Consider two typical dealership reconditioning operations processing 100 cars a month. One transforms cars using the time-to-line (T2L) recon profit model while the other relies on whiteboards to track each vehicle’s progress. Financially, the difference in incremental gross between the two is $300 per car.
How do we lose so many customers between the sale of the car and their return to service to have it maintained? It is a well-excepted notion that customer retention involves all departments, but the service drive seems to be Ground Zero in making customers loyal.
Traditional dealerships are no longer the only option consumers have when it comes to car buying. Disruptive business models from Amazon, Carvana and others are transforming the automotive industry and posing a risk to local dealers.