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DEALERS should act now to anticipate the potential growth of agency models – and the first step is to place aftersales at the centre of their customer relationships.

That’s according to Richard Robinson, Chief Operating Officer of digitalisation specialist RTC Automotive, who has highlighted the opportunity for aftersales to become the cornerstone of customer interactions.

Robinson said the car dealership market will become an ‘experience economy’ where customers form long-term loyalties to dealers based not on price, but on their ability to offer a personalised service.

He said: “Dealers have enjoyed high levels of footfall and a resurgence in sales since they were allowed to reopen on 12 April. This signals that, even after a year of intermittent closures and the growth of online-only retailers, consumers still value the in-person experience that showrooms provide.

“This could be a crucial realisation as OEMs look to investigate the possibility of an agency model, whereby the OEM sells cars direct-to-consumer via remote channels, setting prices and maintaining customer data itself. In my view, dealerships would still play a central role in this market: as experience centres, the main outlet through which motorists can see, touch, smell, test and take delivery of cars.

“Dealers will be expected to deliver this experience, and a huge part of it is aftersales. Even if OEMs manage retail themselves, aftersales will still be dealerships’ domain – allowing them to initiate regular customer interactions, manage the relationship directly, and grow long-term, lasting trust.

“In time, this will see aftersales become the heartbeat of customer relationships.”

According to Robinson, there is no longer a need to choose between retail and aftersales when setting business priorities – instead, the key is to adopt a flexible, customer-centric model that focuses on fulfilling customer needs across all channels and over a longer period, not just a single event.

He added: “For tomorrow’s dealerships, retail will still make an important contribution to revenue, while aftersales will be responsible for powering customer relationships and thereby generating opportunities.

“There will always be demand for essential servicing and repairs – and the recurring nature of this demand allows dealerships to repeatedly deliver the seamless and digitally-led experience that motorists now expect. Doing this over time through aftersales, rather than merely as a one-off event, is what will really set dealerships apart in the experience economy.

“How can dealers get this change underway? By implementing the digital solutions that support customer-centricity throughout the business, with appropriate emphasis on aftersales.

“This could include ensuring you have accurate records of customer data and MOT renewal dates; installing the right back-end software to streamline the customer experience; and embedding a company-wide culture that ‘joins up’ retail and aftersales rather than hiding their respective data and insights in silos.”

“By adopting a customer-centric model supported by digital tools, I truly believe that dealerships can create commercial opportunities – not just for repairs and routine maintenance but also for accessory sales and upselling, as customers develop loyalty over the course of multiple rewarding interactions. This will empower them to flourish in the eventuality that agency models are more widely adopted.”

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