Research firm Trend Tracker, have published figures that show the long term trend of independent garages nibbling away at business traditionally done by the franchised networks, the split in the most recent figures being 66% done by independents and 24% by franchised dealer workshops.
One influential player in the servicing market believes this direction of travel is not inevitable and there are a number of things franchised dealers can do to win back market share.
Scott Hamilton, Managing Director of service comparison site MyCarNeedsA.com says of this, “Research has shown that there is a higher percentage of customers returning to independent garages repeatedly, compared to franchised workshops, which indicates that motorists prefer the experience in the independent aftermarket.
“Customer service is key and dealers need to review how they handle customers in the servicing department, on the phone and across digital platforms, to ensure they have a good experience. Our research indicates that customers still believe that they will pay significantly more for a franchised dealer to carry out work and are intimidated by the anticipated experience.
“We know from our research that 39% of our customers are heavily influenced by the services and information provided with the quote, together with the customer reviews. These customers are not buying on price.
“Dealers should heavily promote their customer service via online reviews and star ratings, which can be used on websites, in the showroom and across advertising. Positive reviews encourage motorists to make contact as they are more likely to see the dealer as reputable, reliable and professional.
“However, price is an influencing factor for the majority of customers and many opt for independent workshops and garages because they offer the cheaper option. We have seen many instances where the service department are hamstrung by a budgeted retail rate and miss out on a MOT, servicing or repair lead for £10-15. What would the used car manager pay for that lead?
“Dealers who understand the importance of capturing a new aftermarket customer and ask themselves, how much do they currently spend on traditional marketing to capture a new customer can reap the rewards of this. Once manufacturer on MyCarNeedsA.com is already capturing more than 50% of their brand’s work on the site with over 60% of customers choosing their dealers over independents to carry out clutch replacements. This is a result of a clear customer acquisition strategy in which they specifically targeted customers who own cars 4 years and older.
“Any solution which enables dealers to grow market share is vital for future profitability. It is the dealers that maximise aftermarket leads provided by MyCarNeedsA.com across their entire dealerships, or network that will realise the real benefits. Short term through increased revenues and medium to long term with new customers to build relationships with and sell to across all channels.”
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