April 16th, 2014Grand Hyatt New York, NYC

~ Your Capital ~ Your People ~~ Your Brand ~

Presented by

Rescuing Service Profits Through Trust and Price Transparency

Jack Simmons

Average age of vehicle is

11.3 years old

IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013

IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013

Majorityof dealership profits came from Service and Parts between 2005 - 2011

IHS Automotive research, “Cars On American Roads Are Older Than Ever,” December 2013

86%Of vehicles are out of warranty

GREATER SERVICE DEPARTMENT REVENUE

THE OPPORTUNITY FOR

IS ONLY GETTING BIGGER

The service market is expected to grow 15% over the next 3 years

DME Automotive, “The Changing Service Loyalty Landscape,” February 2012

DEALERS ARE NOT SHOWING UP WITH DIGITAL SHOPPERS

R.L. Polk Co., March 2013

DEALERS HAVE THE INITIAL ADVANTAGE

Importance

Online Scheduling

Loaners/Shuttles

Flexible Hours

Type of Service Provider

Price Range

Location

Specials (Coupons/Discounts)

Online Consumer Reviews

Price Guarantee/Warranty

Tech Certification Level

2%

2%

2%

8%

8%

8%

10%

15%

21%

25%

IMPORTANT ATTRIBUTES FOR SERVICE SHOPPERS

Gfk Service and Repair Price Report, October 2013

Flex Hours

Online Scheduling

Loaners/Shuttles

5% Off Discount

10% Off Discount

Online Reviews 3+ Stars

20% Off Discount

Price Guarantee

Certified Tech

Parts & Labor Warranty

Price Guarantee/Warranty

Base

29%

30%

30%

31%

35%

40%

41%

44%

50%

50%

57%

27%

DEALER SHARE OF PREFERENCES

Gfk Service and Repair Price Report, October 2013

MOST IMPORTANT ATTRIBUTES WHEN CHOOSING A SERVICE

PROVIDER

Remind consumers of the dealer’s high quality services, including:• Factory certified technicians mean the job will

get done right• OEM parts are the highest quality parts• Parts and labor warranties offer confidence

consumers will only pay once

Create confidence that dealership prices are reasonable relative to competitors:• Post actual prices on basic service• Offer price guarantees within an established range• Put prices in context to others in the marketplace• Utilize third party resources for credibility, such as

review sites and price listings

IMPLICATIONS FOR DEALERS

97%Of Dealer Website is Sales Content

Only 3% of Dealer Website is Service Content

NADA data 2012

INCREASE VISIBILITY FOR SERVICE SHOPPERS

INCREASE VISIBILITY FOR SERVICE SHOPPERS

2 in 3 new car shoppers indicate service reviews are a factor when choosing where to

purchase a vehicle

• Intercept auto owners when and where they are investigating service and repair providers

• Establish a digital presence and grow the visibility for of the service department to get considered and ultimately, selected versus competition

• Using digital advertising and interacting with service and repair websites will enhance the service component of your dealership website and improve results in only searches

• Grow service review volume and promote on dealership and popular review sites to increase consideration among both service and new car shoppers

EMBRACE DIGITAL MARKETING TO PROMOTE ADVANTAGES OF

DEALERSHIPS

April 16th, 2014Grand Hyatt New York, NYC

~ Your Capital ~ Your People ~~ Your Brand ~

Thank You!

Jack SimmonsDealer Trainer

Cars.com