Dealership success in slow seasons

A recent report from S&P Global Mobility, as featured on Reuters.com, suggests early signs of a market deceleration due to rising interest rates, credit tightening, and a gradual decline in new vehicle pricing. While it’s far too soon to call exactly how things will shake out, news of a potential slowdown in new and used car sales can send ripples of concern through dealerships nationwide. The challenges of inevitable slower periods are undeniable, but parts departments can play a pivotal role in sustaining dealership success, even during slower seasons. 

Diversify Revenue Streams

In times of uncertainty, parts departments need to diversify their revenue streams. This means expanding your focus beyond just selling parts to retail customers. Consider enhancing your wholesale parts business by actively reaching out to independent repair shops and service centers and improving your systems for wholesale client management. Online parts sales are another great way to widen your customer network.  Building strong B2B relationships can create a consistent income source, helping offset any drops in retail sales. 

Optimize Inventory Management

Effective inventory management is key to parts department success, particularly during slow seasons. Leverage data analytics tools to monitor demand trends and adjust your inventory accordingly. By ensuring that you have the right parts in stock when your customers need them, you can increase sales and customer satisfaction. 

Invest in Training and Development

Invest in the skill development of your parts department team. Well-trained employees can upsell, cross-sell, and provide exceptional customer service, all of which can boost revenue even in a downturn. Consider offering training programs, whether virtual or in-person,  to enhance their product knowledge and customer engagement skills. 

Embrace E-Commerce 

In today’s digital age, e-commerce is a must for any parts department. Create or find a user-friendly online platform where customers can browse and purchase parts from the comfort of their homes. Offering competitive pricing, a wide selection, and convenient shipping options can attract a broader customer base and keep sales rolling in, even when showroom traffic is down.

Marketing and Promotion

It can be helpful to not underestimate the power of good marketing, especially during a slowdown. Develop strategic marketing campaigns to promote your parts department’s offerings. Highlight positive customer feedback, special promotions, discounts, and loyalty programs to incentivize both retail and wholesale customers to choose your dealership for their parts and service needs. 

Customer Relationship Management

Maintaining strong relationships with your existing customers is vital. Use customer relationship management (CRM) software to track and engage with your customers. Sending personalized offers, reminders for maintenance, and requesting feedback can keep your customers loyal and engaged, ensuring they return to your dealership for parts and services. 

Streamline Operations

Efficiency is key during slows. Review your parts department’s processes and look for areas where you can streamline operations. Cutting unnecessary costs and optimizing workflow can help maintain profitability.

While dealerships can face challenges during slower seasons, parts departments have the power to lead their dealership to success. By diversifying revenue streams, optimizing inventory management, investing in training, embracing e-commerce, marketing effectively, nurturing customer relationships, and streamlining operations, parts departments can help weather the storm and emerge stronger than ever. In the face of economic woes and market fluctuations, proactive strategies and a customer-centric approach can make all the difference. Parts departments that adapt to the changing landscape and remain agile are well-positioned to navigate challenging times and continue driving dealership success.

PartsEdge’s monthly service optimizes your inventory so you have the parts you need without overstocking and tying up capital and shelf space. Our team of parts experts is available full-time to answer any inventory questions and our clients get free access to all PartsEdge workshops and seminars. With an average 20% reduction in total inventory, enhanced ROI, and increased parts sales, PartsEdge’s results speak for themselves. If you’re ready to empower your parts department for success, reach out to us today.

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Jeremy Stephens: Inspiring the Next Generation of Automotive Leaders

https://youtube.com/watch?v=oiHxWYInbxM

Jeremy Stephens is the Director of Fixed Operations of the Hiester Automotive Group. He started his career in the automotive business at a local service station. Later on, he became a technician at a Chevrolet dealership and continued in that role until 2010. He is also a certified John Maxwell Leadership Coach, and currently assist other managers in developing their leadership skills through coaching and training.

In this episode of the Parts Girl Podcast, Kaylee Felio interviews Jeremy Stephens, a Fixed Operations Director at the Heister Automotive Group in North Carolina. Jeremy Stephens shares his experience in the industry, including a tragic event that led him back to the dealership. They also discuss the importance of leadership and training the next generation in the automotive industry.

One crucial takeaway from Jeremy’s experience is the importance of consistency. Regardless of the industry, ideas and initiatives must be implemented and followed through consistently for growth and development to occur. This consistency drives improvement, customer satisfaction, and overall success within the dealership.

