in     by Administrator 18-12-2014
0

Over the last couple of decades most OEMs realized that they were loosing service customers to independent providers such as Jiffy Lube, Valvoline, etc.  According to NADA car dealers are only capturing 23% of oil change market.  That realization triggered a worldwide roll-out of dealer branded Quick Lube/Express Service operations.  Unfortunately, many dealers are not maximizing sales opportunities in their Quick Lube/Express Service operations.  

 

‚ÄčCustomers were not coming back to the dealership for their immediate maintenance needs due to inconvenience, perceived high-price, and ineffective phone skills of dealership employees.  OEM Quick Lube/Express Service is designed to address all these issues.  ‚ÄčIn order for the dealership to increase its market share of oil changes it needs to create awareness.  First, dealer's website has to have a page dedicated to Quick Lube.  Second, Sales Department has to let the customer know that Quick Lube is available during the introduction to the Service Department.  Third, Service Department should concentrate on Quick Lube during new owner clinics.  Finally, dealership needs an effective marketing plan to attract customers via mailers, digital marketing, and other channels.  

 

It is a good idea to run Quick Lube/Express Service as a standalone business with dedicated manager and staff.  Main premise of Quick Lube is that a customer can drive in without an appointment and get an oil change done within 45 minutes.  Dedicated manager will ensure proper staffing levels, attentive customer service and most importantly increased revenue through upsell.  It is critical to treat the customers right since they are much more likely to come back for much more profitable maintenance and repair work.  

 

A lot of dealers are caught up with an idea that if they will change oil in 15 minutes or less they are doing a great job.  The point is not to rush through the process but to maximize revenue by upsellng items such as air filters, wiper blades, light bulbs, belts, cabin filters, etc.  To ensure maximum upsell opportunity an A-skilled tech should oversee the work of lube technicians. Low-skill level techs performing oil changes in most Quick Lube/Express Service locations do not have the necessary experience to diagnose a problem.

 

Many dealers do not take advantage of converting Quick Lube/Express Service  customers into Sales customers.  There needs to be a process to identify high-mileage cars and offer customers to trade-in their cars.

 

Bottom line is that running an effective Quick Lube operation allows to increase customer satisfaction and retention, increase customer pay labor, and increase sales of new and used cars.

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