November 2009 marked only the third month in the past two years, including August 2009, that the U.S. auto market demonstrated neutral or
improved sales.1 While the numbers show signs of further stability in the auto market, dealerships still feel pressure to grow their business beyond conventional auto sales. A recent study by Deloitte, entitled Ladies and Gentlemen, Start Your Service Engines*, highlights the fact that service and parts operations can be vital to growth, as they "can be very resilient" during an economic downturn. How can your dealership reach its potential in terms of fixed operations revenue? Read on to learn five ways that your service department can actually help grow your business, even in a down economy.
One: Get your customers in the door more frequently
It seems pretty basic: the more often your customers are in your store, the more business you'll have. But how do you get them in the door on a more frequent basis?
Consumers are trying to stretch the time between basic maintenance appointments. For example, many drivers are extending drain intervals on oil changes or delaying tire rotations. However, the more often you can get a customer into your shop, the more chances you have to help them prevent major repairs.
Encourage them to return, and then reward them when they do! With the Quaker State Preferred Customer Card, customers who have purchase four Quaker State oil changes in a period of 18 months can receive a rebate of up to $50. For customers who've purchased a vehicle from you, it is important to stay top-of-mind after that initial purchase. Research shows that "the proportion of customers bringing their vehicles to the dealer for repair work has declined to a historic low in 2008, averaging 35 percent."** The preferred card helps you retain business by giving customers an incentive to keep coming back to your dealership.
In addition to the rebate, customers can enroll in the Quaker State 10-year/300,000-mile Lubrication Limited Warranty Program if the engine has less than 48,000 miles and was manufactured in the last 48 months. See the warranty program for full details about applicable conditions and restrictions.
Returning customers give you repeated opportunities to demonstrate the value of your service along with the quality and durability of Quaker State motor oil. Satisfied customers usually return, again and again.
Two: Educate your customers on the advantages of full synthetic motor oil
Full synthetic motor oil can be a win-win for you and your customers. It provides greater revenue for your business, but ultimately - your customers should be pleased with the benefits they receive from using full synthetic motor oil in their vehicles.
Make your customers aware of the value that full synthetic motor oils provide. Customers should understand that today's engines are smaller and have tighter tolerances than those of the past, requiring them to work harder for the same performance of previous, larger engines. Full synthetic motor oils outperform conventional and synthetic blend motor oils in nearly all aspects of engine protection.
Full synthetic motor oils keep engines and high-temperature surfaces cleaner, as well as resist burn-off, oil oxidation, oil shear, and sludge better than conventional and synthetic blend motor oils. Keep your customers happy by providing them with motor oil that can help enhance fuel economy, reduce wear and provide better engine protection from friction and performance-robbing deposits.
Three: Invest with manageable spending, but strong ROIs
While a down economy doesn't sound like the perfect time to be investing, there are some things you can invest in with relatively little money that still can provide a significant return.
Conduct a diagnostic service clinic, which can help increase traffic, improve service revenue and re-activate lost customers. Have you hosted a service clinic before that you didn't feel was as successful as it could be? The key is to find a good team with the expertise to help. Shell Lubricants has provided assistance to their lubricant customers for many years. To learn more about the Shell Lubricants formula for conducting successful service clinics, click here. By investing in these opportunities, your dealership can establish credibility and trust in your community, encouraging people to choose your dealership for service.
Four: Don't forsake quality to cut costs
The state of our economy is driving behavior where consumers and installers alike may not be choosing quality motor oil. Unfortunately, this is an area where both parties should take caution about their choices.
Shell Lubricants has embarked on public relations efforts to educate consumers that all motor oils are NOT the same with Motor Oil Matters, a campaign designed to raise awareness of quality distinctions in motor oil.
If your dealership is advertising specific brands, ensure your service department is using them. The goal of Motor Oil Matters is to promote integrity in the marketplace. When consumers believe they are buying a quality product, they must receive what they expect. The last thing you can afford to do in a down economy is lose a current customer's trust and send them shopping elsewhere. Take advantage of the Motor Oil Matters message. When you meet with customers to discuss the service you'll provide, encourage them to specify a product by brand name and be ready to recommend a quality product that will be best for their vehicle's engine.
Five: Maximize savings and opportunity from your supplier
It seems obvious, right? But are you taking full advantage of all your supplier has to offer? Shell Lubricants offers lubricant customers a 3% discount on fleet fuel purchases with the Shell Fleet Plus Card. Dealerships purchasing Pennzoil or Quaker State motor oil receive this 3% fuel discount, not to mention competitive prices on bulk conventional and synthetic oil. If you can save money in one or more areas, you may be able to invest that savings in other areas to help grow your business.
Shell Lubricants also provides comprehensive business development support to help build your overall dealership business - including loyalty and promotional programs, New Car Value Packs, technical support and product training and service clinics. Talk to your dealer account representative in order to take full advantage of the business development opportunities available to your dealership. Or call Mike Burns, Shell Automotive Dealer Group Manager, at 713-546-6327 to learn more about the Shell Lubricants program to support dealership business development.
Mike Burns,
North American OEM/Automotive Dealer Group Manager
713-546-6327
Michael.W.Burns@Shell.com
About Shell Lubricants
The term 'Shell Lubricants' collectively refers to the companies of Royal Dutch Shell plc that are engaged in the lubricants business. Shell Lubricants companies lead the lubricants industry, supplying 13% of global lubricants volume.a The companies manufacture and blend products for use in applications ranging from consumer motor oil and food processing oils to heavy industrial lubricants and commercial transport oils. The Shell Lubricants portfolio of top-quality brands includes Pennzoil®, Quaker State®, FormulaShell®, Shell TELLUS®, Shell CASSIDA®, Shell RIMULA®, Shell ROTELLA® T, Shell SPIRAX®, a portfolio of leading car care brands and Jiffy Lube® lubrication services.
1Source: AIADA MarketWatch International Auto Sales Summary
*http://www.deloitte.com/view/en_IE/ie/industries/consumerbusiness/articl...
** J.D.Power and Associates - Press Release July 17, 2008