Jeremy Stephens also emphasizes that leadership is not an innate quality, but a trainable skill. While some individuals may naturally possess certain leadership characteristics, anyone can become an effective leader with the right mindset and training. Developing oneself as a leader is the crucial first step in imparting that knowledge to others and building a culture of leadership within the organization.

To maintain a competitive edge in the automotive industry, it is crucial to attract and retain talented employees. By focusing on personal growth, cultivating leadership skills, and consistently exhibiting a commitment to excellence, individuals can create an environment of growth and development that attracts and retains exceptional talent. Whether you’re a seasoned professional or a newcomer to the industry, these insights serve as a valuable guide in cultivating exceptional leadership skills and driving growth within your organization.

Sponsors:

This episode wouldn’t be possible without the hard work of our team and is powered by PartsEdge: Revolutionizing dealership parts inventory profitability, PartsEdge offers proven strategies that can boost parts sales by an impressive 20%, all while reducing idle inventory. If you’re looking to optimize your parts management, visit www.partsedge.com.

Exclusive Sponsor – Fixed Ops Marketing: Elevate your profitability with Fixed Ops Marketing, a comprehensive marketing solution specializing in viral video marketing and full-service support for service departments. Their services encompass SEO, dealer-branded video content, automation, and social media marketing. Discover how Fixed Ops Marketing can enhance your business today.

⚙️ www.fixedopsmarketing.com

? www.linkedin.com/company/fixed-ops-marketing

Takeaways

  1. Consistenly follow through with ideas.
  2. Leadership is trainable.
  3. Development starts with yourself.

Quote

“When you start focusing on yourself, everything just kind of falls into place.” –Jeremy Stephens

Connect

Jeremy Stephens

LinkedIn: www.linkedin.com/in/jeremyfixedops

Website: www.hiesterauto.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com

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Russell Hill: How AI and EV Are Impacting Fixed Operations

Russell Hill is a Co-Founder & Managing Partner of FixedOPS Marketing, a company providing modern, effective service special coupons and full-service marketing solutions for automotive fixed operations.

The Role of Technology in Fixed Operations

The automotive industry is on the brink of a paradigm shift in fixed operations. With new technologies like AI and EV dominating the market, and customer satisfaction becoming increasingly crucial, dealerships and non-franchise entities face unique challenges and opportunities. In this episode of the Parts Girl Podcast, industry expert Russell Hill engages in an insightful conversation with Kaylee Felio, offering valuable insights for automotive professionals eager to stay ahead in this evolving landscape.

Leveraging Advanced Tools for Marketing Efficiency

As Russell Hill highlights, technology plays a pivotal role in the success of fixed operations. By managing coupons effortlessly across multiple locations and increasing efficiency, advanced tools offer a competitive advantage, streamlining marketing efforts. Dealerships must invest in the right technology to optimize their operations and provide a seamless customer experience.

Prioritizing Customer Satisfaction and Relationship Building

Moreover, a satisfied customer is a loyal customer. Russell Hill emphasizes the significance of customer satisfaction in the automotive industry, particularly during online experiences and face-to-face interactions. Dealerships must prioritize building strong relationships, understanding customer expectations, and providing exceptional service. Retention strategies should begin early on and continue well beyond the warranty period.

The Profitability and Value of Selling Tires

Selling tires has become a significant focus in fixed operations. Hill highlights the profitability and long-term benefits of selling tires. Not only is it the largest purchase customers make during the warranty period, but it also drives continued customer engagement even after the warranty expires. Transparency, technology, and building trust are crucial in this rapidly evolving sector.

Key Insights for Navigating the Evolving Landscape

In conclusion, podcast guest Russell Hill provides crucial insights into the future of fixed operations in the automotive industry. By embracing technology, prioritizing customer satisfaction, and capitalizing on opportunities within the automotive industry, dealerships and non-franchise entities can navigate the evolving landscape successfully.

Sponsors:

This episode wouldn’t be possible without the hard work of our team and is powered by PartsEdge: Revolutionizing dealership parts inventory profitability, PartsEdge offers proven strategies that can boost parts sales by an impressive 20%, all while reducing idle inventory. If you’re looking to optimize your parts management, visit www.partsedge.com.

