A new article in Ward’s Dealer Business lays out the case for dealerships using more technology in service centers. In summary:
- With disappointing sales of new and used cars, dealerships increasingly depend on service centers for their profitability;
- Meanwhile, independent repair shops are taking market share from dealerships because they are perceived as cheaper and more trustworthy;
- Dealerships must compete on the basis of service quality and convenience, where they have advantages over independents. If they don’t, they will continue to lose share. As we tout on the top of the site every day, 70% of off-warranty vehicle repairs go to independent shops. That should be a frightening statistics for dealers, as it suggests that consumers who can choose their providers overwhelmingly avoid dealership service centers.
- One of the best methods of demonstrating superior service is through technology that brings transparency and convenience to consumers.
Again, read the whole thing. The data on consumer preferences for independents over dealers is especially interesting.