for spots that require further care, like dings or pieces of loose trim.  If you need help, consult your local new car dealership service department for repairs. Inside Matters Bad weather can be tough on a car’s interior, so now is the time to rejuvenate yours.  Vacuuming out abrasive or corrosive debris, like salt, sand or dirt, goes a long way towards both aesthetic and protective car care.  Make sure to remove floor mats before vacuuming and to clean interior surfaces with a mild detergent (we like Griot’s Garage’s line of products).  While working near doors or windows, pay close attention to weather...