The conventional wisdom in the industry is that 50 percent (or more)
of OEM profitability occurs after the sale of the vehicle. The dealer
plays a critical role in this process as the primary customer interface.
Unfortunately, dealers and OEMs have never been on the best of terms.
And when it comes to leveraging service opportunities to crank up
profits there remains much room for improvement.
The good news for dealers is that there are a proliferating range of
suppliers and solutions to make the connections between car buyers and
their dealers more “sticky” and more profitable. These solutions are
focused on either vehicle diagnostics or service scheduling or both.
This is not a new challenge for the industry, but new technology is
altering industry relationships and changing the customer experience.
The increased interest is actually supported by recent findings
published by JD Power and Associates in its 2011 U.S. Automotive
Emerging Technologies study. According to the results of a survey of
nearly 18,000 vehicle owners, remote diagnostics was the feature with
the highest degree of interest after the market cost was revealed.
Interest after market price is revealed
Remote vehicle diagnostics – 55%
Non-branded premium sound system – 52%
Wireless connectivity system – 50%
Rear-vision camera system – 46%
Blind spot detection – 45%
A handful of companies are leading the way in closing the diagnostics/service gap. Xtime, is the market leader in what it calls ServiceCRM. GoPoint Technology has an iPhone app and OBDII connection to allow dealers or consumers to diagnose vehicle problems. And Vinvox has an OBDII plug-in to allow dealers to manage and monitor customer vehicles needing repairs or maintenance.
GoPoint and Vinvox are new to the market, with Vinvox in the very earliest start-up stages. Xtime, on the other hand, already boasts a robust following among OEMs. In
fact, Xtime is unique among these three companies in pursuing
relationships with OEMs, while GoPoint and Vinvox are designed to be
offered directly to dealers – and GoPoint as the only direct to consumer
play.
Xtime
says its ServiceCRM automates and integrates electronic service menus
as well as online/dealership/call center/smartphone/telematics
scheduling, online bill pay, electronic service notifications,
comprehensive shop control, greeter boards, management reporting and
certified DMS connectivity into a unified, web-based platform.
Xtime
says it delivers its ServiceCRM product via the Internet to over 3,200
dealers today. This “Software as a Service” or SaaS business model empowers the dealer to schedule customer service visits and promotional campaigns.
The company is also piloting a Mobile Service Advisor (Q3) to enable a full check-in solution. Xtime
says its MSA includes electronic inspections, advisor appointment
views, trim-level menus, vin scan, photo/video capture, automated
customer signatures and electronic notifications, for fast customer
check-in. All functions are delivered on a tablet computer.
Xtime
says it is the exclusive provider of these functions for car companies
such as Infiniti, Nissan, Lexus, Toyota Canada, Southeast Toyota,
Chrysler and Hyundai and is the preferred provider at BMW, Toyota USA
and Audi. Xtime is also the
exclusive provider for many of the industry's leading dealership groups,
including AutoNation, Group 1 Automotive, Sonic Automotive, West Herr,
Luther, Ferman and Checkered Flag. CustomerTraac,
The Market Store, DME (owned by JM Solutions), Aspen Marketing and
Dealer’s Greatest Assets (DGA) all use Xtime to power their centralized
call centers for service scheduling.
Xtime
is actually an important element of Hyundai's Blue Link telematics
eco-system providing a critical link between Hyundai, the customer and
the dealer. The ability exists within the Xtime implementation with
BlueLink for automatic notifications to go to dealers in the event of a
vehicle DTC (diagnostic trouble code) occurrence. If the consumer opts
in - to share vehicle information - and if the feature is enabled
dealers will be notified of the DTC and can then reach out to notify the
customer.
This capability
is an industry first when and if it is enabled at the launch of
Hyundai's Blue Link solution. The Hyundai implementation stops short,
however, of providing dealers a proactive view of the status all
customer cars. Privacy concerns are likely impeding this next step.
But privacy is not interfering with advances in the aftermarket.
GoPoint’s
iPhone-based solution is unique in putting diagnostic capabilities in
the hands of the consumer or the service manager. Unlike
a competing solution from CarMD, which is a dedicated device, GoPoint
combines a free downloadable app for the iPhone with a diagnostic cable
for the OBDII connection to tap into the vehicle codes on the Can bus.
Vinvox
also integrates with smartphones and offers Web-based means for both
consumers and dealers to view vehicle history and warranty and repair
status along with vehicle codes, but Vinvox dispenses with the cable in
favor of an OBDII plug-in with a cellular connection. VinVox’s
Retriever provides real-time notifications of required service or
maintenance to the dealer and driver giving the dealer a powerful
customer relationship management tool.
Implications:
What is clear is that OEM telematics systems have failed to fulfill the promise of customer/vehicle relationship management. Aftermarket
providers are diving into this yawning gap with clever solutions
intended to empower dealers to better manage their fixed servicing
assets while also enabling consumers to better understand that
functional status of their vehicles.
How the OEMs could have missed this opportunity is hard to comprehend. There is no doubt they see the money being left on the table now, though. Within
a few years, car makers will have refined their dealer service
integration solutions and, maybe, they will win dealers back.
The
goal is a centralized CRM/VRM model that gives the OEM a view to global
vehicle servicing activities while giving the dealer the tools he or
she needs to manage and measure customer service opportunities and, at
the same time, creates a Web-based window for the consumer to better
understand the service and maintenance status of their own car.
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