“Times are changing fast as disruptive trends alter the old face of the retail motor industry,” explained Austin. “It is therefore essential that dealers move with the times particularly in tailoring their after-sales service and other offerings to meet the requirements of their customers or risk losing them.”
“Customer retention after the warranty and service or maintenance plans expire is very important as is the ability to justify service costs to customers and to refrain from loading the price to make a quick buck.
“There are now many options for customers in terms of tyre fitment, brake and clutch repairs and battery supply so it is necessary for dealers to offer these services in-house to retain customer business. Dealers have to be more retail oriented and more flexible in the current changing business environment. This includes offering vehicle servicing at times to suit their customers who cannot be without a car for a whole day. Among these customers are travelling salespersons, mom taxi drivers and small entrepreneurs who are totally dependent on their own transport.”
The Sewells MSXI consultant also said that the role of managers in the parts and service department had changed dramatically with the introduction of new technologies in vehicles and in business management.
“For instance a parts manager is now essentially a key account manager whose main focus these days is not ordering and managing stock, but rather looking for business outside the dealership. He or she must then manage these accounts diligently to ensure customers were given a high service level and that these accounts were, in turn, profitable for the dealership,” said Austin.