Exclusive Sponsor – Fixed Ops Marketing: Elevate your profitability with Fixed Ops Marketing, a comprehensive marketing solution specializing in viral video marketing and full-service support for service departments. Their services encompass SEO, dealer-branded video content, automation, and social media marketing. Discover how Fixed Ops Marketing can enhance your business today.

⚙️ www.fixedopsmarketing.com

? www.linkedin.com/company/fixed-ops-marketing

Takeaways

  1. Leverage technology to streamline operations.
  2. Prioritize customer satisfaction by building strong relationships.
  3. Embrace opportunities within the auto industry.

Quote

“Everything is about relationships. So if people like you and trust you, they’ll buy from you.” –Russell Hill

Connect

Russell Hill

LinkedIn: www.linkedin.com/in/russell-b-hill

Website: www.FixedOPSMarketing.com

Kaylee Felio

LinkedIn: www.linkedin.com/in/gotopartsgirl

Website: www.partsedge.com

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Strategies for retaining parts and service customers beyond warranty periods

When the initial excitement of driving a brand-new car fades and the factory warranty clock starts ticking, retaining parts and service customers becomes a pivotal challenge for dealerships. As warranties expire, vehicle owners often seek alternative service providers, including independent auto repair shops. To keep customers loyal and satisfied, dealerships must implement strategies that go beyond the warranty period. In this blog post, we’ll explore effective approaches for retaining parts and service customers long after their warranties have ended. 

Personalized customer engagement

One of the most effective ways to retain parts and service customers is by establishing a personalized and ongoing relationship with them. Dealerships should invest in customer relationship management (CRM) systems to keep track of service history, preferences, and important dates like birthdays or vehicle purchase anniversaries. Sending personalized messages and offers can make customers feel valued and encourage them to return for service even after their warranties have lapsed. 

Competitive pricing and transparency 

Cost is a significant factor that influences a vehicle owner’s choice of service provider. To remain competitive, dealerships should offer pricing that is on par with or even better than independent auto repair shops. Transparent pricing and detailed cost estimates help build trust with customers. Highlighting the value of dealership service, including specialized technicians and genuine manufacturer’s parts, can justify the cost and reinforce the decision to choose your dealership. 

Maintenance packages and loyalty programs 

To incentivize customers to stay with the dealership for their service needs, consider offering maintenance packages or loyalty programs. These programs can include discounted or complimentary routine maintenance services, such as oil changes, tire rotations, or multi-point inspections, for a certain period after the warranty expires. Loyalty rewards, such as discounts on future repairs or exclusive offers, can also be enticing for customers. 

High-quality service and expertise 

Dealership service departments have a unique advantage in terms of specialized expertise. To retain customers, it’s crucial to consistently deliver high-quality service that matches or exceeds their expectations. Well-trained and specialized technicians should be at the forefront of your service team, providing expert care for each customer’s vehicle. Emphasize the dealership’s commitment to continuous training and staying up-to-date with the latest automotive technologies. 

Extended warranties and service plans 

Offering extended warranties or service plans is an excellent way to retain parts and service customers. These plans can provide peace of mind to vehicle owners, knowing that their post-warranty repairs and maintenance are covered. Dealerships can customize these plans to fit individual customer needs and budgets, making them a compelling option for long-term service relationships. 

Enhanced customer experience 

A positive customer experience is a powerful driver of customer retention. Dealerships should focus on creating a welcoming and comfortable service environment, with amenities like Wi-Fi, refreshments, and clean waiting areas. Efficient service processes, clear communication, and timely updates on the status of repairs are essential to keep customers satisfied. 

Proactive communication 

Maintain open lines of communication with customers by proactively reaching out to remind them of upcoming service appointments, recommended maintenance, or recalls related to their vehicle. Regular communication not only keeps your dealership top-of-mind but also demonstrates your commitment to their safety and satisfaction. 

Retaining parts and service customers beyond warranty periods requires a multifaceted approach that combines personalized engagement, competitive pricing, loyalty programs, and a commitment to exceptional service. By implementing these strategies, dealerships can build lasting relationships with customers who will continue to choose them for their automotive needs long after the warranty has expired.

By partnering with PartsEdge, you can better service customers by having the parts you need without overstocking and tying up capital and shelf space. Our team of parts experts is available full-time to answer any inventory questions and our clients get free access to all PartsEdge workshops and seminars. With an average 20% reduction in total inventory, enhanced ROI, and increased parts sales, PartsEdge’s results speak for themselves. If you’re ready to empower your parts department for success, reach out to us today.

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