Pub. 1 2011 Issue 1

14 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com H ow? Fixed Ops Magazine asserts there are four “levers” that, if “pulled,” can increase service absorption. They are: maximize service vol- ume, maximize customer pay revenue, increase customer total lifetime value, and minimize customer defection to other dealerships or repair shops 3 . The good news is that there are retail process tech- nologies available to help your dealership do all of that and more. With the right technologies in place, you’ll find more ways to: • Attract new, existing, lost, and orphaned customers • Grow more profitable customers, making the most of each visit to your fixed operations • Retain customers for life by keeping them up-to-date with your dealership, and by providing a high level of service The average vehicle on the road is 10.2 years old 2 . In other words, people are putting more miles on their cars. More miles means more work for your Fixed Operations, but to do that, dealerships must increase service absorption. Because dealerships are relying so heavily on Fixed Ops departments for profitability, successful dealerships are investing in those retail process technologies that will help increase service absorption. But investing in Fixed Ops technologies is more than a survival strategy until the economic climate improves; it’s a long-term strategy that will help drive maximum profitability when the recession finally ends. Attracting new, existing, lost, and orphaned customers with retail process technologies • One of the keys to increasing service absorption is maximizing service volume. To do that, dealers must effectively find, reach, and attract new, existing, lost, and orphaned customers… where, when, and how they want to be found. • Because consumers are Internet-savvy, and spend How to Increase Service Absorption Did you know? Most dealerships realize just 55-60% service absorption. 1