Right now the motor industry is facing numerous challenges. Having experienced a significant reduction in the F&I opportunity, we are now dealing with stricter lending conditions (i.e. higher finance fallover rates), a nervous consumer whose expectations have never been greater.
In this environment, the ‘conquest sale’ offers less returns and Dealers need to focus their efforts on their existing customer base. A combination of systematic, ‘segmented’ data base marketing, improving our ‘digital reach’ with our existing (and potential) customers, whilst truly working the service driveway for sale opportunities is where higher returns will be derived.
Having generated the customer activity, we need to ensure we achieve benchmarks in every department to maximise success in this challenging environment.
These benchmarks are used to identify areas of potential improvement. It is far too easy to accept excuses as to why a dealership does not perform to its optimum.
Use these guidelines as a tool to identify areas of under-performance, allowing for factors such as location, size and franchise.
Of course, Fordham Motor Dealer Services encourages all clients to contact us for an action strategy to attend to any specific issues.
Should you wish to discuss these matters further, please contact your Fordham Motor Dealer Services Partner on +61 3 9611 6601.
Frank Genobile fgenobile@fordhamgroup.com.au