If you’re a new auto dealer, you’ve probably heard the old saying: sales sells the first car, service sells every car after. If a customer returns to your dealership twice in the first year, there is a 74 percent chance that they will purchase their next vehicle at your dealership. If you can’t get them to return, your window of opportunity drops to less than 10 percent. So how do you add loyalty and retention to your service department? Inventory lifecycle management systems such as Elo GPS, in conjunction with its CarRx feature, are helping dealerships across the nation tackle this ongoing challenge.
What Is Elo GPS?
Elo GPS is an advanced, GPS-based inventory management system that gives your dealership comprehensive visibility into your inventory assets with real-time location tracking, theft protection, and the opportunity to maintain a direct connection to your customer’s vehicle through CarRx’s dealer dashboard.
The Challenge and How We Solve It
One of the biggest struggles plaguing new car dealerships is the loss of service retention once a new customer drives off the lot. In fact, 47 percent of dealership gross profit is attributed to dealership service, not car sales. As a result, the ways in which dealers are seeking to get drivers back to the dealership for service and maintenance can be expensive and time-consuming.
CarRx is designed to ensure that selling a vehicle is not the last time you ever see the customer. Unlike the cumbersome and expensive options provided by digital marketing companies, CarRx takes the hassle out of customer communication and streamlines the process of scheduling routine service and maintenance.
How It Works
The Elo GPS system is installed in the driver’s vehicle and scans over 19,000 codes every 15 minutes. When the vehicle hits a certain mileage threshold that meets the factory’s recommended warranty interval, the customer is automatically sent a push notification directly to their smartphone to schedule service at your dealership. Additionally, when a driver’s check engine light is triggered, they can use the Tap to Scan feature to generate a diagnostic report. Customers can schedule maintenance and service requests directly through the app. Unlike factory apps that send your customers to whatever service bay is closest at the time, CarRx only sends your customer back to your dealership.
One of the added perks of CarRx is the dealer dashboard that allows owners and dealers complete visibility into customers' individual needs. Within the dashboard, you can view exactly how many vehicles have Elo GPS installed as well as how many have CarRx. You can also see how many vehicles have their check engine light on and how many are due for routine maintenance. This offers you the opportunity to send direct, personal marketing messages exactly when they are needed. For example, if the dashboard shows a customer is due for a routine oil change, you can send a coupon or offer to encourage them to return to the dealership for service.
It’s also worth noting the savings associated with attracting customers back to your dealership versus traditional marketing channels. Rather than sending coupons and offers to thousands of prospects, you can target only the individuals who are actively in need of service. This targeted approach allows you to incentivize customers for the services you know they need rather than guessing (and hoping) some of the thousands of individuals you sent direct mailers to take the bait and return for service.
The Bottom Line
Elo GPS and CarRx is a unique opportunity for dealers to add value to their customers while also acting as an additional profit center. While the system requires an upfront investment, most dealers experience ROI within 30 to 40 days. Many dealerships that have this solution gross an additional $1 million per year in non-cancelable gross profit, not including the Repair Order (RO) revenues. If you are curious about the benefits of Elo GPS and CarRx and how it can increase your bottom line, get in touch with a representative today to learn more or schedule a demo.